At the end of last year roberts inc reported the following

Assignment Help Finance Basics
Reference no: EM13485063

At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars)

Sales $3,000
Operating costs excluding depreciation 2,450
EBITDA $550
Depreciation 250
EBIT $300
Interest 125
EBT $175
Taxes (40%) 70
Net income $105

Looking ahead to the following year, the company's CFO has assembled the following information

Year-end sales are expected to be 10 percent higher than the $3 billion in sales generated last year.
Year-end operating costs, excluding depreciation, are expected to equal 80 percent of year-end sales.
Depreciation is expected to increase at the same rate as sales.
Interest costs are expected to remain unchanged.
The tax rate is expected to remain at 40 percent.

On the basis of this information, what will be the forecast for Robert's year-end net income?

Reference no: EM13485063

Questions Cloud

Tinkers bells has sales of 27 million total assets of 19 : tinkers bells has sales of 27 million total assets of 19 million and total debt of 6.4 million. if the profit margin is
The market is expected to rise over the coming year for a : the market is expected to rise over the coming year. for a stock with a beta of -0.8 a. the expected value of the
One company purchases all of the outstanding shares of : one company purchases all of the outstanding shares of another company. the acquiring company incurs the following
The charges to work in process-baking department for a : the charges to work in process-baking department for a period as well as information concerning production are as
At the end of last year roberts inc reported the following : at the end of last year roberts inc. reported the following income statement in millions of dollarssales 3000operating
Yanmei construction company began operations january 1 2010 : yanmei construction company began operations january 1 2010. during the year yanmei construction entered into a
Assume that 80 of the cost of revenue and 30 of the selling : assume that 80 of the cost of revenue and 30 of the selling general and administrative expenses are variable to the
If homer reports net income of 2000000 and it follows a : homer telecommunications has a target capital structure that consists of 70 percent debt and 30 percent equity. the
Given the fixed and variable costs that have been : there is a retail store selling dvds. this business is relatively simple with approximately the same contribution

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd