Calculation of net income

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Reference no: EM1313162

Calculation of net income.

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 $3billion in sales generated last year.
Year-end operating costs, excluding depreciation, are expected to equal 80 % 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 %.

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

Reference no: EM1313162

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