User Account

All Pages

What will be the forecast for roberts'' year

Assignment Help Finance Basics
Reference no: EM131106420

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 this information:

• Year-end sales are expected to be 10% higher than the $3 billion in sales generated last year.

• Year-end operating costs, excluding depreciation, are expected to equal 80% of yearend 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 that information, what will be the forecast for Roberts' year-end net income?

Reference no: EM131106420

Questions Cloud

Create threads causing a racing condition : In your test program you will need to create 100 or more threads causing a racing condition. One racing condition example can be each thread constantly requests a PID in multiple iterations.
Develop organizational-level goals : Develop organizational-level goals. Develop departmental-contributor-level and individual-contributor-level goals aligned with the organizational goals.
What factors influence the dividend policy of a company : What factors influence the dividend policy of a company?
Assumption of customer responsibilities : How does the job of the CIO change with the assumption of customer responsibilities? Do you agree with this new development? Why or why not?
What will be the forecast for roberts'' year : 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 that information, what will be the forecast for Roberts' year-end net income?
What amount of deferred tax asset should west report : West determined that no valuation allowance was needed. What amount of deferred tax asset should West report in its December 31, 2010 balance sheet?
Indicate how each of the following accounts : Indicate how each of the following accounts should be classified in the stockholders' equity section.
Describe the tangent space at the identity matrix : What is the dimension of O(n)? Describe the tangent space of O(n) at the identity matrix as a subspace of M(n)
Ordering cameras with uncertain demand at machey : In the first (R,Q) model in Example 12.7, the one with a shortage cost, we let both Q and the multiple k be changing cells. However, we stated that the optimal Q depends mainly on the fixed ordering cost, the holding cost, and the expected annual ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the minimum required rate of return

Explain what is his or her minimum required rate of return -  A foreign investor placing money in dollar denominated assets desires a 4% real rate of return.

  Finance based question

A store sells almonds fo $6 a pound, cashews for $5 a pound, and peanuts for $2 a pound. One week the manager decides to prepare hundred sixteen ounce packages of nuts by mixing 40 pounds of peanuts with some almonds and cashews.

  On march 1 the price of oil is 20 and the july futures

1.on march 1 the price of oil is 20 and the july futures price is 19. on june l the price of oil is 24 and the july

  What is that cost to the us firm in six months

You learned from week 6 that both the money market hedge and the forward hedge lock in the cost of the machinery. What is that cost to the U.S. firm (in dollars) in 6 months? Show your work.

  Tanner inc needs to raise 73 million to finance its

tanner inc. needs to raise 73 million to finance its expansion into new markets. the company will sell new shares of

  Availability of the resource and consequences

What do you predict will happen to both the availability of the resource and consequences of using it as the population continues to increase?

  Discuss the underlying conceptual issues concerning revenue

revenue recognition when the right of return exists was standardized in 1981 by sfas no. 48. prior to this sop 75-1

  Distinguish between operating mergers and financial

distinguish between operating mergers and financial

  If an allied chemical zero-coupon bond due in 12 years is

if an allied chemical zero-coupon bond due in 12 years is selling for 420.00 what is its yield to

  Measuring growth-common stock valuation

If the Stanford Corporation's net income is $228 million, its common equity, and management plans to retain 68 percent of the firm's earning to finance new investments, what will be the firm's growth rate?

  The manufacturing manager for modern manufacturing company

the manufacturing manager for modern manufacturing company mmc is working on a justification for implementing a

  Blaine kitchenware case study

What effect would the proposal have on Blaine's balance sheet?calculating three effects of the proposal.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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