User Account

All Pages

What will be the forecast for roberts year-end net income

Assignment Help Financial Accounting
Reference no: EM132766821

Question - PRO FORMA INCOME STATEMENT 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%.

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

Reference no: EM132766821

Questions Cloud

What were delberts gross earnings this week : Delberts total sales for this week were $6,700. What were Delberts gross earnings this week under the new arrangement of 10% of all sales
Corporate social responsibility campaign : Why your selected social cause or issue is a good match with your chosen corporation for creating a corporate social responsibility (CSR) campaign
Discuss what resources are often necessary for nonacute care : Discuss what resources are often necessary for nonacute care for cardiorespiratory issues. Explain how they support patient independence and decrease.
What would be important to tell a child about puberty : This module introduces the topic of puberty and explores how children develop physically, psychosocially, and cognitively during this time.
What will be the forecast for roberts year-end net income : Year-end sales are expected to be 10% higher than the $3 billion in sales generated last year. What will be the forecast for Roberts year-end net income
Compare anorexia nervosa and bulimia nervosa : Compare and contrast anorexia nervosa and bulimia nervosa. Who is more likely to suffer from anorexia nervosa and bulimia nervosa? Why?
The path to information value : "The Path to Information Value" that Seventy percent of managers and executives say data are "extremely important" for creating competitive advantage.
Explain the major functions of management accounting : Describe and explain the major functions of management accounting and explain the differences between management accounting and financial accounting
Big data in supply chain : Logistics and Supply Chain Management - Big Data in supply chain - responsible for appropriately citing material and methods that you use.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute annual depreciation for the first and second years

Windsor, Inc. acquires a delivery truck at a cost of $56,000. The truck is expected to have a salvage value of $6,000 at the end of its 5-year useful life.

  Find what will be the after-tax proceeds on the sale

Find what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%,If the sewing machine is sold after 2 years for $55,000

  Disclosure of depreciation expense in income

disclosure of depreciation expense in income statement.merton company purchased a building at a cost of 364000 on

  Spreads for the various bond ratings

Begin by finding the current U.S. Treasury yield curve. I will give you the Treasury data; so you do not need to find it. Find the current yield spreads for the various bond ratings.

  Journal entry to record the declaration of stock dividend

Earnhardt Corporation has outstanding 3,051,000 shares of common stock of a par value of $10 each. The balance of in it's retained earnings account at January 1, 2014, was $24,730,000, and it then had Paid-in Capital in Excess of par - common stock o..

  What is the price if a markup of forty percent

Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

  Calculate dynamic net income for the year

During the? year, there were no new capital contributions and the owner withdrew $55,000. Calculate? Dynamic's net income for the year

  Compute for the total amount paid by anne to dune

Compute for the total amount paid by Anne to Dune to acquire the investment,On July 1, 2019, Anne Company purchased 20% of the outstanding

  How the transaction in matter should be treated

Provide a well- reasoned argument where you use the "new" definitions of elements and the recognition criteria as set out in the new Conceptual Framework

  Prepare beka company journal entries to record the sale

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2008. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.

  Calculate the allocation of profit

Calculate the allocation of profit for 2014 and 2015, assuming profits are divided as Based on the ratio of the partners' original investments.

  Patient services departments are adult and pediatric service

Assume that the three patient services departments are adult services, pediatric services, and other services. What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? What is the diffe..

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