Question: Pro forma income statement at the end of last year, Roberts Inc. reported the given 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% higher than the 3 billion dollar in sales generated last year.
Year-end operating costs, excluding depreciation, are expected to equal 80% of year-end sales.
Depreciation is expected to rise 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 Robert's year-end net income?