Explain forecast for firm-s year-end 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 $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?

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Finance Basics: Explain forecast for firm-s year-end net income
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