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 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?