The tax rate is expected to remain at 40 on the basis of


Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,100.00 Operating costs excluding depreciation 3,060.00 EBITDA $1,040.00 Depreciation 330.00 EBIT $710.00 Interest 160.00 EBT $550.00 Taxes (40%) 220.00 Net income $330.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.1 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 80% of sales. Depreciation costs are 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 this information, what will be the forecast for Edwin's year-end net income? Enter your answers in millions. Round your answers to two decimal places. Do not round intermediate calculations. Enter all values as positive numbers. (in millions of dollars)

Sales $

Operating costs excluding depreciation

EBITDA $

Depreciation EBIT $

Interest EBT $

Taxes

Net income $

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Financial Management: The tax rate is expected to remain at 40 on the basis of
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