At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,250.00 Operating costs excluding depreciation 3,035.00 EBITDA $1,215.00 Depreciation 300.00 EBIT $915.00 Interest 130.00 EBT $785.00 Taxes (40%) 314.00 Net income $471.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.25 billion in sales generated last year.
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,250.00 Operating costs excluding depreciation 3,035.00 EBITDA $1,215.00 Depreciation 300.00 EBIT $915.00 Interest 130.00 EBT $785.00 Taxes (40%) 314.00 Net income $471.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.25 billion in sales generated last year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):
Sales | $4,250.00 |
Operating costs excluding |
3,035.00 |
EBITDA | $1,215.00 |
Depreciation | 300.00 |
EBIT | $915.00 |
Interest | 130.00 |
EBT | $785.00 |
Taxes (40%) | 314.00 |
Net income | $471.00 |
Looking ahead to the following year, the company's CFO has assembled this information:
- Year-end sales are expected to be 6% higher than $4.25 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
(in millions of dollars) | |
Sales | $ |
Operating costs excluding depreciation | |
EBITDA | $ |
Depreciation | |
EBIT | $ |
Interest | |
EBT | $ |
Taxes | |
Net income | $ |
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