At the end of last year, John Inc. reported the following income statement (in millions) Sales $3,000 Operating costs excluding depreciation 2450 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 this information: - Year-end sales are expected to be 10% higher than the $3 billion in sales generated last year. - Year-end operating costs, excluding depreciation, are expected to equal 80% 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% On the basis of that information, what will be the forecast the forecast for John's Inc. year-emd net income.
Topic: Pro Forma Income Statement
At the end of last year, John Inc. reported the following income statement (in millions)
Sales $3,000
Operating costs excluding
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 this information:
- Year-end sales are expected to be 10% higher than the $3 billion in sales generated last year.
- Year-end operating costs, excluding depreciation, are expected to equal 80% 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%
On the basis of that information, what will be the
Working note:
Step by step
Solved in 2 steps with 2 images
