At the end of last year, Ralph 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 124 EBT $176 Taxes (25%) 44 Net income $132 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 8% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 65% 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 25%. On the basis of that information, what will be the forecast for Ralphs' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places. $( )million
At the end of last year, Ralph 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 124 EBT $176 Taxes (25%) 44 Net income $132 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 8% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 65% 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 25%. On the basis of that information, what will be the forecast for Ralphs' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places. $( )million
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
At the end of last year, Ralph Inc. reported the following income statement (in millions of dollars):
| Sales | $3,000 |
| Operating costs excluding |
2,450 |
| EBITDA | $550 |
| Depreciation | 250 |
| EBIT | $300 |
| Interest | 124 |
| EBT | $176 |
| Taxes (25%) | 44 |
| Net income | $132 |
Looking ahead to the following year, the company's CFO has assembled this information:
- Year-end sales are expected to be 8% higher than the $3 billion in sales generated last year.
- Year-end operating costs, excluding depreciation, are expected to equal 65% 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 25%.
On the basis of that information, what will be the
$( )million
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