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
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
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
100%
At the end of last year, Roberts Inc. reported the following
income statement (in millions of dollars):
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
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
Transcribed Image Text: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
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