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: ●...

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 depreciation, are expected to equal 80% of yearend
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 for Roberts’ year-end net income?

Extracted 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