At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars):Sales$3,000Operating costs excluding depreciation2,450EBITDA$550Depreciation250EBIT$300InterestEBTTaxes (25%)124$176Net income44$132Looking ahead to the following year, the company's CFO has assembled this information:Year-end sales are expected to be 12% higher than the $3 billion in sales generated last year..Year-end operating costs, excluding depreciation, are expected to equal 70% 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 Roberts' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediatecalculations. Round your answer to two decimal places.$million

To forecast Roberts Inc.'s year-end net income, let's calculate the relevant figures based on the…

Answered: At the end of last year, Roberts Inc.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?
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