Pro forma income statement At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars):Sales ………………. $3,000Operating cost excluding depreciation …… 2,400EBITDA …………….. $ 500Depreciation …………….. 250EBIT ………………. $ 300Interest ………………. 125EBT ………………. $ 175Taxes (40%) ……………. 70Net Income …………….. $ 105Looking ahead to the following year, the company’s CFO has assembled the following information:A) Year-end sales are expected to be 10 percent higher than the $3 billion in sales generated last year.B) Year-end operating costs, excluding depreciation, are expected to equal 80 percent of year-end sales.C) Depreciation is expected to increase at the same rate as sales.D) Interest costs are expected to remain unchanged.E) The tax rate is expected to remain at 40 percent.On the basis of this information, what will be the forecast for Robert’s year-end income?View Solution:
Pro forma income statement At the end of last year