Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,300.00 Operating costs (excluding depreciation) 3,095.00 EBITDA $1,205.00 Depreciation 325.00 EBIT $880.00 Interest 160.00 EBT $720.00 Taxes (40%) 288.00 Net income $432.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to increase at the same rates as sales. Depreciation costs are 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 this information, what will be the forecast for Edwin's year-end net income? Round your answers to two decimal places. Do not round intermediate calculations. Enter all values as positive numbers. (in millions of dollars) Sales $ Operating costs (excluding depreciation) EBITDA $ Depreciation EBIT $ Interest EBT $ Taxes Net income $

Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,300.00 Operating costs (excluding depreciation) 3,095.00 EBITDA $1,205.00 Depreciation 325.00 EBIT $880.00 Interest 160.00 EBT $720.00 Taxes (40%) 288.00 Net income $432.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to increase at the same rates as sales. Depreciation costs are 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 this information, what will be the forecast for Edwin's year-end net income? Round your answers to two decimal places. Do not round intermediate calculations. Enter all values as positive numbers. (in millions of dollars) Sales $ Operating costs (excluding depreciation) EBITDA $ Depreciation EBIT $ Interest EBT $ Taxes Net income $

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales Operating costs (excluding depreciation) EBITDA Depreciation $4,280.00 3,021.00 $1,259.00 315.00 $944.00 150.00 $ 794.00 198.50 595.50 Looking ahead to the following year, the company's CFO has assembled this information: EBIT Interest EBT Taxes (25%). Net income Year-end sales are expected to be 6% higher than $4.28 billion in sales generated last year. ▪ Year-end operating costs, excluding depreciation, are expected to increase at the same rates as sales. Depreciation costs are 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 this information, what will be the forecast for Edwin's year-end net income? Enter your answers as positive values. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round…
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,250.00 Operating costs excluding depreciation 3,035.00 EBITDA $1,215.00 Depreciation 300.00 EBIT $915.00 Interest 130.00 EBT $785.00 Taxes (40%) 314.00 Net income $471.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.25 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 80% of sales. Depreciation costs are 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 this information, what will be the forecast for Edwin's year-end net income? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Enter all values as positive numbers. Do not round intermediate calculations. Round…
Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2009 2008 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income --- --- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pre-tax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity 533.1 386.7 For the year ending…
Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2012 2011 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pretax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity 533.1 386.7 4. For the year ending December 31, 2012, Luther's earnings per share are closest to: A) $1.01 B) $1.04 C) $1.58 D) $4.04 5. Assuming that Luther has no convertible bonds outstanding, then for the year ending December 31, 2012,…
Chambliss Corp.'s total assets at the end of last year were $265,000 and its EBIT was 62,500. What was its basic earning power (BEP)? Select the correct answer. a. 22.88% b. 24.28% c. 23.58% d. 24.98% e. 22.18%
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of goods sold (3,474,250) 65.0 Gross margin $1,870,750 35.0 Less: Operating expenses (1,140,300) 21.3 Operating income $730,450 13.7 Less: Interest expense (27,000) 0.5 Income before taxes Less: Income taxes (40%)* $703,450 13.2 (281,380) 5.3 Net income $422,070 7.9 * Includes both state and federal taxes.
Ryngard Corp's sales last year were $42,000, and its total assets were $15,000. What was its total assets turnover ratio? Question 8 options: 2.8 2.36 2.31 2.63
Following is information from Skyway Inc. for the year (in thousands). Total annual revenue $3,206,980 Total revenue growth rate 5.0% Terminal revenue growth rate 2% Net operating profit margin (NOPM) 8.2% Net operating asset turnover (NOAT) 3.42 Projected total revenue for the following year would be: Select one: a. $3,469,952 b. None of these are correct c. $3,316,659 d. $3,271,120 e. $3,367,329
PRO FORMA INCOME STATEMENT At the end of last year, Roberts Inc. reported the follow- ing income statement (in millions of dollars): 17-7 Sales $3,000 Operating costs excluding depreciation 2,450 ЕВITDA $ 550 Depreciation 250 EBIT $ 300 Interest 125 EBT $ 175 Taxes (40%) 70 Net income $ 105 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 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 40%. On the basis of that information, what will be the forecast for Roberts' year-end net income? 17-8 LONG-TERM FINANCING NEEDED At year-end 2018, total assets for Arrington Inc. were $1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 million,…
Following are financial statement numbers and ratios for Salsa Incorporated for the year ended December 31, Year 1 (in millions). NOPAT $572.7 NOA $3,460.8 Net operating profit margin (NOPM) 15.9% Net operating asset turnover (NOAT) 1.04If we expected revenue growth of 7% in the next year, what would projected revenue be for the year ended December 31, Year 2?
Topic: Pro Forma Income Statement At the end of last year, John Inc. reported the following income statement (in millions) Sales $3,000 Operating costs excluding depreciation 2450 EBITDA $ 550 Depreciation 250 EBIT $ 300 Interest 125 EBT $ 175 Taxes (40%) 70 Net Income $ 105 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 year-end…
X-1 Corp's total assets at the end of last year were $420,000 and its EBIT was $47,500. What was its basic earning power (BEP) ratio? O a. 15.08% O b. 11.31% O c. 10.16% O d. 8.48% O e. 5.65%

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bartleby, a Learneo, Inc. business

Sales	$4,300.00
Operating costs (excluding depreciation)	3,095.00
EBITDA	$1,205.00
Depreciation	325.00
EBIT	$880.00
Interest	160.00
EBT	$720.00
Taxes (40%)	288.00
Net income	$432.00

	(in millions of dollars)
Sales	$
Operating costs (excluding depreciation)
EBITDA	$
Depreciation
EBIT	$
Interest
EBT	$
Taxes
Net income	$