At the end of last year, Ralph Inc. reported the following income statement (in millions of dollars):Sales$3,000Operating costs excluding depreciation2,450EBITDA$550Depreciation250EBIT$300Interest124EBT$176Taxes (25%)44Net income$132Looking ahead to the following year, the company's CFO has assembled this information:Year-end sales are expected to be 8% higher than the $3 billion in sales generated last year.Year-end operating costs, excluding depreciation, are expected to equal 65% 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 Ralphs' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places.$( )million

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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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At the end of last year, Ralph Inc. reported the following income statement (in millions of dollars):

Sales	$3,000
Operating costs excluding depreciation	2,450
EBITDA	$550
Depreciation	250
EBIT	$300
Interest	124
EBT	$176
Taxes (25%)	44
Net income	$132

Looking ahead to the following year, the company's CFO has assembled this information:

Year-end sales are expected to be 8% higher than the $3 billion in sales generated last year.
Year-end operating costs, excluding depreciation, are expected to equal 65% 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 Ralphs' 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 intermediate calculations. Round your answer to two decimal places.

$( )million

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