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

Sales $4,250.00
Operating costs excluding depreciation 3,016.00
EBITDA $1,234.00
Depreciation 340.00
EBIT $894.00
Interest 170.00
EBT $724.00
Taxes (40%) 289.60
Net income $434.40

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

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  • Year-end sales are expected to be 5% higher than $4.25 billion in sales generated last year.
  • Year-end operating costs, excluding depreciation, will equal 70% 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 your answers to two decimal places.


Operating costs excluding depreciation







Net Income


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