t the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):
|Operating costs excluding depreciation||3,016.00|
Looking ahead to the following year, the company’s CFO has assembled this information:
- 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.
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Operating costs excluding depreciation