Business Finance - Utilizing the fictitious company Tag-It Corporation
Question # 00755087
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Updated on: 03/27/2020 12:11 PM Due on: 03/27/2020
Assignment Details
Utilizing the fictitious company Tag-It Corporation, prepare next year’s forecast with a pro forma income statement. Here is the current income statement for Tag-It:
Click here to download the income statement.
Tag-It’s CEO has predicted a 10% increase in total revenue next year. Utilizing the percentage of sales method, prepare a forecast for next year in the section provided on the Excel spreadsheet provided.
- The total revenue numbers over the past 4 years for Tag-It Corporation were as follows:
Values in Millions:- 72,618
- 73,785
- 69,495
- 71,879
- Determine whether you think Tag-It can hit the target of a 10% increase in sales next year.
Submit the Excel spreadsheet provided, saved with your name, which must include the answers to the 2 questions: 1. An updated forecast for next year, and 2. the answer to question regarding the target sales.
The use of 1 scholarly sources (e.g., textbook, article from the CEC Library) is required.
Sheet1
| FINA310 UNIT 3 IP TEMPLATE FOR STUDENTS | |
| Student name: | |
| Date: | |
| ACTUAL | FORECAST |
| 2018 | 2019 |
| Total Revenue | $ 71,879 |
| Cost of Revenue | $ (51,125) |
| Gross Profit | $ 20,754 |
| Operating Expenses: | |
| Selling, General, and Administrative | $ (14,248) |
| Research and Development | $ - 0 |
| Special Income/Other Charges | $ (2,194) |
| Total Operating Expenses | $ (16,442) |
| Operating Income | $ 4,312 |
| Net Interest Income | $ (666) |
| edite | |
| Pre-Tax Income | $ 3,646 |
| Provision for Income Tax (19.5%) | $ (711) |
| Net Income | $ 2,935 |
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Solution: Business Finance - Utilizing the fictitious company Tag-It Corporation