The usefulness of budgets, variances, and related analyses often depends on the accuracy of managements estimates of

Question:

The usefulness of budgets, variances, and related analyses often depends on the accuracy of management’s estimates of future sales activity.

Required

1. Identify and enter the 2016 and 2017 sales (in dollars) into a table for Apple and Google using their financial statements in Appendix A.

2. Assume that at the end of 2016 we estimate Apple’s 2017 sales will increase by 5% from its 2016 sales. What is Apple’s 2017 estimated sales? Round to the nearest dollar.

3. Assume that at the end of 2016 we estimate Google’s 2017 sales will increase by 20% from its 2016 sales. What is Google’s 2017 estimated sales? Round to the nearest dollar.

4. Using answers to parts 2 and 3, which company's estimated 2017 sales is closer to its actual 2017 sales?

Data from Apple’s