Question
2016 Revenue 698,000 Cost of Sales (576,000) Gross Profit 122,000 SG&A and other indirect expenses (92,000) Operating Profit 30,000 2017 Revenue 707,000 Cost of Sales
2016
Revenue 698,000
Cost of Sales (576,000)
Gross Profit 122,000
SG&A and other indirect expenses (92,000)
Operating Profit 30,000
2017
Revenue 707,000
Cost of Sales (623,000)
Gross Profit 84,000
SG&A and other indirect expenses(103,000)
Operating Profit (19,000)
2018
Revenue 723,000
Cost of Sales (678,000)
Gross Profit 45,000
SG&A and other indirect expenses(134,000)
Operating Profit (89,000)
Forecast for 2019, 2020, 2021, 2022
Revenue: Revenue growth in the first forecast year equals revenue growth from the last year in historical period.After that, revenue growth rate is 0.63 percentage points less than the revenue growth rate from the previous year
Cost of Sales: Cost of sales to revenue in first year of forecast period equals ratio from last year of historical period.Subsequently, ratio worsens by 0.45 percentage points each year in forecast period.
SG&A and other indirect expenses: SG&A and other indirect expenses to revenue in each year of forecast period equals average annual ratio from the historical period
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