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			$ -
	Special Income/Other Charges			$ (2,194)
Total Operating Expenses				$ (16,442)
Operating Income				$ 4,312
Net Interest Income				$ (666)
Pre-Tax Income				$ 3,646
Provision for Income Tax (19.5%)				$ (711)
Net Income				$ 2,935

Tag-Its 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.

1. 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
2. Determine whether you think Tag-It can hit the target of a 10% increase in sales next year.