Can an expert tell me how all these assumptions are calculated? See below. They switch back and forth. For example: Revenues/Year-End Receivables=60.96 which means to get the account balance in year end receivables your formula would be: EST revenues/60.96 (I believe). Basically, what I asking is for the formulas for each to be written out (not the actual calculations) AND how to make sense out of which is the line item (account) and which is what I should be multiplying or dividing by. For example: in the following assumption: accrued income taxes/income tax expense=121%. Is income tax expense the line item account I am forecasting for or is Accrued Income Taxes? Can some explain the logic to me? Maybe is has to do with whether the assumption amount is a % or a decimal? This is VERY Confusing and the book nor our professor have EVER explained.

ASSUMPTIONS:

Depreciation (inc.in SG&A)/prior year net property and equipment= 18.5%

Income tax expense/earnings for continuing operations before income taxes=33.8%

Revenues/year-end receivables=60.96

stores and distribution expense/net sales=35.9%

marketing, selling and admin expense/net sales =11.3%

net sales/year-end receivables=66.53

Cost of Goods sold/year end inventories=2.57

Provision for Income taxes/income before income taxes=39.2%

Income taxes payable/provision for income taxes=46.2%

CGS/Year end merchandise inventories=6.93

Revenue/year end net property and equipment=11.38

Revenue/=year-end accrued compensation and related expenses and accrued liabilities=25.04

Accrued income taxes/income tax expense=121%

Dividends/Net Earning=13.2%