Can you instruct me on how to determine the budget and forecast?
File Home Insert Page Layout Formulas Data Review View Help Search Share Comments & Cut Calibri * 11 ~ A" A ae Wrap Text Accounting Comma Comma [0] Currency Currency [0] _ AutoSum ~ Paste CE Copy AY O Format Painter BIU~ ~ DA~ LEE Merge & Center v p~ % 9 68 28 Conditional Format as Percent Insert Delete Format Fill Formatting ~ Table Clear Sort & Find & Ideas Filter ~ Select Clipboard Font Alignment Numbe Styles Cells Editing Ideas E27 X V =C27*SE$47 B DO NO MI A W N - D G H K M N 0 P Q R S U V W X In a February 15, 2019 Press Release, Choice Hotels announced the company's 2018 fourth quarter and full year results. Using the data from this press release, create a 2019 budget and forecast. http://media.choicehotels.com/2019-02-15-Choice-Hotels-International-Exceeds-Top-End-Of-Full-Year-Guidance-For-EPS-And-Reports-Largest-Domestic-Pipeline-In-Companys-History?printable=1 To complete the budget, use the following information: Revenues are expected to grow at a rate of 2.5% according to the full-year outlook Given the expected growth and recent investments, expenses are expected to increase by 1%. Income taxes are expected to be 22% 10 To complete the forecast, use the following information: The low-range forecast is expected to be 2% The mid-range forecast is expected to be 2.5% The high-range forecast is expected to be 3% 16 Forecast Forecast Forecast Budget Low Midpoint High Consolidated Statements of Income - USD ($) Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2019 Dec. 31, 2019 REVENUES: Dec. 31, 2019 Royalty fees 376,676,000 Initial franchise and relicensing fees 26,072,000 Procurement services 52,088,000 Marketing and reservation system 543,677,000 Other 42,791,000 Total revenues 1,041,304,000 OPERATING EXPENSES: Selling, general and administrative 170,027,000 $ 188,993,632.13 | $ 191,396,093.56 $ 193,798,554.98 Depreciation and amortization 14,330,000 Marketing and reservation system 534,266,000 $ 15,928,521.64 $ 16,400,000.00 $ 16,810,000.00 718,623,000 $ 593,863,750.26 $ 601,412,865.73 $ 608,961,981.20 Total operating expenses $ 798,785,904.03 $ 808,939,962.13 $ 819,094,020.23 Impairment of goodwill (4,289,000 $ (4,767,440.98) $ (4,828,044.05) $ (4,888,647.11) Gain on sale of assets, net 82,000 91,147.16 $ 92,305.81 $ 93,464.46 Operating income 318,474,000 $ 354,000,000.00 $ 358,500,000.00 $ 363,000,000.00 OTHER INCOME AND EXPENSES, NET: Interest expens 45,908,000 Interest income (7,452,000 5 51,029,069.88 5 45,800,000.00 |$ 52,326,419.11 $ (8,283,275.87) $ 1,437,000 (7,600,000.00) $ (8,493,867.63) Other (gain) loss 1,597,298.37 $ 46,700,000.00 $ Equity in net (income) loss of affiliates 1,637,907.65 5,323,000 $ 5,916,784.42 $ Total other income and expenses, net 3,900,000.00 $ 6,067,211.14 45,216,000 Income before income taxes $ 50,259,876.79 $ 50,898,773.53 $ 51,537,670.27 273,258,000 Income taxes 56,903,000 $ 303,740,123.21 $ 307,601,226.47 $ 311,462,329.73 $ 63,250,569.91 $ 56,200,000.00 $ 64,858,635.24 Net income 216,355,000 $ 193,000,000.00 $ 197,100,000.00 |$ 201,000,000.00 Basic earnings per share: Basic earnings per share (in dollars per shar 3.83 Diluted earnings per share (in dollars per sha $ 4.00 $ S 4.06 $ 4.13 3.80 3.44 $ 4.06 $ 3.58 Target Expectation Expectation Questions: Expectation 1. Which revenue category is the most important to forecast accurately? Explain your rationale for your selection and how you developed your three estimates thoroughly . ... Income Statement Balance Sheet Cash Flow Cost and Investing Budget and Forecast
