Question
Consider the following income statement and balance sheet information. Income Statement (in millions) 12/31/2023 Net sales $16,930.0 Cost of products sold 7,140.0 Amortization of intangible
Consider the following income statement and balance sheet information. Income Statement (in millions) 12/31/2023 Net sales $16,930.0 Cost of products sold 7,140.0 Amortization of intangible assets 790.0 Research & development 1,060.0 Selling, general & administrative 4,360.0 Operating earnings (loss) 3,580.0 Interest income (expense) (140.0) Other income (expense) 80.0 Earnings (loss) from continuing operations before taxes 3,520.0 Provision for income taxes 400.0 Net earnings (loss) $3,120.0 Balance Sheet (summary as of 12/31/2023, in millions) Operating assets: $25,010.0 Nonoperating assets: $3,760.0 Operating liabilities: $7,830.0 Nonoperating liabilities: $7,110.0 The following additional information is provided: Revenue growth in 2024-2027: 7.5% Terminal growth: 2.0% Statutory tax rate (federal and state combined) for all years: 22.0% Use the parsimonious forecasting method to forecast total revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) for years 2024 through 2025. Recall that the parsimonious method presumes that 2023 NOPAT and NOA (as a percentage of revenue) are used to forecast future amounts. Assume that all items on the 2023 income statement will persist. Enter your responses below. Do not round intermediate calculations.
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