FINA310

Unit 3 Assignment

Utilizing the fictitious company Tag-It Corporation, prepare next year's forecast with a pro forma income statement. Here is the current income statement for Tag-It: ACTUAL FORECAST 2018 2019 Total Revenue S 71.879 Cost of Revenue $ $ (51,125) 20,754 Gross Profit Operating Expenses: Selling. General, and Administrative s (14.248) Research and Development $ - Special Income/Other Charges Total Operating Expenses $ $ (2.194) (16,442) Operating Income $ 4,312 Net Interest Income S (666) edite Pre-Tax Income $ 3,646 Provision for Income Tax (19.5%) S (711) Net Income Tag-It's 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: o 72,618 73,785 69,495 071,879 2. Determine whether you think Tag-It can hit the target of a 10% increase in sales next year. Submit the Excel spreadsheet and must include the answers to the 2 questions: 1. An updated forecast for next year, 2. The answer to question regarding the target sales. Utilizing the fictitious company Tag-It Corporation, prepare next year's forecast with a pro forma income statement. Here is the current income statement for Tag-It: ACTUAL FORECAST 2018 2019 Total Revenue S 71.879 Cost of Revenue $ $ (51,125) 20,754 Gross Profit Operating Expenses: Selling. General, and Administrative s (14.248) Research and Development $ - Special Income/Other Charges Total Operating Expenses $ $ (2.194) (16,442) Operating Income $ 4,312 Net Interest Income S (666) edite Pre-Tax Income $ 3,646 Provision for Income Tax (19.5%) S (711) Net Income Tag-It's 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: o 72,618 73,785 69,495 071,879 2. Determine whether you think Tag-It can hit the target of a 10% increase in sales next year. Submit the Excel spreadsheet and must include the answers to the 2 questions: 1. An updated forecast for next year, 2. The answer to question regarding the target sales