Forecast an Income Statement

Seagate Technology reports the following income statement for fiscal 2019.

SEGATE TECHNOLOGY PLC
Consolidated Statement of Income
For Year Ended June 28, 2019, $ millions
Revenue	$10,835
Cost of revenue	7,458
Product development	1,436
Marketing and administrative	898
Amortization of intangibles	23
Restructuring and other, net	(22)
Total operating expenses	9,793
Income from operations	1,042
Interest income	529
Interest expense	(224)
Other, net	25
Other income (expense), net	330
Income before income taxes	1,372
(Benefit) provision for income taxes	(640)
Net income	$2,012

Forecast Seagates 2020 income statement assuming the following income statement relations ($ millions).

Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places.

Assumptions
Revenue growth	5%	growth
Cost of revenue	71.8%	of revenue
Product development	9.5%	of revenue
Marketing and administrative	4.4%	of revenue
Amortization of intangibles		No change
Restructuring and other, net	$0
Interest income		No change
Interest expense		No change
Other, net		No change
Income tax rate	21%

Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate.

	SEGATE TECHNOLOGY PLC
	Consolidated Statement of Income
	$ millions	June 2020
	Revenue	Answer
	Cost of revenue	Answer
	Product development	Answer
	Marketing and administrative	Answer
	Amortization of intangibles	Answer
	Restructuring and other, net	Answer
	Total operating expenses	Answer
	Income from operations	Answer
	Interest income	Answer
	Interest expense	Answer
	Other, net	Answer
	Other income (expense), net	Answer
	Income before income taxes	Answer
	(Benefit) provision for income taxes	Answer
	Net income	Answer