Question
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
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? |
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