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Forecasting A) Dexter Company reported the following 2018 income statement Total revenue $13,256,500 Cost of revenue 7,066,300 Gross profit 6,190,200 Selling and administrative expenses 3,758,200

Forecasting

A) Dexter Company reported the following 2018 income statement

Total revenue

$13,256,500

Cost of revenue

7,066,300

Gross profit

6,190,200

Selling and administrative expenses

3,758,200

Operating income

2,432,000

Interest expense

572,800

Income before income taxes

1,859,200

Income tax expense

687,905

Net income

$ 1,171,295

Forecast Dexters income statement assuming a 5% increase in sales, a 17% effective tax rate, and a continuation of the 2018 percentage relation to net sales for expenses except for interest where the company projects no change.

B) Snap-On Corp 2018 financial statements include the following:

(millions)

2018

2017

Net sales

$ 3,430.4

$ 3,352.8

Accounts receivable

1,159.4

1,091.9

Inventory

530.5

497.8

Accounts payable

170.9

148.3

Forecast accounts receivable, inventory, and accounts payable for 2019 given that sales are expected to grow by 8% in 2019.

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