Question
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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