Question
Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $
Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions Total revenues $12,616.0 Operating expenses 6,360.0 Systems development and programming costs 566.0 Depreciation and amortization 304.4 Total cost of revenues 7,230.4 Selling, general, and administrative expenses 2,727.0 Interest expense 116.0 Total expenses 10,073.4 Other (income) expense, net (99.0) Earnings before income taxes 2,641.6 Provision for income taxes 634.0 Net earnings $2,007.6 Forecast ADPs 2020 income statement assuming the following income statement relations. All percentages (other than total revenue growth and provision for income taxes) are based on historic percent of total revenues. Dollar figures are in millions Assumptions Total revenues growth 13.00% Depreciation and amortization $460.5 Interest expense No change Other (income) expense, net No change Income tax rate 25.00% Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2020, $ millions Total revenues Answer Operating expenses Answer Systems development and programming costs Answer Depreciation and amortization Answer Total cost of revenues Answer Selling, general, and administrative expenses Answer Interest expense Answer Total expenses Answer Other (income) expense, net Answer Earnings before income taxes Answer Provision for income taxes Answer Net earnings
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