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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 | $14,175.2 |
Operating expenses | 7,145.9 |
Systems development and programming costs | 636.3 |
Depreciation and amortization | 304.4 |
Total cost of revenues | 8,086.6 |
Selling, general, and administrative expenses | 3,064.2 |
Interest expense | 129.9 |
Total expenses | 11,280.7 |
Other income expense, net | 111.1 |
Earnings before income taxes | 3,005.6 |
Provision for income taxes | 712.8 |
Net earnings | $ 2,292.8 |
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.
Total revenues growth | 13% |
Depreciation and amortization | $460.5 million |
Interest expense | No change |
Other (income) expense, net | No change |
Income tax rate | 25% |
Round your answers to one decimal place.
Do not use negative signs with your answers.
AUTOMATIC DATA PROCESSING INC. Forecasted Income Statement For Year Ended June 30, 2019, $ millions | June 2019 | June 2020 |
---|---|---|
Total revenues | $14,175.2 | Answer
|
Operating expenses | 7,145.9 | Answer
|
Systems development and programming costs | 636.3 | Answer
|
Depreciation and amortization | 304.4 | Answer
|
Total cost of revenues | 8,086.6 | Answer
|
Selling, general, and administrative expenses | 3,064.2 | Answer
|
Interest expense | 129.9 | Answer
|
Total expenses | 11,280.7 | Answer
|
Other income expense, net | 111.1 | Answer
|
Earnings before income taxes | 3,005.6 | Answer
|
Provision for income taxes | 712.8 | Answer
|
Net earnings | $ 2,292.8 | Answer
|
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