Hello,

I need help creating a forecast for Harley Davidson using the Percent of Sales Model, I am trying to create the balance sheet and need help using the model in order to apply this to my paper. Again, I just need help with deriving the info from the Percent of sales model not just doing it for me but a guideline to accurately help me; instructions and helpful guide from professor was:

we are using to derive our forecasts is the Percent of Sales Model.This is used on both the income statement and the balance sheet.Once the forecasted balance sheet is balanced then you can derive the forecasted cash flow statement from the forecasted income statement and forecasted balance sheet.Again, make sure that the cash at the end of the year on your forecasted cash flow statement equals cash and equivalents on your forecasted balance sheet.

Several students have commented on their sales (Revenue) forecasts.In many cases, students have felt their statistical forecasts were very aggressive, and they could not justify it.I have suggested they dampen their forecast, so they felt they could justify it.For example, this afternoon, I suggested to a student to perhaps dampen there to 2% 2018, 1.5% 2019, and 1.5% in 2020, in other words, what the student was comfortable with and they thought they could justify it.

Again, and I mentioned this last night, there is not a right or wrong answer to this paper.The paper is based on the assumptions (such as sales forecast), and as long as you can justify your assumptions and it makes sense, you will do fine.