Question
How to forecast all the following given values for 2023 if we have the data given for 2022 below: 2022 Income statement Revenue: 13580
How to forecast all the following given values for 2023 if we have the data given for 2022 below:
2022
Income statement
Revenue: 13580
COGS: 7470
Gross Margin: 6110
SG&A: 3395
EBIT: 2715
Interest: 150
EBT: 2565
Tax: 1077
NI: 1488
Balance Sheet:
ASSETS
Cash: 348
AR: 1698
Inventory: 1494
Current Assets: 3540
Net Capital Assets: 2460
Total Assets: 6000
LIAB & SE
AP: 125
Notes Payable: 45
Current Liab: 170
Long Term Debt: 1330
Shareholder Equity: 4500
Total L&SE: 6000
Assumptions:
1) Company expects revenues next year to increase by 15%?
2) Firm has some excess capacity so no new capital assets beyond normal replacements are needed?
3) Combined tax rate is 42%, firm pays no dividends, cost of debt 12%?
Question:
Project the income statement and balance sheet for 2023 with all the values above, taking into account all the assumptions. Explain how you calculated these values for the next year?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To forecast the values take the values from 2022 and adjust them according to the assumptions given Income Statement 1 Revenue It is given that the co...
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Step: 2
Step: 3
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
