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PLEASE ANSWER IN EXCEL FORMAT WITH FORMULAS INCLUDED. expense is projected to increase by half, and other income is expected to remain the same. The
PLEASE ANSWER IN EXCEL FORMAT WITH FORMULAS INCLUDED.
expense is projected to increase by half, and other income is expected to remain the same. The tax rate is projected to remain at its 2019 level. Fill in the pro forma income statement for 2020 based on this guidance. Net sales Cost of sales Gross profit SG&A EASY CHAIR COMPANY INCOME STATEMENTS (dollars in millions) b. 2016 2017 2018 2019 2020 (forecasted) $ 420.00 $ 486.80 $ 553.20 $ 553.20 $ 592.30 $ (289.80) $ (352.10) $ (397.80) $ (430.40) $ 130.20 $ 134.70 $ 155.40 $161.90 $ (85.50) $ (91.40) $ (106.90) $ (111.60) $ 44.70 $ 43.30 $ 48.50 $ 50.30 $ (1.90) $ (4.00) $ (7.60) $ (7.20) $ 2.10 $ $ 2.70 $ 3.10 3.10 $ 2.50 $ 44.90 $ 42.00 $ 44.00 $ 45.60 $ (20.30) $ (15.50) $ (16.50) $ (17.30) $ 24.60 $26.50 $ 27.50 $ 28.30 EBIT Interest expense Other income Income before taxes Taxes Net income c. Do you think Easy Chair's guidance for 2020 is reasonable? Why or why not? Do any items stick out? What would you change? What other information would you need to make a better forecast? Make reference to your answers from part a. d. Plot Easy Chair Co.'s net income over time, including the 2020 projection. Make sure your chart includes a title and that your axes have values on them. expense is projected to increase by half, and other income is expected to remain the same. The tax rate is projected to remain at its 2019 level. Fill in the pro forma income statement for 2020 based on this guidance. Net sales Cost of sales Gross profit SG&A EASY CHAIR COMPANY INCOME STATEMENTS (dollars in millions) b. 2016 2017 2018 2019 2020 (forecasted) $ 420.00 $ 486.80 $ 553.20 $ 553.20 $ 592.30 $ (289.80) $ (352.10) $ (397.80) $ (430.40) $ 130.20 $ 134.70 $ 155.40 $161.90 $ (85.50) $ (91.40) $ (106.90) $ (111.60) $ 44.70 $ 43.30 $ 48.50 $ 50.30 $ (1.90) $ (4.00) $ (7.60) $ (7.20) $ 2.10 $ $ 2.70 $ 3.10 3.10 $ 2.50 $ 44.90 $ 42.00 $ 44.00 $ 45.60 $ (20.30) $ (15.50) $ (16.50) $ (17.30) $ 24.60 $26.50 $ 27.50 $ 28.30 EBIT Interest expense Other income Income before taxes Taxes Net income c. Do you think Easy Chair's guidance for 2020 is reasonable? Why or why not? Do any items stick out? What would you change? What other information would you need to make a better forecast? Make reference to your answers from part a. d. Plot Easy Chair Co.'s net income over time, including the 2020 projection. Make sure your chart includes a title and that your axes have values on themStep by Step Solution
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