please answer questions 1-3 with the info supplied. thanks

To complete the budget, use the following information: Revenues are expected to grow at a rate of 2.5% according to the full-year outlook. Given the expected growth and recent investments, expenses are expected to increase by 1%. Income taxes are expected to be 22% To complete the forecast, use the following information: The low-range forecast is expected to be 2% The mid-range forecast is expected to be 2.5% The high-range forecast is expected to be 3% Forecast High Dec. 31, 2019 Forecast Forecast Budget Low Midpoint Consolidated Statements of Income - USD ($) Dec 31, 2018 Dec. 31, 2019 Dec 31, 2019 Dec. 31, 2019 REVENUES: Royalty fees 376,676,000 Initial franchise and relicensing fees 26,072,000 Instructions Income Statement Balance Sheet Cash Flow Cost and Investing Budget and Forecast O Type here to search 9 52,088,000 543,677,000 42,791,000 1,041,304,000 Procurement services Marketing and reservation system Other Total revenues OPERATING EXPENSES: Selling, general and administrative Depreciation and amortization Marketing and reservation system Total operating expenses Impairment of goodwill Gain on sale of assets, net Operating income OTHER INCOME AND EXPENSES, NET: Interest expense Interest income Other (gain) loss Equity in net (income) loss of affiliates Total other income and expenses, net Income before income taxes Income taxes Net income Instructions Income Statement Balance Sheet 170,027,000 14,330,000 534,266,000 718,623,000 (4,289,000) 82,000 318,474,000 $ 188,993,632.13 $ $ 15,928,521.64 $ $ 593,863,750.26 $ $ 798,785,904.03 $ $ (4,767,440.98) $ $ 91,147.16 $ $ 354,000,000.00 $ 191,396,093.56 $ 16,400,000.00 $ 601,412,865.73 $ 808,939,962.13 $ (4,828,044.05) $ 92,305.81 $ 358,500,000.00 $ 193,798,554.98 16,810,000.00 608,961,981.20 819,094,020.23 (4,888,647.11) 93,464.46 363,000,000.00 45,908,000 (7,452,000) 1,437,000 5,323,000 45,216,000 273,258,000 56,903,000 216,355,000 Cash Flow Cost and Investing $ $ $ $ $ $ $ $ 51,029,069.88 $ (8,283,275.87) S 1,597,298.37 $ 5,916,784.42 $ 50,259,876.79 $ 303,740,123.21 $ 63,250,569.91 $ 193,000,000.00 $ Budget and Forecast 45,800,000.00 $ (7,600,000.00) $ 46,700,000.00 $ 3,900,000.00 $ 50,898,773.53 $ 307,601,226.47 $ 56,200,000.00 $ 197,100,000.00 $ @ 52,326,419.11 (8,493,867.63) 1,637,907.65 6,067,211.14 51,537,670.27 311,462,329.73 64,858,635.24 201,000,000.00 Type here to search Bte A L . G @ w x 939) B Basic earnings per share: Basic earnings per share (in dollars per share) $ Diluted earnings per share (in dollars per sharel S 3.83 3.80 4.00 $ 3.44 $ Expectation 4.06 4.06 Expectation $ $ 4.13 3.58 Expectation Target Questions: 1. Which revenue category is the most important to forecast accurately? Explain your rationale for your selection and how you developed your three estimates thoroughly. 2. Which expense category is the most important to forecast accurately? Explain your rationale for your selection and how you developed your three estimates thoroughly 3. Explain thoroughly how you developed your budget estimates for all revenue and operating expense accounts. Instructions Income Statement Balance Sheet Cash Flow Cost and Investing Budget and Forecast e Type here to search & L . Coe o 933) ^ a To complete the budget, use the following information: Revenues are expected to grow at a rate of 2.5% according to the full-year outlook. Given the expected growth and recent investments, expenses are expected to increase by 1%. Income taxes are expected to be 22% To complete the forecast, use the following information: The low-range forecast is expected to be 2% The mid-range forecast is expected to be 2.5% The high-range forecast is expected to be 3% Forecast High Dec. 31, 2019 Forecast Forecast Budget Low Midpoint Consolidated Statements of Income - USD ($) Dec 31, 2018 Dec. 31, 2019 Dec 31, 2019 Dec. 31, 2019 REVENUES: Royalty fees 376,676,000 Initial franchise and relicensing fees 26,072,000 Instructions Income Statement Balance Sheet Cash Flow Cost and Investing Budget and Forecast O Type here to search 9 52,088,000 543,677,000 42,791,000 1,041,304,000 Procurement services Marketing and reservation system Other Total revenues OPERATING EXPENSES: Selling, general and administrative Depreciation and amortization Marketing and reservation system Total operating expenses Impairment of goodwill Gain on sale of assets, net Operating income OTHER INCOME AND EXPENSES, NET: Interest expense Interest income Other (gain) loss Equity in net (income) loss of affiliates Total other income and expenses, net Income before income taxes Income taxes Net income Instructions Income Statement Balance Sheet 170,027,000 14,330,000 534,266,000 718,623,000 (4,289,000) 82,000 318,474,000 $ 188,993,632.13 $ $ 15,928,521.64 $ $ 593,863,750.26 $ $ 798,785,904.03 $ $ (4,767,440.98) $ $ 91,147.16 $ $ 354,000,000.00 $ 191,396,093.56 $ 16,400,000.00 $ 601,412,865.73 $ 808,939,962.13 $ (4,828,044.05) $ 92,305.81 $ 358,500,000.00 $ 193,798,554.98 16,810,000.00 608,961,981.20 819,094,020.23 (4,888,647.11) 93,464.46 363,000,000.00 45,908,000 (7,452,000) 1,437,000 5,323,000 45,216,000 273,258,000 56,903,000 216,355,000 Cash Flow Cost and Investing $ $ $ $ $ $ $ $ 51,029,069.88 $ (8,283,275.87) S 1,597,298.37 $ 5,916,784.42 $ 50,259,876.79 $ 303,740,123.21 $ 63,250,569.91 $ 193,000,000.00 $ Budget and Forecast 45,800,000.00 $ (7,600,000.00) $ 46,700,000.00 $ 3,900,000.00 $ 50,898,773.53 $ 307,601,226.47 $ 56,200,000.00 $ 197,100,000.00 $ @ 52,326,419.11 (8,493,867.63) 1,637,907.65 6,067,211.14 51,537,670.27 311,462,329.73 64,858,635.24 201,000,000.00 Type here to search Bte A L . G @ w x 939) B Basic earnings per share: Basic earnings per share (in dollars per share) $ Diluted earnings per share (in dollars per sharel S 3.83 3.80 4.00 $ 3.44 $ Expectation 4.06 4.06 Expectation $ $ 4.13 3.58 Expectation Target Questions: 1. Which revenue category is the most important to forecast accurately? Explain your rationale for your selection and how you developed your three estimates thoroughly. 2. Which expense category is the most important to forecast accurately? Explain your rationale for your selection and how you developed your three estimates thoroughly 3. Explain thoroughly how you developed your budget estimates for all revenue and operating expense accounts. Instructions Income Statement Balance Sheet Cash Flow Cost and Investing Budget and Forecast e Type here to search & L . Coe o 933) ^ a