Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q1. Use the methodology described for each part to forecast the firms revenue for each year, 2022 2027. a. Forecast revenue for 2022 2027. In

image text in transcribed

Q1. Use the methodology described for each part to forecast the firms revenue for each year, 2022 2027.

a. Forecast revenue for 2022 2027. In each forecast year, the revenue growth rate is expected to equal the average annual growth rate over the historical period.

b. Forecast revenue for 2022 2027. In each forecast year, the growth rate for revenue per store is expected to equal the average annual growth rate over the historical period. In each forecast year, the growth rate for the number of stores is expected to be 0.83 percentage points greater than the growth rate for the number of stores from the previous year.

c. Forecast revenue for 2022 2027. In each forecast year, the revenue growth rate is expected to be 0.22 percentage points greater than the revenue growth rate from the previous year.

d. Forecast revenue for 2022 2027. In the first forecast year, the revenue growth rate is expected to equal the compound annual growth rate over the historical period. After that, the revenue growth rate for each year is expected to be 0.53 percentage points less than growth rate for revenue from the previous year

e. Forecast revenue for 2022 2027. In the first forecast year, the industry revenue growth rate is expected to equal the average annual industry growth rate over the historical period. After that, the industry revenue growth rate for each year is expected to be 0.13 percentage points less than industry revenue growth rate from the previous year. In each forecast year, the firms market share is expected to be 0.34 percentage points greater than the firms market share from the previous year.

f. Forecast revenue for 2022 2027. In each forecast year, the revenue growth rate is expected to be a weighted average of the last 4 annual revenue growth rates from the historical period, where the weights are 53% for the most recent historical year, 22% for the year before that, 15% for the year before that, and 10% for the year before that.

g. Forecast revenue for 2022 2027. In the first forecast year, the revenue growth rate is expected to be -47.22%. In the second forecast year, the revenue growth rate is expected to be 29.52%. After that, the revenue growth rate is expected to be 8.11% per year.

5 \begin{tabular}{|l|l|l|l|l|l|l|l|} 6 & Revenue forecasts & 2022 & 2023 & 2024 & 2025 & 2026 & 2027 \\ \hline 7 & Part a & & & & & & \\ \hline 8 & Part b & & & & & & \\ \hline 9 & Part c & & & & & & \\ \hline 10 & Part d & & & & & & \\ 11 & Part e & & & & & & \\ \hline 12 & Part f & & & & & & \\ \hline 13 & Part g & & & & & & \\ \hline \end{tabular} 5 \begin{tabular}{|l|l|l|l|l|l|l|l|} 6 & Revenue forecasts & 2022 & 2023 & 2024 & 2025 & 2026 & 2027 \\ \hline 7 & Part a & & & & & & \\ \hline 8 & Part b & & & & & & \\ \hline 9 & Part c & & & & & & \\ \hline 10 & Part d & & & & & & \\ 11 & Part e & & & & & & \\ \hline 12 & Part f & & & & & & \\ \hline 13 & Part g & & & & & & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor Study Guide

Authors: David L. Cannon, Timothy S. Bergmann, Brady Pamplin

1st Edition

0782144381, 978-0782144383

More Books

Students also viewed these Accounting questions