Question:Financial Statement Analysis, Eleventh EditionQuaker Oats Company

Refer to the financial statements of Quaker Oats Company in Problem 9-6. Prepare a forecasted income statement for Year 12 using the following assumptions ($ millions):

1. Revenues are forecast to equal $6,000.

2. Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-year period ending June 30, Year 11.

3. Selling, general, and administrative expenses are expected to increase by the same percent increase occurring from Year 10 to Year 11.

4. Other expenses are predicted to be 8% higher than in Year 11.

5. A $2 million loss (net of taxes) is expected from disposal of net assets from discontinued operations.

6. Interest expense, net of interest capitalized and interest income, is expected to increase by 6% due to increased financial needs.

7. The effective tax rate is equal to that of Year 11.

CHECK Forecast NI, $140.1 mil.

I think I am miscalculating the SG&A expenses incorrectly. I have came up with multiple calculations and I would come close to the forecasted NI of $140.1M or I was far from it in other calculations. I had a previous tutor try and help me and it was not any help (kept getting incorrect answers. So PLEASE, tell me you can solve what I am doing wrong. The document has the extra information needed for this problem.