Use Segment Disclosures to Forecast Income Statement Following are revenue and cost of revenue numbers for Thermo Fisher Scientific.

THERMO FISHER SCIENTIFIC INC.
Consolidated Statement of Income
For Year Ended December 31 ($ millions)	2018	2017
Revenues
Product revenues	$20,755	$19,111
Service revenues	6,039	3,898
Total revenues	26,794	23,009
Costs and operating expenses
Product cost of revenues	10,650	9,873
Service cost of revenues	4,201	2,745
Total cost of revenues	14,851	12,618
Selling, general and administrative expenses	6,663	6,054
Research and development expenses	1,064	976
Restructuring and other costs, net	55	107
Total costs and operating expenses	22,633	19,755
Operating income	4,161	3,254
Other expense, net	(573)	(584)
Income from continuing operations before income taxes	3,588	2,670
Income tax expense	356	221
Income from continuing operations	3,232	2,449
Loss from discontinued operations	0	(3)
Net income	$3,232	$2,446

Required a. Use the historic growth in total revenues (from 2017 to 2018) to forecast total revenue for 2019. Use the historic rate of total cost of revenues to total revenues to forecast total cost of revenues. Other forecast assumptions follow:

Selling, general and administrative expenses	24.9% of total revenues
Research and development expenses	4.0% of total revenues
Restructuring and other costs, net	$0
Other expense, net	No Change
Income tax expense	23% of pretax income

Rounding instructions:

• Round growth rate factors for revenue accounts to three decimal places (for example, 1.034555 = 1.035) or one decimal place as a percentage (1.034555 = 103.5%).
• Round rate of cost factors to one decimal place, as a percentage (for example, 0.634555 = 63.5%).
• Round your final answers below to the nearest whole dollar.

Thermo Fisher Scientific
Forecasted Income Statement
	Dec. 31, 2019
	Forecast
Product Revenues	Answer
Service Revenues	Answer
Total Revenues	Answer
Total cost of revenue	Answer
Selling, general and administrative expenses	Answer
Research and development expenses	Answer
Restructuring and other costs, net	Answer
Total costs and operating expenses	Answer
Operating Income	Answer
Other Expense, Net	Answer
Income from Continuing Operations Before Income Taxes	Answer
Income tax expense	Answer
Net Income	Answer

b. Refine your forecast by using the separate historic growth in product revenues and service revenues (from 2017 to 2018) to estimate 2019 product and service revenues respectively for 2019. Also, use the historic growth in cost of revenues for each segment to forecast separate segment cost of revenues. Assume other forecast assumptions are as in part a. Rounding instructions:

• Round growth rate factors for revenue accounts to three decimal places (for example, 1.034555 = 1.035) or one decimal place as a percentage (1.034555 = 103.5%).
• Round rate of cost factors to one decimal place, as a percentage (for example, 0.634555 = 63.5%).
• Round your final answers below to the nearest whole dollar.

Thermo Fisher Scientific
Forecasted Income Statement
	Dec. 31, 2019
	Forecast
Revenues
Product Revenues	Answer
Service Revenues	Answer
Total Revenues	Answer
Product Cost of revenues	Answer
Service Cost of revenues	Answer
Total cost of revenue	Answer
Selling, general and administrative expenses	Answer
Research and development expenses	Answer
Restructuring and other costs, net	Answer
Total costs and operating expenses	Answer
Operating Income	Answer
Other Expense, Net	Answer Incorrect Mark 0.00 out of 1.00
Income from Continuing Operations Before Income Taxes	Answer
Income tax expense	Answer
Net Income	Answer