Use Segment Disclosures to Forecast Income Statement

Following are revenue and cost of revenue numbers for Thermo Fisher Scientific.

Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places.

THERMO FISHER SCIENTIFIC INC.
Consolidated Statement of Income
For Year Ended December 31 ($ millions)	2018	2017
Revenues
Product revenues	$19,811	$18,243
Service revenues	5,490	3,544
Total revenues	25,301	21,787
Costs and operating expenses
Product cost of revenues	10,166	9,424
Service cost of revenues	3,819	2,495
Total cost of revenues	13,985	11,919
Selling, general and administrative expenses	6,360	5,779
Research and development expenses	1,015	931
Restructuring and other costs, net	50	97
Total costs and operating expenses	21,410	18,726
Operating income	3,891	3,061
Other expense, net	(547)	(558)
Income from continuing operations before income taxes	3,344	2,503
Income tax expense	324	201
Income from continuing operations	3,020	2,302
Loss from discontinued operations	0	(3)
Net income	$3,020	$2,299

Assumptions
Selling, general and administrative expenses	24.9%	of total revenues
Research and development expenses	4%	of total revenues
Restructuring and other costs, net	$0
Other expense, net		No change
Income tax expense	23%	of pretax income

part a.

part b.

part c.

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: Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate.

	Thermo Fisher Scientific
	Forecasted Income Statement
		Dec. 31, 2019
		Forecast
	Revenues
	Product Revenues
	Service Revenues
	Total Revenues	Answer
	Cost and Operating Expenses
	Product Cost of revenues
	Service Cost of revenues
	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

Please answer all parts of the question.

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