Utilizing the fictitious company Tag-It Corporation, prepare next year's forecast with a pro forma income statement. Here is the current income statement for Tag-It: Download the income statement. Additionally, Tag-It's CEO has predicted a 15% increase in total revenue next year. Utilizing the percentage of sales method, prepare a forecast for next year in the correct section on the Excel spreadsheet. 1. The total revenue numbers over the past 4 years for Tag-It Corporation were as follows (values in millions): o 73,785 o 69,495 o 71,879 o 75,356 2. Determine whether you think Tag-It can hit the target of a 15% increase in sales next year.

Prepare a 5 page report that includes a pro forma forecast using the template provided and an analysis of Tag-Its ability to hit the 15% increase in sales in a separate word document.

				ACTUAL		FORECAST
				2018		2019
Total Revenue				$ 71,879
	Cost of Revenue			$ (51,125)
Gross Profit				$ 20,754
Operating Expenses:
	Selling, General, and Administrative			$ (14,248)
	Research and Development			$ -
	Special Income/Other Charges			$ (2,194)
Total Operating Expenses				$ (16,442)
Operating Income				$ 4,312
Net Interest Income				$ (666)
Pre-Tax Income				$ 3,646
Provision for Income Tax (19.5%)				$ (711)
Net Income				$ 2,935