Answered step by step
Verified Expert Solution
Question
1 Approved Answer
zl year ended February 2, 2019 Forecast Target's income statements for the fiscal years ended February 2020 and 2021 using the following assumptions and data.
zl year ended February 2, 2019 Forecast Target's income statements for the fiscal years ended February 2020 and 2021 using the following assumptions and data. \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Assumptions (\$ millions) } \\ \hline Revenue growth & 3.6% \\ \hline Cost of sales as % of Total revenue & 70.7% \\ \hline Selling, general and administrative expenses as % of Total revenue & 20.9% \\ \hline Forecasted depreciation expense for year ended February 2020 & $2,565 \\ \hline Forecasted depreciation expense for year ended February 2021 & $2,778 \\ \hline Amortization expense & $0 \\ \hline Net interest expense & No change \\ \hline Net other (income) expense & No change \\ \hline Discontinued operations, net of tax & $0 \\ \hline Tax rate (as \% pretax income) & 20% \\ \hline \end{tabular} Instructions: - Round answers to the nearest whole number. - Do not use negative signs with any of your answers
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started