Question

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:

Click here to download the income statement.

Tag-It’s CEO has predicted a 10% increase in total revenue next year. Utilizing the percentage of sales method, prepare a forecast for 2019 year in the section provided on the Excel spreadsheet provided.

The total revenue numbers over the past 4 years for Tag-It Corporation were as follows: 
Values in Millions:

72,618

73,785

69,495

71,879

Determine whether you think Tag-It can hit the target of a 10% increase in sales next year.

Answer 1

Ansher Total Revenue f7879 f79067 -56.238 Cose Revenue opesatina expense Selling and General Admine|李一14, 48 \s-s673 Staaee Researeh and Develepment 員,194 2,4/3 Total G66 ok affected by sease fn Sales) C 19.5% ) 子95 2,93.5 | 串3,282

year 3 Value | ㅋ2618 |丹3785| 69495 |7879 |f커064 Considering the Past Pertt、mane , "the gorst fn Saleshos not been clain..cy.the -ficm寸,at-すto犭 tsW 1Xpwb봅 log Seems unzuasorable anl msghé not be abk to achieve nok be ab