ZuoTi.Pro
Question

Utilizing the fictitious company Tag-It Corporation, prepare next year’s forecast with a pro forma income statement....

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 next 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.

The use of 3 scholarly sources (e.g., textbook, article from the CEC Library) is required.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Utilizing the fictitious company Tag-It Corporation, prepare next year’s forecast with a pro forma income statement....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Utilizing the fictitious company Tag-It Corporation, prepare next year’s forecast with a pro forma income statement....

    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:...

  • The income statement. ACTUAL FORECAST        2018 2019                             ...

    The income statement. ACTUAL FORECAST        2018 2019                                  $71,879                                           Cost of Revenue $(51,125)                                          gross profit $20,754                                                                      operating expenses    Selling, General, and Administrative    $(14,248)                                 ...

  • ACTUAL FORECAST 2018 2019 Total Revenue $       71,879 Cost of Revenue $      (51,125) Gross Profit $      ...

    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 Tag-It’s CEO has predicted a 10% increase in total revenue next year. Utilizing the percentage of...

  • The sales forecast for 2014 is------------------------ The pro forma income statement for 2014​ is................. Pro forma...

    The sales forecast for 2014 is------------------------ The pro forma income statement for 2014​ is................. Pro forma income statement. Given the income statement in the popup window, for California Cement Company for 2013 and an expected sales growth rate of 7.01% for 2014, prepare a pro forma income statement for 2014. First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.) $ % % California Cement Company Income Statement for...

  • 1a. Pro Forma Income Statement Prepare a pro forma income statement and balance sheet for Thibodaux...

    1a. Pro Forma Income Statement Prepare a pro forma income statement and balance sheet for Thibodaux Inc. for 2020. For the Pro Forma Income Statement 2020: SALES = increase of 18.25% over 2019, 2019 Sales were $6,765,328              Gross Profit margin 60%, There are No Preferred Stock, OTHER EXP $1,500,000, Depreciation $500,000, Interest $600,000, Taxes 50%, Common Stock Dividend Payout Ratio 40% of Net Income 2019 Pro Forma IS 2020 Pro Forma IS                              Thibodaux Inc.                  Thibodaux Inc. Sales $6,765,328   $8,000,000 Cost...

  • Top executive officers of Franklin Company, a merchandising firm, are preparing the next year’s budget. The...

    Top executive officers of Franklin Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 1,600,000 Cost of goods sold 1,120,000 Gross profit 480,000 Selling & administrative expenses 240,000 Net income $ 240,000    Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $80,000. The...

  • Prepare the pro forma income statement for a two-department company A hotel operation has 120 rooms...

    Prepare the pro forma income statement for a two-department company A hotel operation has 120 rooms and a 100-seat restaurant. Please prepare a pro forma income statement for the next year to determine the forecasted net income. Rooms department: In the previous year of operations the occupancy rate was 70% and the average room rate was $48. The GM is forecasting the occupancy rate to increase by 5% and the average room rate is to be increased by $4. Cost...

  • Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The...

    Top executive officers of Baird Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 2,300,000 Cost of goods sold 1,725,000 Gross profit 575,000 Selling & administrative expenses 304,000 Net income $ 271,000 Cost of goods sold is usually 75 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $74,000. The president...

  • Prepare a pro forma income statement for 2015 using the percent-of-sales method. What is the expected...

    Prepare a pro forma income statement for 2015 using the percent-of-sales method. What is the expected net income? We also know the break-down into fixed and variable costs for 2014: Prepare a pro forma income statement for 2015 using the percent-of-sales method and distinguish between fixed and variable costs. What is the expected net income? Intro Income statement for 2014 Line item Sales - COGS = Gross profit - SG&A - Depreciation = Operating profit - Interest = Taxable income...

  • Pro Forma Income Statement At the end of last year, Roberts Inc. reported the following income...

    Pro Forma Income Statement At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars): Looking ahead to the following year, the company’s CFO has assembled this information: Year-end sales are expected to be 10% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 80% of year-end sales. Depreciation is expected to increase at the same rate as sales. Interest costs are expected to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT