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Instructions

You will create this assignment following the Assignment Detail instructions below.This assignment will be submitted in the Unit3 - Submission Assignment lesson in intellipath.


Review the tutorial titledHow to Submit the Intellipath Submission Assignment.


Please submit your work to this week’s Intellipath Unit Submission lesson. Click the Upload button within the submission lesson to access the submission area. Click the Select File button to upload your document, and then click "OK" to finish.


Assignment Details

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:


Clickhereto 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.



  1. 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



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


Submit the Excel spreadsheet provided, saved with your name, which must include the answers to the 2 questions: 1. An updated forecast for next year, and 2.the answer to question regarding the target sales.


The use of 1 scholarly sources (e.g., textbook, article from the CEC Library) is required.



































0" class="ng-binding ng-scope" style="box-sizing: inherit; margin-bottom: 1.25rem; padding: 0px; line-height: 1.6; font-family: inherit; font-size: 1rem; text-rendering: optimizelegibility;">0 / 5 1" class="ng-binding ng-scope" style="box-sizing: inherit;">attempts

Upload 0))" style="box-sizing: inherit; margin: 0px; padding: 0px 1rem; width: 946.309px; float: right; position: relative;">
Instructions

You will create this assignment following the Assignment Detail instructions below.This assignment will be submitted in the Unit3 - Submission Assignment lesson in intellipath.


Review the tutorial titledHow to Submit the Intellipath Submission Assignment.


Please submit your work to this week’s Intellipath Unit Submission lesson. Click the Upload button within the submission lesson to access the submission area. Click the Select File button to upload your document, and then click "OK" to finish.


Assignment Details

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:


Clickhereto 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.



  1. 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



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


Submit the Excel spreadsheet provided, saved with your name, which must include the answers to the 2 questions: 1. An updated forecast for next year, and 2.the answer to question regarding the target sales.


The use of 1 scholarly sources (e.g., textbook, article from the CEC Library) is required.

Answered Same DayOct 28, 2020UNIT 3

Answer To: 0" class="ng-binding ng-scope" style="box-sizing: inherit; margin-bottom: 1.25rem; padding: 0px;...

Payal answered on Oct 31 2020
134 Votes
Proforma Income statement
    FINA310 UNIT 3 IP TEMPLATE FOR STUDENTS
            Student name:
            Date:

                    ACTUAL    FORECAST    FORECAST BASIS
                    2018    2019
        Total Revenue            $71,879    $79,067    1.1 X 2018 Sales
            Cost of Revenue        ($51,125)    ($56,137)    71% of 2019 sales
        Gross Profit            $20,754    $22,929
        Operating Expenses:
            Selling, General, and Administrative        ($14,248)    ($15,813)    20% of 2019 sales
            Research and Development        $0    $0
            Special Income/Other Charges        ($2,194)    ($2,194)    same as 2018
        Total Operating Expenses            ($16,442)    ($18,007)
        Operating Income            $4,312    $4,922
        Net Interest Expense            ($666)    ($735)    0.93% of 2019 sales
        Pre-Tax Income            $3,646    $4,187
            Provision for Income Tax (19.5%)        ($711)    ($816)    19.50% of Pre-tax Income
        Net Income            $2,935    $3,370
Solutions
    1    An updated income statement for the next...
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