Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. An analyst is forecasting EPS for a company. She prepares the following common sized data from its recent annual report and estimates sales for 2009. Sales $ millions Sales as % of sales Cost of goods sold Operating Expenses Interest expense Restructuring expense 2022 forecast 2,250.0 Pre-tax margin Taxes (35%) Net Income 2021 actual 2,150.0 100.00% 45.00% 40.00% 3.72% 45.00% 40.00% 4.02% 7.20% 3.78% 1.32% 2.46% The capital structure of the company has not changed, and the company has no short term interest bearing debt outstanding. The projected net income (in $ millions) for 2022 is closest to: 2020 actual 1,990.0 100.00% 11.28% 3.95% 7.33%

Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. An analyst is forecasting EPS for a company. She prepares the following common sized data from its recent annual report and estimates sales for 2009. Sales $ millions Sales as % of sales Cost of goods sold Operating Expenses Interest expense Restructuring expense 2022 forecast 2,250.0 Pre-tax margin Taxes (35%) Net Income 2021 actual 2,150.0 100.00% 45.00% 40.00% 3.72% 45.00% 40.00% 4.02% 7.20% 3.78% 1.32% 2.46% The capital structure of the company has not changed, and the company has no short term interest bearing debt outstanding. The projected net income (in $ millions) for 2022 is closest to: 2020 actual 1,990.0 100.00% 11.28% 3.95% 7.33%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. An
analyst is forecasting EPS for a company. She prepares the following common sized data from
its recent annual report and estimates sales for 2009.
Sales $ millions
Sales as % of sales
Cost of goods sold
Operating Expenses
Interest expense
Restructuring expense
2022 forecast
2,250.0
Pre-tax margin
Taxes (35%)
Net Income
2021 actual
2,150.0
100.00%
45.00%
40.00%
4.02%
7.20%
3.78%
1.32%
2.46%
The capital structure of the company has not changed, and the company has no short term
interest bearing debt outstanding. The projected net income (in $ millions) for 2022 is closest to:
45.00%
40.00%
3.72%
2020 actual
1,990.0
100.00%
11.28%
3.95%
7.33%

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