Please answer Exercise 9-1. Prepare a forecasted income statement for Year 12. EXERCISE 9-1Forecasting Income andIncome ComponentsCHECKForecast NI, $140.1 mil.Refer to the financial statements of Quaker OatsCompany in Problem 9-6. Prepare a forecastedincome statement for Year 12 using the following assumptions ($ millions):Quaker Oats Company1. Revenues are forecast to equal $6,000.2. Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-yearperiod ending June 30, Year 11.3. Selling, general, and administrative expenses are expected to increase by the same percent increase occurringfrom Year 10 to Year 11.4. Other expenses are predicted to be 8% higher than in Year 11.5. A $2 million loss (net of taxes) is expected from disposal of net assets from discontinued operations.interest income, is expected to increase by 6% due to6. Interest expense, net of interest capitalized andincreased financial needs.7. The effective tax rate is equal to that of Year 11. INCOME STATEMENTYear ended June 30 ($ millions except per share data)Net sales ......Cost of goods sold.......Gross profit.....Selling, general, and administrative expensesInterest expense-net of $9.0, $11.0, and $12.4 interest income ....Other expense-net.Income from continuing operations before income taxes.Provision for income taxes ....Income from continuing operationsIncome (loss) from discontinued operations-net of tax ......Net income......Preferred dividends-net of tax..Net income available for commonPer common shareIncome from continuing operations ....Income (loss) from discontinued operations....Net income .....*Y..ker Oats CompanyYear 11$5,491.22,839.72,651.52,121.286.232.6.. $$411.5175.7235.8(30.0)205.84.3... $201.5.... $ 3.05(.40)2.65Dividends declared.......$ 1.56Average number of common shares outstanding (in thousands).... 75,904Year 10$5,030.62,685.92,344.71,844.1101.816.4382.4153.5228.9(59.9)169.04.5$164.5$2.93(.78)$ 2.15$ 1.4076,537Year 9$4,879.42,655.32,224.11,779.056.4149.6239.190.2148.954.1203.0$203.0$ 1.88.68$2.56$ 1.2079,307PROBLEM 9-6Forecasting the Statemeof Cash Flocus

Forecasted net income means to forecast the revenues and all the operating expenses to reach the…

EXERCISE 9-1 Forecasting Income and Income Components CHECK Forecast NI, $140.1 mil. Quaker Oats Company Refer to the financial statements of Quaker Oats Company in Problem 9-6. Prepare a forecasted income statement for Year 12 using the following assumptions ($ millions): 1. Revenues are forecast to equal $6,000. 2. Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-year period ending June 30, Year 11. 3. Selling, general, and administrative expenses are expected to increase by the same percent increase occurring from Year 10 to Year 11. 4. Other expenses are predicted to be 8% higher than in Year 11. 5. A $2 million loss (net of taxes) is expected from disposal of net assets from discontinued operations. 6. Interest expense, net of interest capitalized and interest income, is expected to increase by 6% due to increased financial needs. 7. The effective tax rate is equal to that of Year 11.

EXERCISE 9-1 Forecasting Income and Income Components CHECK Forecast NI, $140.1 mil. Quaker Oats Company Refer to the financial statements of Quaker Oats Company in Problem 9-6. Prepare a forecasted income statement for Year 12 using the following assumptions ($ millions): 1. Revenues are forecast to equal $6,000. 2. Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-year period ending June 30, Year 11. 3. Selling, general, and administrative expenses are expected to increase by the same percent increase occurring from Year 10 to Year 11. 4. Other expenses are predicted to be 8% higher than in Year 11. 5. A $2 million loss (net of taxes) is expected from disposal of net assets from discontinued operations. 6. Interest expense, net of interest capitalized and interest income, is expected to increase by 6% due to increased financial needs. 7. The effective tax rate is equal to that of Year 11.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The image uploaded is the calculation of Societe Generale Profitability ratios, shorter liquidity ratios, long-term liquidity ratios, and investment ratios for 2020, 2021, 2022. A base year of 2019 was also added. Evaluate the financial performance by comparing the three (3) years' financial performance that is 2020, 2021, and 2022 I have provided in the table with the base year.
Please don’t use chat gpt and provide snip from spreadsheet thank you
Your Task… Using your assigned financial statements calculate the required ratios below Indicate if the change from year to year is favorable or unfavorable. All values should be accurate to at least two decimal places. The expectation is to submit a professional report free of grammar and spelling errors and easy to read. Think of this as a menu you would be handing to a customer. All calculations are to be represented. Analysis of Profitability Gross Profit Ratio Operating Profit Ratio Net Profit Ratio Sales to Total Assets Ratio Return on Total Assets Return on Equity Earnings Per Share
Locate the formula in the textbook and calculate the 2022 Profit Margin Ratio (Profitability). Fill in the numerator and denominator using the financial statements provided (no symbols or commas) and the answer should be in a XX.XX% format:
a spreedsheet is needed to complete for this question. PR17-04b from Cegage accounting 2 (financial statement analysis)
Costco Financial Analysis. Perform the following ratio analysis for 2021, 2022, and 2023 for Costco using the attached financial statements. a. Profitability ratios b. Liquidity ratios c. Leverage ratios d. Activity ratios e. Price to earnings ratio
Required: Compute the following ratios for 2020: 1. Current Ratio 2. Quick Ratio 3. Receivable Turnover 4. Average Collection Period 5. Inventory Turnover 6. Average Sales Period 7. Working Capital 8. Debt Ratio 9. Equity Ratio 10. Debt to Equity Ratio 11. Time Interest Earned 12. Gross Profit Ratio 13. Operating Profit Margin 14. Net Profit Margin 15. Return on Assets
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Federal income tax due for the previous year is paid.
Using functions , complete the “Aggregated Data” worksheet using the “Statementof Income” worksheet.
Review the Republic Financial Holdings Limited 2022 annual report. What recommendations can be made for the preparation of the financial statements ?
List five ratios that are automatically provided by the vertical analysis of income statements.