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Prepare a basic income statement forecast for the subsequent fiscal year, using a percentage of sales approach and using information included in the materials below to support assumptions that correspond for each revenue and expense. Each line item (e.g., marketing expenses) should have a note and an explanation on how it was calculated.

Prepare a basic income statement forecast for the subsequent fiscal year, using a percentage of sales approach and using information included in the materials below to support assumptions that correspond for each revenue and expense. Each line item (e.g., marketing expenses) should have a note and an explanation on how it was calculated.

FINANCIAL ACCOUNTING
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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Prepare a basic income statement forecast for the subsequent fiscal year, using a percentage of sales approach and using information included in the materials below to support assumptions that correspond for each revenue and expense. Each line item (e.g., marketing expenses) should have a note and an explanation on how it was calculated.

Assets Cash Accounts Receivable Inventory Total Current Assets Gross Property Plant & Equipment Less: Accumulated Depreciation Net Property, Plant, & Equipment Long-term Investments Total Long-Term Assets Account Payable Short-term Debt Current Liabilities Long-term Debt Total Liabilities Shareholder's Equity Common Shares Preferred Shares Retained Earnings Total Equity Liabilities & Shareholder's Equity Total Assets Liabilities Canada Hardware Statement of Financial Position (Balance Sheet) At Dec 31, 2017 In millions of dollars 2013 2014 2015 2016 2017 $500 $430 $360 $290 $520 $2,000 $2,100 $2,100 $1,993 $2,000 $1,163 $2,500 $3,400 $4,800 $5,701 $3,663 $5,030 $5,860 $7,083 $8,221 $5,000 $5,741 $6,500 $6,750 $7,500 -$2,000 -$2,400 -$2,900 -$3,500 -$4,200 $3,000 $3,341 $3,600 $3,250 $3,300 $1,000 $1,000 $1,000 $1,000 $1,000 $4,000 $4,341 $4,600 $4,250 $4,300 $7,663 $9,371 $10,460 $11,333 $12,521 $1,875 $2,016 $2,019 $1,918 $2,172 $500 $500 $500 $500 $800 $2,375 $2,516 $2,519 $2,418 $2,972 2,000 2,000 2,000 2,000 2,000 $4,375 $4,516 $4,519 $4,418 $4,972 $1,000 $1,000 $1,000 $1,000 $1,000 $250 $250 $250 $250 $250 $2,038 $3,605 $4,691 $5,665 $6,299 $3,288 $4,855 $5,941 $6,915 $7,549 $7,663 $9,371 $10,460 $11,333 $12,521
Transcribed Image Text:Assets Cash Accounts Receivable Inventory Total Current Assets Gross Property Plant & Equipment Less: Accumulated Depreciation Net Property, Plant, & Equipment Long-term Investments Total Long-Term Assets Account Payable Short-term Debt Current Liabilities Long-term Debt Total Liabilities Shareholder's Equity Common Shares Preferred Shares Retained Earnings Total Equity Liabilities & Shareholder's Equity Total Assets Liabilities Canada Hardware Statement of Financial Position (Balance Sheet) At Dec 31, 2017 In millions of dollars 2013 2014 2015 2016 2017 $500 $430 $360 $290 $520 $2,000 $2,100 $2,100 $1,993 $2,000 $1,163 $2,500 $3,400 $4,800 $5,701 $3,663 $5,030 $5,860 $7,083 $8,221 $5,000 $5,741 $6,500 $6,750 $7,500 -$2,000 -$2,400 -$2,900 -$3,500 -$4,200 $3,000 $3,341 $3,600 $3,250 $3,300 $1,000 $1,000 $1,000 $1,000 $1,000 $4,000 $4,341 $4,600 $4,250 $4,300 $7,663 $9,371 $10,460 $11,333 $12,521 $1,875 $2,016 $2,019 $1,918 $2,172 $500 $500 $500 $500 $800 $2,375 $2,516 $2,519 $2,418 $2,972 2,000 2,000 2,000 2,000 2,000 $4,375 $4,516 $4,519 $4,418 $4,972 $1,000 $1,000 $1,000 $1,000 $1,000 $250 $250 $250 $250 $250 $2,038 $3,605 $4,691 $5,665 $6,299 $3,288 $4,855 $5,941 $6,915 $7,549 $7,663 $9,371 $10,460 $11,333 $12,521
Revenue Hardware Segment Apparel Segment Sporting Goods Segment Total Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Advertising & Marketing General & Administrative Research, IT, & Development Depreciation & Amortization Total Operating Expenses Operating Income Interest Expense Pre-tax Income Income Taxes Net Income (Net Profit) Canada Hardware Statement of Earnings (Income Statement) For the Year Ended Dec 31, 2017 In millions of dollars 2013 2014 2015 2016 $5,780 $5,916 $6,346 $6,352 $1,817 $1,700 $1,550 $1,250 $700 $900 $1,100 $1,350 $8,297 $8,516 $8,996 $8,952 $4,174 $4,144 $4,370 $4,297 $4,123 $4,372 $4,626 $4,655 $500 $500 $1,000 $1,000 $750 $1,000 $1,200 $1,200 $300 $300 $300 $300 $300 $400 $500 $600 $1,850 $2,200 $3,000 $3,100 $2,273 $2,172 $1,626 $1,555 $100 $100 $100 $100 $2,173 $2,072 $1,526 $1,455 $435 $435 $370 $411 $1,738 $1,637 $1,156 $1,044 2017 $6,373 $900 $1,300 $8,573 $3,772 $4,801 $1,000 $1,200 $1,000 $700 $3,900 $901 $100 $801 $97 $704
Transcribed Image Text:Revenue Hardware Segment Apparel Segment Sporting Goods Segment Total Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Advertising & Marketing General & Administrative Research, IT, & Development Depreciation & Amortization Total Operating Expenses Operating Income Interest Expense Pre-tax Income Income Taxes Net Income (Net Profit) Canada Hardware Statement of Earnings (Income Statement) For the Year Ended Dec 31, 2017 In millions of dollars 2013 2014 2015 2016 $5,780 $5,916 $6,346 $6,352 $1,817 $1,700 $1,550 $1,250 $700 $900 $1,100 $1,350 $8,297 $8,516 $8,996 $8,952 $4,174 $4,144 $4,370 $4,297 $4,123 $4,372 $4,626 $4,655 $500 $500 $1,000 $1,000 $750 $1,000 $1,200 $1,200 $300 $300 $300 $300 $300 $400 $500 $600 $1,850 $2,200 $3,000 $3,100 $2,273 $2,172 $1,626 $1,555 $100 $100 $100 $100 $2,173 $2,072 $1,526 $1,455 $435 $435 $370 $411 $1,738 $1,637 $1,156 $1,044 2017 $6,373 $900 $1,300 $8,573 $3,772 $4,801 $1,000 $1,200 $1,000 $700 $3,900 $901 $100 $801 $97 $704
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