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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:
Download the income statement.
Additionally, Tag-It’s CEO has predicted a 12% increase in total revenue next year. Utilizing the percentage of sales method, prepare a forecast for next year in the correct section on the Excel spreadsheet.
The total revenue numbers over the past 4 years for Tag-It Corporation were as follows (values in millions):
73,785
69,495
75,356
71,879
Determine whether you think Tag-It can hit the target of a 12% increase in sales next year.
Prepare a 5 page report that includes a pro forma forecast using the template provided and an analysis of Tag-It’s ability to hit the 12% increase in sales in a separate word document.
The use of 1 scholarly source (e.g., textbook, article from the CEC Library) is required.
Be sure to show your analysis in a table in a word document. Answer the questions above as part of your analysis. The assignment is 5 pages minimum. The analysis can be one page of the analysis.
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