Homework: Financial Management
Length: 5 pages.
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:
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.
A. The total revenue numbers over the past 4 years for Tag-It Corporation were as follows (values in millions):
a. 73,785
b. 69,495
c. 75,356
d. 71,879
B. 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.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.