Forecasting and Trends
The Income statement and balance sheet for Camelot Inc. are provided here. Note that firm's capital expenditures are expected to rise by $50,000 in the new year. This will lead to an increase of $5,000 in accumulated depreciation. Sales next year should be $4.3M
1. Using percentage of sales analysis techniques prepare a pro forma income statement and balance sheet for the next year.
2. Create a chart of sales by year for all years, including your pro forma estimate.
3. Add a trend line.
4. Create a scatter plot of sales vs. cogs. Add a trend line.
5. Regress COGS against sales .
6. Using your sales trendline and annual sales data forecast the sales level in the next 3 years (3 years after the year with 4.3M in sales).
Forecast using the trend line as well as at least one of the following: trend, linest, regression.