Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions Total revenues $14,175.2 Operating expenses 7,145.9 Systems development and programming costs 636.3 Depreciation and amortization 304.4 Total cost of revenues 8,086.6 Selling, general, and administrative expenses 3,064.2 Interest expense 129.9
Forecasting an Income Statement ADP reports the following income statement. AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions Total revenues $14,175.2 Operating expenses 7,145.9 Systems development and programming costs 636.3 Depreciation and amortization 304.4 Total cost of revenues 8,086.6 Selling, general, and administrative expenses 3,064.2 Interest expense 129.9
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 17P: Athenian Venues Inc. just reported the following selected portion of its financial statements for...
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Question
Shouldn't the operating expenses for 2020 be 8074.9?
ADP reports the following income statement.
AUTOMATIC DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions |
|
---|---|
Total revenues | $14,175.2 |
Operating expenses | 7,145.9 |
Systems development and programming costs | 636.3 |
304.4 | |
Total cost of revenues | 8,086.6 |
Selling, general, and administrative expenses | 3,064.2 |
Interest expense | 129.9 |
Total expenses | 11,280.7 |
Other income expense, net | 111.1 |
Earnings before income taxes | 3,005.6 |
Provision for income taxes | 712.8 |
Net earnings | $ 2,292.8 |
Total revenues growth | 13% |
Depreciation and amortization | $460.5 million |
Interest expense | No change |
Other (income) expense, net | No change |
Income tax rate | 25% |
Round your answers to one decimal place.
Do not use negative signs with your answers.
AUTOMATIC DATA PROCESSING INC. Forecasted Income Statement For Year Ended June 30, 2019, $ millions |
June 2019 | June 2020 |
---|---|---|
Total revenues | $14,175.2 | Answer
|
Operating expenses | 7,145.9 | Answer
|
Systems development and programming costs | 636.3 | Answer
|
Depreciation and amortization | 304.4 | Answer
|
Total cost of revenues | 8,086.6 | Answer
|
Selling, general, and administrative expenses | 3,064.2 | Answer
|
Interest expense | 129.9 | Answer
|
Total expenses | 11,280.7 | Answer
|
Other income expense, net | 111.1 | Answer
|
Earnings before income taxes | 3,005.6 | Answer
|
Provision for income taxes | 712.8 | Answer
|
Net earnings | $ 2,292.8 | Answer
|
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