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. AssetsCashAccounts ReceivableInventoryTotal Current AssetsGross Property Plant & EquipmentLess: Accumulated DepreciationNet Property, Plant, & EquipmentLong-term InvestmentsTotal Long-Term AssetsAccount PayableShort-term DebtCurrent LiabilitiesLong-term DebtTotal LiabilitiesShareholder's EquityCommon SharesPreferred SharesRetained EarningsTotal EquityLiabilities & Shareholder's EquityTotal AssetsLiabilitiesCanada HardwareStatement of Financial Position (Balance Sheet)At Dec 31, 2017In millions of dollars20132014201520162017$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$2,9722,0002,0002,0002,0002,000$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 RevenueHardware SegmentApparel SegmentSporting Goods SegmentTotal RevenueCost of Goods Sold (COGS)Gross ProfitOperating ExpensesAdvertising & MarketingGeneral & AdministrativeResearch, IT, & DevelopmentDepreciation & AmortizationTotal Operating ExpensesOperating IncomeInterest ExpensePre-tax IncomeIncome TaxesNet Income (Net Profit)Canada HardwareStatement of Earnings (Income Statement)For the Year Ended Dec 31, 2017In millions of dollars2013201420152016$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$1,0442017$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

Income Statement The purpose of preparing the income statement is to know the net income which are…

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 Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Annual report; balance sheet; income statement Common...

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