Business Analytics 2nd Edition by James Evans. Chap 11 Case: Performance Lawn Equipment. Part B. The CFO of PLE would like to have a model to predict the net income for the next 3 years. To do this you need to determine how the variables in the pro forms income statement will likely change in the future. Using the calculations and worksheet that you developed along with other historical data in the database, estimate teh annual rate of change in sales revenue, cost of goods sold, operating expenses, and interest expense. Use these rates to modify the pro Forma income statement to predict the net income over the next 3 years.

Pro Forma already established. Net Income Model 2014 Data Sales 196,445,370.00 Cost of Goods Sold 104,083,669.00 Administrative Expenses 7,738,943.00 Depreciation Expenses 2,486,977.00 Interest Expense 117,855.00 Dealer Sales Revenue 35,360,166.60 Earnings 46,657,759.40 Taxes $23,328,879.70

Model Net Income $23,328,879.70