How to forecast all the following given values for 2023 if we have the data given for 2022 below:

2022
 

Income statement

Revenue: 13580

COGS: 7470

Gross Margin: 6110

SG&A: 3395

EBIT: 2715
Interest: 150

EBT: 2565

Tax: 1077

NI: 1488

 

Balance Sheet:

 

ASSETS

Cash: 348

AR: 1698

Inventory: 1494

Current Assets: 3540

Net Capital Assets: 2460

Total Assets: 6000

 

LIAB & SE

AP: 125

Notes Payable: 45

Current Liab: 170

Long Term Debt: 1330

Shareholder Equity: 4500

Total L&SE: 6000

Assumptions:

1) Company expects revenues next year to increase by 15%?

2) Firm has some excess capacity so no new capital assets beyond normal replacements are needed?

3) Combined tax rate is 42%, firm pays no dividends, cost of debt 12%?

 

Question:

Project the income statement and balance sheet for 2023 with all the values above, taking into account all the assumptions. Explain how you calculated these values for the next year?

Answer rating: 100% (QA)

To forecast the values take the values from 2022 and adjust them according to the assumptions given Income Statement 1 Revenue It is given that the co... View the full answer