Using Historical Numbers to Forecast Financial Statement Items Abbott Laboratories reports the following revenue for fiscal years 2006 through 2019. Year 2006. 2007.. 2008 2009. 2010.... 2011 2012.. Revenue in $ millions $22,476 25,914 29,528 30,765 35,167 38,851 39,874 Year 2013.... 2014.... 2015.... 2016.... 2017.... 2018... 2019.... Revenue in $ millions $21,848 20,247 20,405 20,853 27,390 30,578 31,904 Required a. Calculate year-over-year change in Revenue for 2005 through 2019. b. Assume that an analyst uses the most current year's revenue growth to forecast next year's revenue. Use that method to forecast 2012 revenue for Abbott Labs. c. Assume that an analyst uses the average of the prior five years' revenue growth to forecast next year's revenue. Use that method to forecast 2012 revenue for Abbott Labs. d. Compare the forecasts from part b and part e, above. Which method provided the better forecast? e. Consider revenue growth in 2013. Suggest two reasons for what we observe. f. In 2016, Abbott Labs announced that it would acquire another pharmaceutical company in 2017. How would this affect an analyst's forecast of 2017 revenue?

Using Historical Numbers to Forecast Financial Statement Items Abbott Laboratories reports the following revenue for fiscal years 2006 through 2019. Required a. Calculate year-over-year change in Revenue for 2005 through 2019. b. Assume that an analyst uses the most current year's revenue growth to forecast next year's revenue. Use that method to forecast 2012 revenue for Abbott Labs. c. Assume that an analyst uses the average of the prior five years' revenue growth to forecast next year's revenue. Use that method to forecast 2012 revenue for Abbott Labs. d. Compare the forecasts from part b and part c, above. Which method provided the better forecast? e. Consider revenue growth in 2013. Suggest two reasons for what we observe. f. In 2016. Abbott Labs announced that it would acquire another pharmaceutical company in 2017. How would this affect an analyst's forecast of 2017 revenue