(8 pts) XYZ just reported Revenues (Sales) of 100 million for 2017. You are fore

Question

(8 pts) XYZ just reported Revenues (Sales) of 100 million for 2017. You are forecasting that a stronger economy will allow the company to increase revenues by 8% next year (2018). 1) a. What is your forecast for Revenues for 2018? You also assume that based on historical data, the company will have a Gross Profit Margin in 2018 of 22% and operating (SG&A;) costs of $8 million in 2018. b, what is your forecast for Costs of Goods Sold in 2018? Cost of Goods Sold c. What is your forecast for Gross profit in 2018? Gross Profit what is your forecast for Operating Income (EBIT) for 2018? EBIT- What is your expectation for XYZ's operating margin in 2018? d, e. Operating Margin

Explanation / Answer

2017 2018E Revenues 100 108 COGS 84.24 GP 23.76 SG&A 8 EBIT 15.76 Operating Margin 14.59%

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.