Question

Companys Current Financials Millions of US                                    2018........

Companys Current Financials

Millions of US                                    2018......................................................................... 2017

Sales

Cost of goods sold

Gross Profit

Gross margin

24,719.5

10,174.5

14,545

59%

22,386.8

9,034.3

13,352.5

60%

Predict 2019, 2020, 2021 financials for this company and explain the method thank you (need within hours)

Homework Answers

Answer #1

To predict financial of 2019,2020,2021 first we find the % growth in 2018 compare to 2017 and use the same % of growth to predict financial in 2019,2020 & 2021

% Growth in sales in 2018 = (Sales in 2018- sales in 2017)/ Sales in 2017 * 100

= (24719.5-22386.8)/22386.8* 100

= 10%

% Growth in cost of goods sold= (cost of goods sold in 2018- Cost of goods sold in 2017)/ cost of goods sold in 2017* 100

=(10174.5-9034.3)/9034.3*100

=13%

after applying same growth figure in 2019.2020 & 2021

2017 2018 % Growth 2019 2020 2021
Sales 22386.8 24719.5 10% 27191.45 29910.60 32901.65
Cost of Goods sold 9034.3 10174.5 13% 11497.19 12991.82 14291.00
Gross Profit 13352.5 14545 15694.27 16918.78 18610.65
Gross margin 60% 59% 58% 57% 57%
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