Explore BrainMass

Explore BrainMass

    Percentage Sales Method to Forecast Consolidated Statement of Operations

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Consider Apple's Consolidated Statement of Operations for the year ended September 25, 1999 as shown in the attachment and answer the following problem:

    Use the Percentage Sales Method and a 20% increase in sales to forecast Apples' Consolidated Statement of Operations for the period September 26, 1999 through September 25, 2000. Assume a 15% tax rate.

    © BrainMass Inc. brainmass.com October 1, 2020, 4:50 pm ad1c9bdddf
    https://brainmass.com/business/consolidated-financial-statements/percentage-sales-method-to-forecast-consolidated-statement-of-operations-16718

    Attachments

    Solution Preview

    This question is worded a bit awkwardly, so I'm not surprised that you're confused. But really, it's not too complicated.
    <br><br>
    <br><br>You're given a set of numbers for Sept 26, 1998 to Sept 25, 1999, and are asked, based on these to figure out what they will be for the next year, given only the information that sales will increase by 20% and the tax rate stays the same.
    <br><br>
    <br><br>How do you figure this out? Percentage of sales. Basically, if your sales increase by 20%, your expenses will increase proportionally. So you need to figure out what the proportions are.
    <br><br>
    <br><br>I'm not going to do it for you, but here's what it will look like in the end.
    <br><br>
    <br><br>...............................................1999.......% of ...

    $2.19

    ADVERTISEMENT