Utilizing the fictitious company Tag-It Corporation, prepare next year’s forecast with a pro forma income statement. Here is the current income statement for Tag-It:

Download the income statement. https://resources.careered.com/LCMSFileSharePreview/Resources/MSExcelWorkbook/FINA310_IP_Income_Statement.xlsx

Additionally, Tag-It’s CEO has predicted a 14% increase in total revenue next year. Utilizing the percentage of sales method, prepare a forecast for next year in the correct section on the Excel spreadsheet.

The total revenue numbers over the past 4 years for Tag-It Corporation were as follows (values in millions):

73,785

69,495

75,356

71,879

Determine whether you think Tag-It can hit the target of a 14% increase in sales next year.

Prepare a 5-page report that includes a pro forma forecast using the template provided and an analysis of Tag-It’s ability to hit the 14% increase in sales in a separate word document.

The use of 1 scholarly source (e.g., textbook, article from the CEC Library) is required.

Be sure to show your analysis in a table in a word document. Answer the questions above as part of your analysis.