Employ accounting data for business analysis and prediction.
The Corporate Controller has called you into a planning session and asked you to help with the preparation of an income statement forecast for the coming three years. You both discuss the project and decide that the data you will need it is:
The last 5 years of income statements
A forecast of economic data for key economic indicators
The basic assumptions the company is making in their business plan
The Corporate Controller would like you to use Excel to prepare a high-level, 3-year forecast (income statement format) incorporating the historical, economic forecast, and assumptions provided by the Corporate Controller. The Corporate Controller also states that the Board of Directors loves to see “pictures” of summary data rather than a “bunch of numbers.” The Corporate Controller suggests that on a separate tab in Excel to use the graphing function to display total revenues and expenses for the periods covered.
Create and Excel spreadsheet with two tabs labeled:
Tab 1: 3-Year Income Statement Forecast
Tab 2: Graphs
On Tab 1: 3-Year Income Statement Forecast, use the same income statement format and titles as the historical data provided.
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