*** I am having a hard time following the percent of sales forecast with the info given. Can you please help me?!?

Option #1: Percent of Sales Forecasting

Go to the Atom Finance (Links to an external site.) website and select a company of your choice to evaluate. Using the financial data tab, transfer the information from the income statement for at least two years to a new Excel workbook. Use the exhibit 5-2 from your text as an example. Calculate the Percent of Sales Forecast for the subsequent year in column B of your spreadsheet.

1. Submit the spreadsheet.
2. Submit a 1-2-page summary of your findings. Include the definition and purpose of using the percent of sales forecasting method. Also include ideas regarding other important statistical calculations or forecasts that would help with decision-making.

Peloton Interactive Inc (PTON)		FY18	FY19	FY20
Pro-Forma Income Statement		Ends June 2019	Ends June 2020	Ends June 2021
For the Year Ended June 30, 2021
All Financials displayed in millions
Revenue		$915.0	$1,825.9	$4,021.8
Total Revenue		915.0	1,825.9	4,021.8
Cost of Revenue, Total		531.4	989.1	2,569.8
Gross Profit		383.6	836.8	1,452.0
Selling/General/Admin. Expenses, Total		521.8	808.7	1,364.8
Research & Development		54.8	88.7	237.9
Depreciation/Amortization		9.2	20.2	37.2
Other Operating Expenses, Total		0.10	0.00	(0.10)
Operating Income		(202.3)	(80.8)	(187.8)
Interest Inc.(Exp.),Net-Non-Op., Total		7.0	16.2	(10.4)
Other, Net		(0.30)	(3.8)	0.00
Net Income Before Taxes		(195.6)	(68.4)	(198.2)
Provision for Income Taxes		0.10	3.3	(9.2)
Net Income After Taxes		(195.7)	(71.7)	(189.0)
Net Income Before Extra. Items		(195.7)	(71.7)	(189.0)
Net Income		(195.7)	(71.7)	(189.0)
Diluted Net Income		(245.7)	(71.6)	(189.0)
Diluted Weighted Average Shares		277.8	221.0	293.9
Diluted EPS Excluding ExtraOrd Items		(0.88)	(0.32)	(0.64)
Diluted Normalized EPS		(0.88)	(0.35)	(0.48)
DPS - Common Stock Primary Issue		0.00	-	-
Total Operating Expense		1,117.3	1,906.7	4,209.6
Total Adjustments to Net Income		(50.0)	0.10	-
Income Available to Com Excl ExtraOrd		(245.7)	(71.6)	(189.0)
Income Available to Com Incl ExtraOrd		(245.7)	(71.6)	(189.0)

5-2 Example:

Peloton Interactive Inc (PTON)		FY20	FY19	FY18
Pro-Forma Income Statement
For the Year Ended June 30, 2021		Ends June 2019	Ends June 2020	Ends June 2021
All Financials Displayed in Millions
Sales
Cost of Goods Sold
Gross Profit
Selling and G&A Expenses
Fixed Expenses
Depreciation Expense
EBIT
Interest Expense
Earnings Before Taxes
Taxes
Net Income
*Forecast
Notes:
Tax Rate		40%	40%
Additional Depreciation		5%