Use Segment Disclosures to Forecast Revenue - Q7

Following are 2017 and 2018 revenue data for Honeywell Internationals four segments. Use these data to forecast its 2019 revenue.

Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places.

Honeywell International Segment Sales and Business-Unit Sales by Segment
$ millions	2018	2017
Aerospace sales
Commercial aviation original equipment	$3,611	$2,475
Commercial aviation aftermarket	5,373	5,881
Defense and space	5,443	4,053
Transportation systems	2,622	3,926
Total aerospace sales	$17,049	$16,335
Honeywell building technologies sales
Homes	$4,706	$4,482
Buildings	5,370	6,073
Total Honeywell building technologies sales	$10,076	$10,555
Performance materials and technologies sales
UOP Russell LLP	$3,623	$2,753
Process solutions	4,981	5,573
Advanced materials	3,626	2,791
Total performance materials and technologies sales	$12,230	$11,117
Safety and productivity solutions sales
Safety	$2,278	$2,947
Productivity solutions	4,837	3,470
Total safety and productivity solutions sales	$7,115	$6,417
Total consolidated sales	$46,470	$44,424

a. Calculate historic (year-on-year) sales growth for each business unit, segment, and total consolidated sales. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate.

	Honeywell International Segment Sales and Business-Unit Sales by Segment	2017 to 2018
	$ millions	% growth
	Aerospace sales
	Commercial aviation original equipment	Answer
	Commercial aviation aftermarket	Answer
	Defense and space	Answer
	Transportation systems	Answer
	Total aerospace sales	Answer
	Honeywell building technologies sales
	Homes	Answer
	Buildings	Answer
	Total Honeywell building technologies sales	Answer
	Performance materials and technologies sales
	UOP Russell LLP	Answer
	Process solutions	Answer
	Advanced materials	Answer
	Total performance materials and technologies sales	Answer
	Safety and productivity solutions sales
	Safety	Answer
	Productivity solutions	Answer
	Total safety and productivity solutions sales	Answer
	Total consolidated sales	Answer

b. Use the historic growth in Total consolidated sales (from 2017 to 2018) calculated in Part a to estimate total consolidated sales for 2019.

Estimated total consolidated sales for 2019

Answer

c. Refine the sales forecast by using the sales growth rates for each of the four segments (from 2017 to 2018) calculated in part a to estimate 2019 sales for each segment. Determine a forecast for total consolidated sales for 2019.

Estimated total consolidated sales for 2019

Answer

d. Refine the sales forecast further by using the sales growth rates for each of the business units within each of the four segments. This means we use the separate historic growth for each line item in the table (calculated in part a) to estimate 2019 total consolidated sales.

Estimated total consolidated sales for 2019

Answer

e. Which approach do we believe is more accurate in forecasting total consolidated sales? AnswerPart bPart cPart d