Question

Prepare a comprehensive operational budget for Under Armour’s annual report for the year 2017 and for the coming year assuming a 20% increase in sales. Prepare a comprehensive financial budget for Under Armour’s annual report for the year 2017 and for the coming year assuming a 20% increase in sales. Budget should include income statement for the current year, showing the percentage of sales method. Budget should reflect profit/loss for the coming year, using the Income Statement usder the percentatge of sales method.

Annual report link http://files.shareholder.com/downloads/UARM/6363326125x0x975316/629B335B-1D9C-4AB2-918C-999D4C9A5555/2017_UA_Annual_Report.pdf

Answer 1

Income Statement	Amounts in '000
Ending 31 Dec 2017				Forcecasted Income Statement
	2017	Basis	%	2018
Net Revenues	$4,976,553			$5,971,864
Cost of Goods sold	$2,737,830	As % of sales	55.01%	$3,285,396	On the basis of 2017 %
Gross Profit	$2,238,723	As % of sales	44.99%	$2,686,468	On the basis of 2017 %
Selling, general and administrative expenses	$2,086,831	As % of sales	41.93%	$2,504,197	On the basis of 2017 %
Restructuring and impairment charges	$124,049	As % of sales	2.49%	$148,859	On the basis of 2017 %
Income (Loss) from operations	$27,843	As % of sales	0.56%	$33,412	On the basis of 2017 %
Interest expense, net	$34,538	As % of sales	0.69%	$41,446	On the basis of 2017 %
Other expense, net	$3,614	As % of sales	0.07%	$4,337	On the basis of 2017 %
Income (loss) before income taxes	-$10,309	As % of sales	-0.21%	-$12,371	On the basis of 2017 %
Income tax expense	$37,951	As % of Income Before Income Taxes	-368.13%	$45,541	On the basis of 2017 %
Net income (loss)	-$48,260	As % of Income Before Income Taxes	-468.13%	-$57,912	On the basis of 2017 %