In its 2017 annual report, Liberty Company reported sales of $1,200 million. If you anticipate that sales will grow by 4% each year for the foreseeable future, what will 2021 forecasted sales be?

Question

Quizplus · Accepted Answer

To calculate the forecasted sales for 2021, apply the compound growth formula: Future Sales = Present Sales * (1 + Growth Rate)^Number of Years. For Liberty Company: $1,200 million * (1 + 0.04)^4 = $1,200 million * 1.16985856 = $1,403.8 million.

In Its 2017 Annual Report, Liberty Company Reported Sales of $1,200