Polaris Industries Is Forecasting Its Financial Statements for Year 6

question 18

Multiple Choice

Polaris Industries is forecasting its financial statements for Year 6. Selected financial information for Years 5 and 6 is provided in the table. What is the forecasted Cost of Goods Sold in Year 3? Selected Financial Information
Polaris Industries Inc. ($000s)
$$\begin{array} { | c | c | c | } \hline & \text { Year 5 } & \text { Forecast Year 6 } \\\hline \text { Sales } & \$ 1,908,459 & \$ 1,803,493 \\\hline \text { COGS } & 1,454,374 & \\\hline\end{array}$$

• A)$1,368,500
• B)$1,367,500
• C)$1,369,350
• D)$1,374,383
• E)$1,375,450

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Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services, before any expenses are subtracted.

Net Sales

The amount of revenue generated from sales activities after returns, allowances, and discounts have been subtracted.

Operating Expenses

Operating expenses are the costs associated with running a business’s core activities on a day-to-day basis, excluding the cost of goods sold.

Sales Revenue

The total amount earned by a company from its sales of goods or services, before any deductions for returned goods and allowances.