Total revenue is the receipts achieved from the sales. According to the Ikea Company, the total revenue encompasses billions of dollars in every year.

IKEA Company

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Total revenue is the receipts achieved from the sales. According to the Ikea Company, the total revenue encompasses billions of dollars in every year. Due to the practical changes implemented like stock change, it has aroused a significant impact on the annual income. From 2016, the total revenue has been deviating, however increasing simultaneously. In 2016, the total revenue was $35.6 billion dollars and projected to $40 billion dollars in 2020. Significantly, total revenue is a vital tool in economics that can be used to calculate expenses, income tax, and net income. Conclusively, total revenue determines economic stability and financial position within a company. Therefore, Ikea Company is capable of analyzing viability of its investors concerning financial gap.
From 2016 to 2019, the Ikea Company is entitled to a loss. This is after deduction of all expenses and other rates achieved in every fiscal year.
For instance in 2016,
Net income is -15.5%
Thus, net income 2016 =(-15.5)/100 x 35,658,750
= – 5,527,106
NB: This elaborates that the net income has exceeded the sales done in that fiscal year after deductions for cost of goods sold (COGs), expenses, interest, and expenses. If the net income appears negative, it deduces a loss.

The expenses increase annually due to change in marketing platform and business expansion. Ikea Company has been doing impulsive transactions to thrive its activities. In 2016, the total expense is $10,697,625,000 that entails 30% more of the expected total income generated. In this scenario, the company could have been declared bankrupt, but it is in the process of investing to attain its financial position to compete in the market space. In 2020, the company is capable of acquiring profits generated after all that four years.
The financial position for the Ikea Company and projected value is illustrated as follows.
Actual Values for 2016 (Base Year)
Total Revenue: $35,658,750,000
Total Assets: $92,892,249,664
Forecasted Values for 2020
Total Revenue: $40,066,420,000
Total Assets: $99,295,040,870
Strategic Assets Needed
$120,580,301,980

The Ikea Company is predicted to achieve high income by 2020 with forecasted total revenue of $ 40,066,420,000 and total assets of $99,295,040,000. With the experienced team, the projected income statement will enable the company to achieve some goals even if not stipulated objective.