Scribd Logo
Upload

Welcome to Scribd!

  • 24 views

    Lecture 2 Answer 2 1564205851105

    Uploaded by

    Trinesh Bhargava
    The document provides financial statements including the income statement and balance sheet for the years 2017-2019 for a company. It asks to project the financial statements for 2020. The solution projects the income statement and balance sheet for 2020 using growth rates from prior years. Key projections include: - Sales revenue projected to increase 11.46% to $52.2 billion - Net income projected to be $2.18 billion - Total assets projected to increase to $345.95 billion - Long term debt projected to decrease to $8.28 billion The projections use historical growth rates, ratios, and assumptions like capex and dividends to estimate 2020 figures in 3 sentences.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Lecture 2 Answer 2 1564205851105

    Uploaded by

    Trinesh Bhargava
    24 views8 pages
    The document provides financial statements including the income statement and balance sheet for the years 2017-2019 for a company. It asks to project the financial statements for 2020. The solution projects the income statement and balance sheet for 2020 using growth rates from prior years. Key projections include: - Sales revenue projected to increase 11.46% to $52.2 billion - Net income projected to be $2.18 billion - Total assets projected to increase to $345.95 billion - Long term debt projected to decrease to $8.28 billion The projections use historical growth rates, ratios, and assumptions like capex and dividends to estimate 2020 figures in 3 sentences.

    Original Title

    Lecture_2_Answer_2_1564205851105 (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides financial statements including the income statement and balance sheet for the years 2017-2019 for a company. It asks to project the financial statements for 2020. The solution projects the income statement and balance sheet for 2020 using growth rates from prior years. Key projections include: - Sales revenue projected to increase 11.46% to $52.2 billion - Net income projected to be $2.18 billion - Total assets projected to increase to $345.95 billion - Long term debt projected to decrease to $8.28 billion The projections use historical growth rates, ratios, and assumptions like capex and dividends to estimate 2020 figures in 3 sentences.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    24 views8 pages

    Lecture 2 Answer 2 1564205851105

    Uploaded by

    Trinesh Bhargava
    The document provides financial statements including the income statement and balance sheet for the years 2017-2019 for a company. It asks to project the financial statements for 2020. The solution projects the income statement and balance sheet for 2020 using growth rates from prior years. Key projections include: - Sales revenue projected to increase 11.46% to $52.2 billion - Net income projected to be $2.18 billion - Total assets projected to increase to $345.95 billion - Long term debt projected to decrease to $8.28 billion The projections use historical growth rates, ratios, and assumptions like capex and dividends to estimate 2020 figures in 3 sentences.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 8

    Given Profit & Loss and Balance sheet for the Years 2017-2019.

    Project the P&L and Balance sheet for 2020 using the most rec

    Profit & Loss Statement


    Income Statement provided (Values in Millions)

    Sales Revenue
    COGS
    Gross Profit
    Selling, General & Administrative expense
    Depreciation & Amortization expense
    Interest Expense
    Income before tax
    Income tax expense
    Income from extraordinary items a d discontinued operations
    Net Income
    Outstanding shares
    Balance Sheet
    (Values in Millions)
    2019 2018 2017
    46839 42025 37410 Cash
    31445 28389 25498 Accounts receivables
    15394 13636 11912 Inventories
    10534 9379 8134 Other Current assets
    1259 1098 967 Total Current Assets
    570 556 584 Gross PPE
    3031 2603 2227 Accumulated depreciation
    1146 984 851 Net PPE
    1313 190 247 Other Assets
    3198 1809 1623 Total Assets
    891 912 910
    Accounts payable
    Current portion of Long term debt
    Accrued expenses
    Income taxes & other
    Total current liabilities
    Deferred Income taxes & other liabilities
    Long term debt
    Total liabilities
    Common stock
    Additional paid in capital
    Retained earnings
    Shareholder's equity
    Total liabilities & Networth
    ance Sheet

    2018 2017 2016


    2245 708 758
    5069 4621 5565
    5384 4531 4760
    1224 3092 852
    13922 12952 11935
    22272 19880 20936
    5412 4727 5629
    16860 15153 15307
    1511 3311 1361
    32293 31416 28603

    5779 4956 4684


    504 863 975
    1633 1288 1545
    304 1207 319
    8220 8314 7523
    2010 1815 1451
    9034 10155 10186
    19264 20284 19160
    74 76 76
    1810 1530 1256
    11145 9526 8111
    13029 11132 9443
    32293 31416 28603
    Profit & Loss Statement
    Income Statement provided (Values in Millions)
    2019 2018 2017
    Sales Revenue 46839 42025 37410
    COGS 31445 28389 25498
    Gross Profit 15394 13636 11912
    Selling, General & Administrative expense 10534 9379 8134
    Depreciation & Amortization expense 1259 1098 967
    Interest Expense 570 556 584
    Income before tax 3031 2603 2227
    Income tax expense 1146 984 851
    Income from extraordinary items a d discontinued operations 1313 190 247
    Net Income 3198 1809 1623
    Outstanding shares 891 912 910

    Selected Ratios (%)


    Sales growth rate 11.46% 12.34%
    Gross Profit Margin 32.87% 32.45% 31.84%
    Selling General and Administrative expense/Sales revenue 22.49% 22.32% 21.74%
    Depreciation expense/Gross prior PPE 6.33% 5.24%
    Interest expense/Prior year Long term debt 5.17% 4.98%
    Income tax 37.81% 37.80% 38.21%

    Forecasted assumptions are taken as the figures marked in green above

    SOLUTION

    Projected Profit & Loss Statement for 2020


    Projected 2020 2019
    Sales Revenue 52204.44785247 46839
    COGS 35047.05187388 31445
    Gross Profit 17157.39597858 15394
    Selling, General & Administrative expense 11740.67878644 10534
    Depreciation & Amortization expense 1410.485311871 1259
    Interest Expense 493.4343801053 570
    Income before tax 3512.797500171 3031
    Income tax expense 1328.16428083 1146
    Income from extraordinary items a d discontinued operations 0 1313
    Net Income 2184.633219341 3198
    Outstanding shares 891 891
    Balance Sheet
    (Values in Millions)
    2019 2018 2017
    Cash 2245 708 758
    Accounts receivables 5069 4621 5565
    Inventories 5384 4531 4760
    Other Current assets 1224 3092 852
    Total Current Assets 13922 12952 11935
    Gross PPE 22272 19880 20936
    Accumulated depreciation 5412 4727 5629
    Net PPE 16860 15153 15307
    Other Assets 1511 3311 1361
    Total Assets 32293 31416 28603

    Accounts payable 5779 4956 4684


    Current portion of Long term debt 504 863 975
    Accrued expenses 1633 1288 1545
    Income taxes & other 304 1207 319
    Total current liabilities 8220 8314 7523
    Deferred Income taxes & other liabilities 2010 1815 1451
    Long term debt 9034 10155 10186
    Total liabilities 19264 20284 19160
    Common stock 74 76 76
    Additional paid in capital 1810 1530 1256
    Retained earnings 11145 9526 8111
    Shareholder's equity 13029 11132 9443
    Total liabilities & Networth 32293 31416 28603

    Selected ratios
    Accounts receivable turnover ratio 9.2402840797001 9.094352 6.722372
    Inventory turnover ratio 5.8404531946508 6.265504 5.356723
    Accounts payable turnover ratio 5.4412528119052 5.728208 5.443638
    Accrued expenses turnover ratio 28.682792406614 32.62811 24.21359
    Taxes payable/Tax expense 0.2652705061082 1.226626 0.374853
    Dividends per share (given) 0.31 0.26 0.24
    CAPEX 2392 -1056 3189
    CAPEX/Sales 0.0510685539828 -0.025128 0.085245
    Scheduled current maturity of the loan given 751
    SOLUTION

    Projected Balance Sheet


    Projected 2020 2019
    Cash 2367.8821690716 2245 to be calculated in the end
    Accounts receivables 5649.6583224271 5069
    Inventories 6000.7418441404 5384
    Other Current assets 1224 1224 assuming 2020 to be same as 2019
    Total Current Assets 15242.282335639 13922
    Gross PPE 24664 22272
    Accumulated depreciation 6822.4853118712 5412
    Net PPE 17841.514688129 16860
    Other Assets 1511 1511 assuming 2020 to be same as 2019
    Total Assets 34594.797023768 32293

    Accounts payable 6440.9894348602 5779


    Current portion of Long term debt 751 504
    Accrued expenses 1820.0615585961 1633
    Income taxes & other 352.32281097063 304
    Total current liabilities 9364.3738044269 8220
    Deferred Income taxes & other liabilities 2010 2010 assuming 2020 to be same as 2019
    Long term debt 8283 9034
    Total liabilities 19657.373804427 19264
    Common stock 74 74
    Additional paid in capital 1810 1810
    Retained earnings 13053.423219341 11145
    Shareholder's equity 14937.423219341 13029
    Total liabilities & Networth 34594.797023768 32293
    Forecasted assumptions are taken as the figures marked in green above

    to be calculated in the end

    2020 to be same as 2019


    2020 to be same as 2019

    2020 to be same as 2019

    You might also like