1. Recreate the projections in the case study. Using the 2013 actual results for Walmart Pro Forma Balance Sheet and Walmart Pro Forma Consolidated Statement of Income, forecast 2014-2016. Provide overall conclusions.

Walmart Pro Forma Consolidated Statement of Income*
							Fiscal year ending January 31
						Assumption			2013
REVENUES
Net Sales						5% growth similar to previous year			$466,047
Membership and other income						5% growth similar to previous year			3,251
Total Revenues									$469,298
COSTS AND EXPENSES
Costs of sales						0.755 fraction of net sales (previous year)			351,883
Operating, selling, and general and administrative expenses						0.192 fraction of net sales (previous year)			89,528
Operating Income									27,886
Interest (net)						4.5% of beginning interest-bearing debt			2,404
Income from continuing operations before incomes taxes									25,482
Provision for income taxes						32.6% based on previous year's tax rate			8,297
Income from continuing operations									17,185
Income (loss) from discontinued operations, net of tax									0
Consolidated net income									17.185
Less consol, net income attributed to noncontrolling interest						4.0% of net income similar to previous year			-687
Consolidated net income attributable to Walmart						pro forma net income			$16,497
Dividends						$1.59 per share x previous year's shares			5.501
Change in retained earnings						pro forma net income less pro forma dividends			$10,996
Basic net income per common share									$4.77
*Amounts in $millions, except per share data

Walmart Pro Forma Balance Sheet*
							Fiscal year ending January 31
						Assumption			2013
ASSETS
Current Assets
Cash and cash equivalents						same as previous year			$6,550
Receivables, net						4.9 days of accounts receivable (as previous year)			6,234
Inventories						44.3 days of cost of sales (as in previous year)			42,750
Prepaid expenses and other						same as previous year			1,685
Current assets of discontinued operations						assumed zero			0
Total current assets									57,219
Property and Equipment
Property and Equipment						13,500 new assets (before depreciation)			174,438
Less accumulated amortization						8,537 (assume 5% increase in depreciation)			(57,151)
Property and equipment, net									117,288
Goodwill						same as previous year (since not amortized)			20,651
Other assets and deferred changes						same as previous year			5,456
Total assets									$200,613
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings						balancing amount			$755
Accounts payable						39.9 days of payables (as previous year)			38,438
Accrued liabilities and income tax						same as previous year			$19,318
Long-term debt due within one year						same as previous year			2,301
Current liabilities						assume zero			0
Total current liabilities						subtract equity and three liability-related items			60,812
						below from "total liabilities and equity"
Long-term debt						last year less due within year			44,778
Deferred income taxrs and other						same as previous year			7,862
Redeemable noncontrolling interest						same as previous year (since not amortized)			404
Equity
Walmart shareholders' equity						beginning equity + change in retained earnings			82,311
Noncontrolling interest						same as previous year			4,446
Total Equity									86,757
Total liabilities and equity						same as total assets			$200,613
*Amounts in $millions, except noted.