Question
A business's pro forma is the forecast financial statements based on either anticipated future events or potentially changing business performance in upcoming periods. This is
A business's pro forma is the forecast financial statements based on either anticipated future events or potentially changing business performance in upcoming periods. This is in contrast to regular financial statements that are financial summaries on a business's past. Businesses use pro forma statements to assist in their planning activities, both short term and long term. Sit down with an income statement from the current year. Consider how each item on that statement can or will be changed during the coming year. You will need to estimate final sales and expenses for the current year to prepare a pro forma income statement for the upcoming three years.Make sure you explicitly show your assumptions with good critical analysis.
| Fiscal year is February-January. All values USD millions. | 2012 | 2013 | 2014 | 2015 | 2016 | 5-year trend |
|---|---|---|---|---|---|---|
| Sales/Revenue | 17.26B | 12.99B | 11.86B | 12.26B | 12.63B | |
| Cost of Goods Sold (COGS) incl. D&A | 11.56B | 9.46B | 8.97B | 8.63B | 8.69B | |
| COGS excluding D&A | 11.04B | 8.92B | 8.37B | 8B | 8.07B | |
| Depreciation & Amortization Expense | 518M | 543M | 601M | 631M | 616M | |
| Depreciation | - | - | - | - | - | |
| Amortization of Intangibles | - | - | - | - | - | |
| Gross Income | 5.7B | 3.52B | 2.89B | 3.63B | 3.94B |
| 2012 | 2013 | 2014 | 2015 | 2016 | 5-year trend | |
|---|---|---|---|---|---|---|
| SG&A Expense | 5.23B | 4.86B | 4.25B | 3.95B | 3.94B | |
| Research & Development | - | - | - | - | - | |
| Other SG&A | 5.23B | 4.86B | 4.25B | 3.95B | 3.94B | |
| Other Operating Expense | 7M | 4M | - | - | (8M) | |
| Unusual Expense | 509M | 384M | 356M | 151M | 164M | |
| EBIT after Unusual Expense | (46M) | (1.72B) | (1.72B) | (151M) | (158M) | |
| Non Operating Income/Expense | (1M) | 403M | 176M | 125M | 8M | |
| Non-Operating Interest Income | 1M | 5M | - | - | - | |
| Equity in Affiliates (Pretax) | 38M | 11M | 6M | 53M | 41M | |
| Interest Expense | 221M | 231M | 352M | 406M | 395M | |
| Gross Interest Expense | 221M | 231M | 352M | 406M | 395M | |
| Interest Capitalized | - | - | - | - | - | |
| Pretax Income | (229M) | (1.54B) | (1.89B) | (694M) | (504M) | |
| Income Tax | (77M) | (551M) | (498M) | 23M | 9M | |
| Income Tax - Current Domestic | 16M | 79M | (8M) | 8M | 6M | |
| Income Tax - Current Foreign | 60M | (95M) | (16M) | 12M | 5M | |
| Income Tax - Deferred Domestic | (23M) | (70M) | (46M) | (6M) | (1M) | |
| Income Tax - Deferred Foreign | (130M) | (465M) | (428M) | 9M | (1M) | |
| Income Tax Credits | - | - | - | - | - | |
| Equity in Affiliates | - | - | - | - | - | |
| Other After Tax Income (Expense) | - | - | - | - | - | |
| Consolidated Net Income | (152M) | (985M) | (1.39B) | (717M) | (513M) | |
| Minority Interest Expense | - | - | - | - | - | |
| Net Income | (152M) | (985M) | (1.39B) | (717M) | (513M) | |
| Extraordinaries & Discontinued Operations | - | - | - | - | - | |
| Extra Items & Gain/Loss Sale Of Assets | - | - | - | - | - | |
| Cumulative Effect - Accounting Chg | - | - | - | - | - | |
| Discontinued Operations | - | - | - | - | - | |
| Net Income After Extraordinaries | (152M) | (985M) | (1.39B) | (717M) | (513M) | |
| Preferred Dividends | - | - | - | - | - | |
| Net Income Available to Common | (152M) | (985M) | (1.39B) | (717M) | (513M) | |
| EPS (Basic) | (0.70) | (4.49) | (5.57) | (2.35) | (1.68) | |
| Basic Shares Outstanding | 217.4M | 219.2M | 249.3M | 305.2M | 305.9M | |
| EPS (Diluted) | (0.70) | (4.49) | (5.57) | (2.35) | (1.68) | |
| Diluted Shares Outstanding | 217.4M | 219.2M | 249.3M | 305.2M | 305.9M | |
| EBITDA | 981M | (797M) | (759M) | 316M | 622M |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Government Auditing Standards
Authors: U.S. Government Accountability Office
1st Edition
B0C9S8NVST, 979-8851147746
