Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the most recent strategic planning meeting, the board of directors of your company has voted to issue additional stock to raise capital for major

At the most recent strategic planning meeting, the board of directors of your company has voted to issue additional stock to raise capital for major expansions for the company in the next five years. The board is considering $5 million. Take the most recent financial statements and prepare a set of projected financial statements based on the given assumptions. The CEO requests that you prepare a written report (including the financial statements) for her.

A. Generate a projected income statement based on the given scenario.

B. Analyze the impact on the income statement based on the given scenario.

C. Generate a projected statement of retained earnings based on the given scenario.

D. Analyze the impact on the statement of retained earnings based on the given scenario.

E. Generate a projected balance sheet based on the given scenario.

F. Analyze the impact on the balance sheet based on the given scenario.

G. Generate a projected cash flow statement based on the given scenario.

H. Analyze the impact on the cash flow statement based on the given scenario

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Consolidated Statements of Financial Position \begin{tabular}{|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{4}{|c|}{\begin{tabular}{l} (millions, except footnotes) \\ Assets \end{tabular}}} \\ \hline & & & \\ \hline Cash and cash equivalents & $ & 2,229$ & 5,911 \\ \hline Inventory & & 13,499 & 13,902 \\ \hline Other current assets & & 2,118 & 1,760 \\ \hline Total current assets & & 17,846 & 21,573 \\ \hline \multicolumn{4}{|l|}{ Property and equipment } \\ \hline Land & & 6,231 & 6,164 \\ \hline Buildings and improvements & & 34,746 & 32,985 \\ \hline Fixtures and equipment & & 7,439 & 6,407 \\ \hline Computer hardware and software & & 3,039 & 2,505 \\ \hline Construction-in-progress & & 2,688 & 1,257 \\ \hline Accumulated depreciation & & (22,631) & (21,137) \\ \hline Property and equipment, net & & 31,512 & 28,181 \\ \hline Operating lease assets & & 2,657 & 2,556 \\ \hline Other noncurrent assets & & 1,320 & 1,501 \\ \hline Total assets & $ & 53,335$ & 53,811 \\ \hline \multicolumn{4}{|l|}{ Liabilities and shareholders' investment } \\ \hline Accounts payable & $ & 13,487$ & 15,478 \\ \hline Accrued and other current liabilities & & 5,883 & 6,098 \\ \hline Current portion of long-term debt and other borrowings & & 130 & 171 \\ \hline Total current liabilities & & 19,500 & 21,747 \\ \hline Long-term debt and other borrowings & & 16,009 & 13,549 \\ \hline Noncurrent operating lease liabilities & & 2,638 & 2,493 \\ \hline Deferred income taxes & & 2,196 & 1,566 \\ \hline Other noncurrent liabilities & & 1,760 & 1,629 \\ \hline Total noncurrent liabilities & & 22,603 & 19,237 \\ \hline \multicolumn{4}{|l|}{ Shareholders' investment } \\ \hline Common stock & & 38 & 39 \\ \hline Additional paid-in capital & & 6,608 & 6,421 \\ \hline Retained earnings & & 5,005 & 6,920 \\ \hline Accumulated other comprehensive loss & & (419) & (553) \\ \hline Total shareholders' investment & & 11,232 & 12,827 \\ \hline Total liabilities and shareholders' investment & $ & 53,335$ & 53,811 \\ \hline \end{tabular} Total liabilities and investmen Common Stock Authorized 6,000,000,000 shares, $0,0833 par value; 460,346,947 shares issued and outstanding as of January 28,2023;471,274,073 shares issued and outstanding as of January 29,2022 Consolidated Statements of Cash Flows Consolidated Statements of Shareholders' Investment \begin{tabular}{|c|c|c|c|c|c|c|} \hline (millions) & \begin{tabular}{l} Common \\ Stock \\ Shares \\ \end{tabular} & \begin{tabular}{l} Stock \\ Par \\ Value \\ \end{tabular} & \begin{tabular}{l} Additional \\ Paid-in \\ Capital \\ \end{tabular} & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & \begin{tabular}{l} Accumulated Other \\ Comprehensive \\ (Loss)/ Income \end{tabular} & Total \\ \hline February 1,2020 & 504.2$ & 42$ & 6,226$ & 6,433$ & (868)$ & 11,833 \\ \hline Net earnings & - & - & - & 4,368 & - & 4,368 \\ \hline Other comprehensive income & - & - & - & - & 112 & 112 \\ \hline Dividends declared & - & - & - & (1,367) & - & (1,367) \\ \hline Repurchase of stock & (5.7) & - & - & (609) & - & (609) \\ \hline Stock options and awards & 2.4 & - & 103 & - & & 103 \\ \hline January 30,2021 & 500.9$ & 42$ & 6,329$ & 8,825$ & (756)$ & 14,440 \\ \hline Net earnings & - & - & - & 6,946 & - & 6,946 \\ \hline Other comprehensive income & - & - & - & - & 203 & 203 \\ \hline Dividends declared & - & - & - & (1,655) & - & (1,655) \\ \hline Repurchase of stock & (31.3) & (3) & - & (7,196) & - & (7,199) \\ \hline Stock options and awards & 1.7 & - & 92 & - & - & 92 \\ \hline January 29,2022 & 471.3$ & 39$ & 6,421$ & 6,920$ & (553)$ & 12,827 \\ \hline Net earnings & - & - & - & 2,780 & - & 2,780 \\ \hline Other comprehensive income & - & - & - & - & 134 & 134 \\ \hline Dividends declared & - & - & - & (1,931) & - & (1,931) \\ \hline Repurchase of stock & (12.5) & (1) & 119 & (2,764) & & (2,646) \\ \hline Stock options and awards & 1.5 & - & 68 & - & - & 68 \\ \hline January 28,2023 & 460.3$ & 38$ & 6,608$ & 5,005$ & (419)$ & 11,232 \\ \hline \end{tabular} January 28, 2023 We declared $4.14,$3.38, and $2.70 dividends per share for the twelve months ended January 28,2023 , January 29,2022 , and January 30,2021 , respectively. Consolidated Statements of Financial Position \begin{tabular}{|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{4}{|c|}{\begin{tabular}{l} (millions, except footnotes) \\ Assets \end{tabular}}} \\ \hline & & & \\ \hline Cash and cash equivalents & $ & 2,229$ & 5,911 \\ \hline Inventory & & 13,499 & 13,902 \\ \hline Other current assets & & 2,118 & 1,760 \\ \hline Total current assets & & 17,846 & 21,573 \\ \hline \multicolumn{4}{|l|}{ Property and equipment } \\ \hline Land & & 6,231 & 6,164 \\ \hline Buildings and improvements & & 34,746 & 32,985 \\ \hline Fixtures and equipment & & 7,439 & 6,407 \\ \hline Computer hardware and software & & 3,039 & 2,505 \\ \hline Construction-in-progress & & 2,688 & 1,257 \\ \hline Accumulated depreciation & & (22,631) & (21,137) \\ \hline Property and equipment, net & & 31,512 & 28,181 \\ \hline Operating lease assets & & 2,657 & 2,556 \\ \hline Other noncurrent assets & & 1,320 & 1,501 \\ \hline Total assets & $ & 53,335$ & 53,811 \\ \hline \multicolumn{4}{|l|}{ Liabilities and shareholders' investment } \\ \hline Accounts payable & $ & 13,487$ & 15,478 \\ \hline Accrued and other current liabilities & & 5,883 & 6,098 \\ \hline Current portion of long-term debt and other borrowings & & 130 & 171 \\ \hline Total current liabilities & & 19,500 & 21,747 \\ \hline Long-term debt and other borrowings & & 16,009 & 13,549 \\ \hline Noncurrent operating lease liabilities & & 2,638 & 2,493 \\ \hline Deferred income taxes & & 2,196 & 1,566 \\ \hline Other noncurrent liabilities & & 1,760 & 1,629 \\ \hline Total noncurrent liabilities & & 22,603 & 19,237 \\ \hline \multicolumn{4}{|l|}{ Shareholders' investment } \\ \hline Common stock & & 38 & 39 \\ \hline Additional paid-in capital & & 6,608 & 6,421 \\ \hline Retained earnings & & 5,005 & 6,920 \\ \hline Accumulated other comprehensive loss & & (419) & (553) \\ \hline Total shareholders' investment & & 11,232 & 12,827 \\ \hline Total liabilities and shareholders' investment & $ & 53,335$ & 53,811 \\ \hline \end{tabular} Total liabilities and investmen Common Stock Authorized 6,000,000,000 shares, $0,0833 par value; 460,346,947 shares issued and outstanding as of January 28,2023;471,274,073 shares issued and outstanding as of January 29,2022 Consolidated Statements of Cash Flows Consolidated Statements of Shareholders' Investment \begin{tabular}{|c|c|c|c|c|c|c|} \hline (millions) & \begin{tabular}{l} Common \\ Stock \\ Shares \\ \end{tabular} & \begin{tabular}{l} Stock \\ Par \\ Value \\ \end{tabular} & \begin{tabular}{l} Additional \\ Paid-in \\ Capital \\ \end{tabular} & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & \begin{tabular}{l} Accumulated Other \\ Comprehensive \\ (Loss)/ Income \end{tabular} & Total \\ \hline February 1,2020 & 504.2$ & 42$ & 6,226$ & 6,433$ & (868)$ & 11,833 \\ \hline Net earnings & - & - & - & 4,368 & - & 4,368 \\ \hline Other comprehensive income & - & - & - & - & 112 & 112 \\ \hline Dividends declared & - & - & - & (1,367) & - & (1,367) \\ \hline Repurchase of stock & (5.7) & - & - & (609) & - & (609) \\ \hline Stock options and awards & 2.4 & - & 103 & - & & 103 \\ \hline January 30,2021 & 500.9$ & 42$ & 6,329$ & 8,825$ & (756)$ & 14,440 \\ \hline Net earnings & - & - & - & 6,946 & - & 6,946 \\ \hline Other comprehensive income & - & - & - & - & 203 & 203 \\ \hline Dividends declared & - & - & - & (1,655) & - & (1,655) \\ \hline Repurchase of stock & (31.3) & (3) & - & (7,196) & - & (7,199) \\ \hline Stock options and awards & 1.7 & - & 92 & - & - & 92 \\ \hline January 29,2022 & 471.3$ & 39$ & 6,421$ & 6,920$ & (553)$ & 12,827 \\ \hline Net earnings & - & - & - & 2,780 & - & 2,780 \\ \hline Other comprehensive income & - & - & - & - & 134 & 134 \\ \hline Dividends declared & - & - & - & (1,931) & - & (1,931) \\ \hline Repurchase of stock & (12.5) & (1) & 119 & (2,764) & & (2,646) \\ \hline Stock options and awards & 1.5 & - & 68 & - & - & 68 \\ \hline January 28,2023 & 460.3$ & 38$ & 6,608$ & 5,005$ & (419)$ & 11,232 \\ \hline \end{tabular} January 28, 2023 We declared $4.14,$3.38, and $2.70 dividends per share for the twelve months ended January 28,2023 , January 29,2022 , and January 30,2021 , respectively

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations And Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

7th Edition

0324560559, 978-0324560558

More Books

Students also viewed these Accounting questions

Question

CM 0 9

Answered: 1 week ago

Question

is particularly relevant to these questions.)

Answered: 1 week ago