Calculate the Net Present Value analysis of the proposed strategys new cash flow and EPS/EBIT analysis NOTE: To construct the first cash flow (cf₁) at the very minimum, the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT and that figure will be your cf_n for each year. cf₀ (initial cost of your strategy), cf₁ (discounted cash flow first year), r (opportunity cost of capital, the rate of the next best alternative use of cash/debt/equity resources).

Statement of Cashflow for CVS
Operating Activities
Fiscal year is January-December. All values USD millions.	2016	2017	2018, with strategy	Deltas	2018, without strategy	Deltas	2019, with strategy	Deltas	2019, without strategy	Deltas	2020, with strategy	Deltas	2020, without strategy	Deltas	Analysis
Net Income before Extraordinaries	5.32B	6.62	6.77	0.15	5.63	-0.99	8.41	1.64	6.45	0.82	11.23	2.82	7.28	0.83	Net income increases as sales increase and COGS remain as low as possible
Net Income Growth	1.53%	24.52%	2.27%	-0.22254	-14.95%	-0.39	24.22%	0.22	14.56%	0.30	33.53%	0.09	12.87%	-0.02	Steady growth of net income
Depreciation, Depletion & Amortization	2.48B	2.48	2.58	0.1	2.56	0.08	2.64	0.06	2.61	0.05	2.7	0.06	2.68	0.07
Depreciation and Depletion	1.7B	1.7	1.8	0.1	1.7	0.00	1.9	0.10	1.8	0.10	2.1	0.20	1.9	0.10
Amortization of Intangible Assets	775M	0.779	0.782	0.003	0.625	-0.15	0.785	0.00	0.685	0.06	0.835	0.05	0.724	0.04
Other Funds	1.02B	0.655	0.75	0.095	0.624	-0.03	0.856	0.11	0.723	0.10	0.875	0.02	0.753	0.03
Funds from Operations	8.81B	8.42	8.62	0.2	7.52	-0.90	8.75	0.13	7.65	0.13	8.95	0.20	7.5	-0.15
Changes in Working Capital	1.26B	-0.416	-0.456	-0.04	-0.435	-0.02	-0.525	-0.07	-0.385	0.05	-0.526	0.00	-0.425	-0.04
Receivables	(243M)	-0.941	-0.852	0.089	-0.987	-0.05	-0.752	0.10	-0.952	0.04	-0.767	-0.02	-0.953	0.00
Accounts Payable	2.19B	1.71	2.2	0.49	2.1	0.39	2.5	0.30	2.25	0.15	2.8	0.30	2.4	0.15
Other Assets/Liabilities	(6M)	-0.3	-0.02	0.28	-0.04	0.26	-0.052	-0.03	-0.042	0.00	-0.062	-0.01	-0.052	-0.01
Net Operating Cash Flow	10.07B	8.01	9.224	1.214	7.707	-0.30	9.662	0.44	8.129	0.42	10.005	0.34	8.047	-0.08	This increases as money is utilized well
Net Operating Cash Flow Growth	19.70%	-20.48%	15.16%	0.356361	-3.78%	0.17	4.75%	-0.10	5.48%	0.09	3.55%	-0.01	-1.01%	-0.06
	2016	2017	2018		2018		2019		2019		2020		2020
Capital Expenditures	(2.22B)	-1.92	-2.02	-0.1	-1.86	0.06	-2.03	-0.01	-1.95	-0.09	-2.05	-0.02	-1.87	0.08
Net Assets from Acquisitions	(578M)	-1.29	-1.35	-0.06	-1.45	-0.16	-1.35	0.00	-1.52	-0.07	-1.42	-0.07	-1.52	0.00
Sale of Fixed Assets & Businesses	267M	0.298	0.305	0.007	0.299	0.00	0.312	0.01	0.305	0.01	0.325	0.01	0.31	0.01
Purchase/Sale of Investments	26M	-0.025	0.022	0.047	0.01	0.04	0.015	0.01	0.012	0.00	0.025	0.01	0.024	0.01
Purchase of Investments	(65M)	-0.086	-0.082	0.004	-0.095	-0.01	-0.0853	0.00	-0.095	0.00	0.075	0.16	0.0853	0.18
Sale/Maturity of Investments	91M	-0.061	0.05	0.111	0.042	0.10	0.067	0.02	0.035	-0.01	0.045	-0.02	0.058	0.02
Net Investing Cash Flow	(2.51B)	-2.93	-3.075	-0.145	-3.054	-0.12	-3.0713	0.00	-3.213	-0.16	-3	0.07	-2.9127	0.30
Net Investing Cash Flow Growth	81.30%	-16.86%	4.95%	0.218088	4.23%	0.21	-0.12%	-0.05	5.21%	0.01	-2.32%	-0.02	-9.35%	-0.15
	2016	2017	2018		2018		2019		2019		2020		2020
Cash Dividends Paid - Total	(1.84B)	-2.05	-2.1	-0.05	-2.06	-0.01	-2.22	-0.12	-2.08	-0.02	-2.35	-0.13	-2.4	-0.32	Cash dividends increase as company value increases
Change in Capital Stock	(4.24B)	-4.03	-4.05	-0.02	-2.58	1.45	-4.2	-0.15	-2.62	-0.04	-4.75	-0.55	-4	-1.38
Sale of Common & Preferred Stock	224M	0.329	0.35	0.021	0.321	-0.01	0.32	-0.03	0.335	0.01	0.85	0.53	0.385	0.05
Issuance/Reduction of Debt, Net	(614M)	-0.597	-0.612	-0.015	-0.685	-0.09	-0.658	-0.05	-0.721	-0.04	-0.652	0.01	-0.685	0.04
Change in Current Debt	1.87B	-0.598	-0.685	-0.087	-0.75	-0.15	-0.785	-0.10	-0.65	0.10	-0.75	0.04	-0.825	-0.18
Net Financing Cash Flow	(6.65B)	-6.75	-7.097	-0.347	-5.754	1.00	-7.543	-0.45	-5.736	0.02	-7.652	-0.11	-7.525	-1.79
Net Financing Cash Flow Growth	-232.84%	-1.52%	5.14%	0.066607	-14.76%	-0.13	6.28%	0.01	-0.31%	0.14	1.45%	-0.05	31.19%	0.32
Net Change in Cash	912M	-1.68	-0.948	0.732	-1.101	0.58	-0.9523	0.00	-0.82	0.28	-0.647	0.31	-2.3907	-1.57
Free Cash Flow	7.85B	6.09	7.72	1.628	6.73	0.64	9.36	1.64	7.27	0.54	11.88	2.51	9.67	2.40	Free cash flow increases as the company is able to pay liabilities and increase assets
Free Cash Flow Growth	29.78%	-22.38%	26.73%	0.491123	10.53%	0.33	21.30%	-0.05	8.01%	-0.03	26.86%	0.06	33.02%	0.25

Income Statement for CVS
Fiscal year is January-December. All values USD millions.	2016	2017	2018, with strategy	Deltas	2018, without strategy	Deltas	2019, with strategy	Deltas	2019, without strategy	Deltas	2020, with strategy	Deltas	2020, without strategy	Deltas	Analysis
Sales/Revenue	177.53	184.77	195.77	11	188.12	3.35	208.6	12.83	193	4.88	225.5	16.9	204.56	11.56	Sales will increase with or without strategy changes, but they will increase more with the new strategy
Sales Growth	15.81%	4.08%	5.95%	1.87%	1.81%	-2.27%	6.55%	0.60%	2.59%	0.78%	8.10%	1.55%	5.99%	3.40%
Cost of Goods Sold (COGS) incl. D&A	148.62	156.22	164.52	8.3	160.2	3.98	175	10.48	165	4.8	187.62	12.62	175	10	COGS will increase as sales increase, but they will increase more with new strategies as sales will continue to increase
COGS excluding D&A	146.13	153.7	163.24	9.54	157	3.3	185.6	22.36	162.5	5.5	197.89	12.29	168.9	6.4
Depreciation & Amortization Expense	2.5	2.52	2.58	0.06	2.56	0.04	2.64	0.06	2.61	0.05	2.7	0.06	2.68	0.07	This will remain relatively stable. It could increase more with our strategy of expansion and adding more real estate and equipment.
Depreciation	1.7	1.7	1.8	0.1	1.7	0	1.9	0.1	1.8	0.1	2.1	0.2	1.9	0.1
Amortization of Intangibles	795	817	905	88	850	33	985	80	875	25	1003	18	923	48
COGS Growth	17.25%	5.11%	5.31%	0.00203	2.55%	-0.0256	6.37%	0.011	3.00%	0.004	7.21%	0.008414	6.06%	0.030644
Gross Income	28.9	28.55	31.25	2.7	27.92	-0.63	33.6	2.35	28	0.08	37.88	4.28	29.56	1.56	Gross income will increase with our strategy of growth
Gross Income Growth	8.95%	-1.23%	1.21%	0.02441	2.21%	0.03437	7.52%	0.063	0.29%	-0.019	12.74%	0.052181	5.57%	0.052849
Gross Profit Margin	-	15.45%	15.96%	0.00513	14.84%	-0.61%	16.11%	0.001	14.51%	-0.003	16.80%	0.006908	14.45%	-0.00057	Gross Profit margin will increase as sales increase
	2016	2017	218		2018		2019		2019		2020		2020
SG&A Expense	18.27B	18.56	16.5	-2.06	17	-1.56	15	-1.5	16	-1	14	-1	16	0
Unusual Expense	936M	470	550	80	625	155	300	-250	350	-275	545	245	486	136
EBIT after Unusual Expense	9.7B	9.52	14.2	4.68	10.295	0.775	18.3	4.1	11.65	1.355	23.335	5.035	13.074	1.424
Non Operating Income/Expense	2M	207	1.5	-205.5	0.5	-206.5	1.75	0.25	0.75	0.25	1.5	-0.25	0.75	0	Strategy will be to increase non-operating income
Non-Operating Interest Income	20M	21	20	-1	23	2	21	1	24	1	23	2	26	2
Interest Expense	1.08B	1.06	1.11	0.05	1.15	0.09	1.16	0.05	1.21	0.06	1.23	0.07	1.3	0.09
Interest Expense Growth	25.44%	-1.57%	4.72%	0.06287	8.49%	0.10061	4.50%	-0.002	5.22%	-0.033	6.03%	0.0153	7.44%	0.022206
Gross Interest Expense	1.09B	1.07	1.12	0.05	1.15	0.08	1.09	-0.03	1.15	0	1.12	0.03	1.2	0.05
Interest Capitalized	13M	8	9	1	10	2	9	0	8	-2	11	2	12	4
Pretax Income	8.64B	8.27	13.305	5.035	9.38	1.11	17.3675	4.062	10.6875	1.307	22.35	4.9825	12.0415	1.354
Pretax Income Growth	0.24%	-4.27%	60.88%	0.65153	13.42%	0.17692	30.53%	-0.303	13.94%	0.005	28.69%	-0.01845	12.67%	-0.0127
Income Tax	3.32B	1.64	5.18895	3.54895	3.66	2.0182	6.77	1.584	4.168125	0.51	8.7165	1.943175	4.696185	0.52806
Income Tax - Current Domestic	3.31B	3.06	5.45505	2.39505	3.85	0.7858	7.12	1.666	4.381875	0.536	9.1635	2.042825	4.937015	0.55514
Income Tax - Deferred Domestic	3M	-1.42	-0.2661	1.1539	-0.1876	1.2324	-0.34735	-0.081	-0.21375	-0.026	-0.447	-0.09965	-0.24083	-0.02708
Other After Tax Income (Expense)	(27M)	-24	-25	-1	-24	0	-26	-1	-25	-1	-26	0	-25	0
Consolidated Net Income	5.29B	6.61	8.11605	1.50605	5.7218	-0.8882	10.594175	2.478	6.519375	0.798	13.6335	3.039325	7.345315	0.82594
Minority Interest Expense	2M	1	1	0	2	1	2	1	1	-1	2	0	2	1
Net Income	5.29B	6.61	8.11605	1.50605	5.7218	-0.8882	10.594175	2.478	6.519375	0.798	13.6335	3.039325	7.345315	0.82594	Net income increases under our new strategy as sales increase and expenses are handled well
Net Income Growth	1.71%	24.85%	22.78%	-0.02066	-13.44%	-0.3829	30.53%	0.077	13.94%	0.274	28.69%	-0.01845	12.67%	-0.0127
Extraordinaries & Discontinued Operations	(1M)	-8	-7	1	-9	-1	-5	2	-7	2	-4	1	-7	0
Extra Items & Gain/Loss Sale Of Assets	-	0	0	0	0	0	0	0	0	0	0	0	0	0
Discontinued Operations	(1M)	-8	0	8	0	8	0	0	0	0	0	0		0
Net Income After Extraordinaries	5.29B	6.6	8.05	1.44605	5.63	-0.9682	10.54	2.498	6.45	0.818	13.59	3.049325	7.28	0.82594
Net Income Available to Common	5.29B	6.6	8.05	1.44605	5.63	-0.9682	10.54	2.498	6.45	0.818	13.59	3.049325	7.28	0.82594
EPS (Basic)	4.93	6.47	6.58	0.11	5.2	-1.27	7.2	0.62	6.1	0.9	7.8	0.6	6.5	0.4	EPS will increase as company value increases
EPS (Basic) Growth	5.79%	31.24%	1.70%	-0.2954	-19.63%	-0.5087	9.42%	0.077	17.31%	0.369	8.33%	-0.01089		-0.17308
Basic Shares Outstanding	1.07B	1.02	1.03	0.01	1.01	-0.01	1.04	0.01	1.05	0.04	1.02	-0.02	1.01	-0.04
EPS (Diluted)	4.9	6.44		-6.44		-6.44		0		0		0		0

Balance Sheet for CVS
Assets
Fiscal year is January-December. All values USD millions.	2016	2017	2018, with strategy	Deltas	2018, without strategy	Deltas	2019, with strategy	Deltas	2019, without strategy	Deltas	2020, with strategy	Deltas	2020, without strategy	Deltas	Analysis
Cash & Short Term Investments	3.46B	1.81	2.1	0.29	1.95	0.14	2.95	0.85	2.42	0.47	3.8	0.85	3.1	0.68
Cash Only	3.37B	1.7	1.95	0.25	1.83	0.13	2.75	0.8	2.28	0.45	3.67	0.92	2.9	0.62
Short-Term Investments	87M	0.11	0.15	0.04	0.12	0.01	0.2	0.05	0.14	0.02	0.13	-0.07	0.2	0.06
Cash & Short Term Investments Growth	35.77%	-47.74%	36.36%	0.841036	9.09%	0.568309	33.33%	-0.0303	16.67%	0.075758	-35.00%	-0.68333	42.86%	0.261905
Total Accounts Receivable	12.16B	13.18	15.5	2.32	13.85	0.67	15.35	-0.15	14.25	0.4	16.56	1.21	15.5	1.25
Bad Debt/Doubtful Accounts	(286M)	-307	-256	51	-260	47	-240	16	-260	0	-250	-10	-245	15
Accounts Receivable Growth	2.32%	8.36%	17.60%	0.092424	5.08%	-0.03277	-0.97%	-0.1857	2.89%	-0.02195	7.88%	0.088505	8.77%	0.058838
Accounts Receivable Turnover	14.59	14.02	14.5	0.48	14.2	0.18	14.6	0.1	14.3	0.1	14.7	0.1	14.4	0.1
Inventories	14.76B	15.3	15.8	0.5	15.5	0.2	16.5	0.7	16.1	0.6	17.4	0.9	16.6	0.5
Finished Goods	14.76B	15.3	15.8	0.5	15.5	0.2	16.5	0.7	16.1	0.6	17.4	0.9	16.6	0.5
Other Current Assets	660M	945	950	5	875	-70	960	10	880	5	980	20	895	15
Miscellaneous Current Assets	660M	945	950	5	875	-70	960	10	880	5	980	20	895	15
Total Current Assets	31.04B	31.23	42.9	11.67	40.05	8.82	44.4	1.5	41.57	1.52	47.56	3.16	44.15	2.58	Total current assets increase as cash flow is improved and debt is decreased
	2016	2017	2018		2018		2019		2019		2020		2020	1
Net Property, Plant & Equipment	10.18B	10.29	10.38	0.09	10.2	-0.09	10.5	0.12	10.3	0.1	10.8	0.3	10.35	0.05	Net property wil increase with our strategy as CVS will purchase more land and more sores
Intangible Assets	51.76B	52.08	53.12	1.04	52.2	0.12	54.5	1.38	53	0.8	55.6	1.1	53.5	0.5
Total Assets	94.46B	95.13	106.4	11.27	102.45	7.32	109.4	3	104.87	2.42	113.96	4.56	108	3.13	Total assets increase as the company purchases more buildings and inventory
	2016	2017		-2017		-2017		0		0		0		0
ST Debt & Current Portion LT Debt	1.92B	4.82	3.8	-1.02	4.8	-0.02	4.22	0.42	5.2	0.4	4.54	0.32	5.6	0.4	Our strategy will increase cash flow and decrease the need for short-term debt
Short Term Debt	1.87B	1.28		-1.28		-1.28		0		0		0		0
Current Portion of Long Term Debt	42M	3.55	5.62	2.07	6.2	2.65	6.4	0.78	5.35	-0.85	7.5	1.1	8.5	3.15
Accounts Payable	17.4	19.22	20.21	0.99	19.5	0.28	21.86	1.65	20.23	0.73	22.86	1	21.3	1.07
Accounts Payable Growth	14.88%	10.47%	10.46%	-0.0001	1.46%	-0.09013	8.16%	-0.02295	3.74%	0.022868	4.57%	-0.0359		-0.03744
Other Current Liabilities	6.94B	6.61	6.85	0.24	6.94	0.33	6.5	-0.35	7.2	0.26	6.5	0	6.95	-0.25
Total Current Liabilities	26.25B	30.65	32.83	2.18	31.5	0.85	34.85	2.02	32.95	1.45	35.75	0.9	33.76	0.81
Long-Term Debt	25.62B	22.18	21.52	-0.66	23.4	1.22	21.02	-0.5	23.7	0.3	19.85	-1.17	22.5	-1.2	Long-term debt should decrease as cash flow improves
Deferred Taxes	4.21B	3	3.5	0.5	4.2	1.2	3.2	-0.3	4.36	0.16	3.67	0.47	4.25	-0.11
Other Liabilities	1.55B	1.61	1.7	0.09	1.55	-0.06	1.8	0.1	1.65	0.1	1.82	0.02	1.75	0.1
Total Liabilities	57.63B	57.44	59.55	2.11	60.65	3.21	60.87	1.32	62.66	2.01	61.09	0.22	62.26	-0.4	Total liabilities remain relatively constant, as CVS expands and purchases more buildings and maintains some long-term debt
Total Liabilities / Total Assets	61.01%	60.38%	55.97%	-0.04412	59.20%	-0.0118	55.64%	-0.00328	59.75%	0.005506	53.61%	-0.02033	57.65%	-0.02102
Common Equity (Total)	36.83B	37.69	37.72	0.03	37.4	-0.29	37.85	0.13	37.5	0.1	38.1	0.25	37.7	0.2
Common Stock Par/Carry Value	17M	17	17	0	17	0	17	0	17	0	17	0	17	0
Retained Earnings	38.98B	43.56	45.62	2.06	44.2	0.64	46.8	1.18	44.8	0.6	47.85	1.05	45.25	0.45	Retained earnings increase, causing company value to increase
Common Equity / Total Assets	38.99%	39.62%	35.45%	-0.04169	36.51%	-0.03114	34.60%	-0.00853	35.76%	-0.00747	33.43%	-0.01165	34.91%	-0.00851
Total Shareholders' Equity	36.83B	37.69	37.72	0.03	37.4	-0.29	37.85	0.13	37.5	0.1	38.1	0.25	37.7	0.2	Shareholder equity increases, increasing the desire for investors
Total Shareholders' Equity / Total Assets	38.99%	39.62%	35.45%	-0.04169	36.51%	-0.03114	34.60%	-0.00853	35.76%	-0.00747	33.43%	-0.01165	34.91%	-0.00851
Total Equity	36.83B	37.7	37.72	0.02	37.4	-0.3	37.85	0.13	37.5	0.1	38.1	0.25	37.7	0.2
Liabilities & Shareholders' Equity	94.46B	95.13	97.27	2.14	98.05	2.92	98.72	1.45	100.16	2.11	99.19	0.47	99.96	-0.2