Describe your financial plan o What types of strategies are you proposing in number 1, above? o To implement these strategies, how will financial statements as of February 1, 2015 change? Discuss changes to the balance sheet, income statement, and EPS/EBIT analysis that are included in your projected financial statements. How will balance sheet items (assets, liabilities, equity be used and/or change during the period in which these strategies are implemented? What income statement items (revenues, cost of goods sold, expenses, net income) change during this implementation period? How will earnings, taxes, and stock be affected? Discuss the EPS/EBIT analysis. o How many years will the strategies require to achieve the desired results? David and David (2017) found most strategies require three to five years from the time strategies are implemented for desired objectives to be achieved. Your financial plan and projected financial statements should be include each year of the implementation period until the desired objectives are anticipated to be achieved.

You may use the downloadable template provided on the strategyclub.com website

Enter the financial data on Worksheet Part II

Use TJX Companies, Inc. (2015) financial statements as of February 1, 2015 (p. 441)

Financial ratios: You may need to calculate ratios to project financial data for future years.

Balance sheet

How will your recommended strategies be funding? Cash, debt, shareholders dividends?

How will assets, liabilities, and shareholders equity be affected by your strategies?

Income Statement

How will your recommended strategies affect revenue? Will revenues decrease initially? When will revenues increase?

What expenses are involved to implement your recommended strategies? When will these costs be incurred? When will these costs decrease or no longer be required?

EPS/EBIT Analysis

How will your strategies affect EPS?

Will shares be used to finance the implementation of the proposed strategies?

How will a decline or increase in revenue affect EPS?

How will earnings be affected?

What will be the effect on taxes?

Projected EPS/EBIT analysis

Tip: Use the data from the projected balance sheet and projected income statements to perform the EPS/EBIT analysis.

----Insert projected EPS/EBIT Analysis here---

	Common Stock Financing			Debt Financing			Stock
	Recession	Normal	Boom	Recession	Normal	Boom	Recession	Normal	Boom
EBIT	$3589	$3589	$4200	$0	$0	$0	$0	$0	$0
Interest	3.5%	0	0	0	0	0	0	0	0
EBT	0	0	0	0	0	0	0	0	0
Taxes	38%	0	0	0	0	0	0	0	0
EAT	0	0	0	0	0	0	0	0	0
# Shares	0	0	0	0	0	0	0	0	0
EPS	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00

Here are some entries you may want to consider:

EBIT Normal: $3,589 million (Assumption: from February 1, 2015 Income Statement)

EBIT Recession: $3,100 million (Assumption: earnings lower during recession)

EBIT Boom: $4,200 million (Assumption: earnings higher during boom)

Interest rate: 3.5% (Prime interest rate)

Tax rate: 38% (Assumption: Tax / EBIT both figures from February 1, 2015 Income Statement)

Percent Equity Used to Finance: 70% (Assumption: Beginning point of analysis; Any combination of equity/debt financing can be used)

Percent Debt Used to Finance: 30% (Assumption: Beginning point of analysis