Question
Develop the projected financial statements that fully assess and evaluate the impact of your proposed strategy. This should include a full balance sheet, income statement,
Develop the projected financial statements that fully assess and evaluate the impact of your proposed strategy. This should include a full balance sheet, income statement, and EPS/EBIT analysis. Also, Do not "Design a three year strategic plan..." as outlined in the final statement. In lieu of this question, you are to answer the following questions:
Income statement
Report date | Feb-14 | Feb-15 | Feb-16 | Feb-17 | Feb-18 |
Revenue | 27,423 | 29,078 | 43617 | 65425.5 | 98138.25 |
cost of sales | 19,605 | 20,777 | 22019.06 | 23335.38 | 24730.38 |
operating expense | 4468 | 4,712 | 4969.325 | 5240.703 | 5526.9 |
EBIT | 3,350 | 3,589 | 16,629 | 36,849 | 67,881 |
Interest | 31 | 40 | 51.6129 | 66.59729 | 85.93199 |
EBT | 3,319 | 3,549 | 16,577 | 36,783 | 67,795 |
Tax | 1181.564 | 1263.444 | 5901.412 | 13094.68 | 24135.03 |
Net income | 2,137 | 2,286 | 10,676 | 23,688 | 43,660 |
Balance sheet
Column1 | Column2 | Column3 | Column4 | Column5 | Column6 |
Report date | Feb-14 | Feb-15 | Feb-16 | Feb-17 | Feb-18 |
Assets | |||||
Cash and equivalents | 2,149 | 2,494 | 2894.38623 | 3359.05037 | 3898.3116 |
Account receivables | 210 | 283 | 381.37619 | 513.949819 | 692.608565 |
Inventories | 2,967 | 3218 | 3490.23391 | 3785.49805 | 4105.74072 |
Other current assets | 742 | 720 | 698.652291 | 677.937533 | 657.836959 |
Total current assets | 6,068 | 6,715 | 7430.98632 | 8223.31463 | 9100.12487 |
Property, plant, and equipment | 3,595 | 3,868 | 4161.73129 | 4477.76819 | 4817.80455 |
Goodwill and intangibles | 313 | 310 | 307.028754 | 304.085986 | 301.171424 |
Other assets | 225 | 235 | 245.444444 | 256.353086 | 267.746557 |
Total assets | 10,201 | 11,128 | 12139.2397 | 13242.3742 | 14445.7543 |
Liabilities | |||||
Accounts payables | 1,771 | 2008 | 2276.71598 | 2581.39226 | 2926.84114 |
Other current liabilities | 1,747 | 1922 | 2114.53005 | 2326.34617 | 2559.38027 |
Total current liabilities | 3,518 | 3930 | 4390.25014 | 4904.4011 | 5478.7653 |
Long-term debt | 1,274 | 1624 | 2070.15385 | 2638.87743 | 3363.84376 |
Other liabilities | 1,179 | 1310 | 1455.55556 | 1617.28395 | 1796.98217 |
Total liabilities | 5,971 | 6864 | 7890.55368 | 9070.63481 | 10427.2044 |
Common stock | 705 | 685 | 665.567376 | 646.686032 | 628.340329 |
Retained earnings | 3,724 | 4134 | 4589.13963 | 5094.38863 | 5655.26385 |
Other equity | -200 | -554 | -1534.58 | -4250.7866 | -11774.679 |
Paid in capital | |||||
Total equity | 4,230 | 4,264 | 4298.27329 | 4332.82205 | 4367.64852 |
Total liabilities & equity | 10, 201 | 11, 128 | 12139.2397 | 13242.3742 | 14445.7543 |
EPS EBIT Analysis
| Common Stock Financing | Debt Financing | ||||
| Year 2016 |
| Year 2017 | Year 2018 | ||
EBIT | $16,629 | $16,629 | 36849 | 36849 | 67881 | 67881 |
Interest | $0 | $52 | 0 | 67 | 87 | |
EBT | $16,629 | $16,577 | $36,849 | $36,782 | $67,881 | $67,794 |
Taxes | $5,901 | $5,901 | 13095 | 13095 | 24135 | 24135 |
EAT | $10,728 | $10,676 | $23,754 | $23,687 | $43,746 | $43,659 |
# Shares | $3,000 | $1,500 | 3000 | 1500 | 3000 | 1500 |
EPS | 3.58 | 7.12 | 7.92 | 15.79 | 14.58 | 29.11 |
Therefore, the 2 items to complete questions/statements are the following:
1. How aggressively should TJX expand globally, and where, and when, to maximize the value of the company for shareholders?
2. Develop Projected Financial Statements that fully assess and evaluate the impact of the proposed strategy. This should include a projected income statement, balance sheet, and EPS/EBIT analysis.
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