Given the assumptions above complete the Balance sheet for the years 2002-2006. Please provide formulas for each row. Each year is a future projection of a company based upon the assumptions.

3 Assumptions Growth in new stores Sales growth for existing stores Total sales growth 2001 14.46% 2.87% 17.74% 2002E 15.00% 3.00% 18.00% 2003E 16.00% 3.00% 19.00% 2004 13.00% 4.62% 17.62% 2005E 11.77% 3.74% 15.52% 2006E 11,77% 4.00% 15.775 28,80% 18.25% 2.42% 36.98% 29.00% 18.14% 2.42% 36.58% 29,20% 18.00% 2.42% 36.98% 28.00% 18.00% 2.42% 36,58% 28.00% 18.00% 2.42% 36.58% 28.00% 18.00% 2.42% 36.58% 3.86% 133.20 4.36 2.56 10.89% 4.17% 4.00% 133.20 4.23 2.7 10.89% 4.17% 4.20% 133,20 4.23 2.8 10,89% 4.17% 4.40% 133 20 4.23 3.01 10.89% 4.17% 4.50% 13320 4.23 3.10 10.89% 4.17% 4.50% 133,20 4.23 3.20 10,89% 4.17% 24 Gross margin Cash operating expensos/sales 10 Depreciation/sales 11 Income tax rate 12 13 Cash & ST inv./salos 14 Receivable turnover 15 Inventory tumover 16 P&E tunrover 17 Payables/COGS 18 Other curr. lab./sales 19 20 Forecast 21 Number of store 22 Net sales 23 Cost of sales Gross profit 25 Cash operating expenses Depreciation & amortization 27 EBIT 28 NOPAT 29 30 Balance Sheet 31 Cash and ST Investments 32 Accounts receivable 33 Merchandise inventory 34 Other current assets 35 Total current assets 36 37 Accounts payable 38 Accrued salaries and wages 39 Other current liabilities 40 Non-int.-bearing current liab. 41 Working capital 42 Net property and equipment 43 Other assets 44 Total capital 45 Rotum on capital 46 2001 744 22,111 15,743 6,368 4,036 534 1,798 1133 2002E 856 26,091 18 525 7,566 4733 630.12 2,203 1397 2003E 992 31,048 21.982 9,066 5589 749.84 2.728 1719 2004E 1122 38,519 28 294 10,225 6573 881.97 2.770 1757 2005 1254 42,187 30,374 11,812 7594 1018 85 3.200 2029 2006E 1401 48,840 35.164 13,675 8791 1179.52 3,704 2349 26 2002 2003E 2004E 2005E 2006E 2001 853 166 3,611 291 4.920 1,715 221 922 2,858 2,062 8,653 162 10,877 10.42% 1992 1998 1999 2000 2001 22,111 15.743 6368 4,036 10,137 7447 2,690 1,825 241 624 O 66 559 201 357 12,245 8,950 3,295 2,189 272 833 0 75 15.906 11 525 4.381 2,870 338 1.172 24 85 1,063 390 673 18.779 13.488 5.291 3479 410 1402 O 121 1.281 472 B10 1.798 0 173 1.625 601 758 276 482 1,024 569 INCOME STATEMENT Sales Cost of sales Gross profit Cash operating expenses (1) Depreciation & amortization 10 EBIT 11 Non-recurring expenses 12 Net interest expense 13 EBT 14 Income taxes 15 Net earnings 16 17 BALANCE SHEET 18 Cash and ST investments 19 Accounts receivable 20 Merchandise inventory 21 Other current assets 22 Total current assets 23 Net property and equipment 24 Other assets 25 Total assets 26 27 Accounts payable 28 Accrued salaries and wages 29 Short-term borrowings 30 Current maturities of long-term 31 Other current liabilities 32 Current liabilities 33 Long-term debt 34 Deferred income taxes 35 Other long-term liabilities 36 Minority interest Shareholders' equity Total liab. and owner's equity 211 118 1,715 65 2,110 3,005 104 5.219 243 144 2,105 94 2.586 3,637 122 6,345 148 2,812 164 3,693 5.177 142 9,012 469 161 3.285 243 4.157 7.035 166 11.358 853 166 3.61 291 4.920 8,653 162 13.736 1.715 1,133 113 92 99 221 100 328 969 83 98 12 286 1,449 1,046 124 O o 2,601 5.219 1,567 164 92 60 503 2386 1.727 200 4 1,765 1,283 160 0 0 3,136 6345 1.714 166 250 42 2738 2.911 2,698 251 3 o 5495 11.358 59 922 3.017 3.734 305 6 37 38 39 4,695 9.012 6,6724 13.736 43 44 Exhibit 2 45 46 Number of stores 47 Sq. footage (millions) 48 Number of transactions (mil) 49 Number of employees 50 Lowe's Historical Company Performance 1997 1998 1999 2000 477 520 576 650 40 48 57 68 231 268 299 342 64.070 72,715 86,160 94.601 2001 744 81 395 108 317 1997 772 3,109 3.881 35.96% 400 1998 1,012 3,759 4.771 36.41% 530 1999 1,459 5,319 6,778 36.69% 2000 1.539 7 201 8.740 36.85% 885 2001 2,062 8,815 10,877 38.98% 1133 742 10.30% 13.73% 11.10% 15.37% 10.95% 14,33% 10.13% 14.74% 10.42% 15.34% 28.54% 18.00% 2.38% 8.02% 6.16% 3.94% 28.91% 17.88% 2 22% 7.48% 6.B0% 4.33% 27,54% 18.04% 2.12% 6.53% 7.37% 4.68% 28.18% 18.53% 2.18% 5.83% 7.47% 4.71% 28.80% 18.25% 2.42% 6.17% 8.13% 5.12% Working capital (CA.NIBCL) Fixed asset Total capital Tax rate 9 NOPAT (EBITX (1-1) 10 11 Profitability 12 Retum on Capital (NOPAT/total capital 13 Retum on Equity (not camingu/sequity 14 15 Margins 16 Gross Margin (gross profit/sales) 17 Cash Operating Expenses/sales 18 Depreciation/sales 19 Depreciation/P&E 20 Operating Margin (EBIT/sales) 21 NOPAT margin (NOPAT/sales) 22 23 Turnover 24 Total Capital tumover (sales/total capital) 25 P&E tumover (sales/P&E) 26 Working-capital tumover (sales/WC) 27 Receivable tumover (sale /AR) 28 Inventory tumover (COGS/m. Inventory 20 Sales per store ($ millions) 30 Sales por sq. foot (5) 31 Sales per transaction (5) 32 33 Growth 34 Total sales growth 35 Sales growth for existing stores 36 Growth in new stores 37 Growth in sq. footage per store 38 39 Leverage 40 Total capitalequity 41 42 2.61 3.37 13.13 85.91 4.34 21.25 253.43 43.88 2.57 3.37 12.10 85,03 4.25 23.55 255.10 45.60 2.35 3.07 10.90 107.47 4.10 27.61 279.05 53.20 2.15 2.67 12 20 116.84 4.11 28.80 276.16 54.91 203 2.56 10.72 133 20 4.36 29.72 272 98 55.98 20.80% 10,81% 9.01% 20.00% 29,90% 17 27% 10.77% 18.75% 18.06% 4.62% 12.85% 19.30% 17.74% 2.87% 14.46% 19.12% 1.49 1.52 1.44 1.59 1.63 3 Assumptions Growth in new stores Sales growth for existing stores Total sales growth 2001 14.46% 2.87% 17.74% 2002 15.00% 3.00% 18.00% 2003E 16.00% 3.00% 19.00% 2004 13.00% 4.62% 17.62% 2005 11.77% 3.74% 15.52% 2006E 11.77% 4.00% 15 77% 28.80% 18.25% 2.42% 36.98% 29.00% 18.14% 2.42% 36,58% 29.20% 18.00% 2.42% 35.98% 28.00% 18.00% 2.42% 36.58% 28.00% 18.00% 2.42% 36.58% 28.00% 18.00% 2.42% 38 58% 3.86% 133.20 4.36 2.56 10.89% 4,20% 133.20 4.23 4.00% 133.20 4.23 2.7 10,89% 4.17% 4.40% 133 20 4.23 3.01 10.89% 4.17% 4.50% 133.20 423 3.10 10.89 4.17% 4.50% 133.20 4.23 3.20 10.89 4.17% 28 10.89% 4.17% Gross margin Cash operating expenses/sains 10 Depreciation/sales 11 Income tax rate 12 13 Cash & ST inv./salos 14 Receivable tumover 15 Inventory tumover 16 PSE tunrover 17 Payable w/COGS 18 Other curr liab./sales 19 20 Forecast 21 Number of store 22 Net sales 23 Cost of sales 24 Gross profit 25 Cash operating expenses 26 Depreciation & amortization 27 EBIT 28 NOPAT 29 30 Balance Sheet 31 Cash and ST Investments 32 Accounts receivable 33 Merchandise Inventory 34 Other current assets 35 Total current assets 36 37 Accounts payable 38 Accrued salaries and wagos 30 Other current abilities 40 Non-int-bearing current liab 41 Working capital 42 Net property and equipment 43 Other assets 44 Total capital 45 Relum on capital 46 AZ 2001 744 22,111 15.743 6,368 4,036 534 1.798 1133 2002E 856 26,091 18,525 7,566 4733 630.12 2,203 1397 2003E 992 31,048 21.902 9,066 5589 749.84 2,728 1719 2004 1122 36,519 26,294 10,225 8573 881.97 2.770 1757 2005E 1254 42,187 30,374 11812 7594 1018.85 3,200 2029 2006E 1401 48,840 35.164 13,675 8791 1179.52 3,704 2340 2002 2003E 2004 2005E 2001 853 2006E 160 3,611 291 4,920 1,715 221 922 2.858 2,062 8,653 102 10,877 10.42% 3 Assumptions Growth in new stores Sales growth for existing stores Total sales growth 2001 14.46% 2.87% 17.74% 2002E 15.00% 3.00% 18.00% 2003E 16.00% 3.00% 19.00% 2004 13.00% 4.62% 17.62% 2005E 11.77% 3.74% 15.52% 2006E 11,77% 4.00% 15.775 28,80% 18.25% 2.42% 36.98% 29.00% 18.14% 2.42% 36.58% 29,20% 18.00% 2.42% 36.98% 28.00% 18.00% 2.42% 36,58% 28.00% 18.00% 2.42% 36.58% 28.00% 18.00% 2.42% 36.58% 3.86% 133.20 4.36 2.56 10.89% 4.17% 4.00% 133.20 4.23 2.7 10.89% 4.17% 4.20% 133,20 4.23 2.8 10,89% 4.17% 4.40% 133 20 4.23 3.01 10.89% 4.17% 4.50% 13320 4.23 3.10 10.89% 4.17% 4.50% 133,20 4.23 3.20 10,89% 4.17% 24 Gross margin Cash operating expensos/sales 10 Depreciation/sales 11 Income tax rate 12 13 Cash & ST inv./salos 14 Receivable turnover 15 Inventory tumover 16 P&E tunrover 17 Payables/COGS 18 Other curr. lab./sales 19 20 Forecast 21 Number of store 22 Net sales 23 Cost of sales Gross profit 25 Cash operating expenses Depreciation & amortization 27 EBIT 28 NOPAT 29 30 Balance Sheet 31 Cash and ST Investments 32 Accounts receivable 33 Merchandise inventory 34 Other current assets 35 Total current assets 36 37 Accounts payable 38 Accrued salaries and wages 39 Other current liabilities 40 Non-int.-bearing current liab. 41 Working capital 42 Net property and equipment 43 Other assets 44 Total capital 45 Rotum on capital 46 2001 744 22,111 15,743 6,368 4,036 534 1,798 1133 2002E 856 26,091 18 525 7,566 4733 630.12 2,203 1397 2003E 992 31,048 21.982 9,066 5589 749.84 2.728 1719 2004E 1122 38,519 28 294 10,225 6573 881.97 2.770 1757 2005 1254 42,187 30,374 11,812 7594 1018 85 3.200 2029 2006E 1401 48,840 35.164 13,675 8791 1179.52 3,704 2349 26 2002 2003E 2004E 2005E 2006E 2001 853 166 3,611 291 4.920 1,715 221 922 2,858 2,062 8,653 162 10,877 10.42% 1992 1998 1999 2000 2001 22,111 15.743 6368 4,036 10,137 7447 2,690 1,825 241 624 O 66 559 201 357 12,245 8,950 3,295 2,189 272 833 0 75 15.906 11 525 4.381 2,870 338 1.172 24 85 1,063 390 673 18.779 13.488 5.291 3479 410 1402 O 121 1.281 472 B10 1.798 0 173 1.625 601 758 276 482 1,024 569 INCOME STATEMENT Sales Cost of sales Gross profit Cash operating expenses (1) Depreciation & amortization 10 EBIT 11 Non-recurring expenses 12 Net interest expense 13 EBT 14 Income taxes 15 Net earnings 16 17 BALANCE SHEET 18 Cash and ST investments 19 Accounts receivable 20 Merchandise inventory 21 Other current assets 22 Total current assets 23 Net property and equipment 24 Other assets 25 Total assets 26 27 Accounts payable 28 Accrued salaries and wages 29 Short-term borrowings 30 Current maturities of long-term 31 Other current liabilities 32 Current liabilities 33 Long-term debt 34 Deferred income taxes 35 Other long-term liabilities 36 Minority interest Shareholders' equity Total liab. and owner's equity 211 118 1,715 65 2,110 3,005 104 5.219 243 144 2,105 94 2.586 3,637 122 6,345 148 2,812 164 3,693 5.177 142 9,012 469 161 3.285 243 4.157 7.035 166 11.358 853 166 3.61 291 4.920 8,653 162 13.736 1.715 1,133 113 92 99 221 100 328 969 83 98 12 286 1,449 1,046 124 O o 2,601 5.219 1,567 164 92 60 503 2386 1.727 200 4 1,765 1,283 160 0 0 3,136 6345 1.714 166 250 42 2738 2.911 2,698 251 3 o 5495 11.358 59 922 3.017 3.734 305 6 37 38 39 4,695 9.012 6,6724 13.736 43 44 Exhibit 2 45 46 Number of stores 47 Sq. footage (millions) 48 Number of transactions (mil) 49 Number of employees 50 Lowe's Historical Company Performance 1997 1998 1999 2000 477 520 576 650 40 48 57 68 231 268 299 342 64.070 72,715 86,160 94.601 2001 744 81 395 108 317 1997 772 3,109 3.881 35.96% 400 1998 1,012 3,759 4.771 36.41% 530 1999 1,459 5,319 6,778 36.69% 2000 1.539 7 201 8.740 36.85% 885 2001 2,062 8,815 10,877 38.98% 1133 742 10.30% 13.73% 11.10% 15.37% 10.95% 14,33% 10.13% 14.74% 10.42% 15.34% 28.54% 18.00% 2.38% 8.02% 6.16% 3.94% 28.91% 17.88% 2 22% 7.48% 6.B0% 4.33% 27,54% 18.04% 2.12% 6.53% 7.37% 4.68% 28.18% 18.53% 2.18% 5.83% 7.47% 4.71% 28.80% 18.25% 2.42% 6.17% 8.13% 5.12% Working capital (CA.NIBCL) Fixed asset Total capital Tax rate 9 NOPAT (EBITX (1-1) 10 11 Profitability 12 Retum on Capital (NOPAT/total capital 13 Retum on Equity (not camingu/sequity 14 15 Margins 16 Gross Margin (gross profit/sales) 17 Cash Operating Expenses/sales 18 Depreciation/sales 19 Depreciation/P&E 20 Operating Margin (EBIT/sales) 21 NOPAT margin (NOPAT/sales) 22 23 Turnover 24 Total Capital tumover (sales/total capital) 25 P&E tumover (sales/P&E) 26 Working-capital tumover (sales/WC) 27 Receivable tumover (sale /AR) 28 Inventory tumover (COGS/m. Inventory 20 Sales per store ($ millions) 30 Sales por sq. foot (5) 31 Sales per transaction (5) 32 33 Growth 34 Total sales growth 35 Sales growth for existing stores 36 Growth in new stores 37 Growth in sq. footage per store 38 39 Leverage 40 Total capitalequity 41 42 2.61 3.37 13.13 85.91 4.34 21.25 253.43 43.88 2.57 3.37 12.10 85,03 4.25 23.55 255.10 45.60 2.35 3.07 10.90 107.47 4.10 27.61 279.05 53.20 2.15 2.67 12 20 116.84 4.11 28.80 276.16 54.91 203 2.56 10.72 133 20 4.36 29.72 272 98 55.98 20.80% 10,81% 9.01% 20.00% 29,90% 17 27% 10.77% 18.75% 18.06% 4.62% 12.85% 19.30% 17.74% 2.87% 14.46% 19.12% 1.49 1.52 1.44 1.59 1.63 3 Assumptions Growth in new stores Sales growth for existing stores Total sales growth 2001 14.46% 2.87% 17.74% 2002 15.00% 3.00% 18.00% 2003E 16.00% 3.00% 19.00% 2004 13.00% 4.62% 17.62% 2005 11.77% 3.74% 15.52% 2006E 11.77% 4.00% 15 77% 28.80% 18.25% 2.42% 36.98% 29.00% 18.14% 2.42% 36,58% 29.20% 18.00% 2.42% 35.98% 28.00% 18.00% 2.42% 36.58% 28.00% 18.00% 2.42% 36.58% 28.00% 18.00% 2.42% 38 58% 3.86% 133.20 4.36 2.56 10.89% 4,20% 133.20 4.23 4.00% 133.20 4.23 2.7 10,89% 4.17% 4.40% 133 20 4.23 3.01 10.89% 4.17% 4.50% 133.20 423 3.10 10.89 4.17% 4.50% 133.20 4.23 3.20 10.89 4.17% 28 10.89% 4.17% Gross margin Cash operating expenses/sains 10 Depreciation/sales 11 Income tax rate 12 13 Cash & ST inv./salos 14 Receivable tumover 15 Inventory tumover 16 PSE tunrover 17 Payable w/COGS 18 Other curr liab./sales 19 20 Forecast 21 Number of store 22 Net sales 23 Cost of sales 24 Gross profit 25 Cash operating expenses 26 Depreciation & amortization 27 EBIT 28 NOPAT 29 30 Balance Sheet 31 Cash and ST Investments 32 Accounts receivable 33 Merchandise Inventory 34 Other current assets 35 Total current assets 36 37 Accounts payable 38 Accrued salaries and wagos 30 Other current abilities 40 Non-int-bearing current liab 41 Working capital 42 Net property and equipment 43 Other assets 44 Total capital 45 Relum on capital 46 AZ 2001 744 22,111 15.743 6,368 4,036 534 1.798 1133 2002E 856 26,091 18,525 7,566 4733 630.12 2,203 1397 2003E 992 31,048 21.902 9,066 5589 749.84 2,728 1719 2004 1122 36,519 26,294 10,225 8573 881.97 2.770 1757 2005E 1254 42,187 30,374 11812 7594 1018.85 3,200 2029 2006E 1401 48,840 35.164 13,675 8791 1179.52 3,704 2340 2002 2003E 2004 2005E 2001 853 2006E 160 3,611 291 4,920 1,715 221 922 2.858 2,062 8,653 102 10,877 10.42%