Preliminary Financial Datal Company Valuation The Gap Inc, EPS/EBIT Analysis \begin{tabular}{l|l} \hline 1 & Enter in the corresponding data below for your firm. \end{tabular} 2 If you notice little to no change in EPS with stock vs debt financing, the total amount of your recommendations is likely too low. Unless of course, you are recommending defensive strategies where you are not acquiring substantial new capital. EPSiEBIT Data Note: This number is the total cost of your recommendations. \begin{tabular}{l} \hline Interest Rate \\ \hline Tax Rate \\ \hline \end{tabular} Note: Enter as a decimal. Note: Enter as a decimal. \#New Shares Outstanding Note: Enter in under Company Valuation on this page. Stock Price Note: Calculated automatically \begin{tabular}{|l} \hline \\ \hline Percent Equity Used to Finance \\ \hline \end{tabular} Combination Financing Data \begin{tabular}{|l|} \hline Percent Debt Used to Finance \\ \hline \end{tabular} Note: Enter as a decimal. \begin{tabular}{|c|} \hline Total Equity and Debt \\ \hline \end{tabular} Note: Enter as a decimal. \begin{tabular}{|lccc|} \hline Projected Income Statement & 1/29/2023 & 1/29/2024 & 1/29/2025 \\ \hline Revenues (Sales) & $19,337,200 & $22,817,896 & $27,381,475 \\ Cost of Goods Sold & 12,182,436 & 14,375,274 & 17,250,329 \\ Gross Profit & 7,154,764 & 8,442,622 & 10,131,146 \\ Operating Expenses (Operating Income) & 6,381,276 & 7,529,906 & 9,035,887 \\ EBIT & 773,488 & 912,716 & 1,095,259 \\ Interest Expense & 334,000,000 & 501,000,000 & 668,000,000 \\ EBT & (333,226,512) & (500,087,284) & (666,904,741) \\ Tax & 0 & 0 & 0 \\ Non-Recurring Events & 0 & 0 & 0 \\ Net Income & (333,226,512) & (500,087,284) & (666,904,741) \\ \hline \end{tabular} \begin{tabular}{|lcccc|} \hline Income Statement & 1/29/2021 & 1/29/2022 & & Percent Change \\ \hline Revenue (Sales) & $13,800,000 & $16,670,000 & 1 & 21% \\ Cost of Goods Sold & 9,095,000 & 10,033,000 & 1 & 10% \\ Gross Profit & 4,705,000 & 6,637,000 & 1 & 41% \\ Operating Expenses & 5,567,000 & 5,827,000 & 1 & 5% \\ EBIT (Operating Income) & (862,000) & 810,000 & 1 & 194% \\ Interest Expense & 192,000,000 & 167,000,000 & 1 & 13% \\ EBT & (192,862,000) & (166,190,000) & 1 & 14% \\ Tax & (437,000,000) & 67,000,000 & NA & NA \\ Non-Recurring Events & & 31,000,000 & NA & NA \\ Net Income & 244,138,000 & (202,190,000) & NA & NA \\ \hline \end{tabular} \begin{tabular}{|lcccc|} \hline Balance Sheet & 1/29/2021 & 1/29/2022 & & Percent Change \\ \hline Assets & & & & \\ Cash and Short Term Investments & $1,988,000 & $877,000,000 & 1 & 44015% \\ \hline Accounts Receivable & 363,000,000 & 399,000,000 & 1 & 10% \\ Inventory & 2,451,000 & 3,018,000 & 1 & 23% \\ \hline Other Current Assets & 6,008,000 & 5,165,000 & 1 & 14% \\ Total Current Assets & 373,447,000 & 1,284,183,000 & 1 & 244% \\ Property Plant \& Equipment & (694,000,000) & (392,000,000) & 1 & 44% \\ Goodwill & 109,000,000 & 207,000,000 & 1 & 90% \\ Intangibles & 31,000,000 & & 1 & 100% \\ Other Long-Term Assets & 703,000,000 & 884,000,000 & 1 & 26% \\ Total Assets & 522,447,000 & 1,983,183,000 & 1 & 280% \\ \hline Liabilities & & & & \\ Accounts Payable & & & & \\ Other Current Liabilities & 1,743,000 & 1,951,000 & 1 & 12% \\ \hline Total Current Liabilities & 1,276,000 & 1,367,000 & 1 & 7% \\ \hline Long-Term Debt & 3,019,000 & 3,318,000 & 1 & 10% \\ \hline Other Long-Term Liabilities & 2,216,000 & 1,484,000 & 1 & 33% \\ \hline Total Liabilities & 7,271,000 & 5,962,000 & 1 & 18% \\ \hline \end{tabular} Preliminary Financial Datal Company Valuation The Gap Inc, EPS/EBIT Analysis \begin{tabular}{l|l} \hline 1 & Enter in the corresponding data below for your firm. \end{tabular} 2 If you notice little to no change in EPS with stock vs debt financing, the total amount of your recommendations is likely too low. Unless of course, you are recommending defensive strategies where you are not acquiring substantial new capital. EPSiEBIT Data Note: This number is the total cost of your recommendations. \begin{tabular}{l} \hline Interest Rate \\ \hline Tax Rate \\ \hline \end{tabular} Note: Enter as a decimal. Note: Enter as a decimal. \#New Shares Outstanding Note: Enter in under Company Valuation on this page. Stock Price Note: Calculated automatically \begin{tabular}{|l} \hline \\ \hline Percent Equity Used to Finance \\ \hline \end{tabular} Combination Financing Data \begin{tabular}{|l|} \hline Percent Debt Used to Finance \\ \hline \end{tabular} Note: Enter as a decimal. \begin{tabular}{|c|} \hline Total Equity and Debt \\ \hline \end{tabular} Note: Enter as a decimal. \begin{tabular}{|lccc|} \hline Projected Income Statement & 1/29/2023 & 1/29/2024 & 1/29/2025 \\ \hline Revenues (Sales) & $19,337,200 & $22,817,896 & $27,381,475 \\ Cost of Goods Sold & 12,182,436 & 14,375,274 & 17,250,329 \\ Gross Profit & 7,154,764 & 8,442,622 & 10,131,146 \\ Operating Expenses (Operating Income) & 6,381,276 & 7,529,906 & 9,035,887 \\ EBIT & 773,488 & 912,716 & 1,095,259 \\ Interest Expense & 334,000,000 & 501,000,000 & 668,000,000 \\ EBT & (333,226,512) & (500,087,284) & (666,904,741) \\ Tax & 0 & 0 & 0 \\ Non-Recurring Events & 0 & 0 & 0 \\ Net Income & (333,226,512) & (500,087,284) & (666,904,741) \\ \hline \end{tabular} \begin{tabular}{|lcccc|} \hline Income Statement & 1/29/2021 & 1/29/2022 & & Percent Change \\ \hline Revenue (Sales) & $13,800,000 & $16,670,000 & 1 & 21% \\ Cost of Goods Sold & 9,095,000 & 10,033,000 & 1 & 10% \\ Gross Profit & 4,705,000 & 6,637,000 & 1 & 41% \\ Operating Expenses & 5,567,000 & 5,827,000 & 1 & 5% \\ EBIT (Operating Income) & (862,000) & 810,000 & 1 & 194% \\ Interest Expense & 192,000,000 & 167,000,000 & 1 & 13% \\ EBT & (192,862,000) & (166,190,000) & 1 & 14% \\ Tax & (437,000,000) & 67,000,000 & NA & NA \\ Non-Recurring Events & & 31,000,000 & NA & NA \\ Net Income & 244,138,000 & (202,190,000) & NA & NA \\ \hline \end{tabular} \begin{tabular}{|lcccc|} \hline Balance Sheet & 1/29/2021 & 1/29/2022 & & Percent Change \\ \hline Assets & & & & \\ Cash and Short Term Investments & $1,988,000 & $877,000,000 & 1 & 44015% \\ \hline Accounts Receivable & 363,000,000 & 399,000,000 & 1 & 10% \\ Inventory & 2,451,000 & 3,018,000 & 1 & 23% \\ \hline Other Current Assets & 6,008,000 & 5,165,000 & 1 & 14% \\ Total Current Assets & 373,447,000 & 1,284,183,000 & 1 & 244% \\ Property Plant \& Equipment & (694,000,000) & (392,000,000) & 1 & 44% \\ Goodwill & 109,000,000 & 207,000,000 & 1 & 90% \\ Intangibles & 31,000,000 & & 1 & 100% \\ Other Long-Term Assets & 703,000,000 & 884,000,000 & 1 & 26% \\ Total Assets & 522,447,000 & 1,983,183,000 & 1 & 280% \\ \hline Liabilities & & & & \\ Accounts Payable & & & & \\ Other Current Liabilities & 1,743,000 & 1,951,000 & 1 & 12% \\ \hline Total Current Liabilities & 1,276,000 & 1,367,000 & 1 & 7% \\ \hline Long-Term Debt & 3,019,000 & 3,318,000 & 1 & 10% \\ \hline Other Long-Term Liabilities & 2,216,000 & 1,484,000 & 1 & 33% \\ \hline Total Liabilities & 7,271,000 & 5,962,000 & 1 & 18% \\ \hline \end{tabular}
