Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a Pro-Forma for Paypal Inc for the Income statement, Balance Sheet and CashFlows. Forecast out THREE years for each statement. Make sure your pro

Prepare a Pro-Forma for Paypal Inc for the Income statement, Balance Sheet and CashFlows. Forecast out THREE years for each statement. Make sure your pro forma statements balance for example your end of year cash flow statement must equal your cash and equivalent in your poor forma balance sheet. Please provide all formulas in Excel

Income Statement
All numbers in thousands

Revenue

12/31/21 12/31/20 12/31/19 12/31/18 12/31/17 12/31/16
Total Revenue 15,451,000 13,094,000 10,842,000
Cost of Revenue 8,337,000 7,077,000 5,701,000
Gross Profit 7,114,000 6,017,000 5,141,000
Operating Expenses
Research Development 1,071,000 953,000 834,000
Selling General and Administrative 2,764,000 2,283,000 1,997,000
Non Recurring - - -
Others 284,000 92,000 92,000
Total Operating Expenses 13,232,000 11,180,000 9,256,000
Operating Income or Loss 2,219,000 1,914,000 1,586,000
Income from Continuing Operations
Total Other Income/Expenses Net 248,000 286,000 45,000
Earnings Before Interest and Taxes 2,219,000 1,914,000 1,586,000
Interest Expense -77,000 -7,000 -3,000
Income Before Tax 2,376,000 2,200,000 1,631,000
Income Tax Expense 319,000 405,000 230,000
Minority Interest - - -
Net Income From Continuing Ops 2,057,000 1,795,000 1,401,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income
Net Income 2,057,000 1,795,000 1,401,000
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares 2,057,000 1,795,000 1,401,000

Balance Sheet

All numbers in thousands

Period Ending

12/31/18 12/31/17 12/31/16
Current Assets
Cash And Cash Equivalents 7,575,000 2,883,000 1,590,000
Short Term Investments 1,534,000 2,812,000 3,385,000
Net Receivables 2,845,000 1,597,000 5,562,000
Inventory - - -
Other Current Assets 20,062,000 24,706,000 14,586,000
Total Current Assets 32,963,000 32,645,000 25,733,000
Long Term Investments 971,000 1,961,000 1,539,000
Property Plant and Equipment 1,724,000 1,528,000 1,482,000
Goodwill 6,284,000 4,339,000 4,059,000
Intangible Assets 825,000 168,000 211,000
Accumulated Amortization - - -
Other Assets 565,000 133,000 79,000
Deferred Long Term Asset Charges 224,000 95,000 21,000
Total Assets 43,332,000 40,774,000 33,103,000
Current Liabilities
Accounts Payable 281,000 257,000 192,000
Short/Current Long Term Debt - - -
Other Current Liabilities 21,623,000 20,135,000 15,364,000
Total Current Liabilities 25,904,000 22,863,000 16,878,000
Long Term Debt - - -
Other Liabilities 2,042,000 1,917,000 1,513,000
Deferred Long Term Liability Charges - - -
Minority Interest - - -
Negative Goodwill - - -
Total Liabilities 27,946,000 24,780,000 18,391,000
Stockholders' Equity
Misc. Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock - - -
Retained Earnings 5,880,000 3,823,000 2,069,000
Treasury Stock -5,433,000 -2,143,000 -936,000
Capital Surplus 14,939,000 14,314,000 13,579,000
Other Stockholder Equity 78,000 -142,000 59,000
Total Stockholder Equity 15,386,000 15,994,000 14,712,000
Net Tangible Assets 8,277,000 11,487,000 10,442,000

Cash Flow

All numbers in thousands

Period Ending

12/31/18 12/31/17 12/31/16
Net Income 2,057,000 1,795,000 1,401,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 776,000 513,000 516,000
Adjustments To Net Income 2,028,000 542,000 1,514,000
Changes In Accounts Receivables -59,000 12,000 -77,000
Changes In Liabilities 26,000 62,000 11,000
Changes In Inventories - - -
Changes In Other Operating Activities 699,000 -674,000 -484,000
Total Cash Flow From Operating Activities 5,483,000 2,531,000 3,158,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures -823,000 -667,000 -669,000
Investments -483,000 -970,000 -2,612,000
Other Cash flows from Investing Activities 1,146,000 -1,605,000 -1,081,000
Total Cash Flows From Investing Activities 840,000 -4,485,000 -5,904,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid - - -
Sale Purchase of Stock - - -
Net Borrowings 960,000 820,000 -21,000
Other Cash Flows from Financing Activities 1,573,000 4,292,000 3,063,000
Total Cash Flows From Financing Activities -1,262,000 4,084,000 2,038,000
Effect Of Exchange Rate Changes -113,000 36,000 36,000
Change In Cash and Cash Equivalents 4,948,000 2,166,000 -708,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Clinical Audit Book Improving The Quality Of Health Care

Authors: Clare Mayo, Gill Harvey

1st Edition

070202418X, 978-0702024184

More Books

Students also viewed these Accounting questions