Report for CEO At the most recent strategic planning meeting, the board of directors of your company has voted to issue additional stock to raise capital for major expansions for the company in the next five years. The board is considering $5 million. Take the most recent financial statements and prepare a set of projected financial statements based on the given assumptions. The CEO requests that you prepare a written report (including the financial statements) for her.

A. Generate a projected income statement based on the given scenario. Below is my company's Income Statement for 2015, please help me with projecting the income statement based on the $5 million increase in capital by issuing stock.

Consolidated Statements of Operations (in millions)
	2015	Projected for 2016
Sales	$73,785
Cost of Sales	$51,997
Gross margin	$21,788
Selling, general and administrative expenses	$14,665
Depreciation and amortization	$2,213
Gain on sale	($620)
Earnings from continuing operations before interest expense and income taxes	$5,530
Net interest expense	$607
Earnings from continuing operations before income taxes	$4,923
Provision for income taxes	$1,602
Net earnings from continuing operations	$3,321
Discontinued operations, net of tax	$42
Net earnings	$3,363
Basic earnings per share
Continuing operations	$5.29
Discontinued operations	$0.07
Net earnings per share	$5.35
Diluted earnings per share
Continuing operations	$5.25
Discontinued operations	$0.07
Net earnings per share	$5.31
Weighted average common shares outstanding
Basic	627.7
Dilutive effect of share-based awards	5.2
Diluted earnings per share	632.9
Antidilutive shares	--

B. Analyze the impact on the income statement based on the given scenario. C. Generate a projected statement of retained earnings based on the given scenario. Below is my company's Retained Earnings for 2015, please help me with projecting the income statement based on the $5 million increase in capital by issuing stock.

Consolidated Statements of Shareholders' Investment
	Common Stock Shares	Stock Par Value	Additional Paid-in Capital	Retained Earnings
January 31, 2015	640.2	$53	$4,899	$9,644
Net earnings	--	--	--	$3,363
Other comprehensive income	--	--	--	--
Dividends declared	--	--	--	($1,378)
Repurchase of stock	(44.70)	(4.00)	--	($3,441)
Stock options and awards	6.7	1	$449	--
January 31, 2016	602.2	$50	$5,348	$8,188

D. Analyze the impact on the statement of retained earnings based on the given scenario. E. Generate a projected balance sheet based on the given scenario. Below is my company's Balance Sheet for 2015, please help me with projecting the income statement based on the $5 million increase in capital by issuing stock.

Consolidated Statements of Financial Position
	2015	Projected for 2016
Assets
Cash and cash equivalents, including short-term investments of $3008 and $1520	$4,046
Inventory	$8,601
Assets of discontinued oeprations	$322
Other current assets	$1,161
Total current assets	$14,130
Property and equipment
Land	$6,125
Buildings and improvements	$27,059
Fixtures and equipment	$5,347
Computer hardware and software	$2,617
Construction-in-progress	$315
Accumulated depreciation	($16,246)
Property and equipment, net	$25,217
Noncurrent assets of discontinued operations	$75
Other noncurrent assets	$840
Total Assets	$40,262
Liabilities and shareholders' investment
Accounts payable	$7,418
Accrued and other current liabilities	$4,236
Current portion of long-term debt and other borrowings	$815
Liabilities of discontinued operations	$153
Total current liabilities	$12,622
Long-term debt and other borrowings	$11,945
Deferred income taxes	$823
Noncurrent liabilities of discontinued operations	$18
Other noncurrent liabilities	$1,897
Total noncurrent liabilities	$14,683
Shareholder's Investment
Common stock	$50
Additional paid-in capital	$5,348
Retained earnings	$8,188
Accumulated other comprehensive loss
Pension and other benefit liabilities	($588)
Currency translation adjustment and cash flow hedges	($41)
Total shareholders' investment	$12,957
Total liabilities and shareholders' investment	$40,262

F. Analyze the impact on the balance sheet based on the given scenario. G. Generate a projected cash flow statement based on the given scenario. Below is my company's Cash Flow Statement for 2015, please help me with projecting the income statement based on the $5 million increase in capital by issuing stock.

Consolidated Statements of Cash Flows (millions)
Operating Activities	2015	Projected for 2016
Net Earnings (Loss)	$3,363
Earnings (losses) from discontinued operations, net of tax	$42
Net earnings from continuing operations	$3,321
Adj to reconcile net earnings to cash provided by operations:
Depreciation and amortization	$2,213
Share-based compensation expense	$115
Deferred income taxes	($322)
Gain on sale	($620)
Noncash (gains)/losses and other, net	($12)
Changes in operating accounts:
Inventory	($316)
Other assets	$227
Accounts payable and accrued liabilities	$534
Cash provided by operating activities--continuing operations	$5,140
Cash provided by operating activities--discontinued operations	$704
Cash provided by operations	$5,844
Investing Activities
Expenditures for property and equipment	($1,438)
Proceeds from disposal of property and equipment	$28
Proceeds from sale of businesses	$1,875
Other investments	$24
Cash provided by investing activities--continuing operations	$489
Cash provided by investing activities--discontinued operations	$19
Cash provided by investing activities	$508
Financing Activities
Reductions of long-term dedbt	($85)
Dividends paid	($1,362)
Repurchase of stock	($3,438)
Stock option exervises and related tax benefit	369
Cash required for financing activities	($4,516)
Net Increase in cash and cash equivalents	$1,836
Cash and cash equivalent at beginning of period	$2,210
Cash and cash equivalents at end of period	$4,046
Supplemental information
Interest paid, net of capitalized interest	$604
Income taxes (refunded) / paid	($127)
Property and equipment acquired through capital lease obligation	$126

H. Analyze the impact on the cash flow statement based on the given scenario.