Report for CEO (Wal-Mart)

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.

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.

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.

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.

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

Wal-Mart Stores Inc., Consolidated Income Statement

USD $ in millions

	12 months ended	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014	Jan 31, 2013	Jan 31, 2012	Jan 31, 2011
	Net sales	478,614	482,229	473,076	466,114	443,854	418,952
	Cost of sales	(360,984)	(365,086)	(358,069)	(352,488)	(335,127)	(315,287)
	Gross profit	117,630	117,143	115,007	113,626	108,727	103,665
	Membership and other income	3,516	3,422	3,218	3,048	3,096	2,897
	Operating, selling, general and administrative expenses	(97,041)	(93,418)	(91,353)	(88,873)	(85,265)	(81,020)
	Operating income	24,105	27,147	26,872	27,801	26,558	25,542
	Interest expense, debt, capital lease and financing obligations	(2,548)	(2,461)	(2,335)	(2,251)	(2,322)	(2,205)
	Interest income	81	113	119	187	162	201
	Interest, net	(2,467)	(2,348)	(2,216)	(2,064)	(2,160)	(2,004)
	Income from continuing operations before income taxes	21,638	24,799	24,656	25,737	24,398	23,538
	Provision for income taxes	(6,558)	(7,985)	(8,105)	(7,981)	(7,944)	(7,579)
	Income from continuing operations	15,080	16,814	16,551	17,756	16,454	15,959
	Income (loss) from discontinued operations, net of income taxes		285	144		(67)	1,034
	Consolidated net income	15,080	17,099	16,695	17,756	16,387	16,993
	Consolidated net income attributable to noncontrolling interest	(386)	(736)	(673)	(757)	(688)	(604)
	Consolidated net income attributable to Walmart	14,694	16,363	16,022	16,999

Balance Sheet

All numbers in thousands

Period Ending	1/31/2016	1/31/2015	1/31/2014
Current Assets
Cash And Cash Equivalents	8,705,000	9,135,000	7,281,000
Short Term Investments	-	-	-
Net Receivables	5,624,000	6,778,000	6,677,000
Inventory	44,469,000	45,141,000	44,858,000
Other Current Assets	1,441,000	2,224,000	2,369,000
Total Current Assets	60,239,000	63,278,000	61,185,000
Long Term Investments	-	-	-
Property Plant and Equipment	116,516,000	116,655,000	117,907,000
Goodwill	16,695,000	18,102,000	19,510,000
Intangible Assets	-	-	-
Accumulated Amortization	-	-	-
Other Assets	6,131,000	5,455,000	6,149,000
Deferred Long Term Asset Charges	-	-	-
Total Assets	199,581,000	203,490,000	204,751,000
Current Liabilities
Accounts Payable	58,615,000	58,583,000	57,174,000
Short/Current Long Term Debt	6,004,000	6,670,000	12,082,000
Other Current Liabilities	-	-	89,000
Total Current Liabilities	64,619,000	65,253,000	69,345,000
Long Term Debt	44,030,000	43,495,000	44,559,000
Other Liabilities	-	-	-
Deferred Long Term Liability Charges	7,321,000	8,805,000	8,017,000
Minority Interest	3,065,000	4,543,000	5,084,000
Negative Goodwill	-	-	-
Total Liabilities	119,035,000	122,096,000	127,005,000
Stockholders' Equity
Misc. Stocks Options Warrants	-	-	1,491,000
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	317,000	323,000	323,000
Retained Earnings	90,021,000	85,777,000	76,566,000
Treasury Stock	-	-	-
Capital Surplus	1,805,000	2,462,000	2,362,000
Other Stockholder Equity	-11,597,000	-7,168,000	-2,996,000
Total Stockholder Equity	80,546,000	81,394,000	76,255,000
Net Tangible Assets	63,851,000	63,292,000	56,745,000

Cash Flow

All numbers in thousands

Period Ending	1/31/2016	1/31/2015	1/31/2014
Net Income	14,694,000	16,363,000	16,022,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	9,454,000	9,173,000	8,870,000
Adjustments To Net Income	738,000	-3,000	515,000
Changes In Accounts Receivables	-19,000	-569,000	-566,000
Changes In Liabilities	2,839,000	4,093,000	-590,000
Changes In Inventories	-703,000	-1,229,000	-1,667,000
Changes In Other Operating Activities	-	-	-
Total Cash Flow From Operating Activities	27,389,000	28,564,000	23,257,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	-11,477,000	-12,174,000	-13,115,000
Investments	-	-	-
Other Cash flows from Investing Activities	802,000	1,049,000	589,000
Total Cash Flows From Investing Activities	-10,675,000	-11,125,000	-12,526,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	-7,013,000	-6,785,000	-6,565,000
Sale Purchase of Stock	-5,438,000	-2,859,000	-6,979,000
Net Borrowings	-3,158,000	-5,018,000	3,015,000
Other Cash Flows from Financing Activities	-513,000	-409,000	-260,000
Total Cash Flows From Financing Activities	-16,122,000	-15,071,000	-10,789,000
Effect Of Exchange Rate Changes	-1,022,000	-514,000	-442,000
Change In Cash and Cash Equivalents	-430,000	1,854,000	-500,000