SA3. Pro Formas-Wal-Mart Wal-Mart (in millions) 31-Jam 31-Jam 31-Jam 31-Jan 31-Jan 31-Jan Net sales Rentals from licensed dept Other income-net X4 X7 $43,887 $55,484 $67 345 $82,494 $93,627 $104,859 XS x6 36 374 Total revenues Cost of sales Operating, Selling, General & 593 918 1,122 1287 44,289 55,985 67985 83,412 94,749 106,1406 34,786 44,174 53,444 65,586 74564 83,663 Administrative 6,6848321 10.33 12,858 14951 16,73 Total operating expenses 41,470 5249 63,7778,444 89,515 100,451 2,819 3,490 4208 4968 5234 5,695 Operating income Interest costs Debt Capital leases 113 153 266 143 180 331 520 629 216 692 706 196 Income before taxes Income tax expense 2,553 3,167 3,691 4262 4346 4850 691 Current 906 1,1371325 1572 1.50 1.974 Deferred 76 (180) 945 1,172 1358 1581 1,606 1,794 s 1,608 1,995 $2333 $2,681 $2,740 3,056 35 Net income EPS Dividends per share (for the whole year) 0.70 S 0.87 1.02 $ 1.17$1.19 S 133 s 0.09 S0.11 0.13 0.17 S020 s0.21 a. Refer to Wal-Mart financial statements, above. Prepare a forecasted income statement for Year 8 assuming: -Total revenues are expected to increase by 12% from Year 7 to Year 8. Operating income as a percentage of total revenues will remain unchanged from Year 7 to Year 8. -Total interest costs will increase by 10%. -Effective tax rate is 37%. b. What additional information will Wal-Mart need in order to assess whether it needs additional outside funding