VII. 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 billion. Take the most recent financial statements and prepare a set of projected financial statements for the next five years based on the given assumptions. The CEO requests that you prepare a written report (including the financial statements) for her.

1. Generate a projected income statement based on the given scenario.
2. Analyze the impact on the income statement based on the given scenario.
3. Generate a projected statement of retained earnings based on the given scenario.
4. Analyze the impact on the statement of retained earnings based on the given scenario.
5. Generate a projected balance sheet based on the given scenario.
6. Analyze the impact on the balance sheet based on the given scenario.
7. Generate a projected cash flow statement based on the given scenario.
8. Analyze the impact on the cash flow statement based on the given scenario.

Company chosen: Home Depot. See FY22 financial statements.

Income Statement

Retained Earnings

Balance Sheet

Statement of Cash Flows

THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS in millions, except per share data January 29, Assets 2023 Current assets: \begin{tabular}{lrr} Cash and cash equivalents & $ & 2,757 \\ Receivables, net & 3,317 \\ Merchandise inventories & 24,886 \\ \hline Other current assets & 1,511 \\ \hline \multicolumn{1}{r|}{ Total current assets } & 32,471 \\ \hline Net property and equipment & 25,631 \\ Operating lease right-of-use assets & 6,941 \\ \hline Goodwill & 7,444 \\ \hline Other assets Total assets & $,958 \\ \hline \end{tabular} THE HOME REDOT INR THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS in millions, except per share data January 29, Assets 2023 Current assets: \begin{tabular}{lrr} Cash and cash equivalents & $ & 2,757 \\ Receivables, net & 3,317 \\ Merchandise inventories & 24,886 \\ \hline Other current assets & 1,511 \\ \hline \multicolumn{1}{r|}{ Total current assets } & 32,471 \\ \hline Net property and equipment & 25,631 \\ Operating lease right-of-use assets & 6,941 \\ \hline Goodwill & 7,444 \\ \hline Other assets Total assets & $,958 \\ \hline \end{tabular} THE HOME REDOT INR