Project the Balance Sheet for Wal Mart for the next 5 years through year 2022. P
ID: 2520192 • Letter: P
Question
Project the Balance Sheet for Wal Mart for the next 5 years through year 2022. Provide reasoning for your forecasts and explanation. Growth rate for 2018 is 10%, 2019 is 11%, 2020 is 5.5%, 2021 is 5% and 2022 is 4%.
Actuals Year 2015 2016 2017 Balance Sheet Assets: Cash and cash equivalents 9,135 8,705 6,867 - common size 4.5% 4.4% 3.5% - rate of change -4.7% -21.1% Accounts and notes receivable - net 6,778 5,624 5,835 - common size 3.3% 2.8% 2.9% - rate of change -17.0% 3.8% Inventories 45,141 44,469 43,046 - common size 22.2% 22.3% 21.7% - rate of change -1.5% -3.2% Prepaid expenses and other current assets 2,224 1,441 1,941 - common size 1.1% 0.7% 1.0% - rate of change -35.2% 34.7% Current assets 63,278 60,239 57,689 - common size 31.1% 30.2% 29.0% - rate of change -4.8% -4.2% Property and Equipment 177,395 176,958 179,492 - common size 87.2% 88.7% 90.3% - rate of change -0.2% 1.4% Accumulated depreciation -63,115 -66,787 -71,782 - common size -31.0% -33.5% -36.1% - rate of change 5.8% 7.5% Property under capital and leasing financing obligations, net 2,375 6,345 6,468 - common size 1.2% 3.2% 3.3% - rate of change 167.2% 1.9% Goodwill 18,102 16,695 17,037 - common size 8.9% 8.4% 8.6% - rate of change -7.8% 2.0% Other assets 5,455 6,131 9,921 - common size 2.7% 3.1% 5.0% - rate of change 12.4% 61.8% Total Assets 203,490 199,581 198,825 - common size 100.0% 100.0% 100.0% - rate of change -1.9% -0.4% Liabilities Short-term borrowings 1,592 2,708 1,099 - common size 0.8% 1.4% 0.6% - rate of change 70.1% -59.4% Accounts Payable 38,410 38,487 41,433 - common size 18.9% 19.3% 20.8% - rate of change 0.2% 7.7% Accrued liabilities 19,152 19,607 20,654 - common size 9.4% 9.8% 10.4% - rate of change 2.4% 5.3% Accrued Income Taxes 1,021 521 921 - common size 0.5% 0.3% 0.5% - rate of change -49.0% 76.8% Long-term debt - due within one year 4,791 2,745 2,256 - common size 2.4% 1.4% 1.1% - rate of change -42.7% -17.8% Capital lease and financial obligations due within one year 287 551 565 - common size 0.1% 0.3% 0.3% - rate of change 92.0% 2.5% Current liabilities 65,253 64,619 66,928 - common size 32.1% 32.4% 33.7% - rate of change -1.0% 3.6% Long-term debt 40,889 38,214 36,015 - common size 20.1% 19.1% 18.1% - rate of change -6.5% -5.8% Long-term capital lease and financing obligations 2,606 5,816 6,003 - common size 1.3% 2.9% 3.0% - rate of change 123.2% 3.2% Deferred income taxes and other 8,805 7,321 9,344 - common size 4.3% 3.7% 4.7% - rate of change -16.9% 27.6% Total liabilites 117,553 115,970 118,290 - common size 57.8% 58.1% 59.5% - rate of change -1.3% 2.0% Shareholder's Equity Common stock 323 317 305 - common size 0.2% 0.2% 0.2% - rate of change -1.9% -3.8% Capital in excess of par value 2,462 1,805 2,371 - common size 1.2% 0.9% 1.2% - rate of change -26.7% 31.4% Retained Earnings 85,777 90,021 89,354 - common size 42.2% 45.1% 44.9% - rate of change 4.9% -0.7% Accum. other comprehensive income (loss) -7,168 -11,597 -14,232 - common size -3.5% -5.8% -7.2% - rate of change 61.8% 22.7% Total Common and Preferred Shareholders' Equity 81,394 80,546 77,798 - common size 40.0% 40.4% 39.1% - rate of change -1.0% -3.4% Noncontrolling interests 4,543 3,065 2,737 - common size 2.2% 1.5% 1.4% - rate of change -32.5% -10.7% Total Equity 85,937 83,611 80,535 - common size 42.2% 41.9% 40.5% - rate of change -2.7% -3.7% Total liabilites and equities 203,490 199,581 198,825 - common size 100.0% 100.0% 100.0% - rate of change -1.9% -0.4%Explanation / Answer
Projected Balance Sheet for Wal.Mart 2018-2022 Notations Particulars Actuals Forecast Year 2015 2016 2017 2018 2019 2020 2021 2022 Balance Sheet 10% 11% 5.50% 5% 4% Assets: A Cash and cash equivalents 9,135 8,705 6,867 7,554 7,622 7,245 7,210 7,142 common size 4.5% 4.4% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% rate of change -4.7% -21.1% 10.0% 11.0% 5.5% 5.0% 4.0% B Accounts and notes receivable - net 6,778 5,624 5,835 6,419 6,477 6,156 6,127 6,068 common size 3.3% 2.8% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% rate of change -17.00% 3.80% 10.0% 11.0% 5.5% 5.0% 4.0% Inventories 45,141 44,469 43,046 47,351 47,781 45,414 45,198 44,768 common size 22.2% 22.3% 21.7% 21.7% 21.7% 21.7% 21.7% 21.7% rate of change -1.50% -3.20% 10.0% 11.0% 5.5% 5.0% 4.0% C Prepaid expenses and other current assets 2,224 1,441 1,941 2,135 2,155 2,048 2,038 2,019 common size 1.1% 0.7% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% rate of change -35.20% 34.70% 10.0% 11.0% 5.5% 5.0% 4.0% D=A+B+C Current assets 63,278 60,239 57,689 63,458 64,035 60,862 60,573 59,997 common size 31.1% 30.2% 29.0% 29.0% 29.0% 29.0% 29.0% 29.0% rate of change -4.80% -4.20% 10.0% 11.0% 5.5% 5.0% 4.0% Property and Equipment 177,395 176,958 179,492 197,441 199,236 189,364 188,467 186,672 common size 87.2% 88.7% 90.3% 90.3% 90.3% 90.3% 90.3% 90.3% rate of change -0.20% 1.40% 10.0% 11.0% 5.5% 5.0% 4.0% Accumulated depreciation -63,115 -66,787 -71,782 (78,960) (79,678) (75,730) (75,371) (74,653) common size -31.0% -33.5% -36.1% -36.1% -36.1% -36.1% -36.1% -36.1% rate of change 5.80% 7.50% 10.0% 11.0% 5.5% 5.0% 4.0% E Property under capital and leasing financing obligations, net 2,375 6,345 6,468 7,115 7,179 6,824 6,791 6,727 common size 1.2% 3.2% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% rate of change 167.20% 1.90% 10.0% 11.0% 5.5% 5.0% 4.0% Goodwill 18,102 16,695 17,037 18,741 18,911 17,974 17,889 17,718 common size 8.9% 8.4% 8.6% 8.6% 8.6% 8.6% 8.6% 8.6% rate of change -7.80% 2.00% 10.0% 11.0% 5.5% 5.0% 4.0% Other assets 5,455 6,131 9,921 10,913 11,012 10,467 10,417 10,318 common size 2.7% 3.1% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% rate of change 12.40% 61.80% 10.0% 11.0% 5.5% 5.0% 4.0% F=D+E Total Assets 203,490 199,581 198,825 218,708 220,696 209,760 208,766 206,778 common size 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% rate of change -1.90% -0.40% 10.0% 11.0% 5.5% 5.0% 4.0% G Liabilities Short-term borrowings 1,592 2,708 1,099 1,209 1,220 1,159 1,154 1,143 common size 0.8% 1.4% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% rate of change 70.10% -59.40% 10.0% 11.0% 5.5% 5.0% 4.0% Accounts Payable 38,410 38,487 41,433 45,576 45,991 43,712 43,505 43,090 common size 18.9% 19.3% 20.8% 20.8% 20.8% 20.8% 20.8% 20.8% rate of change 0.20% 7.70% 10.0% 11.0% 5.5% 5.0% 4.0% Accrued liabilities 19,152 19,607 20,654 22,719 22,926 21,790 21,687 21,480 common size 9.4% 9.8% 10.4% 10.4% 10.4% 10.4% 10.4% 10.4% rate of change 2.40% 5.30% 10.0% 11.0% 5.5% 5.0% 4.0% Accrued Income Taxes 1,021 521 921 1,013 1,022 972 967 958 common size 0.5% 0.3% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% rate of change -49.00% 76.80% 10.0% 11.0% 5.5% 5.0% 4.0% H Long-term debt - due within one year 4,791 2,745 2,256 2,482 2,504 2,380 2,369 2,346 common size 2.4% 1.4% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% rate of change -42.70% -17.80% 10.0% 11.0% 5.5% 5.0% 4.0% I Capital lease and financial obligations due within one year 287 551 565 622 627 596 593 588 common size 0.1% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% rate of change 92.00% 2.50% 10.0% 11.0% 5.5% 5.0% 4.0% J=G+H+I Current liabilities 65,253 64,619 66,928 73,621 74,290 70,609 70,274 69,605 common size 32.1% 32.4% 33.7% 33.7% 33.7% 33.7% 33.7% 33.7% rate of change -1.00% 3.60% 10.0% 11.0% 5.5% 5.0% 4.0% Long-term debt 40,889 38,214 36,015 39,617 39,977 37,996 37,816 37,456 common size 20.1% 19.1% 18.1% 18.1% 18.1% 18.1% 18.1% 18.1% rate of change -6.50% -5.80% 10.0% 11.0% 5.5% 5.0% 4.0% K Long-term capital lease and financing obligations 2,606 5,816 6,003 6,603 6,663 6,333 6,303 6,243 common size 1.3% 2.9% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% rate of change 123.20% 3.20% 10.0% 11.0% 5.5% 5.0% 4.0% Deferred income taxes and other 8,805 7,321 9,344 10,278 10,372 9,858 9,811 9,718 common size 4.3% 3.7% 4.7% 4.7% 4.7% 4.7% 4.7% 4.7% rate of change -16.90% 27.60% 10.0% 11.0% 5.5% 5.0% 4.0% L=J+K Total liabilites 117,553 115,970 118,290 130,119 131,302 124,796 124,205 123,022 common size 57.8% 58.1% 59.5% 59.5% 59.5% 59.5% 59.5% 59.5% rate of change -1.30% 2.00% 10.0% 11.0% 5.5% 5.0% 4.0% M Shareholder's Equity Common stock 323 317 305 336 339 322 320 317 common size 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% rate of change -1.90% -3.80% 10.0% 11.0% 5.5% 5.0% 4.0% Capital in excess of par value 2,462 1,805 2,371 2,608 2,632 2,501 2,490 2,466 common size 1.2% 0.9% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% rate of change -26.70% 31.40% 10.0% 11.0% 5.5% 5.0% 4.0% Retained Earnings 85,777 90,021 89,354 98,289 99,183 94,268 93,822 92,928 common size 42.2% 45.1% 44.9% 44.9% 44.9% 44.9% 44.9% 44.9% rate of change 4.90% -0.70% 10.0% 11.0% 5.5% 5.0% 4.0% N Accum. other comprehensive income (loss) -7,168 -11,597 -14,232 (15,655) (15,798) (15,015) (14,944) (14,801) common size -3.5% -5.8% -7.2% -7.2% -7.2% -7.2% -7.2% -7.2% rate of change 61.80% 22.70% 10.0% 11.0% 5.5% 5.0% 4.0% O Total Common and Preferred P=M+N+O Shareholders' Equity 81,394 80,546 77,798 85,578 86,356 82,077 81,688 80,910 common size 40.0% 40.4% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1% rate of change -1.00% -3.40% 10.0% 11.0% 5.5% 5.0% 4.0% Q Noncontrolling interests 4,543 3,065 2,737 3,011 3,038 2,888 2,874 2,846 common size 2.2% 1.5% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% rate of change -32.50% -10.70% 10.0% 11.0% 5.5% 5.0% 4.0% R=P+Q Total Equity 85,937 83,611 80,535 88,589 89,394 84,964 84,562 83,756 common size 42.2% 41.9% 40.5% 40.5% 40.5% 40.5% 40.5% 40.5% rate of change -2.70% -3.70% 10.0% 11.0% 5.5% 5.0% 4.0% S=L+R Total liabilites and equities 203,490 199,581 198,825 218,708 220,696 209,760 208,766 206,778 common size 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% rate of change -1.90% -0.40% 10.0% 11.0% 5.5% 5.0% 4.0% Note: Percentages of growth has been taken on the basis of latest available balances (i.e. 2017 balances). Hence all the amounts shows the same increase as provided in the question. Also because of this Rate of change is same for all Balance Sheet items as provided in the Question (i.e. 10%, 11%, 5.5%,5% & 4%) Feel free in case of any queries
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