Forecast the income statement and balance sheet Lululemon Athletica for the next

Question

Forecast the income statement and balance sheet Lululemon Athletica for the next five years (end of fiscal 2015 to end of 2020). In one sheet of your file, explain your assumptions point by point. You do not need to write long stories. For examples, you can explain in one or two sentences each why you chose the size of fixed assets or cost of goods sold the way you did. Some key items might need more explanation.Your balance sheet must balance. Your retained earnings on the balance sheet must only change by the retained earnings for the year carried on to it from the income statement of that year.

Balance Sheet (2015-2010) Assets 2015 2014 2013 2012 2011 2010 Cash And Cash Equivalents 664479 698649 590179 409437 316286 159573 Short Term Investments - - - - - - Net Receivables 13746 11903 6351 5202 9116 8238 Inventory 208116 188790 155222 104097 57469 44070 Other Current Assets 64671 46197 35301 8357 6408 4529 Long Term Investments - - - - - - Property Plant and Equipment 296008 255306 214639 162941 70954 61591 Goodwill - - - - - Intangible Assets 26163 28201 30201 31872 27112 8050 Accumulated Amortization - - - - - - Other Assets 7012 4745 4152 4141 4063 6105 Deferred Long Term Asset Charges 16018 18300 15033 8587 7894 15102 Total Assets $1,296,213 $1,252,091 $1,051,078 $734,634 $499,302 $307,258 Liabilities & Shareholders' Equity Accounts Payable 113629 77871 98244 80666 67196 46979 Short/Current Long Term Debt -   -   -   -   -   -   Other Current Liabilities 46252 38343 35113 22773 18168 11699 Total Current Liabilities $   159,881 $   116,214 $   133,357 $103,439 $ 85,364 $ 58,678 Long Term Debt -    -    -    Other Liabilities 43131 35515 30422 25014 19645 15472 Deferred Long Term Liability Charges 3633 3977 -   -   -   -   Minority Interest -   -   -   -   -   -   Negative Goodwill -   -   -   -   -   -   Total Liabilities $   206,645 $   155,706 $   163,779 $128,453 $105,009 $ 74,150 Misc Stocks Options Warrants -   -   -   -   -   -   Redeemable Preferred Stock -   -   -   -   -   -   Preferred Stock -   -   -   -   -   -   Common Stock 661 577 562 551 534 511 Retained Earnings 1020619 923822 644275 373719 189656 67809 Treasury Stock -   -   -   -   Capital Surplus 241695 240351 221372 205557 179870 158921 Other Stockholder Equity -173407 -68068 21090 21549 20329 5867 Total Stockholder Equity $1,089,568 $1,096,682 $ 887,299 $601,379 $390,389 $233,108

Explanation / Answer

Fixed Cost :- Fixed cost does not change we can take the same cost to next year until we implement the new one

Sales:- We can forecast the sales from the base on the last few year sales. This can be consider a Target to the sales employees Cost of good sold:- At the time of cost of good sold we have to consider the time value of the good because cost of good sold will increasing month by month Direct Material :- Direct Material cost should estimate on past year expense Direct Labor :- Direct Labor expense cost should estimate on past year exposes Manufacturing Expense:- Manufacturing Expense can be estimate on past year expenses

Fixed Cost :- Fixed cost does not change we can take the same cost to next year until we implement the new one

Administration Expense:- Administration expense can estimate on past year experience Selling Expenses:- Selling expense should be estimate the basic on past year expense Fixed Assets:- Fixed assets should be give more then one year benefit Debtors :- Basic on the Credit Sales we can estimate the debtors inventory :- Inventory should be as minimum Creditors :- Creditors can be estimate the basic on the purchases Reserve:- Company profit can be estimated on the past experience then fixed percentage of the amount we can consider as reserve

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