BUS 629 Week 1 Assignment Financial Forecasting

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Mar. 29, 2020 Jun. 28, 2020 Revenues 5.995,70 4.222,10 Product and Distribution Costs 1.997,70 1.484,00 Store operating expenses 2.721,40 2.537,80 Other operating expenses 95,00 133,60 Depreciati... on and amortization expenses 356,30 361,00 General and administrative expenses 406,50 399,90 Restructuring, Settlement and Impairment Provisions (0,70) 78,10 Total operating expenses 5.576,20 4.994,40 Income from equity investees 67,90 68,40 Operating income/(loss) 487,40 (703,90) Gain (Loss) on Disposition of Business - - Interest income and other, net 2,00 12,70 Interest expense (99,20) (120,80) Earnings/(Loss) from Continuing Operations before income taxes 390,20 (812,00) Income Tax Expense (Benefit) 65,40 (133,90) Net earnings/(loss) including noncontrolling interests 324,80 (678,10) PROFORMA INCOME STATEMENT Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions 3 Months Ended Sept. 30, 2020 2.973,15 1.102,40 1.787,09 133,60 365,76 393,41 78,10 3.860,35 68,90 (818,30) 80,65 (147,10) (884,76) (145,90) (738,86) TEMENT nths Ended Condensed Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Long-term investments Equity Investments Property, plant and equipment, net Operating Lease, Right-of-Use Asset Deferred income taxes, net Other long-term assets Other intangible assets Goodwill TOTAL ASSETS Current liabilities: Accounts payable Accrued liabilities Employee-related Liabilities, Current Accrued Income Taxes, Current Operating Lease, Liability, Current Deferred Revenue, Current Short-term Debt Current portion of long-term debt Total current liabilities Long-term debt Operating Lease, Liability, Noncurrent Deferred Tax and Other Liabilities, Noncurrent Total liabilities Shareholders' equity: Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,457.2 shares and 1,460.5 shares, reAdditional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY Authorized shares of common stock Par value of common stock Commercial Paper [Member] Current liabilities: Short-term Debt PROFORMA BALANCE SHEET Mar. 29, 2020 Jun. 28, 2020 2.572,30 3.965,90 52,90 229,90 941,00 881,10 1.492,20 1.583,80 691,50 920,30 5.749,90 7.581,00 198,80 223,40 420,90 426,10 6.387,00 6.295,60 8.260,80 8.214,00 1.709,70 1.740,00 580,10 550,80 678,70 599,60 3.493,00 3.510,10 27.478,90 29.140,60 997,70 860,80 1.539,00 1.511,70 596,10 652,10 86,70 90,90 1.253,50 1.237,10 1.436,30 1.463,30 1.107,10 936,50 1.249,40 1.249,60 8.265,80 8.002,00 11.658,70 14.645,60 7.650,40 7.653,60 751,40 6.642,60 35.011,80 821,10 37.764,90 1,20 41,10 1,20 (7.050,60) 115,40 (521,80) (8.208,30) (7.530,10) (529,90) (2,80) (8.621,60) (7.532,90) (2,70) 27.478,90 (8.624,30) 2.400.000.000,00 29.140,60 0,00 296,50 1.100,00 NCE SHEET EXAMPLE LINE ITEM Q1 2020 Q1, 20NN Interest Expense $ (25,90) $ (75,00) Assignment LINE ITEM Q1, 2020 Q2, 2020 Revenues 5995,7 4222,1 Product and Distribution Costs 1997,7 1484 Store operating expenses 2721,4 2537,8 Other operating expenses 95 133,6 Depreciation and amortization expenses 356,3 361 General and administrative expenses 406,5 399,9 Restructuring, Settlement and Impairment Provisions -0,7 78,1 Total operating expenses 5576,2 4994,4 Income from equity investees 67,9 68,4 Operating income/(loss) 487,4 -703,9 Gain (Loss) on Disposition of Business 0 0 Interest income and other, net 2 12,7 Interest expense -99,2 -120,8 Earnings/(Loss) from Continuing Operations before income taxes 390,2 -812 Income Tax Expense (Benefit) 65,4 -133,9 Net earnings/(loss) including noncontrolling interests 324,8 -678,1 VARIANCE ANALYSIS AMOUNT PERCENT VARIANCE POTENTIAL RATIONALE FOR VARIANCE $ (49,10) 189,58% Due to raising interest rates, the company was able to earn more money from interest bearing investments. AMOUNT PERCENT VARIANCE POTENTIAL RATIONALE FOR VARIANCE -1773,6 -29,58% Decrease in sales due to COVID -513,7 -25,71% Variable cost to revenue so a decrease in revenue would be a decrease in this cost -183,6 -6,75% Less variable than above with more fixed costs but still decrease due to drop in revenue 38,6 40,63% Fixed cost and incurred more with less sales, possible increase in wages for COVID premiums4,7 1,32% Fixed additional PPE increasing deprecation costs -6,6 -1,62% Fixed mainly salary positions 78,8 -11257,14% Potential costs for layoffs due to COVID -581,8 -10,43% 0,5 0,74% Fixed cost independent of revenue -1191,3 -244,42% 0 #DIV/0! 10,7 535,00% Company earned more money from interest bearing investments -21,6 21,77% Company earned more money from interest bearing investments -1202,2 -308,10% -199,3 -304,74% Negative profit so tax benefit -1002,9 -308,77% RIANCE ANALYSIS decrease in this cost se due to drop in revenue e in wages for COVID premiums The highlighted cells have prepopulated formulas and will calculate automatically for you. 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