case study

Anonymous

Question Description

Project income statements and balance sheets for 5 years into the future.

Project income and expense.

Project the asset side of balance sheet.

Assume non operating assets are fixed.

Assume that NP, LTD, contributed capital, Treasury stock, AOCi are fixed.

Assume that interest expense is fixed.

Assume that dividends continue at current level.

Make sure that RE tracks from year to year. (Beginning RE plus NI minus Dividends equals Ending RE,)

Use "Additional funds needed" account to make liabilities and equity equal assets. Place that account between liabilities and equity on your spreadsheet..



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FedEx Company Historical Finacial Statements For the Year Ended 31st Income Statement Period Reveneues Operating expenses Salaries and employee benefits Purchased transportation Rentals and landing fees Depreciation and amortization Fuel Maintenance and repairs Business realignment, impairment and other charges Retirement plans mark-to-market adjustment Others Net Operating Income Other Income (Expenses): Interest expense Interest income Other, net Profit before taxes Provision for income tax (Benefits) Net Income 2014 $ $ NOPAT 2015 45,567 $ 47,453 16,171 8,011 2,622 2,587 4,557 1,862 15 5,927 3,815 17,110 8,483 2,682 2,611 3,720 2,099 276 2,190 6,415 1,867 (160) 18 (15) 3,658 1,334 2,324 $ (235) 14 (19) 1,627 577 1,050 2,480 1,214 Balance Sheet Assets Cash and cash equivalents Receivables Spare parts, supplies and fuel Deferred income taxes Prepaid expenses and other Net property and equipment Other long-term assets Total Assets Liabilities Current portion of long-term debt Accrued salaries and employee benefits Accounts payable $ $ 2,908 $ 5,460 463 522 330 19,550 3,837 33,070 $ 1 1,277 1,972 3,763 5,719 498 355 20,875 5,321 36,531 19 1,436 2,066 Accrued expenses Total Current liabilities Long-term debt Other liabilities Total liabilities 2,063 5,313 4,736 7,745 17,794 2,435 5,956 7,249 8,333 21,538 - - Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost Total common stockholders' investment 32 2,643 16,229 506 (4,133) 15,277 32 2,786 16,900 172 (4,897) 14,993 Total Liabilities and Equity 33,071 36,531 Additional Fund Needed - Cumulative (Surplus) Total Assets Less Non Operating Assets: Markateble Securities Operating liabilities Current portion of long-term debt Accrued salaries and employee benefits Accounts payable Accrued expenses Net Operating Assets NOA Computation (33,070) (36,531) - - 1.00 1,277 1,972 2,063 (27,757) 19.00 1,436 2,066 2,435 (30,575) acial Statements d 31st nt 2016 $ $ $ $ 2017 2018 50,365 $ 60,319 $ 65,450 18,581 9,966 2,854 2,631 2,399 2,108 0 1,498 7,251 3,077 21,542 13,630 3,240 2,995 2,773 2,374 0 (24) 8,752 5,037 23,207 15,101 3,361 3,095 3,374 2,622 380 (10) 9,450 4,870 (336) 21 (22) 2,740 920 1,820 $ (512) 33 21 4,579 1,582 2,997 $ (558) 48 (7) 4,353 (219) 4,572 2,000 3,274 3,166 3,534 $ 7,252 496 3,969 $ 7,599 514 3,265 8,481 525 707 24,284 9,791 46,064 $ 546 25,981 9,943 48,552 $ 1,070 28,154 10,835 52,330 29 1,972 2,944 22 1,914 2,752 1,342 2,177 2,977 3,063 8,008 13,838 10,434 32,280 3,230 7,918 14,909 9,652 32,479 3,131 9,627 15,243 8,044 32,914 - - - 32 2,892 18,371 (169) (7,342) 13,784 32 3,005 20,833 (415) (7,382) 16,073 32 3,117 24,823 (578) (7,978) 19,416 46,064 48,552 52,330 (46,064) (48,552) (52,330) - - - 29.00 1,972 2,944 3,063 (38,056) 22.00 1,914 2,752 3,230 (40,634) 1,342.00 2,177 2,977 3,131 (42,703) ...
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Tutor Answer

Joantutor
School: UT Austin

Attached.

FedEx Company Historical And Projec
For the Year Ended 3
Income Stateme
Period

2014

Reveneues
$
Operating expenses
Salaries and employee benefits
Purchased transportation
Rentals and landing fees
Depreciation and amortization
Fuel
Maintenance and repairs
Business realignment, impairment and other charges
Retirement plans mark-to-market adjustment
Others
Net Operating Income
Other Income (Expenses):
Interest expense
Interest income
Other, net
Profit before taxes
Provision for income tax (Benefits)
Net Income

$

NOPAT

2015

2016

45,567 $

47,453 $

50,365

16,171
8,011
2,622
2,587
4,557
1,862
15
5,927
3,815

17,110
8,483
2,682
2,611
3,720
2,099
276
2,190
6,415
1,867

18,581
9,966
2,854
2,631
2,399
2,108
0
1,498
7,251
3,077

(160)
18
(15)
3,658
1,334
2,324 $

(235)
14
(19)
1,627
577
1,050 $

(336)
21
(22)
2,740
920
1,820

2,480

1,214

2,000
Balance Sheet

Assets
Cash and cash equivalents
Receivables
Spare parts, supplies and fuel
Deferred inc...

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