Gamestop case

Anonymous
timer Asked: Jul 4th, 2018
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Question description

Complete Case #4 using the attached Excel file.

Be sure to save your file when finished as a Microsoft Excel file and then submit it for grading using the assignment link above (click the underlined words "Case Study 4").

Please show all formulas so I can see what numbers you used to calculate the year 3 projection.

ACCT 6335 Case 4 In the worksheet tabs below are comparative income statements and balance sheets for GameStop Corp. All a are in millions except for per share amounts. Required: Use the information in the income statement and balance sheet to project Year 3's amounts. Prepa income statement first, then the balance sheet. Save your file when finished and submit it using the assignment link. heets for GameStop Corp. All amounts oject Year 3's amounts. Prepare the Year 3 (projected) Net sales Sales growth 2.84% Cost of sales Gross profit Gross profit percentage = 29.86% Selling, general and administrative expenses SG&A = 22% of sales Depreciation and amortization Depreciation = 10.5% of prior year PP&E (gross) Goodwill impairments None Asset impairments Same as previous year Operating earnings (loss) Interest income Same as previous year Interest expense Int./prior year LT Liab = 9.386% Earnings (loss) before income tax expense Income tax expense Inc. tax/pre-tax income = 35.38% Net income (loss) Net loss attributable to noncontrolling interests Net income (loss) attributable to GameStop Corp. None Year 2 Year 1 (In millions, except per share data) $9,296.00 $9,039.50 6,520.10 6,378.40 2,775.90 2,661.10 2,001.00 1,892.40 154.40 166.50 10.20 2.20 18.50 618.30 573.50 (0.70) (0.90) 10.70 5.60 608.30 568.80 215.20 214.60 393.10 354.20 $393.10 $354.20 ASSETS Current assets: Cash and cash equivalents Receivables, net Merchandise inventories, net Deferred income taxes current Prepaid expenses and other current assets Total current assets Property and equipment: Land Buildings and leasehold improvements Fixtures and equipment Total property and equipment Less accumulated depreciation Net property and equipment Goodwill Other intangible assets, net Other noncurrent assets Total noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable Accrued liabilities Income taxes payable Notes payable Total current liabilities Deferred income taxes Long-term debt Other long-term liabilities Total long-term liabilities Total liabilities Commitments and contingencies (Notes 11 and 12) Stockholders equity: Preferred stock authorized 5.0 shares; no shares issued or outstanding Class A common stock $.001 par value; authorized 300.0 shares; 107.7 and 115.3 shares issued, 107.7 and 115.3 shares outstanding, respectively Additional paid-in-capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders equity Year 3 (projected) Year 2 (In millions, except par value per share) Plug figure AR Turnover (without using average AR) = 81.9 times Inv. Turnover (without average inv.) = 5.6954 times Same as previous year 5% decrease from previous year $610.10 113.50 1,144.80 65.60 128.50 2,062.50 Allocate new total based on previous year percentages 18.30 Allocate new total based on previous year percentages 609.20 Allocate new total based on previous year percentages 888.20 PP&E (gross)/Sales = 17.51935% 1,515.70 Beginning balance plus Yr. 3 depreciation expense 1,061.50 454.20 No change from last year 1,390.40 No change from last year 237.80 No change from last year 101.40 No change from last year 2,183.80 $4,246.30 AP turnover (without using average AP) = 7.994 No change from last year Tax Payable/tax expense = 8.0% 1.5% of LT Debt line item in previous year $815.60 803.60 15.40 5.10 1,639.70 No change from last year 95.90 No change from last year 350.60 No change from last year 92.40 538.90 2,178.60 No change from last year 0.10 No change from last year (25.40) No dividends paid 2,093.00 2,067.70 $4,246.30 Year 1 value per share) $536.20 84.40 1,198.90 51.70 78.40 1,949.60 20.40 609.60 841.80 1,471.80 995.60 476.20 1,414.70 194.30 56.60 2,141.80 $4,091.40 $783.90 861.70 78.00 2.40 1,726.00 37.40 1.60 75.00 114.00 1,840.00 0.10 172.90 82.50 1,995.90 2,251.40 $4,091.40

Tutor Answer

Tutor_Booth
School: Boston College

Attached.

ACCT 6335
Case 4

In the worksheet tabs below are comparative income statements and balance sheets for GameStop Corp. All a
are in millions except for per share amounts.

Required: Use the information in the income statement and balance sheet to project Year 3's amounts. Prepa
income statement first, then the balance sheet.
Save your file when finished and submit it using the assignment link.

heets for GameStop Corp. All amounts

oject Year 3's amounts. Prepare the

Year 3 (projected)
Net sales

$

9,560.01

Cost of sales

$

6,705.39

Gross profit

$

2,854.62

Selling, general and administrative expenses

$

2,103.20

Depreciation and amortization

$159.15

Goodwill ...

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Review

Anonymous
Excellent job

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