A Refer to Wal*Mart Financial Statements, Above

question 37

Essay

a. Refer to Wal*Mart financial statements, above. Prepare a forecasted income statement for Year 8 assuming:
● Total revenues are expected to increase by 12% from Year 7 to Year 8
● Operating income as a percentage of total revenues will remain unchanged from Year 7 to Year 8
● Total Interest costs will increase by 10%
● Effective tax rate is 37%
b. What additional information will Wal*Mart need in order to assess whether it needs additional outside funding?

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Definitions:

Overvaluation

The act of placing excessively high importance or value on an object, idea, or person, often beyond its objective worth.

Thinness

A physical state or condition of being notably slender or slim, often regarded differently across cultures and contexts.

Interpersonal

Relating to or involving relationships between people.

Feeding

The process of supplying and consuming food for growth, health, and sustenance.