| Best Buy Co., Inc. |
| | Pro Forma Financial Statements | | | | | | | | | | | Discounted Cash Flow Analysis |
| 1 | | 2015 | 2016 | 2017 | 2018 | | 2016 | 2017 | 2018 |
| 2 | | | | | | | | | | | Sales Revenue | | 42,355,950 | 44,473,748 | 46,697,435 |
| 3 | Sales Forecast | | | | | | | | | | less: Cost of Goods Sold | | 30,692,000 | 30,092,000 | 29,492,000 |
| 4 | | | My strategy | | | | Without my strategy | | | | GROSS PROFIT | | 11,663,950 | 14,381,748 | 17,205,435 |
| 5 | Income Statement |
| 6 | Sales Revenue | 40,339,000 | 42,355,950 | 44,473,748 | 46,697,435 | | 41,549,170 | 42,795,645 | 44,079,514 | | General and Administrative Expenses | | 7,492,000 | 7,392,000 | 7,292,000 |
| 7 | less: Cost of Goods Sold | 31,292,000 | 30,692,000 | 30,092,000 | 29,492,000 | | 31,492,000 | 31,692,000 | 31,892,000 |
| 8 | GROSS PROFIT | 9,047,000 | 11,663,950 | 14,381,748 | 17,205,435 | | 10,057,170 | 11,103,645 | 12,187,514 | | EBITDA | | 4,166,950 | 6,984,748 | 9,908,435 |
| 9 | less: Selling Expenses |
| 10 | General and Administrative Expenses | 7,592,000 | 7,492,000 | 7,392,000 | 7,292,000 | | 7,705,880 | 7,821,468 | 7,938,790 | | Less: D&A | | 556,000 | 556,000 | 556,000 |
| 11 | Depreciation Expense |
| 12 | Other Operating Expenses | 5,000 | 5,000 | 5,000 | 5,000 | | 5,000 | 5,000 | 5,000 | | EBIT | | 3,610,950 | 6,428,748 | 9,352,435 |
| 13 | Total Operating Expenses | 7,597,000 | 7,497,000 | 7,397,000 | 7,297,000 | | 7,710,880 | 7,826,468 | 7,943,790 | | Less: Taxes | | 433,314 | 771,450 | 1,122,292 |
| 14 | OPERATING PROFIT | 1,450,000 | 4,166,950 | 6,984,748 | 9,908,435 | | 2,346,290 | 3,277,177 | 4,243,724 | | EBIAT | | 3,177,636 | 5,657,298 | 8,230,143 |
| 15 | less: Interest and Other Expenses | 90,000 | 91,800 | 93,636 | 95,509 | | 90,000 | 90,000 | 90,000 |
| 16 | plus: Interest and Other Revenues | 27,000 | 27,000 | 27,000 | 27,000 | | 27,270 | 27,543 | 27,818 | | Plus: D&A | | 556,000 | 556,000 | 556,000 |
| 17 | PRE-TAX INCOME | 1,387,000 | 4,102,150 | 6,918,112 | 9,839,926 | | 2,283,560 | 3,214,720 | 4,181,542 | | Less:Capital Exp. | | 176,350 | 185,168 | 194,426 |
| 18 | Income Tax | 141,000 | 492,258 | 830,173 | 1,180,791 | | 342,534 | 482,208 | 627,231 | | Less: Inc. in WC | | 4,179,350 | 4,417,300 | 4,666,363 |
| 19 | NET INCOME | 1,246,000 | 3,609,892 | 6,087,938 | 8,659,135 | | 1,941,026 | 2,732,512 | 3,554,311 | | Unlevered Free Cash Flow | | (622,064) | 1,610,831 | 3,925,354 |
| 20 |
| 21 | Cash Flow Statement |
| 22 | Net Income | | 3,609,892 | 6,087,938 | 8,659,135 | | 1,941,026 | 2,732,512 | 3,554,311 |
| 23 | Depreciation Expense | 656,000 | 556,000 | 556,000 | 556,000 | | 675,680 | 695,950 | 716,829 |
| 24 | Net Income plus Depreciation Expense | | 4,165,892 | 6,643,938 | 9,215,135 | | 2,616,706 | 3,428,462 | 4,271,140 |
| 25 | plus: Increase in Accounts Payable |
| 26 | Increase in Other Payables | | (19,000) | (19,000) | (19,000) | | (19,000) | (19,000) | (19,000) |
| 27 | less: Increases in Accounts Receivable |
| 28 | Increase in Inventory |
| 29 | OPERATING CASH FLOW | | 4,146,892 | 6,624,938 | 9,196,135 | | 2,597,706 | 3,409,462 | 4,252,140 |
| 30 | plus: Net Cash from Financing Activities |
| 31 | less: Net Investment Outlays | (223,000) | (111,500) | (55,750) | (27,875) | | (229,690) | (236,581) | (243,678) |
| 32 | NET CASH FLOW | | 4,258,392 | 6,680,688 | 9,224,010 | | 2,827,396 | 3,646,043 | 4,495,818 |
| 33 | plus: Beginning Cash | | 2,432,000 | 3,648,000 | 5,472,000 | | 2,432,000 | 2,432,000 | 2,432,000 |
| 34 | ENDING CASH BALANCE | | 6,690,392 | 10,328,688 | 14,696,010 | | 5,259,396 | 6,078,043 | 6,927,818 |
| 35 |
| 36 | Balance Sheet |
| 37 | ASSETS |
| 38 | Cash and Equivalents | 2,432,000 | 2,553,600 | 2,681,280 | 2,815,344 | | 2,504,960 | 2,580,109 | 2,657,512 |
| 39 | Accounts Receivable | 1,280,000 | 1,305,600 | 1,331,712 | 1,358,346 | | 1,318,400 | 1,357,952 | 1,398,691 |
| 40 | Short-Term Investments | 1,456,000 | 1,528,800 | 1,605,240 | 1,685,502 | | 1,499,680 | 1,544,670 | 1,591,011 |
| 41 | Other Current Assets | 1,387,000 | 1,456,350 | 1,529,168 | 1,605,626 | | 1,428,610 | 1,471,468 | 1,515,612 |
| 42 | Inventory | 5,174,000 | 5,432,700 | 5,704,335 | 5,989,552 | | 5,329,220 | 5,489,097 | 5,653,769 |
| 43 | CURRENT ASSETS | 11,729,000 | 12,277,050 | 12,851,735 | 13,454,370 | | 12,080,870 | 12,443,296 | 12,816,595 |
| 44 | Net Fixed Assets | 3,527,000 | 3,703,350 | 3,888,518 | 4,082,943 | | 3,632,810 | 3,741,794 | 3,854,048 |
| 45 | TOTAL ASSETS | 15,256,000 | 15,980,400 | 16,740,252 | 17,537,313 | | 15,713,680 | 16,185,090 | 16,670,643 |
| 46 | LIABILITIES AND EQUITY |
| 47 | Accounts Payable | 6,414,000 | 6,734,700 | 7,071,435 | 7,425,007 | | 6,606,420 | 6,804,613 | 7,008,751 |
| 48 | Notes Payable | 41,000 | 41,000 | 41,000 | 41,000 | | 41,000 | 41,000 | 41,000 |
| 49 | Wages Payable |
| 50 | Taxes Payable |
| 51 | Other Current Liabilities | 1,322,000 | 1,322,000 | 1,322,000 | 1,322,000 | | 1,322,000 | 1,322,000 | 1,322,000 |
| 52 | CURRENT LIABILITIES | 7,777,000 | 8,097,700 | 8,434,435 | 8,788,007 | | 7,969,420 | 8,167,613 | 8,371,751 |
| 53 | Long-Term Debt | 2,484,000 | 2,608,200 | 2,738,610 | 2,875,541 | | 2,558,520 | 2,635,276 | 2,714,334 |
| 54 | TOTAL LIABILITIES | 10,261,000 | 10,705,900 | 11,173,045 | 11,663,547 | | 10,527,940 | 10,802,888 | 11,086,085 |
| 55 | Common Stock | 472,000 | 495,600 | 520,380 | 546,399 | | 486,160 | 500,745 | 515,767 |
| 56 | Retained Earnings | 4,523,000 | 4,749,150 | 4,986,608 | 5,235,938 | | 4,658,690 | 4,798,451 | 4,942,404 |
| 57 | TOTAL EQUITY | 4,995,000 | 5,244,750 | 5,506,988 | 5,782,337 | | 5,144,850 | 5,299,196 | 5,458,171 |
| 58 | TOTAL LIABILITIES AND EQUITY | 15,256,000 | 15,950,650 | 16,680,033 | 17,445,884 | | 15,672,790 | 16,102,084 | 16,544,256 |
| | Note: Cells with zeros are computed from other inputs. |
ariel-di
figure_7a_integrated_financial_statement.xls
