Question

Draft a spreadsheet showing financial history and projected performance for Nordstrom. The rows should include revenue, expenses, calculated profit, and calculated profit margin. The columns should represent years: two years of history, plus three years of your reasonable future projections. Include a few sentences of key assumptions and conclusions. The spreadsheet must have accurate calculations and look professional on screen and when printed (including a heading and meaningful number formatting).

Income Statement

All numbers in thousands

Revenue	2/2/2019	2/3/2018	1/28/2017	1/30/2016
Total Revenue	15,860,000	15,478,000	14,757,000	14,437,000
Cost of Revenue	10,155,000	9,890,000	9,440,000	9,333,000
Gross Profit	5,705,000	5,588,000	5,317,000	5,104,000
Operating Expenses
Research Development	-	-	-	-
Selling General and Administrative	4,796,000	4,662,000	4,315,000	3,957,000
Non Recurring	-	-	-	-
Others	-	-	-	-
Total Operating Expenses	14,951,000	14,552,000	13,755,000	13,290,000
Operating Income or Loss	909,000	926,000	1,002,000	1,147,000
Income from Continuing Operations
Total Other Income/Expenses Net	-176,000	-136,000	-318,000	-171,000
Earnings Before Interest and Taxes	909,000	926,000	1,002,000	1,147,000
Interest Expense	-119,000	-141,000	-122,000	-112,000
Income Before Tax	733,000	790,000	684,000	976,000
Income Tax Expense	169,000	353,000	330,000	376,000
Minority Interest	-	-	-	-
Net Income From Continuing Ops	564,000	437,000	354,000	600,000
Non-recurring Events
Discontinued Operations	-	-	-	-
Extraordinary Items	-	-	-	-
Effect Of Accounting Changes	-	-	-	-
Other Items	-	-	-	-
Net Income
Net Income	564,000	437,000	354,000	600,000
Preferred Stock And Other Adjustments	-	-	-	-
Net Income Applicable To Common Shares	564,000	437,000	354,000	600,000

Answer 1

1	2	3	4=(3-2)/2	5	6=(5-3)/3	7	8=(7-5)/5	9=(4+6+8)/3	10=7*(1+Col.9%)	11=10*(1+Col.9%)	12=11*(1+Col.9%)
Revenue	1/30/2016	1/28/2017	Change%(2017-2016)/2016	2/3/2018	Change%(2018-2017)/2017	2/2/2019	Change%(2019-2018)/2018	Av. Change%	2/2/2020	2/2/2021	2/2/2022
Total Revenue	14,437,000	14,757,000	2.22%	15,478,000	4.89%	15,860,000	2.47%	3.19%	16365953	16888047	17426796
Cost of Revenue	9,333,000	9,440,000	1.15%	9,890,000	4.77%	10,155,000	2.68%	2.86%	10445869	10745070	11052841
Gross Profit	5,104,000	5,317,000	4.17%	5,588,000	5.10%	5,705,000	2.09%	3.79%	5920084	6142977	6373955
Operating Expenses
Research Development	0
Selling General and Admn.	3,957,000	4,315,000	9.05%	4,662,000	8.04%	4,796,000	2.87%	6.65%	5115146	5455530	5818564
Non Recurring	0
Others	0
Total Operating Expenses	13,290,000	13,755,000	3.50%	14,552,000	5.79%	14,951,000	2.74%	4.01%	15561016	16200600	16871405
Operating Income or Loss	1,147,000	1,002,000	-12.64%	926,000	-7.58%	909,000	-1.84%	-7.35%	804938	687447	555391
Income from Cont.Operations
Total Other Inc./Exp. Net	-176,000	-318,000	80.68%	-136,000	-57.23%	-176,000	29.41%	17.62%	-207012	-243488	-286391
Earnings Before Int. and Taxes	1,147,000	1,002,000	-12.64%	926,000	-7.58%	909,000	-1.84%	-7.35%	804938	687447	555391
Interest Expense	-112,000	-122,000	8.93%	-141,000	15.57%	-119,000	-15.60%	2.97%	-122530	-126165	-129908
Income Before Tax	971,000	684,000	-29.56%	790,000	15.50%	733,000	-7.22%	-7.09%	597926	443959	269000
Income Tax Expense	376,000	330,000	-12.23%	353,000	6.97%	169,000	-52.12%	-19.13%	136671	110526	89383
Minority Interest	0
Net Income From Cont. Ops	595,000	354,000	-40.50%	437,000	23.45%	564,000	29.06%	4.00%	461255	333433	179617
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Net Income
Net Income	595,000	354,000	-40.50%	437,000	23.45%	564,000	29.06%	4.00%	461255	333433	179617
Preferred Stock & Other Adj.	0	0		0		0
Net Inc.Appl. To Common Shs.	595,000	354,000	-40.50%	437,000	23.45%	564,000	29.06%	4.00%	461255	333433	179617