Question

Project the Balance Sheet for Wal Mart for the next 5 years through year 2022. Provide reasoning for your forecasts and explanation. Growth rate for 2018 is 10%, 2019 is 11%, 2020 is 5.5%, 2021 is 5% and 2022 is 4%.

	Actuals
Year	2015	2016	2017
Balance Sheet
Assets:
Cash and cash equivalents	9,135	8,705	6,867
- common size	4.5%	4.4%	3.5%
- rate of change		-4.7%	-21.1%
Accounts and notes
receivable - net	6,778	5,624	5,835
- common size	3.3%	2.8%	2.9%
- rate of change		-17.0%	3.8%
Inventories	45,141	44,469	43,046
- common size	22.2%	22.3%	21.7%
- rate of change		-1.5%	-3.2%
Prepaid expenses and other
current assets	2,224	1,441	1,941
- common size	1.1%	0.7%	1.0%
- rate of change		-35.2%	34.7%
Current assets	63,278	60,239	57,689
- common size	31.1%	30.2%	29.0%
- rate of change		-4.8%	-4.2%
Property and Equipment	177,395	176,958	179,492
- common size	87.2%	88.7%	90.3%
- rate of change		-0.2%	1.4%
Accumulated depreciation	-63,115	-66,787	-71,782
- common size	-31.0%	-33.5%	-36.1%
- rate of change		5.8%	7.5%
Property under capital and leasing
financing obligations, net	2,375	6,345	6,468
- common size	1.2%	3.2%	3.3%
- rate of change		167.2%	1.9%
Goodwill	18,102	16,695	17,037
- common size	8.9%	8.4%	8.6%
- rate of change		-7.8%	2.0%
Other assets	5,455	6,131	9,921
- common size	2.7%	3.1%	5.0%
- rate of change		12.4%	61.8%
Total Assets	203,490	199,581	198,825
- common size	100.0%	100.0%	100.0%
- rate of change		-1.9%	-0.4%
Liabilities
Short-term borrowings	1,592	2,708	1,099
- common size	0.8%	1.4%	0.6%
- rate of change		70.1%	-59.4%
Accounts Payable	38,410	38,487	41,433
- common size	18.9%	19.3%	20.8%
- rate of change		0.2%	7.7%
Accrued liabilities	19,152	19,607	20,654
- common size	9.4%	9.8%	10.4%
- rate of change		2.4%	5.3%
Accrued Income Taxes	1,021	521	921
- common size	0.5%	0.3%	0.5%
- rate of change		-49.0%	76.8%
Long-term debt - due within
one year	4,791	2,745	2,256
- common size	2.4%	1.4%	1.1%
- rate of change		-42.7%	-17.8%
Capital lease and financial
obligations due within one year	287	551	565
- common size	0.1%	0.3%	0.3%
- rate of change		92.0%	2.5%
Current liabilities	65,253	64,619	66,928
- common size	32.1%	32.4%	33.7%
- rate of change		-1.0%	3.6%
Long-term debt	40,889	38,214	36,015
- common size	20.1%	19.1%	18.1%
- rate of change		-6.5%	-5.8%
Long-term capital lease and
financing obligations	2,606	5,816	6,003
- common size	1.3%	2.9%	3.0%
- rate of change		123.2%	3.2%
Deferred income taxes and other	8,805	7,321	9,344
- common size	4.3%	3.7%	4.7%
- rate of change		-16.9%	27.6%
Total liabilites	117,553	115,970	118,290
- common size	57.8%	58.1%	59.5%
- rate of change		-1.3%	2.0%
Shareholder's Equity
Common stock	323	317	305
- common size	0.2%	0.2%	0.2%
- rate of change		-1.9%	-3.8%
Capital in excess of par value	2,462	1,805	2,371
- common size	1.2%	0.9%	1.2%
- rate of change		-26.7%	31.4%
Retained Earnings	85,777	90,021	89,354
- common size	42.2%	45.1%	44.9%
- rate of change		4.9%	-0.7%
Accum. other comprehensive
income (loss)	-7,168	-11,597	-14,232
- common size	-3.5%	-5.8%	-7.2%
- rate of change		61.8%	22.7%
Total Common and Preferred
Shareholders' Equity	81,394	80,546	77,798
- common size	40.0%	40.4%	39.1%
- rate of change		-1.0%	-3.4%
Noncontrolling interests	4,543	3,065	2,737
- common size	2.2%	1.5%	1.4%
- rate of change		-32.5%	-10.7%
Total Equity	85,937	83,611	80,535
- common size	42.2%	41.9%	40.5%
- rate of change		-2.7%	-3.7%
Total liabilites and equities	203,490	199,581	198,825
- common size	100.0%	100.0%	100.0%
- rate of change		-1.9%	-0.4%

Answer 1

	Projected Balance Sheet for Wal.Mart 2018-2022
Notations	Particulars	Actuals			Forecast
	Year	2015	2016	2017	2018	2019	2020	2021	2022
	Balance Sheet				10%	11%	5.50%	5%	4%
	Assets:
A	Cash and cash equivalents	9,135	8,705	6,867	7,554	7,622	7,245	7,210	7,142
	common size	4.5%	4.4%	3.5%	3.5%	3.5%	3.5%	3.5%	3.5%
	rate of change		-4.7%	-21.1%	10.0%	11.0%	5.5%	5.0%	4.0%
B	Accounts and notes
	receivable - net	6,778	5,624	5,835	6,419	6,477	6,156	6,127	6,068
	common size	3.3%	2.8%	2.9%	2.9%	2.9%	2.9%	2.9%	2.9%
	rate of change		-17.00%	3.80%	10.0%	11.0%	5.5%	5.0%	4.0%
	Inventories	45,141	44,469	43,046	47,351	47,781	45,414	45,198	44,768
	common size	22.2%	22.3%	21.7%	21.7%	21.7%	21.7%	21.7%	21.7%
	rate of change		-1.50%	-3.20%	10.0%	11.0%	5.5%	5.0%	4.0%
C	Prepaid expenses and other
	current assets	2,224	1,441	1,941	2,135	2,155	2,048	2,038	2,019
	common size	1.1%	0.7%	1.0%	1.0%	1.0%	1.0%	1.0%	1.0%
	rate of change		-35.20%	34.70%	10.0%	11.0%	5.5%	5.0%	4.0%
D=A+B+C	Current assets	63,278	60,239	57,689	63,458	64,035	60,862	60,573	59,997
	common size	31.1%	30.2%	29.0%	29.0%	29.0%	29.0%	29.0%	29.0%
	rate of change		-4.80%	-4.20%	10.0%	11.0%	5.5%	5.0%	4.0%
	Property and Equipment	177,395	176,958	179,492	197,441	199,236	189,364	188,467	186,672
	common size	87.2%	88.7%	90.3%	90.3%	90.3%	90.3%	90.3%	90.3%
	rate of change		-0.20%	1.40%	10.0%	11.0%	5.5%	5.0%	4.0%
	Accumulated depreciation	-63,115	-66,787	-71,782	(78,960)	(79,678)	(75,730)	(75,371)	(74,653)
	common size	-31.0%	-33.5%	-36.1%	-36.1%	-36.1%	-36.1%	-36.1%	-36.1%
	rate of change		5.80%	7.50%	10.0%	11.0%	5.5%	5.0%	4.0%
E	Property under capital and leasing
	financing obligations, net	2,375	6,345	6,468	7,115	7,179	6,824	6,791	6,727
	common size	1.2%	3.2%	3.3%	3.3%	3.3%	3.3%	3.3%	3.3%
	rate of change		167.20%	1.90%	10.0%	11.0%	5.5%	5.0%	4.0%
	Goodwill	18,102	16,695	17,037	18,741	18,911	17,974	17,889	17,718
	common size	8.9%	8.4%	8.6%	8.6%	8.6%	8.6%	8.6%	8.6%
	rate of change		-7.80%	2.00%	10.0%	11.0%	5.5%	5.0%	4.0%
	Other assets	5,455	6,131	9,921	10,913	11,012	10,467	10,417	10,318
	common size	2.7%	3.1%	5.0%	5.0%	5.0%	5.0%	5.0%	5.0%
	rate of change		12.40%	61.80%	10.0%	11.0%	5.5%	5.0%	4.0%
F=D+E	Total Assets	203,490	199,581	198,825	218,708	220,696	209,760	208,766	206,778
	common size	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
	rate of change		-1.90%	-0.40%	10.0%	11.0%	5.5%	5.0%	4.0%
G	Liabilities
	Short-term borrowings	1,592	2,708	1,099	1,209	1,220	1,159	1,154	1,143
	common size	0.8%	1.4%	0.6%	0.6%	0.6%	0.6%	0.6%	0.6%
	rate of change		70.10%	-59.40%	10.0%	11.0%	5.5%	5.0%	4.0%
	Accounts Payable	38,410	38,487	41,433	45,576	45,991	43,712	43,505	43,090
	common size	18.9%	19.3%	20.8%	20.8%	20.8%	20.8%	20.8%	20.8%
	rate of change		0.20%	7.70%	10.0%	11.0%	5.5%	5.0%	4.0%
	Accrued liabilities	19,152	19,607	20,654	22,719	22,926	21,790	21,687	21,480
	common size	9.4%	9.8%	10.4%	10.4%	10.4%	10.4%	10.4%	10.4%
	rate of change		2.40%	5.30%	10.0%	11.0%	5.5%	5.0%	4.0%
	Accrued Income Taxes	1,021	521	921	1,013	1,022	972	967	958
	common size	0.5%	0.3%	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%
	rate of change		-49.00%	76.80%	10.0%	11.0%	5.5%	5.0%	4.0%
H	Long-term debt - due within
	one year	4,791	2,745	2,256	2,482	2,504	2,380	2,369	2,346
	common size	2.4%	1.4%	1.1%	1.1%	1.1%	1.1%	1.1%	1.1%
	rate of change		-42.70%	-17.80%	10.0%	11.0%	5.5%	5.0%	4.0%
I	Capital lease and financial
	obligations due within one year	287	551	565	622	627	596	593	588
	common size	0.1%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%
	rate of change		92.00%	2.50%	10.0%	11.0%	5.5%	5.0%	4.0%
J=G+H+I	Current liabilities	65,253	64,619	66,928	73,621	74,290	70,609	70,274	69,605
	common size	32.1%	32.4%	33.7%	33.7%	33.7%	33.7%	33.7%	33.7%
	rate of change		-1.00%	3.60%	10.0%	11.0%	5.5%	5.0%	4.0%
	Long-term debt	40,889	38,214	36,015	39,617	39,977	37,996	37,816	37,456
	common size	20.1%	19.1%	18.1%	18.1%	18.1%	18.1%	18.1%	18.1%
	rate of change		-6.50%	-5.80%	10.0%	11.0%	5.5%	5.0%	4.0%
K	Long-term capital lease and
	financing obligations	2,606	5,816	6,003	6,603	6,663	6,333	6,303	6,243
	common size	1.3%	2.9%	3.0%	3.0%	3.0%	3.0%	3.0%	3.0%
	rate of change		123.20%	3.20%	10.0%	11.0%	5.5%	5.0%	4.0%
	Deferred income taxes and other	8,805	7,321	9,344	10,278	10,372	9,858	9,811	9,718
	common size	4.3%	3.7%	4.7%	4.7%	4.7%	4.7%	4.7%	4.7%
	rate of change		-16.90%	27.60%	10.0%	11.0%	5.5%	5.0%	4.0%
L=J+K	Total liabilites	117,553	115,970	118,290	130,119	131,302	124,796	124,205	123,022
	common size	57.8%	58.1%	59.5%	59.5%	59.5%	59.5%	59.5%	59.5%
	rate of change		-1.30%	2.00%	10.0%	11.0%	5.5%	5.0%	4.0%
M	Shareholder's Equity
	Common stock	323	317	305	336	339	322	320	317
	common size	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%
	rate of change		-1.90%	-3.80%	10.0%	11.0%	5.5%	5.0%	4.0%
	Capital in excess of par value	2,462	1,805	2,371	2,608	2,632	2,501	2,490	2,466
	common size	1.2%	0.9%	1.2%	1.2%	1.2%	1.2%	1.2%	1.2%
	rate of change		-26.70%	31.40%	10.0%	11.0%	5.5%	5.0%	4.0%
	Retained Earnings	85,777	90,021	89,354	98,289	99,183	94,268	93,822	92,928
	common size	42.2%	45.1%	44.9%	44.9%	44.9%	44.9%	44.9%	44.9%
	rate of change		4.90%	-0.70%	10.0%	11.0%	5.5%	5.0%	4.0%
N	Accum. other comprehensive
	income (loss)	-7,168	-11,597	-14,232	(15,655)	(15,798)	(15,015)	(14,944)	(14,801)
	common size	-3.5%	-5.8%	-7.2%	-7.2%	-7.2%	-7.2%	-7.2%	-7.2%
	rate of change		61.80%	22.70%	10.0%	11.0%	5.5%	5.0%	4.0%
O	Total Common and Preferred
P=M+N+O	Shareholders' Equity	81,394	80,546	77,798	85,578	86,356	82,077	81,688	80,910
	common size	40.0%	40.4%	39.1%	39.1%	39.1%	39.1%	39.1%	39.1%
	rate of change		-1.00%	-3.40%	10.0%	11.0%	5.5%	5.0%	4.0%
Q	Noncontrolling interests	4,543	3,065	2,737	3,011	3,038	2,888	2,874	2,846
	common size	2.2%	1.5%	1.4%	1.4%	1.4%	1.4%	1.4%	1.4%
	rate of change		-32.50%	-10.70%	10.0%	11.0%	5.5%	5.0%	4.0%
R=P+Q	Total Equity	85,937	83,611	80,535	88,589	89,394	84,964	84,562	83,756
	common size	42.2%	41.9%	40.5%	40.5%	40.5%	40.5%	40.5%	40.5%
	rate of change		-2.70%	-3.70%	10.0%	11.0%	5.5%	5.0%	4.0%
S=L+R	Total liabilites and equities	203,490	199,581	198,825	218,708	220,696	209,760	208,766	206,778
	common size	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
	rate of change		-1.90%	-0.40%	10.0%	11.0%	5.5%	5.0%	4.0%
Note: Percentages of growth has been taken on the basis of latest available balances (i.e. 2017 balances). Hence all the amounts shows the same increase as provided in the question. Also because of this Rate of change is same for all Balance Sheet items as provided in the Question (i.e. 10%, 11%, 5.5%,5% & 4%)
										Feel free in case of any queries