Refer to the Macy's, Inc. financial information from Exercise 11-20. Prepare a forecast of its fiscal year 2013 statement of cash flows.

Q11-20

Following are the income statements and balance sheets of Macy's, Inc.

a. Forecast Macy's fiscal 2014 income statement and balance sheet using the following relations ( $$\$$ in millions). Assume that all capital expenditures are purchases of property and equipment.

b. What does the forecasted adjustment to balance the accounting equation from part a$$ reveal to us about the forecasted financing needs of the company? Explain.

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Consolidated Statements of Income, Fiscal Years Ended ($ millions) Net sales.... Cost of sales.. Gross margin ******** Selling, general and administrative expenses Impairments, store closing costs and gain on sale of leases. Operating income.... Interest expense... Premium on early retirement of debt Interest income.... Income before income taxes. Federal, state and local income tax expense.. Net income.. February 2, 2013 $27,686 (16,538) 11,148 (8,482) (5) 2,661 (425) (137) 3 2,102 (767) $ 1,335 January 28, 2012 $26,405 (15,738) 10,667 (8,281) 25 2,411 (447) 4 1,968 (712) $ 1,256 January 29, 2011 $25,003 (14,824) 10,179 (8,260) (25) 1,894 (513) (66) 5 1,320 (473) $ 847