Activity $($provide specific information related to the activity$)$

Business will build one $100$k sq ft$.$ coffee processing plant in Antarctica Expense Type $($select one: $1)$Capital$,2)$Fixed expense: on$-$going or one time, $3)$ COGS$-\%$ of sale$)$

Capital Function link to pro forma statements

$($MGMT$/$HR$,$ MKTG$/$R&D$,$ O$/$P or MIS$)1)$if a capital expense type limit to operation$/$production function only; $2)$if COGS expense type no link to function needed

Operation$/$Production

Financial impact $($capital: bond, cash or stock; fixed expense $($on$-$going or one time$)$

$$50$ million; bonds at $1\%$for $20$ yrs$.,$ useful life $20$ yrs$.$ interest expense $$500$k per year, depreciation $$500$ per year, acc. Depreciation $+$ $$500$ per year

Hire $200$ assembly line workers at $$100$k per year Fixed Expense: on$-$going MGMT$/$HR

$$20$ million per year other expense $$20$ million per year

Negotiate long term contract with $2$ suppliers to reduce COGS to $40\%$ COGS n$/$a Reduce COGS to $40\%$

Long$-$term objective statement: $20\%$ change for three$-$year period

Strategy type: Market Development; relevant description: Market Penetration; relevant description; relevant description: implement aggressive marketing campaigns to capture a larger share of the existing market through increased brand visibility, product promotion, and competitive pricing strategies

Year $1$: $2024$

Short$-$term objective statement, implement social media advertising strategies to increase off$-$season sales by $10\%.$

Activity Expense Type Function Financial impact

$1.$ Launch targeted social media advertising campaigns to promote off$-$season sales. Fixed Expense: One$-$time Marketing$/$R&D $$2$ million for campaign creation and management.

$2.$ Hire additional sales representatives to manage increased customer inquiries and purchases. Fixed Expense: On$-$going Management$/$HR $$1\mathrm{.}5$ million for salaries and benefits.

Year $2$: $2025$

Short$-$term objective statement: Expand social media presence and engagement to capture a larger market share during off$-$seasons, aiming for a $15\%$ increase.

Activity Expense Type Function Financial impact

$1.$ Enhance social media platforms with interactive features and engage with customers through live events and Q&A sessions. Fixed Expense: One$-$time Marketing$/$R&D $$3$ million for platform development and event coordination.

$2.$ Invest in training programs for sales representatives to improve customer engagement and product knowledge. Fixed Expense: On$-$going Management$/$HR $$1$ million for training expenses.

Year $3$: $2026$

Short$-$term objective statement: Continuously optimize social media advertising campaigns and capitalize on off$-$season opportunities, targeting a $20\%$ increase

Activity Expense Type Function Financial Impact

$1.$ Implement advanced analytics tools to track and analyze the effectiveness of social media campaigns in real$-$time. Fixed Expense: One$-$time Marketing$/$R&D $$4$ million for software acquisition and implementation

$2.$ Expand customer service support to handle increased inquiries and feedback resulting from higher sales volumes. Fixed Expense: On$-$going Management$/$HR $$2\mathrm{.}5$ million for additional staffing and training

Part $2$: Pro Forma Statements $(25$ pts$.)$

Instructions: Based on the implementation plan activities prepare income and balance sheet pro forma statements. Use the attached pro forma excel sheet template and refer to the mapping implementation activity to pro forma statement file as a guide.

GM

C$+$A$2$:G$18$onsolidated statements of income

$($in millions$)$

For the year ending December $31$ notes $2023\%$ common size implementation $2024\%$ common size implementation $2025\%$ common size implementation $2026\%$ of sales

activity & value activity value activity value

Net Revenue x s$.$t$.$ obj xx$\%$ per year $$171,842\mathrm{.}00100\mathrm{.}00\%$

COGS $\%$ of sales $$131,067\mathrm{.}0076\mathrm{.}27\%$

Gross profit only if a retail act. Is implemented $$40,775\mathrm{.}0023\mathrm{.}73\%$

S$,$G & A $($ with R&D$)$ fixed: O$/$P$,$ MGMT$/$HR$,$ MIS$/$ MKTG $$19,740\mathrm{.}0011\mathrm{.}49\%$

Depreciation fixed; capital item $$11,737\mathrm{.}006\mathrm{.}83\%$

Operating profit$/$EBIT $$9,298\mathrm{.}005\mathrm{.}41\%$

Interest Expense fixed; captial item if financed $$911\mathrm{.}000\mathrm{.}53\%$

Other Expense $($Income$)$ $$(2,016\mathrm{.}00)-1\mathrm{.}17\%$ no change $$-$ no change $$-$ no change $$-$

Income before taxes $$10,403\mathrm{.}006\mathrm{.}05\%$

Provision for income tax at $5\mathrm{.}4\%$ of Income before taxes $$563\mathrm{.}000\mathrm{.}33\%$

Other Adj. Expense$/($Income$)$ $$(287\mathrm{.}00)-0\mathrm{.}17\%$

Net income $$10,127\mathrm{.}005\mathrm{.}89\%$

General Motors

Consolidated Balance Sheets

$($in millions$)$

as of xxxx $2023$ implementation $2024$ implementation $2025$ implementation $2026$

activity &value activity & value activity & value

Assets

Current assets:

Cash$/$C$.$ equiv. $$29,070\mathrm{.}00$ plug plug plug

Inventory $$16,461\mathrm{.}00$

Other current $$56,087\mathrm{.}00$ no change $$-$ no change $$-$ no change $$-$

Total Current Assets $$101,618\mathrm{.}00$

Property, plant and equipment $$124,744\mathrm{.}00$

Accum