Develop the projected financial statements that fully assess and evaluate the impact of your proposed strategy.

TIPS:

Discuss your financial plan for achieving the recommended strategies. Balance sheet

How will your recommended strategies be funding? Cash, debt, shareholders dividends?

How will assets, liabilities, and shareholders equity be affected by your strategies?

Income Statement

How will your recommended strategies affect revenue? When will revenues increase?

What expenses are involved to implement your recommended strategies? When will these costs be incurred? When will these costs decrease or no longer be required?

Financial ratios: You may need to calculate ratios to project financial data for future years.

Use the projected balance sheet and income statement data in the textbook.

You may use the downloadable template provided on the strategyclub.com website, but will need to add the data from the Lowes financial statements in the textbook.

See Chapter 8, pages 260-267), for information about how to project financial statements and the Chapter 8 PowerPoint slides 32-34.

Use the resources in the Collaboration and Community Center forum of the Discussion Board regarding projecting financial statements.

Financial Plan Narrative

Tip: In this section discuss the assumptions using the tips at the beginning of this section as a general guide. This narrative will be presented in your projected financial statements.

Projected Balance Sheet (Insert projected balance sheet here)

Tip: Balance Sheet (see Exhibit 5, page 457) including assets (e.g., cash, investments, inventory, pre-paid taxes, property); liabilities (e.g., short and long term debt, accounts payable, deferred compensation and benefits, deferred revenue, deferred income taxes); and stockholders equity (e.g., stock, retained earnings).

Projected Income Statement (Insert projected income statement here)

Tip: Income Statement (see Exhibit 4, page 456) revenue (e.g., net sales, cost of sales, gross margin); expenses (selling-general and administrative costs, depreciation, interest expense); and pre-tax earnings, net income, and cash dividends per share.