Excel Assignment #$1$

Assignment Instructions:

For this assignment, you will have to predict the future financial statements of the Body Shop. Utilize the provided template. Use the figures for $2023$ and forecasting assumptions on the template to forecast the income statement and balance sheet for the next three years. For some variables there are not assumptions provided since they are to be calculated rather than predicted $($e$.$g$.$ retained earnings$).$ Cash and Debt are the two plugs. Assumptions for the cash and debt plugs are described in the question below.

Assignment Question: $(50$ points$)$

Forecast the Income Statement and the Balance Sheet for the next three years $(2024-2026).$ The Body Shop, Inc. aims to maintain a minimum cash balance of $$300$ in each year. Debt assumptions vary for each year. For all years, if there is need for additional debt $($compared to the year before$)$ the company will have to increase debt. However, in the case where debt does not have to increase the following assumptions hold: For $2024,$ the company does not want to retire any debt. For $2025,$ they can retire debt if possible, but not more than $75\%$ of last year's debt. Lastly, for $2026,$ the company plans to retire as much debt as possible.

$\backslash$table$[[$Body Shop Inc. Pro Forma Financial Statements,,,$],[$Put your name and your teammate's name:$],[,,,$Forecasts,$],[,{2023}_{?},{2024}_{?},{2025}_{?},{2026}_{?}$