Question

Please create 2 spreadsheets. One spreadsheet predicting company finances without the investment & one with the investment. The proposed investment is predicted to increase profits by 5% and increase expenses by 2%.

The company is Nordstrom. Financial data for the company can be found here: The company is Nordstrom. The proposed expansion is predicted to increase profits by 5%. The proposed expansion is predicted to increase expenses by 2% the years needed are 2018-2025. Please create 2 spreadsheets, one with the expansion & one without the expansion. Data for income & cashflow statements can be found here: https://www.marketwatch.com/investing/stock/jwn/financials

Answer 1

ANSWER-

As per the instructions given in question, kindly find the 2 financial spreadsheets-

WITH INVESTMENT (AS PER INSTRUCTIONS)

ANNUAL FINANCIALS OF NORDSTROM (WITH INVESTMENT) (in millions) PARTICULARS 2018 2019 2020 2021 2022 2023 Sale/Revenue 15.48 15.86 1 6.65 17.49 18.36 19.28 COGS(Cost of Goods Sold) 9.89 10.16 10.36 10.57 10.78 10.99 Gross Income 5.59 5.7 6.29 6.92 7.58 8.29 2024 20.24 11.21 9.03 2025 21.25 11.44 9.81 4.89 5.29 5.41 SG&A Expenses Unusual Expenses 4.68 0.18 4.99 0.74 5.09 0.76 0.72 0.73 0.77 0.79 0.81 EBIT after unusual expenses 0.73 0.18 0.67 1.19 1.73 2.33 2.95 3.59 0 0 Non-Operating Income/Expense Non-Operating Interest Income Interest Expenses Pretax Income Income Tax 0.16 0.05 1.23 7.9 3.53 0 0.15 1.19 7.33 1.69 0 0.157 1.21 7.69 1.72 0 0.165 1.24 8.08 1.75 0 0.174 1.26 0.191 1.31 0.182 1.29 8.91 1.82 0.201 1.34 9.82 8.48 9.35 1.79 1.86 1.91 Net Income 4.084.78 5.5876.445 7.3348.3129.321 10.361

WITHOUT INVESTMENT (AS PER TREND GIVEN IN ORIGINAL FINANCIALS- SOURCE GIVEN IN QUESTION)

ANNUAL FINANCIALS OF NORDSTROM (WITHOUT INVESTMENT) (in millions) PARTICULARS 2018 2019 2020 2021 2022 2023 2024 2025 Sale/Revenue 15.48 | 15.86 | 16.17 16.49 16.82 | 17.16 17.51 | 17.85 | (growth @2% on an average as per the trend) COGS(Cost of Goods Sold) 9.89 10.16 10.36 10.57 10.78 10.991 11.21 | 11.44 (growth @2% on an average as per the trend) Gross Income 5.59 5.7 5.81 6.04 6.17 6.3 6.41 5.92 SG&A Expenses Unusual Expenses 4.68L 0.18 4.8 0.72 4.92 1.08 5.04 1.62 5.16 2.43 5.29 3.64 5.42 .46 5.55 8.21 (growth @2.5% on an average as per ther trend) (growth @50% on an average as per the trend) 5 | EBIT after unusual expenses | 0.73 | 0.18 -0.19 -0.74 -1.55 -2.76 -4.58 -7.35 Non-Operating Income/Expense Non-Operating Interest Income Interest Expenses Pretax Income Income Tax 0.16 0.05 1.23 7. 9 3.53 0 0.15 1.19 .33 1.69 0 0.225 1.21 8.06 1.72 0 0.34 1.22 8.87 1.75 0 0.51 1.24 .75 1.79 0 0.76 1.26 10.73 1.82 0 1.14 1.28 11.81 1.86 0 1.71 1.3 1 2.98 1.91 (growth @50% on an average as per the trend) (growth @1.5% on an average as per the trend) (growth @10% on an average as per the trend) || 7 9 T Net Income 4.08 4.78 5 .165 5.5 5.68 5.65 5.23 4.13