Draft a spreadsheet showing financial history and projected performance for the company you plan to use in this course's final project. The rows should include revenue, expenses, calculated profit, and calculated profit margin. The columns should represent years: two years of history, plus three years of your reasonable future projections. Include a few sentences of key assumptions and conclusions. The spreadsheet must have accurate calculations and look professional on screen and when printed (including a heading and meaningful number formatting). Note: Submit this assignment as an Excel spreadsheet file, not a PDF.Copy and Paste Your Assignment
Company Name: NORDSTORM INC
Nordstrom, Inc NORDSTROM, INC FINANCIAL HISTORY AND PROJECTED PERFORMANCE (VALUES IN $000'S) PREVIOUS PERFORMANCEPROJECTED PERFORMANCE YEAR20162017201820192020 TOTAL REVENUE14,437,00014,757,00015,081,65415,413,45015,752,546 COST OF REVENUE9,168,0009,440,0009,713,7609,995,45910,285,327 GROSS PROFIT5,269,0005,317,0005,367,8945,417,9915,467,219 OPERATING EXPENSES4,168,0004,315,0004,466,0254,622,3364,784,118 OPERATING INCOME1,101,0001,002,000911,820829,756755,078 INTEREST EXPENSE 125,000121,000117,370113,849110,433 INCOME TAX376,000330,000290,400255,552224,886 INCOME600,000551,000504,050460,355460,355 PROFIT MARGIN (%)36.496502043436.030358473935.592210244335.151060999434.7068901843 KEY ASSUMPTIONSThe proportionate increase in both revenue and expenses in 2016-2017 period helps determine what will happen in the coming years (an increase of 0.022% and 0.035% respectively). That said, there should be a proportionate increase across years. Another key assumption is that there will be no risks associated with the business, such as overhead costs, emergencies or unplanned losses that will have a significant impact in costs. CONCLUSIONSNordstrom Inc. financial perfomance shows a company destined to do well in future years. As you can see, the profit margin doesn't increase as the years increase. With that said, the steady profit margin levels are a true indication of a company able to do well if it generates more revenue. RUNNING HEAD: Financial Model SpreadsheetJonathan Brannan MBA 640&P Nordstrom, Inc NORDSTROM, INC FINANCIAL HISTORY AND PROJECTED PERFORMANCE (VALUES IN $000'S) PREVIOUS PERFORMANCEPROJECTED PERFORMANCE YEAR20162017201820192020 TOTAL REVENUE14,437,00014,757,00015,081,65415,413,45015,752,546 COST OF REVENUE9,168,0009,440,0009,713,7609,995,45910,285,327 GROSS PROFIT5,269,0005,317,0005,367,8945,417,9915,467,219 OPERATING EXPENSES4,168,0004,315,0004,466,0254,622,3364,784,118 OPERATING INCOME1,101,0001,002,000911,820829,756755,078 INTEREST EXPENSE 125,000121,000117,370113,849110,433 INCOME TAX376,000330,000290,400255,552224,886 INCOME600,000551,000504,050460,355460,355 PROFIT MARGIN (%)36.496502043436.030358473935.592210244335.151060999434.7068901843 KEY ASSUMPTIONSThe proportionate increase in both revenue and expenses in 2016-2017 period helps determine what will happen in the coming years (an increase of 0.022% and 0.035% respectively). That said, there should be a proportionate increase across years. Another key assumption is that there will be no risks associated with the business, such as overhead costs, emergencies or unplanned losses that will have a significant impact in costs. CONCLUSIONSNordstrom Inc. financial perfomance shows a company destined to do well in future years. As you can see, the profit margin doesn't increase as the years increase. With that said, the steady profit margin levels are a true indication of a company able to do well if it generates more revenue. RUNNING HEAD: Financial Model SpreadsheetJonathan Brannan MBA 640&P