Project the incremental, annual, and cumulative cash benefits and outflows associated with the proposedexpansionfor the next seven to 10 years, using a spreadsheet or other relevant presentation vehicle to support your narrative.
Sheet1 Nordstrom, Inc. Financial Projections ($ in Millions)Historical DataForecasted Data 20192020202120222023 Revenue$ 15,524.00$ 10,715.00$ 9,538.72$ 9,445.45$ 10,297.63 % Change in Revenue--30.98%-10.98%-0.98%9.02% Cost of Goods Sold$ (9,932.00)$ (7,600.00)$ 6,474.78$ 6,123.40$ 6,361.81 Gross Profit$ 5,592.00$ 3,115.00$ 3,063.95$ 3,322.05$ 3,935.82 Gross Profit Margin36.02%29.07%32.12%35.17%38.22% Expenses Selling, General, & Admin$ (4,808.00)$ (4,162.00)$ (3,727.66)$ (3,450.47)$ (3,297.41) % Change in SG&A--13.44%-10.44%-7.44%-4.44% Earnings Before Interest & Tax$ 784.00$ (1,047.00)$ (663.71)$ (128.42)$ 638.41 Interest Expense$ (102.00)$ (181.00)$ (122.26)$ (82.59)$ (55.79) % Change in Interest Exp-77.45%-32.45%-32.45%-32.45% Earnings Before Taxes$ 682.00$ (1,228.00)$ (785.97)$ (211.01)$ 582.63 Income Tax Benefit (Exp)$ (186.00)$ 538.00$ 326.85$ 35.15$ (13.79) % Change in Inc Tax-389.25%-39.25%-89.25%-139.25% Net (Loss) Earnings$ 496.00$ (690.00)$ (459.12)$ (175.86)$ 568.83 Profit Margin3.20%-6.44%-4.81%-1.86%5.52% Key Assumptions and Conclusions: - The sudden drop in revenue were understandably caused by the recent COVID-19 pandemic and its economic impacts. - Gross Profit Margin decreased due to the same factors but will expect a steady increase of around 3% per annum as the world recovers from the pandemic. - As the business' financial health improves, so will its selling, general & administrative expenses, which will increase at 3%, or a relatively similar rate of gross profit. - The large increase of interest expense can be attributed to increased debt funding due to the aforementioned global crisis. It is expected to decrease at a steady rate - The company will continue to experience tax benefits before 2023, when it completely restores its pre-COVID status. Despite suffering significantly from the restrictions and effects of the recent pandemic, it is projected that Nordstrom, Inc. will slowly become profitable once again. Its financial performance will continue to improve as the global crisis debilitates, and previously effective operations and practices are conducted.