Using percentage of sales approach and following the Financial Planning and Forecasting Excel Template example (The template example is attached, its for GE), conduct financial forecasting for Wal-Mart using the Wal-Mart financial data attached:
1. pro-forma income statement
2. pro-forma balance sheet
3. Calculate internal and sustainable growth rates for your firm for each of the past three years.
4. Calculate the actual growth in sales for your company over each of the past three years and the average actual growth rate over the past three years.
5. Offer interpretive analysis of your company’s actual growth rate compared to its internal and sustainable growth rates. Discuss what these numbers mean regarding your firm’s ability to finance a growth strategy. Justify your projection of the sales growth rate for the next 5 years.
6. Discuss whether the firm may need to seek external financing to fund your projected growth.