a. Refer to Wal*Mart financial statements, above. Prepare a forecasted income statement for Year 8 assuming:
● Total revenues are expected to increase by 12% from Year 7 to Year 8
● Operating income as a percentage of total revenues will remain unchanged from Year 7 to Year 8
● Total Interest costs will increase by 10%
● Effective tax rate is 37%
b. What additional information will Wal*Mart need in order to assess whether it needs additional outside funding?

Question

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The Answer of  
a. Refer to Wal*Mart financial statements, above. Prepare a forecasted income statement for Year 8 assuming:
● Total revenues are expected to increase by 12% from Year 7 to Year 8
● Operating income as a percentage of total revenues will remain unchanged from Year 7 to Year 8
● Total Interest costs will increase by 10%
● Effective tax rate is 37%
b. What additional information will Wal*Mart need in order to assess whether it needs additional outside funding?

A Refer to Wal*Mart Financial Statements, Above