Assignment:
Apple Inc.
Monday Apple announced a new 4-inch-display iPhone, called the SE, aimed at consumers whose small hands, tight pockets or thin pocketbooks couldn't handle the big-screened iPhones unveiled last year. IPhone SE starts at $399, making it the most affordable iPhone ever by $150. Product managers project to sell 3.5M IPhone SE in 2017.
IBMLast week, IBM signed a partnership agreement with Facebook which is projected to increase 1% of revenues with flat SG&A
General Electric
Today, GE announced that its revenue will decline in 2017 by about 7%. All other margin % remains the same as current revenues.
Walmart
Walmart is projecting to increase revenue by 5%, decreasing COGS by 1%, and decreasing other expenses by 2% in 2017
Alcoa
Alcoa's steel market share decline by 11% which is projecting to decline revenues in 2017 by 6% and 10% decline in 2018
Boeing
Boeing won the defense contract and is projecting to increase revenue by 10%. Also declared to increase dividend payout by 20%.
Deere & Co.
Depreciation expense is much higher as a percent of sales at Deere. This might be an indication that they are more conservative in their depreciation policy. Deere is changing its depreciation method from Double Declining to Straight Line which will reduce depreciation expense in 2017 by 42%.
MasterCard Inc.
MasterCard announced double rebate and cash back programs to its customer in 2017 which will result in reducing the GM by 9%, everything remains the same.
Oracle Corporation
Oracle increased its customers base in their cloud computing space. This increase in customers is projected to increase 3% of revenue with the COGS remaining the same.
Visa Inc.
Visa Inc., is projecting to increase marketing expenses by 22% in 2017 to be in par with its competitors.
Requirement
• Get last year's Income Statement and Balance Sheet data for your company
• Download to Excel with all necessary computations and formulas
• Follow subsequent event for your company
• Build three scenario model for Net Revenues using Excel:
o Projection Level - As mentioned in the subsequent event
o Below Projection level - Only 50% of what was projected will happen
o Above Projection level - Above 25% of what was projected will happen
• Research and find number of authorized shares of your company
• Predict and report EPS of all scenarios including last year's EPS using Excel functions and charts
• Prepare one slide in PowerPoint to comment on the results with some visuals