Body Shop Essay

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Why would a company like the Body Shop want to forecast its financial statements?

Forecasting a firm's financial statements can help both financial managers and general managers. Pro forma statements help the financial manager plan the firm's financial needs. With an estimate of future income statement and balance sheet accounts, a manager can tell how much financing might be needed, and when it might be needed. Therefore, a company like the Body Shop can use forecasted financial statements to estimate how much future external debt financing the company needs.
Given the Body Shop’s growth level of 36.8% and 27.5% in the period between 1990-1992, it is assumed that the Body Shop will be able to sustain a relatively high growth rate …show more content…
This can then be duplicated for the next two years. Once completed, you can see that interest is exactly 10% of long term liabilities and the balance sheet balances.

PROJECTING FARTHER | | | | INPUT DATA | (in millions) | | | | | | | | 1993 | 1994 | 1995 | SALES | 191,673 | 249,175 | 323,927 | COGS/SALES | 0.44 | 0.44 | 0.44 | OPERATING EXPENSE/SALES | 0.36 | 0.36 | 0.36 | INTEREST RATE | 0.10 | 0.10 | 0.10 | TAX RATE | 0.35 | 0.35 | 0.35 | DIVIDENDS | 0.19 | 0.19 | 0.19 | CURRENT ASSETS/SALES | 0.42 | 0.42 | 0.42 | CURRENT LIABILITIES/SALES | 0.35 | 0.35 | 0.35 | FIXED ASSETS | 58,657 | 58,657 | 58,657 | STARTING EQUITY | 74,360 | 74,360 | 74,360 | | | | | INCOME STATEMENT | 1993 | 1994 | 1995 | | | | | SALES | 191,673 | 249,175 | 323,927 | COGS | 84,336 | 109,637 | 142,528 | OPERATING EXPENSE | 69,002 | 89,703 | 116,614 | INTEREST EXPENSE | (2,372) | (4,848) | (8,166) | PROFIT BEFORE TAX | 40,706 | 54,683 | 72,951 | TAX | 14,247 | 19,139 | 25,533 | PROFIT AFTER TAX | 26,459 | 35,544 | 47,418 | DIVIDENDS | 5,027 | 6,753 | 9,010 | EARNINGS RETAINED | 21,432 | 28,791 | 38,409 | | | | | BALANCE SHEET | 1993 | 1994 | 1995 | | | | | CURRENT ASSETS | 80,503 | 104,653 | 136,049 | FIXED ASSETS | 58,657 | 58,657 |

The Body Shop Essay

The Body Shop The Body Shop . It is nearly impossible to pick up any newspaper and avoid reading a section that deals with the unethical or even illegal conduct of the people who run our organizations. Whether its stock manipulation, dubious accounting practices, or discarding of environmental waste, the stories keep growing. Ethics are” the code of moral values and principles that rule the behavior of a person or group with respect to what is right or wrong (McGraw-Hill, 1)”.…

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The Body Shop Essay

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Body Shop Essay

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The Body Shop Essay examples

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The Body Shop Marketing Report Essay

The Body Shop Executive Summary The Body Shop Company is an international and global industry that produces beauty and cosmetic products. It started in 26th March 1976 in Brighton by Anita Roddick. After more than 30 years of operations, there have been lots of changes and developments in The Body Shop Company, which includes the product category, the changes from the micro and macro environment, and how The Body Shop segments, targets, and positioned its image and…

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Palm Oil and Body Shop Essay

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Essay The Body Shop International Plc

founder, The Body Shop International In the late 1990s, The Body Shop International PLC, previously one of the fastest growing manufacturer-retailers in the world, ran aground. Although the firm had an annual revenue growth rate of 20% in the early to middle 1990s, by the late 1990s, revenue growth slowed to around 8%. New retailers of the naturally based skin- and hair-care products entered the market, bringing intense competition for The Body Shop. Amidst the competition, The Body Shop failed to…

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Summary: AAA Auto Body Shop Ltd

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