TUSA REMIX 2.

0 PROJECTED FINANCIAL STATEMENTS

To begin with, the financial statements for 2013 and 2014 will be shown below:
 To make our projected financial statement, we took into account that we planned
to increase 900 million where 50% came from the bank i.e. long term debt and 50% from
stock issuance i.e. sale of shares. For the sale of the shares, we took into account the
price of them in december 2015, that is, $143. On the other hand, to make the
assumptions about the other securities, we analyzed the previous years, 2013 and
2014, and saw how they were growing to see if we were on the right track. We used the
strategy club template to have better results. In this template we show the historical data
to guide us, these data should not be chosen blindly. An analysis should be made if the
strategy allows this data to continue growing as it came before or if it is expected to have
a greater or lesser growth.

Our sales had been growing by 4%, but due to the investment, they are expected
to grow by 5% in order to be able to replace that debt, our costs grew by 55% and that
figure was maintained. On the other hand, our operating expenses had been growing
by 26%, and that figure remained the same. Our interest expenses had been decreasing
by 5%, which is why the assumption was made that they would decrease in the same
way, i.e., by 4,176. Taxes are 35% of the EBT and that was maintained, that is to say
that taxes have been growing by 7%.

On the other hand, the historical data proposed by the strategy club staff was
very much taken into account to carry out the balance sheet. Receivable accounts were
8% of revenues, inventory 11% of revenues, other current assets 5% of revenues. To
calculate the property, plant and equipment, the two previous years were analyzed and
we realized that the change had been 19%, that is why we looked for which was 19% of
the property, plant and equipment of the previous year and that result was added to the
property plant and equipment of the previous year. The same was done with goodwill,
percentage change of 38%, and with intangibles, percentage change of 51%. The total
assets are 2% of the sales.

The accounts payable are 6% of sales and the other current liabilities are 20% of
sales according to the historical data proposed by the template. To the long term debt,
we added 50% of the 900 million that we wanted to increase, that is to say 450 million
and the other long term liabilities are 8% of the revenues. Finally for the common stock
we add 50% of the 900 million, that is 450 million. This is 3147000 shares at $143 which
gives us a total of 450 million. For retained earnings, the change between 2013 and
2014 was taken into account, the difference of which was added to the 2014 reitaned
earnings. The result of this, we subtract from the net income and give us the result of the
retained earnings of 2015. For the treasury stock (10%) and paid in capital (-10%), the
change from previous years was taken into account and in this way we calculated how
much it would be for 2015.

5 % growth

55% of
revenue

26% of
revenue

5% decrease

35% of EBT

8% from revenue
11% from revenue
5% of revenue

19% of previous year

38% of previous year
51% of previues year
2% of revenue

6 % of revue
20% of revenue

Borrowed $450 million

8% of revenue

Issued 3147000 at $143 each

NI- ((RE2014-RE2013)+RE2014)
10%
-10%
 It is very important to compare the ratios because as an investment you must see
if you are getting better, worse or the same. You must look at what you should improve
or what you should keep in the strategy and analyze if the investment was beneficial to
the company.

Current ratio: ​The current ratio is a liquidity ratio that measures a company's ability to
pay short-term obligations or those due within one year. So in 2013, for ​every 1 dollar
that the firm owes its creditors, it is owed ​1.77 by its debtors. In 2014, for every dollar
that the firm owes its creditors, it is owed ​1.16 by its debtors. In 2015, how the debt
increased our current ratio increased again, so for every dollar that the firms owes its
creditors, it is owed ​1.72​ by its debtors.

Debt to equity ratio: ​is a financial ratio that indicates the relative proportion of equity
and debt of shareholders used to finance a company's assets.In 2013, we had 2,32 debt
units for 1 equity unit. In 2014, we had 2,70 debt units for 1 equity unit. In 2015, how the
debt incresead our debt to equity ratio increased, so for 3,99 debt units we have 1 equity
unit.

ROI: ​is the indicator used by companies to measure the economic result generated by
the investments made, i.e. the percentage and level of profit or loss caused by each
dollar allocated to a project over a given period of time. In 2013 you can see that the
ROI was 27.08% and in 2014 it was 25.87%. In 2015 you can see that the ROI is not as
high, which means that it is not returning to us in the same way that we invested, which
means that it is not as profitable and the benefits are not as good. Measures must be
taken to see what decisions must be taken in the short, medium and long term.

References:
David & David. (2015). Hershey’s Cohesion Case.
The Hershey Company 10 K format 2015. (2015). Retrieved 11 April 2020, from
https://www.thehersheycompany.com/content/dam/corporate-us/documents/annual-repo
rts/2015-annual-report.pdf