A projected income statement and unbalanced balance sheet for Chewy, Inc, including the most recent year’s data for those two statements as well as the cash flow statement is given under the heading of The Method 1. The same projected income statement and unbalanced balance sheet, but no cash flow statement are given under the heading of The Method 2.
The Method 1
| Chewy, Inc. Class A | ||||
| INCOME STATEMENT | ||||
| Source: FactSet Fundamentals | Historical | Pro Forma | ||
| JAN ’20 | 01-2021F | 01-2022F | 01-2023F | |
| Sales | 4,846.7 | 5,331.4 | 5,864.6 | 6,451.0 |
| Cost of Goods Sold (COGS) incl. D&A | 3,751.5 | 3,830.5 | 3,911.4 | 3,994.3 |
| COGS excluding D&A | 3,702.7 | 3,776.7 | 3,852.3 | 3,929.3 |
| Depreciation | 40.3 | 44.3 | 48.7 | 53.6 |
| Amortization of Intangibles | 8.6 | 9.5 | 10.4 | 11.4 |
| Gross Income | 1,095.2 | 1,500.9 | 1,953.2 | 2,456.7 |
| SG&A Expense | 1,347.9 | 1,415.3 | 1,457.8 | 1,486.1 |
| EBIT (Operating Income) | -252.7 | 85.6 | 495.4 | 970.6 |
| Nonoperating Income – Net | 0.4 | 0.0 | 0.0 | 0.0 |
| Interest Expense | – | 4.3 | 4.4 | 4.9 |
| Pretax Income | -252.4 | 81.3 | 491.0 | 965.7 |
| Taxes | 20.3 | 122.7 | 241.4 | |
| Net Income | -252.4 | 61.0 | 368.2 | 724.3 |
| All figures in millions of U.S. Dollar | ||||
| Chewy, Inc. Class A | ||||
| BALANCE SHEET | ||||
| Source: FactSet Fundamentals | Historical | Pro Forma | ||
| JAN ’20 | 01-2021F | 01-2022F | 01-2023F | |
| Assets | ||||
| Cash & Short-Term Investments | 212.1 | 233.3 | 256.6 | 282.3 |
| Excess Cash | ||||
| Short-Term Receivables | 81.1 | 89.2 | 98.1 | 107.9 |
| Inventories | 317.8 | 349.6 | 384.5 | 423.0 |
| Other Current Assets | 18.8 | 20.7 | 22.7 | 25.0 |
| Total Current Assets | 629.8 | 692.8 | 762.0 | 838.2 |
| Net Property, Plant & Equipment | 297.8 | 327.6 | 360.3 | 396.3 |
| Other Assets | 4.7 | 5.2 | 5.7 | 6.3 |
| Total Assets | 932.3 | 1,025.6 | 1,128.1 | 1,240.9 |
| Liabilities & Shareholders’ Equity | ||||
| Revolver | ||||
| ST Debt & Curr. Portion LT Debt | 15.5 | 15.5 | 15.5 | 15.5 |
| Accounts Payable | 683.0 | 751.4 | 826.5 | 909.1 |
| Other Current Liabilities | 402.0 | 442.2 | 486.4 | 535.1 |
| Total Current Liabilities | 1,100.5 | 1,209.1 | 1,328.4 | 1,459.7 |
| Long-Term Debt | 200.4 | 220.5 | 242.5 | 266.8 |
| Other Liabilities | 35.3 | 38.8 | 42.7 | 47.0 |
| Total Liabilities | 1,336.3 | 1,468.4 | 1,613.7 | 1,773.5 |
| Preferred Stock (Carrying Value) | 0.0 | 0.0 | 0.0 | 0.0 |
| Common Equity | -404.0 | (343.0) | 25.2 | 749.5 |
| Total Equity | -404.0 | (343.0) | 25.2 | 749.5 |
| Total Liabilities & Shareholders’ Equity | 932.3 | 1,125.4 | 1,638.9 | 2,523.0 |
| All figures in millions of U.S. Dollar | ||||
| Balance Sheet Check | 99.8 | 510.8 | 1,282.1 | |
| Chewy, Inc. Class A | ||||
| CASH FLOW STATEMENT | ||||
| Source: FactSet Fundamentals | Historical | Pro Forma | ||
| JAN ’20 | 01-2021F | 01-2022F | 01-2023F | |
| Operating Activities | ||||
| Net Income / Starting Line | -252.4 | |||
| Depreciation, Depletion & Amortization | 48.9 | |||
| Other Funds | 136.0 | 0.0 | 0.0 | 0.0 |
| Changes in Working Capital | 123.0 | |||
| Accounts Receivable | ||||
| Inventories | ||||
| Other Current Assets | ||||
| Accounts Payable | ||||
| Other Current Liabilities | ||||
| Net Operating Cash Flow | 55.4 | |||
| Investing Activities | ||||
| Capital Expenditures | -48.64 | |||
| Other Funds | -1.23 | (27.6) | (30.4) | (33.4) |
| Net Investing Cash Flow | -49.86 | |||
| Financing Activities | ||||
| Change in Capital Stock | 110.35 | 0.0 | 0.0 | 0.0 |
| Issuance/Reduction of Debt, Net | -10.53 | |||
| Other Funds | 18.38 | 0.0 | 0.0 | 0.0 |
| Net Financing Cash Flow | 118.19 | |||
| Net Change in Cash | 123.76 | |||
| Beginning Excess Cash/(Revolver) | ||||
| Ending Excess Cash/(Revolver) | 0.00 | |||
| All figures in millions of U.S. Dollar | ||||
The Method 2
| Chewy, Inc. Class A | ||||
| INCOME STATEMENT | ||||
| Source: FactSet Fundamentals | Historical | Pro Forma | ||
| JAN ’20 | 01-2021F | 01-2022F | 01-2023F | |
| Sales | 4,846.7 | 5,331.4 | 5,864.6 | 6,451.0 |
| Co | ||||
