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In this assignment you will create a forecast for a fictitious company using the attached spreadsheet template. Input the following as assumptions in the assumption
In this assignment you will create a forecast for a fictitious company using the
attached spreadsheet template. Input the following as assumptions in the assumption
part of the spreadsheet grey highlighted cells at the top of the spreadsheet and then
reference those cells when projecting the appropriate income statement, balance sheet,
or breakeven account. Do NOT hard code numbers into your projections.
Project Income Statement and Balance Sheet.
Assumptions:
Sales growth rates in each of next years:
Operating expenses as percentage of sales stays at level for
then goes down by in each of next two years so if was
in forecast levels would be
Cost of goods sold as of sales stays at level for and then
improves by in and by another in remember this is
an expense, so improves means it goes down
tax rate
No dividends or new stock issued
Interest expense fixed at $ year
Bank loan and LT debt stay constant
AR days year days, then decrease by days in &
another days in
Inventory days year days then decrease by days in
& another days
AP days stays at year days
Net fixed assets and accruals: Use of sales for
Required cash fixed at
Calculate Additional Funds Needed as plug to get Balance Sheet to
balance!
Calculate breakeven revenues and units.
Assumptions:
Use line item operating expenses as fixed costs
Average price per unit is $
There was no assumption provided for the break even analysis, it says in the instructions that you have to use the given assumptions for the break even account, I hope this helps, and thank you so much for helping me
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