Please identify errors in the financial model given the instructions and assumptions. There are 14 total errors
COMPANY A FINANCIAL MODEL COMPANY A FINANCIAL MODEL COMPANY A FINANCTAL MODEL COMPANY A FINANCIAL MODEL (\$in millions) COMPANY A FINANCIAL MODEL Please go to "Tools", "Options", "Calculation". In the "Calculation" tab, please set it to "automatic" calculation and "iteration" 500. For Apple computers, please go to 'Excel", "Preferences", "Calculations", "Automatic", "use iterative calculations" and "iteration" 500 Assumptions Tab Income Statement Revenue - Assume 5% growth rate in each year of the forecast period. Generally, revenue growth rate of a company will decline even if revenues are increas COGS as \% of Sales - Assume 40% for each year of the forecast period. Depreciation \% as of Gross P.P\&E - Assume 2\% for each year of the forecast period. NOTE that Gross PP\&E will Amortization - No Amortization (enter $0 for each year). SG\&A as \% of Sales - Assume 3% for eact year of the forecast period. Other Income (Expenses) - Assume $0 million for each year of the forecast period. Tax Rate - Assume 40% for each year of the forecast period. Balance Sheet Days Accounts Receivable - Assume 30 days for each year of the forecast period. Days Inventory - Assume 45 days for each year of the forecast period. Other Current Assets - Assume $1.0 million for each year of the forecast period. impairment of Goodwill - Assume $0 million for each year of the forecast period. Capex as \% of Sales - Assume 5\% for each year of the forecast period. Asset Disposition - Assume $0 for each year of the forecast period. Days Payable - Assume 50 days for each year of the forecast period. Accrued Liabilities as \% of COGS - Assume 3\% for each year of the forecast period. Other Current Liabilities as a \% of COGS - Assume 2% for each year of the forecast period. Common Stock - Assume $10 million for each year of the forecast period. Interest Earned on Cash - It will increase 25 basis points every year after 2016. Revolver Interest Rate - Assume Libor +2.0% Term Loan Interest Rate - Assume Libor +2.5% Unsecured Debt Interest Rate - Assume 12.0% Interest Rate for the forecast period. Term Loan Amortization - Assume $20 million principal paydown (amortization) per year during the forecast period. Unsecured Debt Amortization - Assume no paydown in principal during any year of the forecast period. COMPANY A FINANCIAL MODEL COMPANY A FINANCIAL MODEL COMPANY A FINANCTAL MODEL COMPANY A FINANCIAL MODEL (\$in millions) COMPANY A FINANCIAL MODEL Please go to "Tools", "Options", "Calculation". In the "Calculation" tab, please set it to "automatic" calculation and "iteration" 500. For Apple computers, please go to 'Excel", "Preferences", "Calculations", "Automatic", "use iterative calculations" and "iteration" 500 Assumptions Tab Income Statement Revenue - Assume 5% growth rate in each year of the forecast period. Generally, revenue growth rate of a company will decline even if revenues are increas COGS as \% of Sales - Assume 40% for each year of the forecast period. Depreciation \% as of Gross P.P\&E - Assume 2\% for each year of the forecast period. NOTE that Gross PP\&E will Amortization - No Amortization (enter $0 for each year). SG\&A as \% of Sales - Assume 3% for eact year of the forecast period. Other Income (Expenses) - Assume $0 million for each year of the forecast period. Tax Rate - Assume 40% for each year of the forecast period. Balance Sheet Days Accounts Receivable - Assume 30 days for each year of the forecast period. Days Inventory - Assume 45 days for each year of the forecast period. Other Current Assets - Assume $1.0 million for each year of the forecast period. impairment of Goodwill - Assume $0 million for each year of the forecast period. Capex as \% of Sales - Assume 5\% for each year of the forecast period. Asset Disposition - Assume $0 for each year of the forecast period. Days Payable - Assume 50 days for each year of the forecast period. Accrued Liabilities as \% of COGS - Assume 3\% for each year of the forecast period. Other Current Liabilities as a \% of COGS - Assume 2% for each year of the forecast period. Common Stock - Assume $10 million for each year of the forecast period. Interest Earned on Cash - It will increase 25 basis points every year after 2016. Revolver Interest Rate - Assume Libor +2.0% Term Loan Interest Rate - Assume Libor +2.5% Unsecured Debt Interest Rate - Assume 12.0% Interest Rate for the forecast period. Term Loan Amortization - Assume $20 million principal paydown (amortization) per year during the forecast period. Unsecured Debt Amortization - Assume no paydown in principal during any year of the forecast period
