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Tis assienment is a more advanced yersion of the Simple Cornpary Modef developed in Developing a Model (Work book 7) to implement various hypothesis diven
Tis assienment is a more advanced yersion of the Simple Cornpary Modef developed in Developing a Model (Work book 7) to implement various hypothesis diven forecasts. The yellow cels below h column F are cells in which you mast enter the Typothecited sceeurion' defined in Rows 125 to Row 150. I25) We have created hypothesized scenarios for you to forecast: 124 For every scenario leave all forecasts at the "naive" number pre-set and then change the info as required. 126 Hypothesired Scenario 1 127 Assume a new competitor enters the market and that difves Gross Margin to 25% 128 What is the forecasted Net Income? 129 130 What is the forecasted Cash balance? 131 132 133 Hypothesized Scenario 2 134 Set the DSO equal to 10 days Leave the Gross Margin at 25% What is the forecasted Cash balance? See how the: Reduction of DSOs reduced 'Accounts Receivable' on the Balance Sheet and Impacted 'Increase in Accounts Recelvable' on the Cash flow Statement, Which impacts 'Cash' on the Balance Sheet. - Hypothesired Scenarlo 3 Construct a new plant increasing Capfx to $100 (remember that this is a -100 in the model as it is a use of cash) Leave the Gross Margin at 25% and the DSO at 10 days. What is the forecasted Cash balance? What is the forecasted PPS I balance? See how thei imvestment h Copex has an impact on PPBS, Affects Cash flow on the Cash Flow Statement, Reduces the Cosh aalance on the Balance Sheet and Lowers CAP Nit Income as Depreciation rises
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