Instructions This exercise is two-part in nature: 1) Using the attached data, which represents five years of actual results of a publicly traded company, please create a dynamic financial model. The...

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Instructions This exercise is two-part in nature: 1) Using the attached data, which represents five years of actual results of a publicly traded company, please create a dynamic financial model. The financial model should include a P&L, Balance Sheet, and Cash Flow statement for Years 1 through 5, as well as project out Years 6 through 8. The financial model should allow for dynamic adjustment of business case assumptions. 2) Based upon your analysis, what insights can you derive about the business? Please include a summary of meaningful business metrics and a brief narrative illustrating your thoughts and findings. Data $ 000'sActuals Year 1Year 2Year 3Year 4Year 5 Product Revenue$ 1,344$ 1,280$ 1,280$ 1,346$ 1,370 Service Revenue- 0123137169215 Total Revenue1,3441,4021,4181,5151,585 Cost of Products Sold500433434444462 Cost of Services Provided- 053587798 Cost of Goods Sold500486491522560 SG&A616624640680691 Interest Expense4644484738 Cash16 A/R6666697088 Inventory2222222329 Other Current Assets2719627170 PP&E457459466463462 Accumulated Depreciation(335)(338)(353)(359)(361) Accounts Payable6160656571 Accrued Expenses9294879695 Other Current Liabilities4150635151 Long Term Debt743748656657400
Answered Same DayOct 30, 2021

Answer To: Instructions This exercise is two-part in nature: 1) Using the attached data, which represents five...

Tanmoy answered on Oct 31 2021
117 Votes
Instructions
    This exercise is two-part in nature:
1) Using the attached data, which represents five years of actual results of a publicly traded company, please create a
dynamic financial model. The financial model should include a P&L, Balance Sheet, and Cash Flow statement for Years 1 through 5, as well as project out Years 6 through 8. The financial model should allow for dynamic adjustment of business case assumptions.
2) Based upon your analysis, what insights can you derive about the business? Please include a summary of meaningful business metrics and a brief narrative illustrating your thoughts and findings.
Data
        $ 000's        Actuals
                Year 1    Year 2    Year 3    Year 4    Year 5
        Product Revenue        $ 1,344    $ 1,280    $ 1,280    $ 1,346    $ 1,370
        Service Revenue        $ - 0    $ 123    $ 137    $ 169    $ 215
        Total Revenue        1,344    1,402    1,418    1,515    1,585
        Cost of Products Sold        500    433    434    444    462
        Cost of Services Provided        - 0    53    58    77    98
        Cost of Goods Sold        500    486    491    522    560
        SG&A        616    624    640    680    691
        Interest Expense        46    44    48    47    38
        Cash        16
        A/R        66    66    69    70    88
        Inventory        22    22    22    23    29
        Other Current Assets        27    19    62    71    70
        PP&E        457    459    466    463    462
        Accumulated Depreciation        (335)    (338)    (353)    (359)    (361)
        Accounts Payable        61    60    65    65    71
        Accrued Expenses        92    94    87    96    95
        Other Current Liabilities        41    50    63    51    51
        Long Term Debt        743    748    656    657    400
Dynamic Financial Statement
        Profit & Loss Account
        Particulars    Actuals                    Projected
            Year 1    Year 2    Year 3    Year 4    Year 5    Year 6    Year 7    Year 8
        Product Revenue    1344    1280    1280    1346    1370    1363    1355    1348
        Growth Rate        5%    0%    -5%    -2%    -1%    -1%    -1%
        Service Revenue    0    123    137    169    215    248    287    331
        Growth...
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