CBUS 454 Financial Analysis and Decising-Making
Information Sheet
Industrial Company Analysis
Forecasting Project
The purpose of this final examination is to determine student's ability to do basic forecasting and operations performance
benchmarking and assessment. Please use the following instructions for guidance in completing this module.
1. Use the information and assumptions in the Analysis Data tab for forecasting the financial statements for Industrial Company.
Provide your 5-year projections for the Income Statement, Cash Flow Statement, and Balance Sheet on the Forecasted Statements
tab. * Sales volume (demand) should be the basis for your revenue determination.
2. Provide basic margin and ratio analysis for forecasted financials, including ratios pertaining to liquidity and productivity.
3. Based upon your projections and analysis, provide a 2-page synopsis of findings and sources of potential improving cash flow and operating
efficiency.
You will have until Monday, 11:59pm to upload the document. Upon completion please upload into CANVAS
Thank you.
mailto:
[email protected].%20%20Thank%20you%20and%20good%20luck.
Analysis Data
INDUSTRIAL COMPANY
Competency Evaluation
Forecast Assumptions
Unit Economics Working Capital
Manufactured Goods Supplies
Sell Price (per widget) $ 149.69 $ 52.62 Required Cash $ 500,000
Cost of Goods Sold Inventory Turnover 12
Materials $ 35.00 $ 36.78 Days Sales Outstanding 30
Production 16.00 Days Payable 45
Labor 48.75 Days per Year 365
Sales Volume 42,092 105,244
Annual Growth Rates Property, Plant and Equipments
Sell Price 5.97% 2.57% Useful Life (Years) Capital Expenditure
Cost of Goods Sold 2.00% 1.00% Machinery and Equipment, including Vehicles 6 $ 200,000 per year
Sales Volume 8.00% 10.00% Leasehold Improvements 10 $ 400,000 per year
*Use a Depreciation Schedule to Forecast PP&E
Average Sales Tax on Gross Sales 5.20%
Debt Schedule
Operating Expenses
Prime 8.25%
Non-Production Employees 12
Average Salary $ 45,000 , increasing 3.7% per year Credit Facility
Interest Rate Prime + 150 bps
Sales Employees 5 Credit Limit $4,000,000
Average Salary $ 52,000 , increasing 3.7% per year
Sales Bonus (% of Salary) 20.0% Mortgage
Original Principal $2,000,000
FICA 7.65% Interest Rate Prime + 150 bps
Other Benefits 10.50% Term 20 years
Administrative Expenses 8.00%
Equipment Note
Original Principal $2,000,000
Interest Rate Prime + 150 bps
Term 10 years
Historical Financials
Actual Actual
Balance Sheet Year 0 Income Statement Year 0
Cash and Cash Equivalents $ 665,012.6 Manufactured Goods $ 5,998,091.7
Accounts Receivables 927,946.4 Supplies 5,291,922.5
Inventory 674,248.9 Sales 11,290,014.2
Prepaid Expenses 66,871.3
Dues for Affiliates 5,361.2 Manufactured Goods (4,198,334.5)
Deferred Tax Asset 85,866.7 Supplies (3,892,652.0)
Cost of Sales (8,090,986.5)
Total Current Assets 2,425,307.0
Gross Profit $ 3,199,027.6
Machinery and Equipment, including Vehicles 2,526,729.7
Land 200,000.0 Total Operating Expenses (1,241,901.6)
Leasehold Improvements 1,984,086.0
EBITDA 1,957,126.1
Total Property, Plant and Equipment...