BPM Financial Modelling Fundamentals Practical Exercise Solutions

BPM Financial Modelling
Financial Statements Modelling Exercise

Primary Model Developer: BPM Financial Modelling
Cover Notes:
Provides a practical example of the modelling of live, three-way financial statements.
Go to Table of Contents
Table of Contents
Section & Sheet Titles Page
3
4
6
7
8
9
10
11
12
13
14
17
18
- -
- -
- -
Total Pages: 20
Financial Statements
a. Income Statement
1. Assumptions
a. Time Series Assumptions
3.
Go to Cover Sheet
c. Projected Assumptions
2.
c.
Appendices
3.2. Checks
a. Checks
b. Opening Balance Sheet Assumptions
b. Balance Sheet
Cash Flow Statement
Sensitivity Checks
Alert Checks
3.1. Lookup Tables
a. Time Series Lookup Tables
Error Checks
Assumptions
Section 1.

Section Cover Notes:
This section contains assumptions relating to the forecasting of financial statement items.
Assumptions are contained within the Time Series worksheet, Opening Balance Sheet worksheet and the Project Assumptions worksheet.
238595169.xls.ms_office
Assumptions_SC
Printed: 9:45 PM on 7/16/2014 Page 3 of 19
Time Series Assumptions
x h O
Time Series Assumptions
Core Time Series Assumptions
Title
Periodicity
Financial Year End 31 12
Start Date
Periods
Denomination
Historical & Forecast Period Titles
Include in Period Titles?
Actual Periods
Budget Periods
Data & Projections - Timing Assumptions
Data Term Basis
Data - Active Periods
Projections - Start Date
Notes:
- A Financial Year End assumption of 28th of February is assumed to be a month end financial year end, even in a leap year.
- The "Model Denomination" assumption will not necessarily automatically change the denomination of the outputs of this model.
- A "Budget Period" refers to either a period in the current financial year or periods containing combined actual and forecast data.
- "Data & Projections - Timing Assumptions" are used as the basis for related data and projections time series sheets.
- Use the bpmToolbox "Update Time Series Columns" tool to hide inactive data and projections time series periods.
Primary
Annual
1-Jan-12
5
-
1
3
1-Jan-13
2
TRUE
3
TS_BA
Opening Balance Sheet Assumptions
x h O
Opening Balance Sheet ($Millions)
Current Assets 1-Jan-12
Cash 50.0
Accounts Receivable 10.0
Other Current Assets 5.0
Total Current Assets 65.0
Non-Current Assets
PP&E 250.0
Intangibles 100.0
Deferred Tax Assets 5.0
Other Non-Current Assets 12.0
Total Non-Current Assets 367.0
Total Assets 432.0
Current Liabilities
Accounts Payable 8.0
Interest Payable 2.0
Dividends Payable 1.0
Income Tax Payable 6.0
Other Current Liabilities 2.0
Total Current Liabilities 19.0
Non-Current Liabilities
Debt 196.0
Deferred Tax Liabilities 12.0
Other Non-Current Liabilities 6.0
Total Non-Current Liabilities 214.0
BS_Open_BA
Projected Assumptions
x h O

Year Ending 31 December 2012 (A) 2013 (A) 2014 (A) 2015 (F) 2016 (F)
Revenues & Expenses
Base Period Periodic Growth Rates (% per Year)
Sales $Millions 120.0 5.0% 3.0% 2.5% 2.5%
Cost of Goods Sold % of Sales 45.0% 45.0% 45.0% 45.0% 45.0%
Base Period Periodic Growth Rates (% per Year)
Operating Expenditure $Millions 27.0 2.5% 2.5% 2.5% 2.5%
Capital Expenditure - PP&E $Millions 7.0 7.5 8.0 8.5 9.0
Capital Expenditure - Intangibles $Millions 1.0 1.3 1.5 1.8 2.0
Debtors & Creditors
Accounts Receivable Debtor Days 30 30 30 30 30
Accounts Payable Creditor Days 60 60 60 60 60
Assets
Depreciation & Amortisation Assumptions
Depreciation - PP&E % of Capex 90.0% 90.0% 90.0% 90.0% 90.0%
Depreciation - Intangibles % of Capex 95.0% 95.0% 95.0% 95.0% 95.0%
Proj_Ass_TA
Financial Statements
Section 2.

Contains live, linked three-way financial statements (Income Statement, Balance Sheet & Cash Flow Statement).
Financial_Statements_SC
Income Statement
x h O

Income Statement ($Millions)
Sales 120.0 126.0 129.8 133.0 136.4
Cost of Goods Sold (54.0) (56.7) (58.4) (59.9) (61.4)
Gross Margin 66.0 69.3 71.4 73.2 75.0
Operating Expenditure (27.0) (27.7) (28.4) (29.1) (29.8)
EBITDA 39.0 41.6 43.0 44.1 45.2
Depreciation - PP&E (6.3) (6.8) (7.2) (7.7) (8.1)
Depreciation - Intangibles (1.0) (1.2) (1.4) (1.7) (1.9)
Total Depreciation & Amortisation (7.3) (7.9) (8.6) (9.3) (10.0)
EBIT 31.8 33.7 34.4 34.8 35.2
Interest Expense (15.9) (16.2) (16.4) (16.6) (16.9)
Net Profit Before Tax (NPBT) 15.8 17.5 18.0 18.1 18.3
Tax Expense (4.7) (5.3) (5.4) (5.4) (5.5)
Net Profit After Tax (NPAT) 11.1 12.3 12.6 12.7 12.8
IS_TO
Balance Sheet
x h O

Balance Sheet ($Millions)
Current Assets
Opening Cash 50.0 76.0 85.1 92.2 97.9
Net Change in Cash Held 26.0 9.1 7.1 5.8 9.7
Cash 76.0 85.1 92.2 97.9 107.6
Accounts Receivable 9.8 10.4 10.7 10.9 11.2
Other Current Assets 1.0 2.0 3.0 2.0 1.5
Total Current Assets 86.8 97.4 105.8 110.9 120.3
Non-Current Assets
PP&E 250.7 251.5 252.3 253.1 254.0
Intangibles 100.1 100.1 100.2 100.3 100.4
Deferred Tax Assets 5 5 5 5 5
Other Non-Current Assets 12.0 12.0 12.0 12.0 12.0
Total Non-Current Assets 367.8 368.6 369.4 370.4 371.4
Total Assets 454.6 466.0 475.3 481.2 491.7
Current Liabilities
Accounts Payable 4.4 4.5 4.7 4.8 4.9
Interest Payable 15.9 16.2 16.4 16.6 16.9
BS_TO
Cash Flow Statement
x h O

Cash Flow Statement ($Millions)
Operating Cash Flows
Sales 120.0 126.0 129.8 133.0 136.4
Decrease in Accounts Receivable 0.2 (0.5) (0.3) (0.3) (0.2)
Cash Receipts 120.2 125.5 129.5 132.8 136.1
Cost of Goods Sold (54.0) (56.7) (58.4) (59.9) (61.4)
Operating Expenditure (27.0) (27.7) (28.4) (29.1) (29.8)
Increase in Accounts Payable (3.6) 0.1 0.1 0.1 0.1
Cash Payments (84.6) (84.3) (86.7) (88.8) (91.1)
Interest Paid (2.0) (15.9) (16.2) (16.4) (16.6)
Tax Paid (4.6) (5.0) (5.4) (5.7) (5.6)
Decrease / (Increase) in Other Current Assets 4.0 (1.0) (1.0) 1.0 0.5
Increase / (Decrease) in Other Current Liabilities (1.5) 0.5 0.5 (0.5) (0.3)
Net Operating Cash Flows 31.5 19.8 20.8 22.3 23.0
Investing Cash Flows
Capital Expenditure - PP&E (7.0) (7.5) (8.0) (8.5) (9.0)
Capital Expenditure - Intangibles (1.0) (1.3) (1.5) (1.8) (2.0)
Net Investing Cash Flows (8.0) (8.8) (9.5) (10.3) (11.0)
Financing Cash Flows
CFS_TO
Appendices
Section 3.

This section contains Appendices
Appendices_SC
Lookup Tables
Sub-Section 3.1.

Sub-Section Cover Notes:
This sub-section contains Lookup Tables
Lookup_Tables_SSC
Time Series Lookup Tables

Month Days Names
Month Days LU_Mth_Days
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
TS_LU

Month Names Names
Month Names LU_Mth_Names
January
February
March
April
May
June
July
August
September
October
November
December
Denomination Names
Denomination LU_Denom
$Billions Billions
$Millions Millions
$'000 Thousands
$ Currency
Data Term Basis Names
Data Term Basis LU_Data_Term_Basis
Active Data Periods
Projections Start
Periodicity Names
Periodicity LU_Periodicity
Annual Annual
Semi-Annual Semi_Annual
Quarterly Qtrly
Monthly Mthly
TS_LU

Period Type Names Names
Period Type Names LU_Period_Type_Names
Year Yr_Name
Half Year Half_Yr_Name
Quarter Qtr_Name
Month Mth_Name
Periods In Year Names
Periods In Year LU_Pers_In_Yr
1 Yrs_In_Yr
2 Halves_In_Yr
4 Qtrs_In_Yr
12 Mths_In_Yr
Conversion Factors Names
Conversion Factors
10 Ten
100 Hundred
1,000 Thousand
1,000,000 Million
1,000,000,000 Billion
TS_LU
Checks
Sub-Section 3.2.

Sub-Section Cover Notes:
This sub-section contains Checks
Checks_SSC
Checks
x h O
Error Checks
##
Errors Detected - Summary
Total Errors: -
Error Message (Empty if None):
Error Checks
Error Checks Check Include? Flag
Balance Sheet - Yes -
Total Errors: -
Include summary in model name?
Checks_BO
Checks
x h O
Sensitivity Checks
##
Sensitivities Detected - Summary
Total Sensitivities: -
Sensitivity Message (Empty if None):
Sensitivity Checks
Sensitivity Checks Check Include? Flag
Total Sensitivities: -
Checks_BO
Checks
x h O
Alert Checks
##
Alerts Detected - Summary
Total Alerts: -
Alert Message (Empty if None):
Alert Checks
Alert Checks Check Include? Flag
Opening Balance Sheet Assumptions - Yes -
Total Alerts: -
Checks_BO

BPM Financial Modelling Fundamentals Practical Exercise Solutions

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BPM Financial Modelling Fundamentals Practical Exercise Solutions

Uploaded by

Copyright:

Available Formats

BPM Financial Modelling

Financial Statements Modelling Exercise

You might also like