Financial Analysis & Forecasting

Purpose of Spreadsheet: Revised: 11/22/2002 active

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To illustrate concepts related to financial analysis and forecasting. Wksh5
The financial analysis uses a combination of ratios and industry averages to Wksh7
evaluate the financial performance of the company. Trend line graphs are also Wksh9
generated, comparing the company's performance with the industry averages. Wksh11
Finally, the historical information is used to prepare a set of pro forma Wksh13
financial statements using both linear and non-linear functions. Wksh15
Required Inputs:
You will need to collect financial statements for several reporting periods. If you
want to benchmark the performance against the industry, then you will also need
to collect industry averages. The spreadsheet is setup to capture five reporting
periods (annual, quarterly, monthly). All input fields are highlighted in yellow.
For best results, SEC Filings are suggested since these reports provide more
detail than published financial statements.
Note: A small red triangle in the upper right corner of a cell indicates that a comment has
been inserted. Point your mouse over the cell and the comment will appear.
If a cell appears in red, this indicates a warning concerning a calculation.
Worksheets:
This spreadsheet consists of the following worksheets, divided into three sections:
A) Input Worksheets for financial analysis using historical data:
Worksheet Title
2 General Input Enter general information here - used on several worksheets.
3 Balance Sheet Enter comparative balances sheets for up to five periods.
4 Income Statement Enter comparative income statements for up to five periods.
5 Cash Flow Statement Enter comparative cash flow statements for up to five periods.
Caution: If you enter less than five years of historical information, certain worksheet
formulas may have to be revised.
B) Output Worksheets for evaluating financial performance:
6 Key Financial Data Calculates key financial information for further analysis.
7 Ratio Analysis Calculates a series of ratios for further analysis.
8 Benchmark Analysis Compare ratio analysis to industry averages.
9 Horizontal Analysis Horizontal analysis with corresponding trend lines.
10 Vertical Analysis Common size financials in percentages and graphs.
C) Pro Forma / Forecasted Financials for Budgeting:
11 Pro Forma - Simple Set of pro forma financials using simple assumptions
12 Pro Forma - Regression Set of pro forma financials using linear trending
13 Pro Forma - Exponential Set of pro forma financials using exponential smoothing
Purpose
Prepared by Matt H. Evans, CPA, CMA, CFM
14 Scenario Analysis Example of Scenario Analysis and Goal Seek Analysis
15 Budget Analysis Preliminary budget analysis
16 Final Budgets Set of budgets per various assumptions and forecasts.
Note: Some additional worksheets (Answer Reports 1 & 2) may appear in the spreadsheet
due to the running of Solver.
Macros:
No macros have been used in this spreadsheet to give everyone some assurance that no viruses
are contained in the spreadsheet. However, you are free to add your own macros to save time.
Tools > Macro > Record New Macro
Excel Functions:
This spreadsheet uses certain financial functions (such as =TREND) which might not be
found in your version of Microsoft Excel. To take full advantage of financial and statistical
functions, you should install the Add On package titled: Analysis TookPak. Go to the main
tool bar, select Tools => Add-Ins => check the Analysis TookPak option, insert your
Excel CD and install the Analysis ToolPak. Also, you might want to install the Solver
Add-in since this is useful for solving special forecasting issues (such as finding the
optimal exponential factor).
Compatibility:
This spreadsheet was created with Microsoft Excel 2000. Older versions of Excel (such as 97)
may not be compatible with this spreadsheet.
Corrections:
With any attempt to build an Excel Model, I can easily make some mistakes.
So if you have suggestions to make the model better, drop me an email
and Ill be glad to improve the financial model. My email address is: matt@exinfm.com
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Enter general information here - used on several worksheets.
Enter comparative balances sheets for up to five periods.
Enter comparative income statements for up to five periods.
Enter comparative cash flow statements for up to five periods.
Caution: If you enter less than five years of historical information, certain worksheet
Calculates key financial information for further analysis.
Calculates a series of ratios for further analysis.
Horizontal analysis with corresponding trend lines.
Common size financials in percentages and graphs.
Set of pro forma financials using simple assumptions
Set of pro forma financials using exponential smoothing
Purpose
Prepared by Matt H. Evans, CPA, CMA, CFM
Example of Scenario Analysis and Goal Seek Analysis
Set of budgets per various assumptions and forecasts.
General Input Panel Home
The following general information should be entered: Wksh3
Note: Sample data has been entered in the input cells to help you get started. Wksh5
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2-1 Name of Company => Wksh9
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2-2 Reporting Periods => Annual (Annual, Semi-annual, Quarterly or Monthly) Wksh13
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2-3 Number of Days in Reporting Period are 365

What reporting periods will be entered?
2-4 Most Current Period 2000 (1999, July 1998, 6/30/97, etc.)
2-5 Previous Period 1999 (1999, July 1998, 6/30/97, etc.)
2-6 2nd Previous Period 1998 (1999, July 1998, 6/30/97, etc.)
2-7 3rd Previous Period 1997 (1999, July 1998, 6/30/97, etc.)
2-8 4th Previous Period 1996 (1999, July 1998, 6/30/97, etc.)
2-9 Number of historical periods to be analyzed 5
How are the amounts expressed in the financial statements?
(such as: in millions of dollars, thousands of Canadian dollars, etc.)
2-10

millions of dollars
X Y Z Corporation USA
active
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Balance Sheet for
X Y Z Corporation USA

Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Cash and Cash Equivalents 990 950 901 998 870
Short Term Marketable Securities 10 15 12 6 11
Accounts Receivable 1,020 1,550 1,830 2,250 3,040
Inventory 1,005 1,360 1,650 1,900 2,060
Other Current Assets 870 1,150 1,370 1,650 1,530
Total Current Assets 3,895 5,025 5,763 6,804 7,511
Fixed Assets 14,006 17,605 21,826 26,950 28,100
Accumulated Depreciation (1,280) (1,700) (2,100) (2,550) (3,010)
Net Fixed Assets 12,726 15,905 19,726 24,400 25,090
Longterm Investments 360 320 120 590 905
Investments in Other Companies 65 0 0 250 412
Intangibles and Other Assets 100 110 105 135 195
Total Non Current Assets 13,251 16,335 19,951 25,375 26,602
Total Assets 17,146 21,360 25,714 32,179 34,113

Accounts Payable 2,050 3,150 3,290 3,870 4,800
Short Term Borrowings 1,200 1,830 2,580 3,100 3,550
Short Term Portion of LT Debt 12 15 25 30 36
Other Current Liabilities 1,050 1,250 1,480 1,590 1,301
Total Current Liabilities 4,312 6,245 7,375 8,590 9,687
Longterm Debt / Borrowings 1,160 1,750 2,600 3,600 3,950
Other Longterm Liabilities 650 750 701 890 995
Total Non Current Liabilities 1,810 2,500 3,301 4,490 4,945
Total Liabilities 6,122 8,745 10,676 13,080 14,632
Preferred Equity 0 0 0 0 0
Prepared by Matt H. Evans 9/13/2014 Page 7
Balance Sheet for
X Y Z Corporation USA

Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Common Equity 2,044 2,005 2,069 2,090 2,120
Additional Paid in Capital 5,013 4,900 5,159 5,626 5,628
Retained Earnings 5,097 7,050 9,840 15,050 20,005
Adj for Foreign Currency Transl 275 120 (550) (2,147) (6,722)
Treasury Stock (1,405) (1,460) (1,480) (1,520) (1,550)
Total Shareholder Equity 11,024 12,615 15,038 19,099 19,481
Total Liabilities & Equity 17,146 21,360 25,714 32,179 34,113
Check: Assets = Liab + Equity ? 0 0 0 0 0
Comment => Balances Balances Balances Balances Balances
NonDepreciable Fixed Assets 0 0 0 0 0
Deferred Taxes 112 101 90 98 109
Goodwill Write Off 0 0 0 0 0
No of Common Shares o/s 1,320 1,290 1,302 1,345 1,322
Par Value of Common Stock $10.00 $10.00 $10.00 $10.00 $10.00
No of Preferred Shares o/s 0 0 0 0 0
Par Value of Preferred Stock
Market Price of Common Stock $22.65 $28.90 $37.05 $33.60 $29.40
Market Price of Preferred Stock $0.00 $0.00 $0.00 $0.00 $0.00
Preferred Dividends in Arrears 0 0 0 0 0
Liquidating value of Preferred Stk 0 0 0 0 0
Book Value per Share $8.35 $9.78 $11.55 $14.20 $14.74
Dividends per Common Share $1.01 $1.49 $1.89 $1.75 $1.76
Dividend Payout Ratio 45.47% 38.61% 39.44% 29.76% 30.24%
Cash Dividends to Preferred Stock 0 0 0 0 0
Prepared by Matt H. Evans 9/13/2014 Page 8
Balance Sheet for
X Y Z Corporation USA

Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Cash Dividends to Common Stock 1,330 1,918 2,461 2,354 2,329
Total Dividends Paid 1,330 1,918 2,461 2,354 2,329
Prepared by Matt H. Evans 9/13/2014 Page 9
Income Statement for
X Y Z Corporation USA
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Net Sales 12,060 16,700 21,170 24,700 27,400
Other Operating Revenues 16 19 26 37 48
Total Revenues 12,076 16,719 21,196 24,737 27,448
Cost of Goods Sold (4,950) (7,050) (8,233) (9,050) (10,150)
Other Operating Expenses (11) (13) (17) (22) (28)
Total Direct Expenses (4,961) (7,063) (8,250) (9,072) (10,178)
Selling, General & Administrative (3,300) (3,880) (4,637) (5,670) (7,120)
Operating Income 3,815 5,776 8,309 9,995 10,150
Interest Expenses (117) (122) (216) (282) (304)
Foreign Exchange (Loss) Gain 0 0 0 0 0
Associated Company (Loss) Gain 0 0 (22) 0 0
Other NonOperating (Loss) Gain 0 17 0 0 0
Income Tax Expense (790) (1,005) (2,050) (2,105) (2,660)
Reserve Charges 0 0 0 0 0
Income Before Extra Ord Items 2,908 4,666 6,021 7,608 7,186
Extra Ordinary Items (Loss) Gain 0 0 0 0 0
Tax Effects of Extraordinary Items 0 0 0 0 0
Minority Interests 17 302 219 303 515
Net Income 2,925 4,968 6,240 7,911 7,701
Primary EPS $2.22 $3.85 $4.79 $5.88 $5.83
Earnings Before Int & Taxes 3,832 6,095 8,506 10,298 10,665
Depreciation & Amortization (310) (420) (400) (450) (460)
Research & Devel Expenses 0 0 0 0 0
Capitalized Interest Expense (16) (19) (33) (39) (30)
Interest Income 4 6 11 19 27
Total Non Operating Expenses (907) (1,110) (2,288) (2,387) (2,964)
Prepared by Matt H. Evans 9/13/2014 Page 10
Income Statement for
X Y Z Corporation USA
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Total Extra Ordinary Items 17 302 219 303 515
Tax Rate 21.36% 17.78% 25.33% 21.67% 27.02%
Prepared by Matt H. Evans 9/13/2014 Page 11
Cash Flow Statement for
X Y Z Corporation USA
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Net Income 2,925 4,968 6,240 7,911 7,701
Depreciation and Amortization 310 420 400 450 460
(Increase) Decrease Defer Taxes (2) 11 11 (8) (11)
(Gain) Loss on Sale of Assets (55) 0 45 0 0
(Increase) Decrease Current Assets (162) (1,130) (738) (1,041) (707)
Increase (Decrease) Current Liab 206 1,933 1,130 1,215 1,097
Cash Flow from Operations 3,222 6,202 7,088 8,527 8,540
Capital Expenditures (1,455) (2,750) (3,880) (5,220) (4,108)
Acquisition in Other Co's (135) 0 0 0 0
Proceeds from Sales of Assets 112 35 0 150 182
Purchases of Investments (712) (1,979) (1,801) (2,314) (2,609)
Sale of Investments 162 129 330 221 50
Other Investment Activities 33 (166) 61 (12) 0
Cash Provided (Used) from Investmts (1,995) (4,731) (5,290) (7,175) (6,485)
Proceeds from Borrowings 1,070 1,044 1,460 1,880 1,105
Payments on Borrowings (1,112) (650) (898) (801) (961)
Dividends Paid to Shareholders (1,330) (1,918) (2,461) (2,354) (2,329)
Proceeds from Minority Interest 5 12 7 7 8
Issue Stock / Exercise Options 195 1 45 13 6
Purchase / Retire Common Stock 0 0 0 0 0
Other Financing Activities (75) 0 0 0 (12)
Cash Provided (Used) from Financing (1,247) (1,511) (1,847) (1,255) (2,183)
Increase (Decrease) to Cash (20) (40) (49) 97 (128)
Beginning Cash Balance 1,010 990 950 901 998
Prepared by Matt H. Evans 9/13/2014 Page 12
Cash Flow Statement for
X Y Z Corporation USA
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Ending Cash Balance 990 950 901 998 870
Check: Should agree to Balance Sheet 0 0 0 0 0
Comment => Balances Balances Balances Balances Balances
Prepared by Matt H. Evans 9/13/2014 Page 13
Key Financial Data for
X Y Z Corporation USA

Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
EBITDA :
Income before ExtraOrd Items 2,908 4,666 6,021 7,608 7,186
Interest Expense 117 122 216 282 304
Capitalized Interest Expense 16 19 33 39 30
Income Tax Expense 790 1,005 2,050 2,105 2,660
Reserve Charges 0 0 0 0 0
Depreciation and Amortization 310 420 400 450 460
EBITDA 4,141 6,232 8,720 10,484 10,640
EBITDA Margin 34% 37% 41% 42% 39%
Free Cash Flow:
Operating Cash Flow 3,222 6,202 7,088 8,527 8,540
Investment Cash Flows (1,995) (4,731) (5,290) (7,175) (6,485)
Preferred Dividends Paid (fixed) 0 0 0 0 0
Redemption of Fixed Obligations (1,112) (650) (898) (801) (961)
Other Critical Outlays (35) (45) (42) (30) (25)
Free Cash Flow 80 776 858 521 1,069
Working Capital:
Current Assets 3,895 5,025 5,763 6,804 7,511
Current Liabilities 4,312 6,245 7,375 8,590 9,687
Working Capital (417) (1,220) (1,612) (1,786) (2,176)
Liquid Capital:
Cash and Cash Equivalents 990 950 901 998 870
Marketable Securities 10 15 12 6 11
Accounts Receivable 1,020 1,550 1,830 2,250 3,040
Notes Receivable 0 0 0 0 0
Total Current Liabilities (4,312) (6,245) (7,375) (8,590) (9,687)
Long Term Debt (1,160) (1,750) (2,600) (3,600) (3,950)
Preferred Equity 0 0 0 0 0
Liquid Capital (3,452) (5,480) (7,232) (8,936) (9,716)
The following valuation indicators are very simple and basic; they are used as quick, rough estmates.
Market Capitalization:
Market Cap - Common Stk $29,898 $37,281 $48,239 $45,192 $38,867
Market Cap - Preferred Stk $0.00 $0.00 $0.00 $0.00 $0.00
Total Market Capitalization $29,898 $37,281 $48,239 $45,192 $38,867
Present Value:
Normalized Cash Flow Weight %'s 5.00% 10.00% 15.00% 30.00% 40.00%
Normalized Cash Flow 794
Key Financial Data for
X Y Z Corporation USA

Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
millions of dollars
Number of Future Periods 15
Required Rate of Return 11.00%
Present Value of Free Cash Flow $5,711
Present Value of Selling Price $315,000 <= estimated selling price $65,836
Present Value of Business $71,547
Revenue Multiplier:
Recent Gross Revenues 27,448
Average Competitive Rev Multiplier 3.14
Value based on Revenue Multiple $86,187
Capitalization of Earnings:
Normalized Net Income Weights % 5.00% 5.00% 25.00% 30.00% 35.00%
Normalized Net Income 6,681
Capitalization Rate 12.00%
Nominal Growth Rate 3.50%
Net Capitalization Rate 8.50%
Value based on Earnings $78,605
Operating Leverage 1.31 1.49 1.21 0.14
Financial Leverage 1.46 0.61 1.12 (0.65)

Total Leverage 1.92 0.91 1.36 (0.09)
Check Totals 0.00 1.92 0.91 1.36 (0.09)
Ratio Analysis for
X Y Z Corporation USA
Annual Annual Annual Annual Annual
Period Period Period Period Period
Title of Ratio 1996 1997 1998 1999 2000
Acid Test Ratio 0.47 0.40 0.37 0.38 0.40
Current Ratio 0.90 0.80 0.78 0.79 0.78
Operating Cash Flow to Net Income 1.10 1.25 1.14 1.08 1.11
Liquidity Index:
Cash - Days Removed 0 0 0 0 0
Cash Balance 990 950 901 998 870
Cash Balance Total 0 0 0 0 0
Marketable Sec - Days Removed 11 12 16 15 14
Marketable Securities Balance 10 15 12 6 11
Marketable Securities Total 110 180 192 90 154
Receivables - Days Removed 34 30 31 32 36
Receivable Balance 1,020 1,550 1,830 2,250 3,040
Receivable Balance Total 34,257 46,158 56,217 72,213 110,751
Inventory - Days Removed 79 61 67 72 71
Inventory Balance 1,005 1,360 1,650 1,900 2,060
Inventory Balance Total 79,745 83,261 110,092 136,018 146,676
Other - Days Removed 16 22 26 21 19
Other Current Assets Balance 870 1,150 1,370 1,650 1,530
Other Current Assets Total 13,920 25,300 35,620 34,650 29,070
Liquidity Index (Days) 33 31 35 36 38
Z Score:
1.2 x (working capital / total assets) (0.03) (0.07) (0.08) (0.07) (0.08)
1.4 x (retained earn / total assets) 0.42 0.46 0.54 0.65 0.82
3.3 x (EBIT / total assets) 0.74 0.94 1.09 1.06 1.03
.6 x (market value equity / b.v. debt) 15.46 12.78 11.13 7.53 5.90
.999 x (sales / total assets) 0.70 0.78 0.82 0.77 0.80
Z Score 17.29 14.90 13.51 9.94 8.48

Receivable Turnover:
Credit Sales 11,520 15,750 20,080 23,200 26,500
Average Receivable Balance 1,060 1,285 1,690 2,040 2,645
Receivable Turnover 10.9 12.3 11.9 11.4 10.0

Days Required to Collect A/R 34 30 31 32 36
Inventory Turnover:
Average Inventory Balance 1,046 1,183 1,505 1,775 1,980
Inventory Turnover 4.6 6.0 5.5 5.1 5.1

Days in Inventory 79 61 67 72 71
Total Asset Turnover 0.7 0.8 0.8 0.8 0.8
Ratio Analysis for
X Y Z Corporation USA
Annual Annual Annual Annual Annual
Period Period Period Period Period
Title of Ratio 1996 1997 1998 1999 2000
Operating Assets Ratio 0.97 0.98 0.99 0.97 0.96
Gross Profit Margin 59% 58% 61% 63% 63%
Operating Margin 32% 35% 39% 40% 37%
Net Profit Margin 24% 30% 29% 32% 28%
Direct Cost to Operating Revenues 41% 42% 39% 37% 37%
Capitalization Rate / Asset Return:
Net Operating Income 3,000 4,749 6,204 7,829 7,408
Total Investments / Operating Assets 16,621 20,930 25,489 31,204 32,601
Capitalization Rate / Return 18.05% 22.69% 24.34% 25.09% 22.72%
Return on Shareholder Equity 24% 33% 35% 33% 26%

Debt to Total Assets 0.36 0.41 0.42 0.41 0.43
Debt to Common Equity 0.50 0.63 0.63 0.57 0.53
Times Interest Earned 33 50 39 37 35
Price to Earnings (P/E) 10.2 7.5 7.7 5.7 5.0

Price to Book Value 2.7 3.0 3.2 2.4 2.0
Stock Yield 4.45% 5.14% 5.10% 5.21% 5.99%
Home Wksh2 Benchmark Analysis for
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Wksh7 active You need to collect benchmark data on the respective industry for the subject company.
Wksh9 Wksh10 Enter the benchmark data in the appropriate input cells. This information is used to
Wksh11 Wksh12 generate trend line graphs in this worksheet. If you do not have any benchmark data,
Wksh13 Wksh14 then fill in the highlighted yellow cell with numeric zero "0". The "industry" line will be null
Wksh15 Wksh16 in the graph and show only the company specific ratio trend.

Annual Annual Annual
Period Period Period
Ref Description 1996 1997 1998
8-1 Acid Test Ratio - Industry 0.51 0.52 0.50
7-1 Acid Test Ratio - Company 0.47 0.40 0.37
8-2 Current Ratio - Industry 1.12 1.10 1.05
7-2 Current Ratio - Company 0.90 0.80 0.78
8-3 Receivable Turnover - Industry 8.50 8.70 8.40
7-21 Receivable Turnover - Company 10.87 12.26 11.88
8-4 Days to Collect A/R - Industry 41 39 40
7-22 Days to Collect A/R - Company 34 30 31
8-5 Inventory Turnover - Industry 4.40 4.45 4.20
7-25 Inventory Turnover - Company 4.60 5.96 5.47
8-6 Days in Inventory - Industry 86 88 81
7-26 Days in Inventory - Company 79 61 67
8-7 Asset Turnover - Industry 1.60 1.55 1.62
7-27 Asset Turnover - Company 0.70 0.78 0.82
8-8 Gross Profit Margin - Industry 55.00% 52.00% 60.00%
7-29 Gross Profit Margin - Company 58.96% 57.78% 61.11%
8-10 Net Profit Margin - Industry 20.00% 23.00% 22.00%
7-31 Net Profit Margin - Company 24.22% 29.71% 29.44%
8-11 Return on Total Assets - Industry 38.00% 36.00% 37.00%
8-12 Return on Total Assets - Company 30.00% 25.80% 26.51%
8-13 Return on Equity - Industry 26.00% 22.00% 24.00%
8-14 Return on Equity - Company 23.93% 33.44% 35.28%
8-15 Debt to Equity - Industry 35% 38% 31%
7-38 Debt to Equity - Company 50% 63% 63%
8-16 Times Interest Earned - Industry 40 38 36
7-39 Times Interest Earned - Company 33 50 39
We added the following two ratios to assess if the Company has excessive growth:
4-13 Provision for Taxes (790) (1,005) (2,050)
8-17 Trading Ratio - Company 1.24 1.37 1.52
8-18 Trading Ratio - Industry 1.26 1.28 1.31
8-19 Net Sales to Net Worth - Company 1.18 1.44 1.63
8-20 Net Sales to Net Worth - Industry 1.22 1.20 1.19
Source for Benchmark Data: Almanac of Business and Industrial Financial Ratios by Leo Troy, Prentice Hall
Graphs appear below for each of the above comparisons:
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1996 1997 1998 1999 2000
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Acid Ratio Comparison
Acid Test Ratio -
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Acid Test Ratio -
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Current Ratio Comparison
Current Ratio -
Industry
Current Ratio -
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Receivable Turnover Comparison
Receivable Turnover
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Receivable Turnover
- Company
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1996 1997 1998 1999 2000
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Receivable Collection Comparison
Days to Collect A/R -
Industry
Days to Collect A/R -
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Inventory Turnover Comparison
Inventory Turnover -
Industry
Inventory Turnover -
Company
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1996 1997 1998 1999 2000
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Inventory Days Comparison
Days in Inventory -
Industry
Days in Inventory -
Company
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1996 1997 1998 1999 2000
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Asset Turnover Comparison
Asset Turnover -
Industry
Asset Turnover -
Company
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70.00%
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Gross Profit Margin
Gross Profit Margin -
Industry
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1996 1997 1998 1999 2000
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Gross Profit Margin -
Industry
Gross Profit Margin -
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1996 1997 1998 1999 2000
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Net Profit Margin
Net Profit Margin -
Industry
Net Profit Margin -
Company
Return on Equity Comparison
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20.00%
25.00%
30.00%
35.00%
40.00%
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Return on Total Assets
Return on Total
Assets - Industry
Return on Total
Assets - Company
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
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Return on Equity Comparison
Return on Total
Assets - Industry
Return on Total
Assets - Company
0%
10%
20%
30%
40%
50%
60%
70%
1996 1997 1998 1999 2000
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Debt to Equity Comparison
Debt to Equity -
Industry
Debt to Equity -
Company
0
10
20
30
40
50
60
1996 1997 1998 1999 2000
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Times Interest Earned
Times Interest Earned
- Industry
Times Interest Earned
- Company
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1996 1997 1998 1999 2000
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Trading Ratio Comparison
Trading Ratio -
Industry
Trading Ratio -
Company
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1996 1997 1998 1999 2000
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Sales to Worth Comparison
Net Sales to Net
Worth - Industry
Net Sales to Net
Worth - Company

You need to collect benchmark data on the respective industry for the subject company.
generate trend line graphs in this worksheet. If you do not have any benchmark data,
then fill in the highlighted yellow cell with numeric zero "0". The "industry" line will be null
Annual Annual
Period Period
1999 2000
0.49 0.48
0.38 0.40
1.08 1.07
0.79 0.78
8.20 8.30
11.37 10.02
41 41
32 36
4.30 4.38
5.10 5.13
89 82
72 71
1.68 1.69
0.77 0.80
62.00% 63.00%
63.36% 62.96%
19.00% 20.00%
31.98% 28.06%
34.00% 36.00%
27.33% 23.23%
19.00% 20.00%
33.42% 25.89%
34% 32%
57% 53%
39 43
37 35
(2,105) (2,660)
1.44 1.49
1.30 1.27
1.45 1.63
1.22 1.20
Source for Benchmark Data: Almanac of Business and Industrial Financial Ratios by Leo Troy, Prentice Hall
Acid Test Ratio -
Acid Test Ratio -
Company
Current Ratio -
Industry
Current Ratio -
Company
Receivable Turnover
Receivable Turnover
Days to Collect A/R -
Days to Collect A/R -
Inventory Turnover -
Inventory Turnover -
Days in Inventory -
Days in Inventory -
Asset Turnover -
Asset Turnover -
Company
Gross Profit Margin -
Gross Profit Margin -
Gross Profit Margin -
Net Profit Margin -
Net Profit Margin -
Return on Total
Assets - Industry
Return on Total
Assets - Company
Return on Total
Assets - Industry
Return on Total
Assets - Company
Debt to Equity -
Industry
Debt to Equity -
Company
Times Interest Earned
Times Interest Earned
Trading Ratio -
Industry
Trading Ratio -
Company
Net Sales to Net
Worth - Industry
Net Sales to Net
Worth - Company
Horizontal Analysis for
X Y Z Corporation USA
Horizontal Analysis expresses change between periods as percentages for each account in
the financial statements. The basic formula for horizontal analysis is:
% change = (most recent period - previous period) / previous period

Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
Growth in Net Sales 32.50% 38.47% 26.77% 16.67% 10.93%
Cost of Goods Sold 29.00% 42.42% 16.78% 9.92% 12.15%
Growth in Gross Profits 2.90% -1.99% 5.76% 3.68% -0.64%
Growth in Interest Expense 16.50% 4.27% 77.05% 30.56% 7.80%
Growth in Income Tax Expense 12.90% 27.22% 103.98% 2.68% 26.37%
Growth in Non Operating Expenses 3.80% 22.38% 106.13% 4.33% 24.17%
Growth in Minority Interest 96.00% 1676.47% -27.48% 38.36% 69.97%
Growth in Net Income 33.50% 69.85% 25.60% 26.78% -2.65%
Growth in Earnings Per Share 32.60% 73.80% 24.45% 22.73% -0.96%
Cash and Cash Equivalents 3.08% -4.04% -5.16% 10.77% -12.83%
Short Term Marketable Securities 12.00% 50.00% -20.00% -50.00% 83.33%
Accounts Receivable 26.70% 51.96% 18.06% 22.95% 35.11%
Inventory 19.90% 35.32% 21.32% 15.15% 8.42%
Other Current Assets 26.70% 32.18% 19.13% 20.44% -7.27%
Total Current Assets 21.50% 29.01% 14.69% 18.06% 10.39%
Net Fixed Assets 17.80% 24.98% 24.02% 23.69% 2.83%
Longterm Investments 6.20% -11.11% -62.50% 391.67% 53.39%
Investments in Other Companies 0.00% -100.00% #DIV/0! #DIV/0! 64.80%
Intangibles and Other Assets 16.50% 10.00% -4.55% 28.57% 44.44%
Total Non Current Assets 32.50% 23.27% 22.14% 27.19% 4.84%
Growth in Total Assets 1.05% 24.58% 20.38% 25.14% 6.01%
Accounts Payable 26.20% 53.66% 4.44% 17.63% 24.03%
Short Term Borrowings 33.50% 52.50% 40.98% 20.16% 14.52%
Short Term Portion of LT Debt 16.70% 25.00% 66.67% 20.00% 20.00%
Other Current Liabilities 12.80% 19.05% 18.40% 7.43% -18.18%
Total Current Liabilities 38.02% 44.83% 18.09% 16.47% 12.77%
Longterm Debt / Borrowings 46.00% 50.86% 48.57% 38.46% 9.72%
Other Longterm Liabilities 11.30% 15.38% -6.53% 26.96% 11.80%
Total Non Current Liabilities 37.10% 38.12% 32.04% 36.02% 10.13%
Growth in Total Liabilities 31.05% 42.85% 22.08% 22.52% 11.87%
Preferred Equity 0.00% #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Common Equity 2.60% -1.91% 3.19% 1.01% 1.44%
Additional Paid in Capital 1.50% -2.25% 5.29% 9.05% 0.04%
Retained Earnings 38.00% 38.32% 39.57% 52.95% 32.92%
Adj for Foreign Currency Transl -166.00% -56.36% -558.33% 290.36% 213.09%
Treasury Stock 2.01% 3.91% 1.37% 2.70% 1.97%
Growth in Total Equity (Net Worth) 6.11% 14.43% 19.21% 27.00% 2.00%
Sustainable Growth Rate #1 13.05% 20.53% 21.36% 23.47% 18.06%
Sustainable Growth Rate #2 10.88% 12.91% 13.91% 9.94% 7.83%
Growth in Market Capitalization 14.50% 24.69% 29.39% -6.32% -14.00%
Vertical Analysis for
X Y Z Corporation USA
Vertical analysis expresses financial statements as percentages. On the Balance Sheet,
Total Assets is assigned 100% and on the Income Statement, Total Revenues is assigned 100%.

Annual Annual Annual Annual Annual
Period Period Period Period Period
Account Title 1996 1997 1998 1999 2000
Cash and Cash Equivalents 5.77% 4.45% 3.50% 3.10% 2.55%
Short Term Marketable Securities 0.06% 0.07% 0.05% 0.02% 0.03%
Accounts Receivable 5.95% 7.26% 7.12% 6.99% 8.91%
Inventory 5.86% 6.37% 6.42% 5.90% 6.04%
Other Current Assets 5.07% 5.38% 5.33% 5.13% 4.49%
Current Assets 22.72% 23.53% 22.41% 21.14% 22.02%
Net Fixed Assets 74.22% 74.46% 76.71% 75.83% 73.55%
Longterm Investments 2.10% 1.50% 0.47% 1.83% 2.65%
Investments in Other Companies 0.38% 0.00% 0.00% 0.78% 1.21%
Intangibles and Other Assets 0.58% 0.51% 0.41% 0.42% 0.57%
Non Current Assets 77.28% 76.47% 77.59% 78.86% 77.98%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Accounts Payable 11.96% 14.75% 12.79% 12.03% 14.07%
Short Term Borrowings 7.00% 8.57% 10.03% 9.63% 10.41%
Short Term Portion of LT Debt 0.07% 0.07% 0.10% 0.09% 0.11%
Other Current Liabilities 6.12% 5.85% 5.76% 4.94% 3.81%
Total Current Liabilities 25.15% 29.24% 28.68% 26.69% 28.40%
Longterm Debt / Borrowings 6.77% 8.19% 10.11% 11.19% 11.58%
Other Longterm Liabilities 3.79% 3.51% 2.73% 2.77% 2.92%
Total NonCurrent Liabilities 10.56% 11.70% 12.84% 13.95% 14.50%
Total Liabilities 35.71% 40.94% 41.52% 40.65% 42.89%
Preferred Equity 0.00% 0.00% 0.00% 0.00% 0.00%
Common Equity 11.92% 9.39% 8.05% 6.49% 6.21%
Additional Paid in Capital 29.24% 22.94% 20.06% 17.48% 16.50%
Retained Earnings 29.73% 33.01% 38.27% 46.77% 58.64%
Adj for Foreign Currency Transl 1.60% 0.56% -2.14% -6.67% -19.71%
Treasury Stock -8.19% -6.84% -5.76% -4.72% -4.54%
Total Equity 64.29% 59.06% 58.48% 59.35% 57.11%
Total Liabilities & Equity 100.00% 100.00% 100.00% 100.00% 100.00%
Total Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
expressed in percentages
Cost of Goods Sold 40.99% 42.17% 38.84% 36.58% 36.98%
Gross Profit 58.96% 57.78% 61.11% 63.36% 62.96%
Operating Expenses 27.42% 23.28% 21.96% 23.01% 26.04%
Non Operating Expenses 7.51% 6.64% 10.79% 9.65% 10.80%
Income Before Extra Ord Items 24.08% 27.91% 28.41% 30.76% 26.18%
Net Income 24.22% 29.71% 29.44% 31.98% 28.06%
Annual Annual Annual Annual Annual
Period Period Period Period Period
Enter Your Forecast Periods => 2001 2002 2003 2004 2005
Pro Forma Income Statement

Gross Revenues 30,742 34,431 38,562 43,190 48,373
Growth Assumptions 12.00% 12.00% 12.00% 12.00% 12.00%
Cost of Goods Sold (12,024) (13,467) (15,083) (16,893) (18,920)
Growth Assumptions 39.11% 39.11% 39.11% 39.11% 39.11%

Operating Expenses (7,483) (8,381) (9,387) (10,513) (11,775)
Growth Assumptions 24.34% 24.34% 24.34% 24.34% 24.34%
NonOperating Expenses (3,200) (3,200) (3,600) (3,600) (4,000)
ExtraOrdinary Items 650 650 650 700 700

Net Income 8,685 10,033 11,143 12,884 14,378

Pro Forma Cash Flow Statement
Sources of Operating Cash Flow:
Net Income 8,685 10,033 11,143 12,884 14,378
Depreciation and Amortization 470 490 500 520 550
(Increase) Decrease Defer Taxes 0 0 0 0 0
(Gain) Loss on Sale of Assets 15 9 2 3 6
(Increase) Decrease Current Assets (789) (996) (1,116) (1,249) (1,399)
Increase (Decrease) Current Liab 1,073 1,291 1,446 1,620 1,814

Operating Cash Flow 9,453 10,827 11,975 13,777 15,348

Investment Sources of Cash Flow:
Planned Sale of Assets 100 60 20 25 35
Planned Sale of Investments 2,200 2,100 1,900 1,800 1,700
Other Investment Sources to be used 0 0 0 0 0
Total Investment Sources of Cash 2,300 2,160 1,920 1,825 1,735
Planned Investments:
Capital Expenditures (3,500) (3,000) (3,100) (2,700) (2,600)
Acquisitions in Other Co's (500) (750) (1,200) (650) (350)
Purchases of Investments (3,000) (3,500) (4,500) (6,000) (7,000)
Total Investment Applications of Cash (7,000) (7,250) (8,800) (9,350) (9,950)
Cash Flow from Financing Activities:
Proceeds from Loans & Debt 1,300 1,000 950 750 650
Proceeds from Minority Interest 20 60 80 90 100
Other Financing Activities 0 0 0 0 0
Total Financing Sources of Cash 1,320 1,060 1,030 840 750
Annual Annual Annual Annual Annual
Period Period Period Period Period
Enter Your Forecast Periods => 2001 2002 2003 2004 2005
Cash Flow Applied for Financing:
Payments on Loans & Debt (1,500) (1,000) (600) (500) (500)
Dividends Paid to Shareholders (2,500) (3,000) (4,000) (5,500) (7,000)
Purchase / Retire Stock (2,000) (2,000) (1,500) (1,000) (500)
Other Financing Activities 0 0 0 0 0
Total Financing Applications of Cash (6,000) (6,000) (6,100) (7,000) (8,000)
Total Change to Cash 73 797 25 92 (117)
Beginning Cash Balance 870 943 1,740 1,765 1,857
Forecasted Ending Balance 943 1,740 1,765 1,857 1,740
Pro Forma Balance Sheet
Cash and Cash Equivalents 943 1,740 1,765 1,857 1,740
Short Term Marketable Securities 0 0 0 0 0
Accounts Receivable 3,074 3,443 3,856 4,319 4,837
Inventory 2,459 2,754 3,085 3,455 3,870
Other Current Assets 1,998 2,238 2,507 2,807 3,144
Total Current Assets 8,475 10,175 11,213 12,438 13,591
Fixed Assets 31,600 34,600 37,700 40,400 43,000
Accumulated Depreciation (3,480) (3,970) (4,470) (4,990) (5,540)
Net Fixed Assets 28,120 30,630 33,230 35,410 37,460
Longterm Investments 1,705 3,105 5,705 9,905 15,205
Investments in Other Companies 912 1,662 2,862 3,512 3,862
Intangibles and Other Assets 200 240 320 400 650
Total Non Current Assets 30,937 35,637 42,117 49,227 57,177
Total Assets 39,412 45,812 53,330 61,665 70,768
Accounts Payable 5,226 5,853 6,556 7,342 8,223
Short Term Borrowings 3,689 4,132 4,627 5,183 5,805
Short Term Portion of LT Debt 30 30 25 20 15
Other Current Liabilities 1,845 2,066 2,314 2,591 2,902
Total Current Liabilities 10,790 12,081 13,522 15,136 16,945
Longterm Debt / Borrowings 3,750 3,750 4,100 4,350 4,500
Other Longterm Liabilities 700 750 800 800 800
Total Non Current Liabilities 4,450 4,500 4,900 5,150 5,300
Total Liabilities 15,240 16,581 18,422 20,286 22,245
Preferred Equity 0 0 0 0 0
Common Equity 2,200 2,200 2,200 2,200 2,200
Additional Paid in Capital 5,700 5,700 5,700 5,700 5,700
Annual Annual Annual Annual Annual
Period Period Period Period Period
Enter Your Forecast Periods => 2001 2002 2003 2004 2005
Retained Earnings 26,190 33,222 40,365 47,748 55,126
Adj for Foreign Currency Transl (5,000) (4,000) (2,500) (1,500) (500)
Treasury Stock (3,550) (5,550) (7,050) (8,050) (8,550)
Total Equity 25,540 31,572 38,715 46,098 53,976
External Financing Required (EFR) (1,368) (2,341) (3,807) (4,720) (5,453)
Home Wksh2 ProForma Financials (Linear Trend Model)
Wksh3 Wksh4 X Y Z Corporation USA
Wksh5 Wksh6
Wksh7 Wksh8 A set of pro forma (forecasted) financial statements are generated using the results of
Wksh9 Wksh10 the historical analysis in the previous worksheets. A statistical method known as
Wksh11 active linear regression is used to predict future values. If you have important assumptions
Wksh13 Wksh14 that are important to the forecast, then these assumptions should over-ride the
Wksh15 Wksh16 linear calculations since we want our forecast to be as accurate as possible.
Key Point => If your historical information has gradual trends, then linear regression
is an appropriate model for forecasting. However, if your historical information has
distinct steps up or down, then you should consider using a smoothing model .

Before we adopt a regression model, it's a good idea to generate a scatter graph of the actual data
and observe if there is a clear trend for fitting a straight regression line into the data:
The calculation of linear values is determined by defining the slope of the line and the y intercept:
Order Total Rev Linear
Formula for Linear Trendline: Year variable x actual y Value y
1996 1 12,076 12,683
y = ( m * x ) + b 1997 2 16,719 16,559
1998 3 21,196 20,435
m: slope of line 1999 4 24,737 24,311
x: independent variable 2000 5 27,448 28,188
b: y intercept 2001 6 32,064
2002 7 35,940
2003 8 39,816
2004 9 43,692
2005 10 47,569
The degree of linear fit with the actual data can be expressed as R Square 0.9888

Annual Annual Annual Annual
Period Period Period Period
2001 2002 2003 2004
0
5,000
10,000
15,000
20,000
25,000
30,000
1995 2000 2005
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Total Revenues
Total Revenues
Pro Forma Income Statement
12-1 Gross Revenues 32,064 35,940 39,816 43,692
12-2 Cost of Goods Sold (11,607) (12,847) (14,087) (15,327)
12-3 Operating Expenses (7,750) (8,693) (9,636) (10,579)
12-4 Operating Income 12,707 14,400 16,093 17,786
12-5 Non Operating Expenses (3,549) (4,088) (4,627) (5,166)
4-25 Extra Ordinary Items 271 271 271 271
Net Income 9,429 10,584 11,738 12,892
Pro Forma Cash Flow Statement
Sources of Operating Cash Flow:
Net Income 9,429 10,584 11,738 12,892
Depreciation and Amortization 470 490 500 520
(Increase) Decrease Defer Taxes 0 0 0 0
(Gain) Loss on Sale of Assets 15 9 2 3
(Increase) Decrease Current Assets (1,146) (1,047) (1,047) (1,047)
Increase (Decrease) Current Liab 1,535 1,357 1,357 1,357
Operating Cash Flow 10,304 11,393 12,550 13,725
Investment Sources of Cash Flow:
Planned Sale of Assets 100 60 20 25
Planned Sale of Investments 2,200 2,100 1,900 1,800
Other Investment Sources to be used 0 0 0 0
Total Investment Sources of Cash 2,300 2,160 1,920 1,825
Planned Investments:
Capital Expenditures (3,500) (3,000) (3,100) (2,700)
Acquisitions (500) (750) (1,200) (650)
Purchases of Investments (3,000) (3,500) (4,500) (6,000)
Total Investment Applications of Cash (7,000) (7,250) (8,800) (9,350)
Cash Flow from Financing Activities:
Proceeds from Loans & Debt 1,300 1,000 950 750
Proceeds from Minority Interest 20 60 80 90
Other Financing Activities 0 0 0 0
Total Financing Sources of Cash 1,320 1,060 1,030 840
Cash Flow Applied for Financing:
Payments on Loans & Debt (1,500) (1,000) (600) (500)
Dividends Paid to Shareholders (2,500) (3,000) (4,000) (5,500)
Purchase / Retire Stock (2,000) (2,000) (1,500) (1,000)
Other Financing Activities 0 0 0 0
Total Financing Applications of Cash (6,000) (6,000) (6,100) (7,000)
Total Change to Cash 924 1,363 600 40
Beginning Cash Balance 870 1,794 3,156 3,756
Forecasted Ending Balance 1,794 3,156 3,756 3,796
Pro Forma Balance Sheet
Cash and Cash Equivalents 1,794 3,156 3,756 3,796
Short Term Marketable Securities 0 0 0 0
Accounts Receivable 3,206 3,594 3,982 4,369
Inventory 2,565 2,875 3,185 3,495
Other Current Assets 2,084 2,336 2,588 2,840
Total Current Assets 9,649 11,962 13,511 14,501
Fixed Assets 31,600 34,600 37,700 40,400
Accumulated Depreciation (3,480) (3,970) (4,470) (4,990)
Net Fixed Assets 28,120 30,630 33,230 35,410
Longterm Investments 1,705 3,105 5,705 9,905
Investments in Other Companies 912 1,662 2,862 3,512
Intangibles and Other Assets 200 240 320 400
Total Non Current Assets 30,937 35,637 42,117 49,227
Total Assets 40,586 47,599 55,628 63,728
Accounts Payable 5,451 6,110 6,769 7,428
Short Term Borrowings 3,848 4,313 4,778 5,243
Short Term Portion of LT Debt 30 30 25 20
Other Current Liabilities 1,924 2,156 2,389 2,622
Total Current Liabilities 11,252 12,609 13,961 15,312
Longterm Debt / Borrowings 3,750 3,750 4,100 4,350
Other Longterm Liabilities 700 750 800 800
Total Non Current Liabilities 4,450 4,500 4,900 5,150
Total Liabilities 15,702 17,109 18,861 20,462
Preferred Equity 0 0 0 0
Common Equity 2,200 2,200 2,200 2,200
Additional Paid in Capital 5,700 5,700 5,700 5,700
Retained Earnings 26,934 34,518 42,256 49,648
Adj for Foreign Currency Transl (5,000) (4,000) (2,500) (1,500)
Treasury Stock (3,550) (5,550) (7,050) (8,050)
Total Equity 26,284 32,868 40,606 47,998
External Financing Required (EFR) (1,401) (2,379) (3,838) (4,732)
Before we adopt a regression model, it's a good idea to generate a scatter graph of the actual data
The calculation of linear values is determined by defining the slope of the line and the y intercept:
Slope Intercept
m factor b factor
3876.20 8806.60

Annual
Period
2005
47,569
(16,567)
(11,522)
19,480
(5,705)
271
14,046
14,046
550
0
6
(1,047)
1,357
14,912
35
1,700
0
1,735
(2,600)
(350)
(7,000)
(9,950)
650
100
0
750
(500)
(7,000)
(500)
0
(8,000)
(553)
3,796
3,243
3,243
0
4,757
3,805
3,092
14,897
43,000
(5,540)
37,460
15,205
3,862
650
57,177
72,074
8,087
5,708
15
2,854
16,664
4,500
800
5,300
21,964
0
2,200
5,700
56,694
(500)
(8,550)
55,544
(5,433)
Home Wksh2 ProForma Financials (Exponential Smoothing / Weighted Moving Average)
Wksh3 Wksh4 X Y Z Corporation USA
Wksh5 Wksh6
Wksh7 Wksh8 A set of pro forma (forecasted) financial statements are generated using the results of
Wksh9 Wksh10 the historical analysis in the previous worksheets. A statistical method known as
Wksh11 Wksh12 exponential smoothing is used to plot a trend over historical data. Additionally, we
active Wksh14 can use a weighted moving average to forecast future periods.
Wksh15 Wksh16 Key Point => If you have a general upward historical trend, weighted average will tend
to underestimate forecasted values and vice versa (downward trend = overestimate).

Exponential Smoothing and Weighted Moving Averages for Total Revenues:
Years => 1996 1997 1998
Total Revenues - Historical 12,076 16,719 21,196
Total Revenues - Exponential 12,076 12,076 16,719
Total Revenues - Wt Moving Avg 11,105 15,230 18,890
Smoothing Factor must be between 0 and 1 0 1 Total weights should add up to =>
Set Smoothing Factor 1.00
Assign weights to appropriate periods 0.00% 1.50% 4.50%
Find the Optimal Smoothing Factor:
Total Exponent
Revenues Amounts Difference
12,076 12,076 0
16,719 12,076 4,643
21,196 16,719 4,477
24,737 21,196 3,541
27,448 24,737 2,711
Mean Squared Error


Find the Optimal Moving Weights:
Total Weighted
Revenues Amounts Difference
12,076 11,105 971
16,719 15,230 1,489
21,196 18,890 2,306
24,737 21,605 3,132
27,448 22,965 4,483
Mean Squared Error
20,000
25,000
30,000
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Exponential Comparison
Total Revenues -
Historical
Annual Annual Annual
Period Period Period
2001 2002 2003
Pro Forma Income Statement
Gross Revenues 26,070 26,413 26,316
Cost of Goods Sold (10,197) (10,207) (9,860)

Operating Expenses (6,346) (6,226) (6,229)
Operating Income 9,527 9,979 10,227
NonOperating Expenses (3,200) (3,200) (3,600)
ExtraOrdinary Items 650 650 650

Net Income 6,977 7,429 7,277
Pro Forma Cash Flow Statement
Sources of Operating Cash Flow:
Net Income 6,977 7,429 7,277
Depreciation and Amortization 470 490 500
(Increase) Decrease Defer Taxes 0 0 0
(Gain) Loss on Sale of Assets 15 9 2
(Increase) Decrease Current Assets 472 (92) 26
Increase (Decrease) Current Liab (562) 120 (34)
Operating Cash Flow 7,372 7,956 7,771
Investment Sources of Cash Flow:
Planned Sale of Assets 100 60 20
Planned Sale of Investments 2,200 2,100 1,900
Other Investment Sources to be used 0 0 0
Total Investment Sources of Cash 2,300 2,160 1,920
0
5,000
10,000
15,000
20,000
2001 2002 2003 2004 2005
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Total Revenues -
Historical
Total Revenues -
Exponential
Total Revenues -
Wt Moving Avg
Planned Investments:
Capital Expenditures (3,500) (3,000) (3,100)
Acquisitions (500) (750) (500)
Purchases of Investments (2,000) (3,000) (3,000)
Total Investment Applications of Cash (6,000) (6,750) (6,600)
Cash Flow from Financing Activities:
Proceeds from Loans & Debt 1,300 2,000 3,000
Proceeds from Minority Interest 20 60 80
Other Financing Activities 0 0 0
Total Financing Sources of Cash 1,320 2,060 3,080
Cash Flow Applied for Financing:
Payments on Loans & Debt (1,500) (1,800) (2,500)
Dividends Paid to Shareholders (2,500) (3,000) (4,000)
Purchase / Retire Stock 0 0 0
Other Financing Activities 0 0 0
Total Financing Applications of Cash (4,000) (4,800) (6,500)
Total Change to Cash 992 626 (329)
Beginning Cash Balance 870 1,862 2,488
Forecasted Ending Balance 1,862 2,488 2,159
Pro Forma Balance Sheet
Cash and Cash Equivalents 1,862 2,488 2,159
Short Term Marketable Securities 0 0 0
Accounts Receivable 2,607 2,641 2,632
Inventory 2,086 2,113 2,105
Other Current Assets 1,695 1,717 1,711
Total Current Assets 8,249 8,959 8,606
Fixed Assets 31,600 34,600 37,700
Accumulated Depreciation (3,480) (3,970) (4,470)
Net Fixed Assets 28,120 30,630 33,230
Longterm Investments 705 1,605 2,705
Investments in Other Companies 912 1,662 2,162
Intangibles and Other Assets 75 100 150
Total Non Current Assets 29,812 33,997 38,247
Total Assets 38,061 42,956 46,853
Accounts Payable 4,432 4,490 4,474
Short Term Borrowings 3,128 3,170 3,158
Short Term Portion of LT Debt 30 30 25
Other Current Liabilities 1,564 1,585 1,579
Total Current Liabilities 9,155 9,274 9,236
Longterm Debt / Borrowings 3,750 3,950 4,450
Other Longterm Liabilities 700 750 800
Total Non Current Liabilities 4,450 4,700 5,250
Total Liabilities 13,605 13,974 14,486
Preferred Equity 0 0 0
Common Equity 2,200 2,200 2,200
Additional Paid in Capital 5,700 5,700 5,700
Retained Earnings 17,505 14,505 10,505
Adj for Foreign Currency Transl (5,000) (3,500) (1,000)
Treasury Stock (1,550) (1,550) (1,550)
Total Equity 18,855 17,355 15,855
External Financing Required (EFR) 5,602 11,627 16,513
ProForma Financials (Exponential Smoothing / Weighted Moving Average)


1999 2000 2001 2002 2003 2004 2005
24,737 27,448
21,196 24,737
21,605 22,965 26,070 26,413 26,316 26,355 26,340
Total weights should add up to => 100.00%
34.50% 59.50% 100.00%
Square
0
21,557,449
20,043,529
12,538,681
7,349,521
12,297,836

Square
942,841
2,217,121
5,317,636
9,809,424
20,100,607
7,677,526
Total Revenues -
Annual Annual
Period Period
2004 2005
26,355 26,340
(9,694) (9,740)

(6,464) (6,859)
10,197 9,740
(3,600) (4,000)
700 700
7,297 6,440
7,297 6,440
520 550
0 0
3 6
(11) 4
14 (5)
7,824 6,995
25 35
1,800 1,700
0 0
1,825 1,735
Total Revenues -
Total Revenues -
Total Revenues -
Wt Moving Avg
(3,900) (4,600)
0 0
(1,000) (1,000)
(4,900) (5,600)
4,500 7,000
90 100
0 0
4,590 7,100
(4,000) (6,000)
(4,000) (3,000)
0 0
0 0
(8,000) (9,000)
1,339 1,230
2,159 3,497
3,497 4,728
3,497 4,728
0 0
2,636 2,634
2,108 2,107
1,713 1,712
9,955 11,181
41,600 46,200
(4,990) (5,540)
36,610 40,660
1,905 1,205
2,162 2,162
150 100
40,827 44,127
50,782 55,308
4,480 4,478
3,163 3,161
20 15
1,581 1,580
9,244 9,234
4,950 5,950
800 800
5,750 6,750
14,994 15,984
0 0
2,200 2,200
5,700 5,700
6,505 3,505
0 0
(1,550) (1,550)
12,855 9,855
22,932 29,469
Home Wksh2 Scenario Analysis for
Wksh3 Wksh4 X Y Z Corporation USA
Wksh5 Wksh6
Wksh7 Wksh8 We can copy our forecast into a new worksheet and do scenario analysis and goal-seek analysis.
Wksh9 Wksh10 Although Microsoft Excel includes Scenario Manager, it can be easier and quicker to simply do our
Wksh11 Wksh12 scenario analysis manually. We can use Goal Seek to find a value for a cell given a corresponding
Wksh13 active formula in another cell.
Wksh15 Wksh16
Annual Annual Annual
Period Period Period
2001 2002 2003
Pro Forma Income Statement (Simple Projection Method)
Scenario => Non Operating Expenses will decline by $ 100,000 in year 2003 and again in year 2005:
Gross Revenues 30,742 34,431 38,562
Cost of Goods Sold (12,024) (13,467) (15,083)
Operating Expenses (7,483) (8,381) (9,387)
NonOperating Expenses (3,200) (3,200) (3,100)
ExtraOrdinary Items 650 650 650
Net Income 8,685 10,033 11,643
Instead of copying our forecast into this worksheet, we can simply do scenario analysis directly in
the forecast itself.
Pro Forma Income Statement (Linear Trend Method)
Goal Seek => What total revenues are required if Net Income must be $ 13.5 million in Year 2004?
Gross Revenues 32,064 35,940 39,816
Cost of Goods Sold (11,607) (12,847) (14,087)
Operating Expenses (7,750) (8,693) (9,636)
Non Operating Expenses (3,549) (4,088) (4,627)
Extra Ordinary Items 271 271 271
Net Income (formula cells) 9,430 10,584 11,738
Do not change formula cells (goals) to values
when using Goal Seek (Tools > Goal Seek)
This is the target cell that Goal Seek is seeking
to change per the value 13,500 in cell G34
We can copy our forecast into a new worksheet and do scenario analysis and goal-seek analysis.
Although Microsoft Excel includes Scenario Manager, it can be easier and quicker to simply do our
scenario analysis manually. We can use Goal Seek to find a value for a cell given a corresponding
Annual Annual
Period Period
2004 2005
Scenario => Non Operating Expenses will decline by $ 100,000 in year 2003 and again in year 2005:
43,190 48,373
(16,893) (18,920)
(10,513) (11,775)
(3,100) (3,000)
700 700
13,384 15,378
Instead of copying our forecast into this worksheet, we can simply do scenario analysis directly in
Goal Seek => What total revenues are required if Net Income must be $ 13.5 million in Year 2004?
44,301 47,569
(15,327) (16,567)
(10,579) (11,522)
(5,166) (5,705)
271 271
13,500 14,046
Do not change formula cells (goals) to values
when using Goal Seek (Tools > Goal Seek)
This is the target cell that Goal Seek is seeking
to change per the value 13,500 in cell G34
Home Wksh2 Budget Analysis for
Wksh3 Wksh4 X Y Z Corporation USA
Wksh5 Wksh6
Wksh7 Wksh8 Once we complete our forecast, we can summarize and review it before finalizing it
Wksh9 Wksh10 into the form of budgets. We also need to summarize our assumptions that should
Wksh11 Wksh12 go into our final budget. We can start our budget process by reviewing the different
Wksh13 Wksh14 revenue forecast:
active Wksh16

Annual Annual Annual
Period Period Period
2001 2002 2003
Summarize Revenue Forecast:
Simple Projection Model 30,742 34,431 38,562
Linear Trend Model 32,064 35,940 39,816
Wt Moving Avg Model 26,070 26,413 26,316
Declining Growth Model 29,644 31,422 32,679
Historical Data 12,076 16,719 21,196
Projection using declining growth rates:
Gross Revenues 29,644 31,422 32,679
In addition to using linear models for forecasting, we can apply several non-linear (curve) models:
Logarithmic - Used when rate of change in data suddenly shifts upward or downward.
Power - Used when rate of change in data occurs at a specific rate.
Exponential - Used when rate of change is increasing or decreasing at ever higher rates.
0
10,000
20,000
30,000
40,000
50,000
60,000
2001 2002 2003 2004 2005
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Periods
Forecast Comparisons
Simple Projection
Model
Linear Trend Model
Wt Moving Avg
Model
Declining Growth
Model
Historical Data
Polynomial - Used when rate of change fluctuates with no pattern.
Logarithmic Trend
Actual Predicted
Formula for Logarithmic Trendline x factor Values Value y
1 12,076 (11,242)
y = ( c * LN (x)) - b 2 16,719 (4,587)
3 21,196 (695)
LN: Natural Logarithm 4 24,737 2,067
5 27,448 4,210
6 5,960
7 7,440
8 8,722
9 9,853
10 10,865
Power Trendline
Actual Predicted
y = b * x^c x factor Values Value y
1 12,076 11,951
2 16,719 17,109
3 21,196 21,104
4 24,737 24,493
5 27,448 27,491
6 30,212
7 32,721
8 35,063
9 37,267
10 39,356
Exponential Trendline
Actual Predicted
x factor Values Value y
y = b * EXP ( c * x ) 1 12,076 13,061
2 16,719 16,007
3 21,196 19,618
4 24,737 24,043
5 27,448 29,465
6 36,111
7 44,256
8 54,238
9 66,472
10 81,464
Polynomial Trendline
Actual Predicted
y = (c2 * x^2) + (c1 * x^1) + b x factor Values Value y
1 12,076 11,997
2 16,719 16,902
3 21,196 21,121
4 24,737 24,654
5 27,448 27,502
6 29,664
7 31,140
8 31,930
9 32,035
10 31,454

Summarize Non Linear Curves on Graph:
1996 1997 1998
Logarithmic Trendline (11,242) (4,587) (695)
Power Trendline 11,951 17,109 21,104
Exponential Trendline 13,061 16,007 19,618
Polynomial Trendline 11,997 16,902 21,121
Actual Revenues 12,076 16,719 21,196
Variance Analysis of Past Budgets:
Accuracy in the budget process should be examined to determine the degree of error or
variance in the budget process. If the variance is high, this indicates a need to improve
planning techniques within the company. TBD: To be Determined
(20,000)
0
20,000
40,000
60,000
80,000
100,000
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Non Linear Trends
1996 1997 1998
Income Statement Items
Total Revenues - Budgeted 10,500 14,500 22,500
Total Revenues - Actual 12,076 16,719 21,196
% difference from actual -13% -13% 6%
Cost of Goods Sold - Budgeted (4,500) (6,500) (8,648)
Cost of Goods Sold - Actual (4,950) (7,050) (8,233)
% difference from actual -9% -8% 5%
Operating Income - Budgeted 3,100 4,900 9,000
Operating Income - Actual 3,815 5,776 8,309
% difference from actual -19% -15% 8%
Net Income - Budgeted 2,100 4,100 6,500
Net Income - Actual 2,925 4,968 6,240
% difference from actual -28% -17% 4%
Balance Sheet Items
Current Assets - Budgeted 3,450 4,400 6,250
Current Assets - Actual 3,895 5,025 5,763
% difference from actual -11% -12% 8%
NonCurrent Assets - Budgeted 10,900 14,000 22,000
NonCurrent Assets - Actual 13,251 16,335 19,951
% difference from actual -18% -14% 10%
Current Liabilities - Budgeted 3,750 5,600 8,200
Current Liabilities - Actual 4,312 6,245 7,375
% difference from actual -13% -10% 11%
NonCurrent Liabilities - Budgeted 1,750 2,450 3,750
NonCurrent Liabilities - Actual 1,810 2,500 3,301
% difference from actual -3% -2% 14%
Ratio Items
Current Ratio - Budgeted 0.92 0.79 0.76
Current Ratio - Actual 0.90 0.80 0.78
% difference from actual 2% -2% -2%
Total Asset Turnover - Budgeted 0.68 0.72 0.80
Total Asset Turnover - Actual 0.70 0.78 0.82
% difference from actual -3% -8% -3%
Gross Profit Margin - Budgeted 60% 60% 60%
Gross Profit Margin - Actual 59% 58% 61%
% difference from actual 2% 4% -2%
Net Profit Margin - Budgeted 19% 25% 28%
Net Profit Margin - Actual 24% 30% 29%
% difference from actual -22% -16% -5%
Debt to Common Equity - Budgeted 0.45 0.50 0.60
Debt to Common Equity - Actual 0.50 0.63 0.63
% difference from actual -11% -20% -4%
Return on Equity - Budgeted 20% 29% 32%
Return on Equity - Actual 24% 33% 35%
% difference from actual -16% -13% -9%
We can use specific measurements to track and control forecasting errors:
Mean Absolute Error - An absolute value of forecast errors, does not place weight on the
amount of the error. Calculated as the sum of (actual values - predicted values) / n.
Mean Square Error - Similar to Mean Absolute Error, but does place more emphasis on
the amount of error; i.e. an error of 8 is twice as significant as 4. Calculated as the
sum of (actual values - predicted values)^2 / n.
Root Mean Square Error - To make the Mean Square Error useful and comparable to the Mean
Absolute Error, we can take the square root of the Mean Square Error. We can then use this
as a guide to establish an error limit or standard for flagging unacceptable errors.
Actual Forecasted
Example: Total Revenues Period Revenues Revenues
n: total number of periods 1996 12,076 10,500
1997 16,719 14,500
1998 21,196 22,500
1999 24,737 28,500
2000 27,448 30,000
n => 5 Sum =>
Mean Absolute Error
Mean Square Error
Root Mean Sqr Error
Establish Error Limits

Once we complete our forecast, we can summarize and review it before finalizing it
into the form of budgets. We also need to summarize our assumptions that should
go into our final budget. We can start our budget process by reviewing the different
Annual Annual
Period Period
2004 2005
43,190 48,373
43,692 47,569
26,355 26,340
33,170 31,000
24,737 27,448
33,170 31,000
In addition to using linear models for forecasting, we can apply several non-linear (curve) models:
Logarithmic - Used when rate of change in data suddenly shifts upward or downward.
Exponential - Used when rate of change is increasing or decreasing at ever higher rates.
Simple Projection
Linear Trend Model
Wt Moving Avg
Declining Growth
Historical Data
Slope Intercept
c factor b factor
9600.91841 11242.3365






Slope Intercept
c factor b factor
0.51758981 9.38859823
11951.3346
< - calculate using c and b factor - >
Slope Intercept Predicted
c factor b factor ( c * x) EXP Value y
0.20339009 9.27401935 0.20339 1.2255504 13,061
10657.5022 0.40678 1.5019739 16,007
0.61017 1.8407448 19,618
0.81356 2.2559256 24,043
1.01695 2.7647506 29,465
1.22034 3.3883414 36,111
1.42373 4.1525833 44,256
1.62712 5.0892003 54,238
1.83051 6.2370717 66,472
2.03390 7.6438461 81,464
c2 c1 b
-342.85714 5933.34286 6406.6










1999 2000 2001 2002 2003 2004 2005
2,067 4,210 5,960 7,440 8,722 9,853 10,865
24,493 27,491 30,212 32,721 35,063 37,267 39,356
24,043 29,465 36,111 44,256 54,238 66,472 81,464
24,654 27,502 29,664 31,140 31,930 32,035 31,454
24,737 27,448
Accuracy in the budget process should be examined to determine the degree of error or
variance in the budget process. If the variance is high, this indicates a need to improve
Non Linear Trends
Logarithmic
Trendline
Power Trendline
Exponential
Trendline
Polynomial
Trendline
Actual Revenues
(Wksht 16)
1999 2000 2001
28,500 30,000 30,500
24,737 27,448 TBD
15% 9% #VALUE!
(9,650) (11,000) (11,929)
(9,050) (10,150) TBD
7% 8% #VALUE!
11,000 10,500 11,146
9,995 10,150 TBD
10% 3% #VALUE!
9,000 9,300 7,986
7,911 7,701 TBD
14% 21% #VALUE!
7,500 7,900 8,253
6,804 7,511 TBD
10% 5% #VALUE!
27,500 29,500 31,555
25,375 26,602 TBD
8% 11% #VALUE!
9,050 9,400 10,715
8,590 9,687 TBD
5% -3% #VALUE!
4,900 5,100 5,250
4,490 4,945 TBD
9% 3% #VALUE!
0.83 0.80 0.77
0.79 0.78 TBD
5% 3% #VALUE!
0.80 0.79 0.77
0.77 0.80 TBD
4% -2% #VALUE!
60% 60% 0.61
63% 63% TBD
-5% -5% #VALUE!
30% 28% 26%
32% 28% TBD
-6% 0% #VALUE!
0.65 0.55 0.48
0.57 0.53 TBD
13% 4% #VALUE!
35% 30% 24%
33% 26% TBD
5% 16% #VALUE!
Mean Absolute Error - An absolute value of forecast errors, does not place weight on the
amount of the error. Calculated as the sum of (actual values - predicted values) / n.
Mean Square Error - Similar to Mean Absolute Error, but does place more emphasis on
the amount of error; i.e. an error of 8 is twice as significant as 4. Calculated as the
Root Mean Square Error - To make the Mean Square Error useful and comparable to the Mean
Absolute Error, we can take the square root of the Mean Square Error. We can then use this
as a guide to establish an error limit or standard for flagging unacceptable errors. Is Error
Error Outside
Error Absolute Squared Limit?
1,576 1,576 2,483,776 No
2,219 2,219 4,923,961 Yes
(1,304) 1,304 1,700,416 No
(3,763) 3,763 14,160,169 Yes
(2,552) 2,552 6,512,704 Yes
(3,824) 3,824 14,622,976 Yes
Mean Absolute Error 765
Mean Square Error 2,924,595
Root Mean Sqr Error 1,710
Establish Error Limits 1,710
Home Wksh2 Final Budgets for
Wksh3 Wksh4 X Y Z Corporation USA
Wksh5 Wksh6
Wksh7 Wksh8 Now that we have analyzed our historical data and placed it into a set of
Wksh9 Wksh10 forecast, we can pull it all together with our assumptions for a final budget.
Wksh11 Wksh12 Many of these assumptions should be included in our forecast for improved
Wksh13 Wksh14 accuracy. However, we need to fine tune and finalize all assumptions
Wksh15 active so that we can produce a final finished budget for planning purposes.

Budget
Period
Ref 2001
Operating Plan
16-1 Total Revenues 30,500
16-2 Cost of Goods Sold (11,929)
16-3 Operating Expenses (7,424)
16-4 Operating Income 11,146

16-5 Interest Expenses (310)
16-6 Income Taxes (3,300)
16-7 Other Non Operating Expenses (200)
16-8 Earnings Before Extra Ord Items 7,336
16-9 Extra Ordinary Items 650

16-10 Net Income 7,986
Financial Plan
Budgeted Cash Flows
16-11 Net Income 7,986
16-12 Depreciation and Amortization 470
16-13 (Increase) Decrease Defer Taxes 0
16-14 (Gain) Loss on Sale of Assets 15
16-15 (Increase) Decrease Current Assets (724)
16-16 (Increase) Decrease Current Liab 988

16-17 Operating Cash Flow 8,735
Investment Sources of Cash:
16-18 Planned Sale of Assets 100
16-19 Planned Sale of Investments 2,200
16-20 Other Investment Sources to be used 0
16-21 Total Investment Sources of Cash 2,300
Planned Investments:
16-22 Capital Expenditures (4,500)
16-23 Acquisitions in Other Co's (350)
16-24 Purchases of Investments (2,500)
16-25 Total Investment Applications of Cash (7,350)
Cash Flow from Financing Activities
16-26 Proceeds from Loans & Debt 1,450
16-27 Proceeds from Minority Interest 15
16-28 Other Financing Activities 0
16-29 Total Financing Sources of Cash 1,465
Cash Flow Applied for Financing:
16-30 Payments on Loans and Debt (1,250)
16-31 Dividends Paid to Shareholders (2,500)
16-32 Purchase / Retire Stock (1,500)
16-33 Other Financing Activities 0
16-34 Total Financing Applications of Cash (5,250)
16-35 Total Change to Cash (100)
16-36 Beginning Cash Balance 870
16-37 Forecasted Ending Balance 770
Budgeted Balance Sheet
16-38 Cash and Cash Equivalents 770
16-39 Short Term Marketable Securities 10
16-40 Accounts Receivable 3,050
16-41 Inventory 2,440
16-42 Other Current Assets 1,983
16-43 Total Current Assets 8,253
16-44 Fixed Assets 32,600
16-45 Accumulated Depreciation (3,480)
16-46 Net Fixed Assets 29,120
16-47 Longterm Investments 1,205
16-48 Investments in Other Companies 1,000
16-49 Intangibles and Other Assets 230
16-50 Total Non Current Assets 31,555
16-51 Total Assets 39,808
16-52 Accounts Payable 5,185
16-53 Short Term Borrowings 3,660
16-54 Short Term Portion of LT Debt 40
16-55 Other Current Liabilities 1,830
16-56 Total Current Liabilities 10,715
16-57 Longterm Debt / Borrowings 4,150
16-58 Other Longterm Liabilities 1,100
16-59 Total Non Current Liabilities 5,250
16-60 Total Liabilities 15,965
16-61 Preferred Stock 0
16-62 Common Equity 2,200
16-63 Additional Paid in Capital 5,700
16-64 Retained Earnings 25,491
16-65 Adj for Foreign Currency Translation (5,000)
16-66 Treasury Stock (3,050)
16-67 Total Equity 25,341
16-68 Total Liabilities and Equity 41,306

16-69 External Financing Required (1,499)
Now that we have analyzed our historical data and placed it into a set of
forecast, we can pull it all together with our assumptions for a final budget.
Many of these assumptions should be included in our forecast for improved
accuracy. However, we need to fine tune and finalize all assumptions
so that we can produce a final finished budget for planning purposes.
Assumptions & Comments
Based on review of Pro Forma Financials, Marketing, etc.
Volume projections, production budgets, and vertical analysis
Average % of Sales per Vertical Analysis
Based on anticipated levels of debt and past history
Based on anticipated taxable income and effective rate
Provision for contingency was added on this line item
Per our Simple Model Forecast
Review of Simple Model Forecast and Capital Expenditure Budget
Per Simple Forecast Model
Same formula as used in forecast models
Same formula as used in forecast models
Per Simple Model Forecast
Per Simple Model Forecast
Budgeted $ 4.5 million in Capital Expenditure Budget
Per forecast, strategic plan, and other budgets
Per forecast, strategic plan, and other budgets
Per Financing Requirements and other budgets
Per historical financials and investment budget
Per forecast and other budgets
Per Simple Model Forecast
Per strategic plan and other budgets
Per above
Per historical financials
Same formula as used in forecast models
Same formula as used in forecast models
Same formula as used in forecast models
Same formula as used in forecast models
Same formula as used in forecast models
Same formula as used in forecast models
Per review of forecast and strategic plans
Per review of forecast and historical balances
Same formula as used in forecast models
Same formula as used in forecast models
Per review of forecast and historical information
Same formula as used in forecast models
Same formula as used in forecast models
Per review of historical information and expected growth rates.
Per Simple Model Forecast
Per Simple Model Forecast
Same formula as used in forecast models
Per Simple Model Forecast
Same formula as used in forecast models
Microsoft Excel 9.0 Answer Report
Worksheet: [Detail_Analysis.xls]13 - Pro Forma (Exp)
Report Created: 3/16/2002 3:42:28 PM
Target Cell (Min)
Cell Name Original Value Final Value
$G$60 Mean Squared Error Square 20,525,549 12,297,836
Adjustable Cells
Cell Name Original Value Final Value
$D$24 Set Smoothing Factor 0.70 1.00
Constraints
Cell Name Cell Value Formula Status Slack
$D$23 Smoothing Factor must be between 0 and 1 0 $D$23>=$D$23 Binding 0
$D$24 Set Smoothing Factor 1.00 $D$24<=$E$23 Binding 0
Microsoft Excel 9.0 Answer Report
Worksheet: [Detail_Analysis.xls]13 - Pro Forma (Exp)
Report Created: 3/16/2002 5:19:05 PM
Target Cell (Min)
Cell Name Original Value
$G$46 Mean Squared Error Square 65,536,151
Adjustable Cells
Cell Name Original Value
$D$25 Assign weights to appropriate periods 0.00%
$E$25 Assign weights to appropriate periods 2.00%
$F$25 Assign weights to appropriate periods Total weights should add up to => 5.00%
$G$25 Assign weights to appropriate periods 35.00%
$H$25 Assign weights to appropriate periods 60.00%
Constraints
Cell Name Cell Value
$I$25 Assign weights to appropriate periods 100.00%
$D$25 Assign weights to appropriate periods 0.00%
$E$25 Assign weights to appropriate periods 1.50%
$F$25 Assign weights to appropriate periods Total weights should add up to => 4.50%
$G$25 Assign weights to appropriate periods 34.50%
$H$25 Assign weights to appropriate periods 59.50%
$D$25 Assign weights to appropriate periods 0.00%
$E$25 Assign weights to appropriate periods 1.50%
$F$25 Assign weights to appropriate periods Total weights should add up to => 4.50%
$G$25 Assign weights to appropriate periods 34.50%
$H$25 Assign weights to appropriate periods 59.50%
Final Value
59,853,342
Final Value
0.00%
1.50%
4.50%
34.50%
59.50%
Formula Status Slack
$I$25=$E$23 Binding 0
$D$25<=$E$23 Not Binding 1
$E$25<=$E$23 Not Binding 0.985
$F$25<=$E$23 Not Binding 0.955
$G$25<=$E$23 Not Binding 0.655
$H$25<=$E$23 Not Binding 0.405
$D$25>=$D$23 Binding 0.00%
$E$25>=$D$23 Not Binding 1.50%
$F$25>=$D$23 Not Binding 4.50%
$G$25>=$D$23 Not Binding 34.50%
$H$25>=$D$23 Not Binding 59.50%