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92 ROE 65%
93 68%
94 ROA 70%
95 75%
96 EPS
97
98
99 WHAT-IF data table 2: ROE
A B C D E F G H
100 Sales Growth Rates
101 0.00% 5% 8%
102 60%
Cost of Sales
103 65%
104 68%
105 70%
106 75%
107
108
109
110 Sensitivity of Net Income to Key Variables
111 (Applied to 2008 Income Statement Data)
112 70% 80% 90% 100% 110% 120%
113
114 Sales
115
116 COGS
117
118 Selling and Admin.
I J K L M N
CE ANALYSIS
1 Requirements:
2 + Go to the Report section: the projecting part
for 2010 has been done for you (LUCKY FOR
3 YOU!!!).
4
5 + Insert formulas in yellow cells in the table
6 "Ratios for the projected 2010"
7 + Generate the two blue tables. What are the
8 possible inference that you can get from these
9 two what-if analyses?
10
+In the table "Sensitivity...” construct formulas
11 for cells C114, C116 and C118 and copy them
12 across. Instruction:
13 C114 =($E$35*C112)-($E$38+$E$39+$E$40+
14 $E$41)-$E$46-$E$49
15 C116 =$E$35-($E$38*C112+$E$39+$E$40+
16 $E$41)-$E$46-$E$49
C118 =$E$35-($E$38+$E$39*C112+$E$40+
17
$E$41)-$E$46-$E$49
18
19 + From the "Sensitivity..." table, produce a Line
20 Graph and conclude from the chart what
21 variable has the most effect on Net Income (it is
22 the variable with the steepest line)
23
24
25
26
27
28
29
30
Projected Sales
315%
Increase
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
I J K L M N
49
50
51
52
53 Sales
Projected
Increase
54 5%
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
Sales Growth89Rates
90 10%
91
92
93
94
95
96
97
98
99
I J K L M N
100Rates
Sales Growth
101 10%
102
103
104
105
106
107
108
109
110
111
112 130%
113
114
115
116
117
118
G32: Projected Sales Increase 5%