Financial Modelling Mid Term

There are 4 sheets in this workbook.

All sheets are compulsory.
Follow the instruction on each of the sheet.
Do not insert/ delete any cell/ row/ column
Input the values only in the cells highlighted in yellow
Duration of the mid term is 60 minutes
Enable iterative calculation, wherever necessary
Do not hard code any solution
Hard coded solution will not be awarded any marks

CLO PLO Marks

Q1 1 2 5 All entries carry equal marks
Q2 1 2 2.5 All entries carry equal marks
Q3 1 2 5 All entries carry equal marks
Q4 2 2 12.5 Details given below

Q1 All entries carry equal marks

Q2 All entries carry equal marks
Q3 All entries carry equal marks
Q4
Forecasting (Cell G11: H36)
except following 7.5
Trial Assets 1
Trial Liabilities 1
Debt 1
Cash 1
Net Interest Expense 1
Instructions for Q1
Forecast the income statement for 2023 to 2027 on the basis of following set of assumptions.
Input values only in cell highlighted in yellow
NO HARD CODING
Each entry has equal marks

Assumptions
2023E 2024E
Revenue Growth Rate 7%
COGS as a% of Sales 38% 40%
Salaries as a % of Sales 3% 4%
Rent as a % of Sales 2% 2%
Office Expenses as a % of Sales 1% 1%
Outstanding Loan (taken at the beg of year) 0 0
Interest % 12% 12%
Tax 30% 30%

Income Statament
2023E 2024E
Revenue 10,000.0 10,700.0
COGS 3,800.0 4,280.0
Gross Profit 6,200.0 6,420.0
Salaries 300.0 374.5
Rent 200.0 214.0
Office Expenses 100.0 107.0
EBIT 5,600.0 5,724.5
Interest - -
EBT 5,600.0 5,724.5
Tax @30% 1,680.0 1,717.4
Net Profit 3,920.0 4,007.2
Net Profit Margin 39% 37%
 Please enter following
Full Name
of assumptions. Roll No.

ns
2025E 2026E 2027E
8% 9% 9%
42% 41% 41%
4% 4% 4%
2% 3% 3%
1% 2% 2%
0 0 5000
10% 10% 10%
30% 30% 30%

ment
2025E 2026E 2027E
11,556.0 12,596.0 13,729.7
4,853.5 5,164.4 5,629.2
6,702.5 7,431.7 8,100.5
404.5 440.9 549.2
231.1 377.9 411.9
115.6 251.9 274.6
5,951.3 6,361.0 6,864.8
- - 500.0
5,951.3 6,361.0 6,364.8
1,785.4 1,908.3 1,909.5
4,165.9 4,452.7 4,455.4
36% 35% 32%
Instructions for Q2
Complete the partially completed income statement for 2015, 2016 and 2017.
Input values only in cell highlighted in yellow
NO HARD CODING
Each entry has equal marks

Income Statement
2015 2016 2017
Revenue 1234.9 1251.7 1300.4
Cost of Goods Sold 679.1 659 681.3
Gross Profit 555.8 592.7 619.1
SG&A 327.9 341 344.2
Depreciation 47.5 52 55.9
EBIT 180.4 199.7 219
Net Interest Expense 14.9 13.7 18.8
EBT 165.5 186 200.2
Taxes 56.8 64.2 67.5
Net Income 108.7 121.8 132.7

Dividends 38.3 38.7 39.8

Transfer to Retained Earnings 70.4 83.1 92.9
Instructions for Q3
Complete the partially completed Balance Sheet for 2018, 2019 and 2020.
Input values only in cell highlighted in yellow
NO HARD CODING
Each entry has equal marks
Data is till Row no. 39

Balance Sheet
Assets 2018 2019 2020
Cash 25.6 23 32.1
Accounts Receivable 99.4 102.9 107.3
Inventories 109.6 108 114.9
Other Current Assets 96.7 91.4 103.7
Total Current Assets 331.3 325.3 358

PPE (Net) 436.1 437.5 468.1

Other Non-Current Assets 203.2 205.1 407

Total Assets 970.6 967.9 1233.1

Liab and Equity 2018 2019 2020

Accounts Payable 82.8 77.1 71.8
Advances Received 39.1 29.7 79.8
Other Current Liab 152 123.8 172.1
Total Current Liab 273.9 230.6 323.7

Long Term Debt 163.5 145 202

Other Non-Current Liab 122.9 99.7 130
Total Liabilities 560.3 475.3 655.7

Paid-in Capital 46.9 46.1 38

Retaind Earnings 363.4 446.5 539.4
Total Shareholders' Equity 410.3 492.6 577.4
Total Liabilities and Shareholders' Equity 970.6 967.9 1233.1
Additional Information 2018 2019 2020
Net Income 108.7 121.8 132.7
Dividends 38.3 38.7 39.8
Transfer to Retained Earnings 70.4 83.1 92.9
Complete the partially completed forecasts (Income Statement and Balance Sheet) for 2022 and 2023
Enable Iterations wherever deemed necessary
Use 2021 as the Base Year
Input values only in cell highlighted in yellow
NO HARD CODING
Distribution of marks are provided in the 'Instructions' Sheet

Income Statement
Assumptions
2022
Revenue Growth 6%
Cost of goods sold % of sales 32%
Gross Profit Calculated
Operating Expenses % of sales 8%
EBIT Calculated
Net Interest expense % of debt/ excess cash 7%
Earnings before tax (EBT) Calculated
Taxes % of EBT 30%
Earnings after tax Calculated

Dividend 140
Transferred to retained earnings Calculated
Balance Sheet
Cash (excess) Plug
Accounts receivables % of sales 4%
Inventories % of sales 5%
Other current Assets % of sales 2%
Net fixed assets 2,200
Total Assets Calculated

Accounts Payable % of sales 3.50%

Revenue received in advance % of sales 1%
Other current liabilities % of sales 1%
Debt Plug
Total Shareholders' equity (including retained earnings) Calculated
Total Liabilities and Equity Calculated
 22 and 2023

atement
ptions Base Year Actuals Forecast
2023 2021A 2022E 2023E
6% 2,500.0 2,650.0 2,809.0
32% 800.0 848.0 898.9
ated 1,700.0 1,802.0 1,910.1
8% 200.0 212.0 224.7
ated 1,500.0 1,590.0 1,685.4
7% -46.4 -60.9 9.5
ated 1,546.4 1,650.9 1,675.9
30% 463.9 495.3 502.8
ated 1,082.5 1,155.6 1,173.1

170 150.0 140.0 170.0

ated 932.5 1,015.6 1,003.1
e Sheet
g 662.5 869.9 -
4% 100.0 106.0 112.4
5% 125.0 132.5 140.5
2% 50.0 53.0 56.2
4,200 1,400.0 2,200.0 4,200.0
ated 2,337.5 3,361.4 4,509.0

3.50% 87.5 92.8 98.3

1% 25.0 26.5 28.1
1% 25.0 26.5 28.1
g - - 135.7
ated 2,200.0 3,215.6 4,218.8
ated 2,337.5 3,361.4 4,509.0

Trial Asset 2,491.5 4,509.0

Trial Liab 3,361.4 4,373.2
Plug -869.9 135.7