Financial Analysis & Forecasting

Prepared by Matt H. Evans, CPA, CMA, CFM

Purpose of Spreadsheet: Revised: 11/22/2002 active Wksh2
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To illustrate concepts related to financial analysis and forecasting. Wksh5 Wksh6
The financial analysis uses a combination of ratios and industry averages to Wksh7 Wksh8
evaluate the financial performance of the company. Trend line graphs are also Wksh9 Wksh10
generated, comparing the company's performance with the industry averages. Wksh11 Wksh12
Finally, the historical information is used to prepare a set of pro forma Wksh13 Wksh14
financial statements using both linear and non-linear functions. Wksh15 Wksh16

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 Purpose

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
7 Ratio Analysis
8 Benchmark Analysis
9 Horizontal Analysis
10 Vertical Analysis
Calculates key financial information for further analysis.
Calculates a series of ratios for further analysis.
Compare ratio analysis to industry averages.
Horizontal analysis with corresponding trend lines.
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
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.
 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 => X Y Z Corporation USA 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
active
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 Home Balance Sheet for
>> > X Y Z Corporation USA
<< < millions of dollars
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Description 1996 1997 1998 1999 2000
Current Assets

3-1 Cash and Cash Equivalents 990 950 901 998 870
3-2 Short Term Marketable Securities 10 15 12 6 11
3-3 Accounts Receivable 1,020 1,550 1,830 2,250 3,040
3-4 Inventory 1,005 1,360 1,650 1,900 2,060
3-5 Other Current Assets 870 1,150 1,370 1,650 1,530
3-6 Total Current Assets 3,895 5,025 5,763 6,804 7,511

3-7 Fixed Assets 14,006 17,605 21,826 26,950 28,100

NonCurrent Assets

3-8 Accumulated Depreciation (1,280) (1,700) (2,100) (2,550) (3,010)

3-9 Net Fixed Assets 12,726 15,905 19,726 24,400 25,090
3-10 Longterm Investments 360 320 120 590 905
3-11 Investments in Other Companies 65 0 0 250 412
3-12 Intangibles and Other Assets 100 110 105 135 195
Total Non Current Assets 13,251 16,335 19,951 25,375 26,602
3-13 Total Assets 17,146 21,360 25,714 32,179 34,113

3-14 Accounts Payable 2,050 3,150 3,290 3,870 4,800

Currrent Liab

3-15 Short Term Borrowings 1,200 1,830 2,580 3,100 3,550

3-16 Short Term Portion of LT Debt 12 15 25 30 36
3-17 Other Current Liabilities 1,050 1,250 1,480 1,590 1,301
3-18 Total Current Liabilities 4,312 6,245 7,375 8,590 9,687

3-19 Longterm Debt / Borrowings 1,160 1,750 2,600 3,600 3,950

3-20 Other Longterm Liabilities 650 750 701 890 995
Total Non Current Liabilities 1,810 2,500 3,301 4,490 4,945
3-21 Total Liabilities 6,122 8,745 10,676 13,080 14,632

3-22 Preferred Equity 0 0 0 0 0

3-23 Common Equity 2,044 2,005 2,069 2,090 2,120
3-24 Additional Paid in Capital 5,013 4,900 5,159 5,626 5,628
Equity

Prepared by Matt H. Evans 02/23/2024 Page 5

 Home Balance Sheet for
>> > X Y Z Corporation USA
<< < millions of dollars
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Description 1996 1997 1998 1999 2000
Equity

3-25 Retained Earnings 5,097 7,050 9,840 15,050 20,005

3-26 Adj for Foreign Currency Transl 275 120 (550) (2,147) (6,722)
3-27 Treasury Stock (1,405) (1,460) (1,480) (1,520) (1,550)
3-28 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

3-29 Check: Assets = Liab + Equity ? 0 0 0 0 0

Comment => Balances Balances Balances Balances Balances

3-30 NonDepreciable Fixed Assets 0 0 0 0 0

3-31 Deferred Taxes 112 101 90 98 109
3-32 Goodwill Write Off 0 0 0 0 0
3-33 No of Common Shares o/s 1,320 1,290 1,302 1,345 1,322
3-34 Par Value of Common Stock $10.00 $10.00 $10.00 $10.00 $10.00
Additional Information

3-35 No of Preferred Shares o/s 0 0 0 0 0

3-36 Par Value of Preferred Stock
3-37 Market Price of Common Stock $22.65 $28.90 $37.05 $33.60 $29.40
3-38 Market Price of Preferred Stock $0.00 $0.00 $0.00 $0.00 $0.00
3-39 Preferred Dividends in Arrears 0 0 0 0 0
3-40 Liquidating value of Preferred Stk 0 0 0 0 0
3-41 Book Value per Share $8.35 $9.78 $11.55 $14.20 $14.74
3-42 Dividends per Common Share $1.01 $1.49 $1.89 $1.75 $1.76
3-43 Dividend Payout Ratio 45.47% 38.61% 39.44% 29.76% 30.24%
3-44 Cash Dividends to Preferred Stock 0 0 0 0 0
3-45 Cash Dividends to Common Stock 1,330 1,918 2,461 2,354 2,329
3-46 Total Dividends Paid 1,330 1,918 2,461 2,354 2,329

Prepared by Matt H. Evans 02/23/2024 Page 6

Income Statement for
X Y Z Corporation USA
millions of dollars
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
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

Prepared by Matt H. Evans 02/23/2024 Page 7

Income Statement for
X Y Z Corporation USA
millions of dollars
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
Total Non Operating Expenses (907) (1,110) (2,288) (2,387) (2,964)
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 02/23/2024 Page 8

Cash Flow Statement for
X Y Z Corporation USA
millions of dollars
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000

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)

Prepared by Matt H. Evans 02/23/2024 Page 9

Cash Flow Statement for
X Y Z Corporation USA
millions of dollars
Annual Annual Annual Annual Annual
Period Period Period Period Period
Description 1996 1997 1998 1999 2000
Beginning Cash Balance 1,010 990 950 901 998
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 02/23/2024 Page 10

Home Key Financial Data for
> X Y Z Corporation USA
< millions of dollars
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Description 1996 1997 1998 1999 2000

EBITDA :
4-15 Income before ExtraOrd Items 2,908 4,666 6,021 7,608 7,186
4-9 Interest Expense 117 122 216 282 304
4-23 Capitalized Interest Expense 16 19 33 39 30
4-13 Income Tax Expense 790 1,005 2,050 2,105 2,660
4-14 Reserve Charges 0 0 0 0 0
4-22 Depreciation and Amortization 310 420 400 450 460
6-1 EBITDA 4,141 6,232 8,720 10,484 10,640

EBITDA Margin 34% 37% 41% 42% 39%

Free Cash Flow:

5-7 Operating Cash Flow 3,222 6,202 7,088 8,527 8,540
5-14 Investment Cash Flows (1,995) (4,731) (5,290) (7,175) (6,485)
3-43 Preferred Dividends Paid (fixed) 0 0 0 0 0
5-16 Redemption of Fixed Obligations (1,112) (650) (898) (801) (961)
6-2 Other Critical Outlays (35) (45) (42) (30) (25)
6-3 Free Cash Flow 80 776 858 521 1,069

Working Capital:
3-6 Current Assets 3,895 5,025 5,763 6,804 7,511
3-18 Current Liabilities 4,312 6,245 7,375 8,590 9,687
6-4 Working Capital (417) (1,220) (1,612) (1,786) (2,176)

Liquid Capital:
3-1 Cash and Cash Equivalents 990 950 901 998 870
3-2 Marketable Securities 10 15 12 6 11
3-3 Accounts Receivable 1,020 1,550 1,830 2,250 3,040

Tab 6 - Key Financials

Home Key Financial Data for
> X Y Z Corporation USA
< millions of dollars
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Description 1996 1997 1998 1999 2000
6-5 Notes Receivable 0 0 0 0 0
3-18 Total Current Liabilities (4,312) (6,245) (7,375) (8,590) (9,687)
3-19 Long Term Debt (1,160) (1,750) (2,600) (3,600) (3,950)
3-22 Preferred Equity 0 0 0 0 0
6-6 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:
6-7 Market Cap - Common Stk $29,898 $37,281 $48,239 $45,192 $38,867
6-8 Market Cap - Preferred Stk $0.00 $0.00 $0.00 $0.00 $0.00
6-9 Total Market Capitalization $29,898 $37,281 $48,239 $45,192 $38,867

Present Value:
6-10 Normalized Cash Flow Weight %'s 5.00% 10.00% 15.00% 30.00% 40.00% 100.00%
6-11 Normalized Cash Flow 794
6-12 Number of Future Periods 15
6-13 Required Rate of Return 11.00%
6-14 Present Value of Free Cash Flow $5,711
6-15 Present Value of Selling Price $315,000 <= estimated selling price $65,836 Example of Present Value Formula
6-16 Present Value of Business $71,547

Revenue Multiplier:
4-3 Recent Gross Revenues 27,448
6-17 Average Competitive Rev Multiplier 3.14
Value based on Revenue Multiple $86,187

Capitalization of Earnings:
6-18 Normalized Net Income Weights % 5.00% 5.00% 25.00% 30.00% 35.00% 100.00%

Tab 6 - Key Financials

Home Key Financial Data for
> X Y Z Corporation USA
< millions of dollars
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Description 1996 1997 1998 1999 2000
6-19 Normalized Net Income 6,681
6-20 Capitalization Rate 12.00%
6-21 Nominal Growth Rate 3.50%
6-22 Net Capitalization Rate 8.50%
6-23 Value based on Earnings $78,605

6-24 Operating Leverage 1.31 1.49 1.21 0.14

6-25 Financial Leverage 1.46 0.61 1.12 (0.65)

6-26 Total Leverage 1.92 0.91 1.36 (0.09)

6-27 Check Totals 0.00 1.92 0.91 1.36 (0.09)

NOPAT / Operating Indicators:

6-28 Net Interest Expense After Tax (95) (105) (169) (236) (242)
6-29 Interest Bearing Liabilities 2,372 3,595 5,205 6,730 7,536
6-30 NOPAT 3,020 5,073 6,409 8,147 7,943
6-31 Operating Working Capital (205) (340) 80 340 529
6-32 Net Longterm Assets 12,601 15,585 19,250 24,485 25,607
6-33 Net Debt 1,372 2,630 4,292 5,726 6,655
6-34 Net Assets 12,396 15,245 19,330 24,825 26,136
6-35 Net Capital 12,396 15,245 19,330 24,825 26,136
6-36 Operating ROA 24% 33% 33% 33% 30%
6-37 Operating WC Turnover (59) (49) 265 73 52

Tab 6 - Key Financials

 Home Ratio Analysis for
>> > X Y Z Corporation USA
<< <
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Title of Ratio 1996 1997 1998 1999 2000

7-1 Acid Test Ratio 0.47 0.40 0.37 0.38 0.40

7-2 Current Ratio 0.90 0.80 0.78 0.79 0.78

7-3 Operating Cash Flow to Net Income 1.10 1.25 1.14 1.08 1.11

Liquidity Index:
7-4 Cash - Days Removed 0 0 0 0 0
3-1 Cash Balance 990 950 901 998 870
7-5 Cash Balance Total 0 0 0 0 0
Liquidity / Ability to Meet Obligations

7-6 Marketable Sec - Days Removed 11 12 16 15 14

3-2 Marketable Securities Balance 10 15 12 6 11
7-7 Marketable Securities Total 110 180 192 90 154
7-22 Receivables - Days Removed 34 30 31 32 36
3-3 Receivable Balance 1,020 1,550 1,830 2,250 3,040
7-8 Receivable Balance Total 34,257 46,158 56,217 72,213 110,751
7-26 Inventory - Days Removed 79 61 67 72 71
3-4 Inventory Balance 1,005 1,360 1,650 1,900 2,060
7-9 Inventory Balance Total 79,745 83,261 110,092 136,018 146,676
7-10 Other - Days Removed 16 22 26 21 19
3-5 Other Current Assets Balance 870 1,150 1,370 1,650 1,530
7-11 Other Current Assets Total 13,920 25,300 35,620 34,650 29,070
7-12 Liquidity Index (Days) 33 31 35 36 38

Z Score:
7-13 1.2 x (working capital / total assets) (0.03) (0.07) (0.08) (0.07) (0.08)
7-14 1.4 x (retained earn / total assets) 0.42 0.46 0.54 0.65 0.82
7-15 3.3 x (EBIT / total assets) 0.74 0.94 1.09 1.06 1.03
7-16 .6 x (market value equity / b.v. debt) 15.46 12.78 11.13 7.53 5.90
7-17 .999 x (sales / total assets) 0.70 0.78 0.82 0.77 0.80
7-18 Z Score 17.29 14.90 13.51 9.94 8.48

Tab 7 - Ratio Analysis

 Home Ratio Analysis for
>> > X Y Z Corporation USA
<< <
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Title of Ratio 1996 1997 1998 1999 2000

Receivable Turnover:
7-19 Credit Sales 11,520 15,750 20,080 23,200 26,500
7-20 Average Receivable Balance 1,060 1,285 1,690 2,040 2,645
7-21 Receivable Turnover 10.9 12.3 11.9 11.4 10.0

7-22 Days Required to Collect A/R 34 30 31 32 36

Asset Management

Inventory Turnover:
7-24 Average Inventory Balance 1,046 1,183 1,505 1,775 1,980
7-25 Inventory Turnover 4.6 6.0 5.5 5.1 5.1

7-26 Days in Inventory 79 61 67 72 71

7-27 Total Asset Turnover 0.7 0.8 0.8 0.8 0.8

7-28 Operating Assets Ratio 0.97 0.98 0.99 0.97 0.96

7-29 Gross Profit Margin 59% 58% 61% 63% 63%

7-30 Operating Margin 32% 35% 39% 40% 37%

7-31 Net Profit Margin 24% 30% 29% 32% 28%

Profitability

7-32 Direct Cost to Operating Revenues 41% 42% 39% 37% 37%

Capitalization Rate / Asset Return:

7-33 Net Operating Income 3,000 4,749 6,204 7,829 7,408
7-34 Total Investments / Operating Assets 16,621 20,930 25,489 31,204 32,601
7-35 Capitalization Rate / Return 18.05% 22.69% 24.34% 25.09% 22.72%

Tab 7 - Ratio Analysis

Profitability
Home Ratio Analysis for
>> > X Y Z Corporation USA
<< <
End Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Title of Ratio 1996 1997 1998 1999 2000
7-36 Return on Shareholder Equity 24% 33% 35% 33% 26%

7-37 Debt to Total Assets 0.36 0.41 0.42 0.41 0.43

Leverage

7-38 Debt to Common Equity 0.50 0.63 0.63 0.57 0.53

7-39 Times Interest Earned 33 50 39 37 35

7-40 Price to Earnings (P/E) 10.2 7.5 7.7 5.7 5.0

Market

7-41 Price to Book Value 2.7 3.0 3.2 2.4 2.0

7-42 Stock Yield 4.45% 5.14% 5.10% 5.21% 5.99%

Tab 7 - Ratio Analysis

Home Wksh2 Benchmark Analysis for
Wksh3 Wksh4 X Y Z Corporation USA
Wksh5 Wksh6
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 Ha
Web Sites for Benchmarking:
http://www.integrainfo.com/ http://www.benchnet.com/
http://www.benchmarkingnetwork.com/ http://www.benchmarkindex.com/bi/

Graphs appear below for each of the above comparisons:

Acid Ratio Comparison

0.60
0.50
0.40 Acid Test Ratio - Indus-
try
Ratio

0.30
Acid Test Ratio -
0.20 Company
0.10
0.00
1996 1997 1998 1999 2000
Periods

Current Ratio Comparison

1.20
1.00
0.80
Current Ratio - Industry
Ratio

0.60 Current Ratio -

0.40 Company
0.20
0.00
1996 1997 1998 1999 2000
Periods
 0.80
Current Ratio - Industry

Ratio
0.60 Current Ratio -
0.40 Company
0.20
0.00
1996 1997 1998 1999 2000
Periods

Receivable Turnover Comparison

14.00
12.00
Turnover Rate

10.00
Receivable Turnover -
8.00 Industry
6.00 Receivable Turnover -
4.00 Company
2.00
0.00
1996 1997 1998 1999 2000
Periods

Receivable Collection Comparison

45
40
Days to Collect A/R

35
30 Days to Collect A/R -
25 Industry
20 Days to Collect A/R -
15 Company
10
5
0
1996 1997 1998 1999 2000
Periods

Inventory Turnover Comparison

7.00
6.00
Turnover Rate

5.00
Inventory Turnover -
4.00 Industry
3.00 Inventory Turnover -
2.00 Company
1.00
 Inventory Turnover Comparison
7.00
6.00

Turnover Rate
5.00
Inventory Turnover -
4.00 Industry
3.00 Inventory Turnover -
2.00 Company
1.00
0.00
1996 1997 1998 1999 2000
Periods

Inventory Days Comparison

100
Days Held in Inventory

80
60 Days in Inventory -
Industry
40 Days in Inventory -
Company
20
0
1996 1997 1998 1999 2000
Periods

Asset Turnover Comparison

1.80
1.60
1.40
Turnover Rate

1.20 Asset Turnover - Indus-

1.00 try
0.80 Asset Turnover -
0.60 Company
0.40
0.20
0.00
1996 1997 1998 1999 2000
Periods

Gross Profit Margin

70.00%
60.00%
rgin
 Gross Profit Margin
70.00%
60.00%

Gross Profit Margin

50.00%
Gross Profit Margin -
40.00% Industry
30.00% Gross Profit Margin -
20.00% Company
10.00%
0.00%
1996 1997 1998 1999 2000
Periods

Net Profit Margin

35.00%
30.00%
Net Profit Margin

25.00%
Net Profit Margin -
20.00% Industry
15.00% Net Profit Margin -
10.00% Company
5.00%
0.00%
1996 1997 1998 1999 2000
Periods

Return on Total Assets

40.00%
Return on Total Assets

35.00%
30.00%
25.00% Return on Total Assets
20.00% - Industry
15.00% Return on Total Assets
10.00% - Company
5.00%
0.00%
1996 1997 1998 1999 2000
Periods
 20.00% - Industry

Return on T
15.00% Return on Total Assets
10.00% - Company
5.00%
0.00%
1996 1997 1998 1999 2000
Periods

Return on Common Equity

Return on Equity Comparison
40.00%
35.00%
30.00%
25.00% Return on Total Assets
20.00% - Industry
15.00% Return on Total Assets
10.00% - Company
5.00%
0.00%
1996 1997 1998 1999 2000
Periods

Debt to Equity Comparison

70%
Debt to Equity Ratio

60%
50%
Debt to Equity - Indus-
40% try
30% Debt to Equity -
20% Company
10%
0%
1996 1997 1998 1999 2000
Periods

Times Interest Earned

60
imes Interest Earned

50
40 Times Interest Earned -
30 Industry
Times Interest Earned -
20 Company
10
0
 Times Interest Earned
60

Times Interest Earned

50
40 Times Interest Earned -
30 Industry
Times Interest Earned -
20 Company
10
0
1996 1997 1998 1999 2000
Periods

Trading Ratio Comparison

3.00
2.50
2.00
Trading Ratio - Industry
Ratio

1.50
Trading Ratio -
1.00 Company

0.50
0.00
1996 1997 1998 1999 2000
Periods

Sales to Worth Comparison

3.00
2.50
2.00
Net Sales to Net Worth
- Industry
Ratio

1.50
Net Sales to Net Worth
1.00 - Company
0.50
0.00
1996 1997 1998 1999 2000
Periods
 ubject company.
n is used to
nchmark data,
y" 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

cial Ratios by Leo Troy, Prentice Hall

http://www.bizminer.com/
http://www.ibforum.com/

Test Ratio - Indus-

Test Ratio -
pany

ent Ratio - Industry

ent Ratio -
pany
 ent Ratio - Industry
ent Ratio -
pany

son

eivable Turnover -
stry
eivable Turnover -
mpany

ison

ays to Collect A/R -

dustry
ays to Collect A/R -
ompany

son

ventory Turnover -
dustry
ventory Turnover -
ompany
son

ventory Turnover -
dustry
ventory Turnover -
ompany

ys in Inventory -
ustry
ys in Inventory -
mpany

t Turnover - Indus-

t Turnover -
pany
 oss Profit Margin -
dustry
oss Profit Margin -
ompany

t Profit Margin -
ustry
t Profit Margin -
mpany

urn on Total Assets

ustry
urn on Total Assets
mpany
 ustry
urn on Total Assets
mpany

on

urn on Total Assets

ustry
urn on Total Assets
mpany

bt to Equity - Indus-

bt to Equity -
mpany

s Interest Earned -
stry
s Interest Earned -
pany
 s Interest Earned -
stry
s Interest Earned -
pany

ng Ratio - Industry
ng Ratio -
pany

Sales to Net Worth

ustry
Sales to Net Worth
mpany
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%.

expressed in percentages
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%

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%

Home Wksh2 ProForma Financials (Simple Projection Model)
Wksh3 Wksh4 X Y Z Corporation USA
Wksh5 Wksh6
Wksh7 Wksh8
Wksh9 Wksh10 A set of pro forma (forecasted) financial statements are generated using the results of
active Wksh12 the historical analysis in the previous worksheets. Growth assumptions appear where
Wksh13 Wksh14 applicable. You can override any growth assumptions with your own rates.
Wksh15 Wksh16 This forecast is very simple and does not rely on any statistical methods.

Annual Annual Annual Annual Annual

Period Period Period Period Period
Ref Enter Your Forecast Periods => 2001 2002 2003 2004 2005

Pro Forma Income Statement

11-1 Gross Revenues 30,742 34,431 38,562 43,190 48,373

9-1 Growth Assumptions 12.00% 12.00% 12.00% 12.00% 12.00%

11-2 Cost of Goods Sold (12,024) (13,467) (15,083) (16,893) (18,920)

10-8 Growth Assumptions 39.11% 39.11% 39.11% 39.11% 39.11%

11-3 Operating Expenses (7,483) (8,381) (9,387) (10,513) (11,775)

10-9 Growth Assumptions 24.34% 24.34% 24.34% 24.34% 24.34%

4-24 NonOperating Expenses (3,200) (3,200) (3,600) (3,600) (4,000)

4-25 ExtraOrdinary Items 650 650 650 700 700

11-4 Net Income 8,685 10,033 11,143 12,884 14,378

Pro Forma Cash Flow Statement

Sources of Operating Cash Flow:

11-5 Net Income 8,685 10,033 11,143 12,884 14,378

Tab 11 - Pro Forma

 Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Enter Your Forecast Periods => 2001 2002 2003 2004 2005

11-6 Depreciation and Amortization 470 490 500 520 550

11-7 (Increase) Decrease Defer Taxes 0 0 0 0 0
11-8 (Gain) Loss on Sale of Assets 15 9 2 3 6
11-9 (Increase) Decrease Current Assets (789) (996) (1,116) (1,249) (1,399)
11-10 Increase (Decrease) Current Liab 1,073 1,291 1,446 1,620 1,814

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

Investment Sources of Cash Flow:

11-12 Planned Sale of Assets 100 60 20 25 35
11-13 Planned Sale of Investments 2,200 2,100 1,900 1,800 1,700
11-14 Other Investment Sources to be used 0 0 0 0 0
11-15 Total Investment Sources of Cash 2,300 2,160 1,920 1,825 1,735

Planned Investments:
11-16 Capital Expenditures (3,500) (3,000) (3,100) (2,700) (2,600)
11-17 Acquisitions in Other Co's (500) (750) (1,200) (650) (350)
11-18 Purchases of Investments (3,000) (3,500) (4,500) (6,000) (7,000)
11-19 Total Investment Applications of Cash (7,000) (7,250) (8,800) (9,350) (9,950)

Cash Flow from Financing Activities:

11-20 Proceeds from Loans & Debt 1,300 1,000 950 750 650
11-21 Proceeds from Minority Interest 20 60 80 90 100
11-22 Other Financing Activities 0 0 0 0 0
11-23 Total Financing Sources of Cash 1,320 1,060 1,030 840 750

Cash Flow Applied for Financing:

11-24 Payments on Loans & Debt (1,500) (1,000) (600) (500) (500)
11-25 Dividends Paid to Shareholders (2,500) (3,000) (4,000) (5,500) (7,000)
11-26 Purchase / Retire Stock (2,000) (2,000) (1,500) (1,000) (500)
11-27 Other Financing Activities 0 0 0 0 0
11-28 Total Financing Applications of Cash (6,000) (6,000) (6,100) (7,000) (8,000)

Tab 11 - Pro Forma

 Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Enter Your Forecast Periods => 2001 2002 2003 2004 2005

11-29 Total Change to Cash 73 797 25 92 (117)

11-30 Beginning Cash Balance 870 943 1,740 1,765 1,857

11-31 Forecasted Ending Balance 943 1,740 1,765 1,857 1,740

Pro Forma Balance Sheet

11-32 Cash and Cash Equivalents 943 1,740 1,765 1,857 1,740
11-33 Short Term Marketable Securities 0 0 0 0 0
11-34 Accounts Receivable 3,074 3,443 3,856 4,319 4,837
11-35 Inventory 2,459 2,754 3,085 3,455 3,870
11-36 Other Current Assets 1,998 2,238 2,507 2,807 3,144
11-37 Total Current Assets 8,475 10,175 11,213 12,438 13,591

11-38 Fixed Assets 31,600 34,600 37,700 40,400 43,000

11-39 Accumulated Depreciation (3,480) (3,970) (4,470) (4,990) (5,540)
11-40 Net Fixed Assets 28,120 30,630 33,230 35,410 37,460
11-41 Longterm Investments 1,705 3,105 5,705 9,905 15,205
11-42 Investments in Other Companies 912 1,662 2,862 3,512 3,862
11-43 Intangibles and Other Assets 200 240 320 400 650
11-44 Total Non Current Assets 30,937 35,637 42,117 49,227 57,177

11-45 Total Assets 39,412 45,812 53,330 61,665 70,768

11-46 Accounts Payable 5,226 5,853 6,556 7,342 8,223

11-47 Short Term Borrowings 3,689 4,132 4,627 5,183 5,805
11-48 Short Term Portion of LT Debt 30 30 25 20 15
11-49 Other Current Liabilities 1,845 2,066 2,314 2,591 2,902
11-50 Total Current Liabilities 10,790 12,081 13,522 15,136 16,945

Tab 11 - Pro Forma

 Annual Annual Annual Annual Annual
Period Period Period Period Period
Ref Enter Your Forecast Periods => 2001 2002 2003 2004 2005

11-51 Longterm Debt / Borrowings 3,750 3,750 4,100 4,350 4,500

11-52 Other Longterm Liabilities 700 750 800 800 800
11-53 Total Non Current Liabilities 4,450 4,500 4,900 5,150 5,300

11-54 Total Liabilities 15,240 16,581 18,422 20,286 22,245

11-55 Preferred Equity 0 0 0 0 0

11-56 Common Equity 2,200 2,200 2,200 2,200 2,200
11-57 Additional Paid in Capital 5,700 5,700 5,700 5,700 5,700
11-58 Retained Earnings 26,190 33,222 40,365 47,748 55,126
11-59 Adj for Foreign Currency Transl (5,000) (4,000) (2,500) (1,500) (500)
11-60 Treasury Stock (3,550) (5,550) (7,050) (8,050) (8,550)
11-61 Total Equity 25,540 31,572 38,715 46,098 53,976

11-62 External Financing Required (EFR) (1,368) (2,341) (3,807) (4,720) (5,453)

Formula for Calculating EFR:

Assets to Sales - Historical 0.27
Projected Increase to Sales 3,294
Liabilities to Sales - Historical 0.35
Profit Margin 0.28
Retention Ratio (1 - Dividend Payout) 69.76%
External Financing Required (6,278)

Tab 11 - Pro Forma

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:

Total Revenues
30,000
25,000
Total Revenues

20,000
15,000
Total Revenues
10,000
5,000
0
1994 1996 1998 2000 2002
Periods

The calculation of linear values is determined by defining the slope of the line and the y intercept:
Order Total Rev Linear Slope Intercept
Formula for Linear Trendline: Year variable x actual y Value y m factor b factor
1996 1 12,076 12,683 3876.20 8806.60
y=(m*x)+b 1997 2 16,719 16,559

Tab 12 - Linear Forecasting

 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 Annual

Period Period Period Period Period
2001 2002 2003 2004 2005

Pro Forma Income Statement

12-1 Gross Revenues 32,064 35,940 39,816 43,692 47,569

12-2 Cost of Goods Sold (11,607) (12,847) (14,087) (15,327) (16,567)

12-3 Operating Expenses (7,750) (8,693) (9,636) (10,579) (11,522)

12-4 Operating Income 12,707 14,400 16,093 17,786 19,480

12-5 Non Operating Expenses (3,549) (4,088) (4,627) (5,166) (5,705)

4-25 Extra Ordinary Items 271 271 271 271 271

Net Income 9,429 10,584 11,738 12,892 14,046

Pro Forma Cash Flow Statement

Sources of Operating Cash Flow:

Tab 12 - Linear Forecasting

Net Income 9,429 10,584 11,738 12,892 14,046
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 (1,146) (1,047) (1,047) (1,047) (1,047)
Increase (Decrease) Current Liab 1,535 1,357 1,357 1,357 1,357

Operating Cash Flow 10,304 11,393 12,550 13,725 14,912

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 (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

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 924 1,363 600 40 (553)

Tab 12 - Linear Forecasting

Beginning Cash Balance 870 1,794 3,156 3,756 3,796
Forecasted Ending Balance 1,794 3,156 3,756 3,796 3,243

Pro Forma Balance Sheet

Cash and Cash Equivalents 1,794 3,156 3,756 3,796 3,243

Short Term Marketable Securities 0 0 0 0 0
Accounts Receivable 3,206 3,594 3,982 4,369 4,757
Inventory 2,565 2,875 3,185 3,495 3,805
Other Current Assets 2,084 2,336 2,588 2,840 3,092
Total Current Assets 9,649 11,962 13,511 14,501 14,897

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 40,586 47,599 55,628 63,728 72,074

Accounts Payable 5,451 6,110 6,769 7,428 8,087

Short Term Borrowings 3,848 4,313 4,778 5,243 5,708
Short Term Portion of LT Debt 30 30 25 20 15
Other Current Liabilities 1,924 2,156 2,389 2,622 2,854
Total Current Liabilities 11,252 12,609 13,961 15,312 16,664

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 15,702 17,109 18,861 20,462 21,964

Preferred Equity 0 0 0 0 0

Tab 12 - Linear Forecasting

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
Retained Earnings 26,934 34,518 42,256 49,648 56,694
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 26,284 32,868 40,606 47,998 55,544

External Financing Required (EFR) (1,401) (2,379) (3,838) (4,732) (5,433)

Tab 12 - Linear Forecasting

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 1999 2000
Total Revenues - Historical 12,076 16,719 21,196 24,737 27,448
Total Revenues - Exponential 12,076 12,076 16,719 21,196 24,737
Total Revenues - Wt Moving Avg 11,105 15,230 18,890 21,605 22,965

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% 34.50% 59.50%

Find the Optimal Smoothing Factor:

Total Exponent
Revenues Amounts Difference Square
12,076 12,076 0 0
16,719 12,076 4,643 21,557,449
21,196 16,719 4,477 20,043,529
24,737 21,196 3,541 12,538,681
27,448 24,737 2,711 7,349,521
Mean Squared Error 12,297,836

Find the Optimal Moving Weights:

Total Weighted
Revenues Amounts Difference Square
12,076 11,105 971 942,841

Tab 13 - Exponential Smoothing

 16,719 15,230 1,489 2,217,121
21,196 18,890 2,306 5,317,636
24,737 21,605 3,132 9,809,424
27,448 22,965 4,483 20,100,607
Mean Squared Error 7,677,526

Exponential Comparison
30,000

25,000
Total Revenues

Total Revenues - His-

20,000
torical
15,000 Total Revenues -
Exponential
10,000 Total Revenues - Wt
Moving Avg
5,000

0
2001 2002 2003 2004 2005
Periods

Annual Annual Annual Annual Annual

Period Period Period Period Period
2001 2002 2003 2004 2005
Pro Forma Income Statement

Gross Revenues 26,070 26,413 26,316 26,355 26,340

Tab 13 - Exponential Smoothing

Cost of Goods Sold (10,197) (10,207) (9,860) (9,694) (9,740)

Operating Expenses (6,346) (6,226) (6,229) (6,464) (6,859)

Operating Income 9,527 9,979 10,227 10,197 9,740

NonOperating Expenses (3,200) (3,200) (3,600) (3,600) (4,000)

ExtraOrdinary Items 650 650 650 700 700

Net Income 6,977 7,429 7,277 7,297 6,440

Pro Forma Cash Flow Statement

Sources of Operating Cash Flow:

Net Income 6,977 7,429 7,277 7,297 6,440
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 472 (92) 26 (11) 4
Increase (Decrease) Current Liab (562) 120 (34) 14 (5)

Operating Cash Flow 7,372 7,956 7,771 7,824 6,995

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) (3,900) (4,600)
Acquisitions (500) (750) (500) 0 0
Purchases of Investments (2,000) (3,000) (3,000) (1,000) (1,000)
Total Investment Applications of Cash (6,000) (6,750) (6,600) (4,900) (5,600)

Tab 13 - Exponential Smoothing

Cash Flow from Financing Activities:
Proceeds from Loans & Debt 1,300 2,000 3,000 4,500 7,000
Proceeds from Minority Interest 20 60 80 90 100
Other Financing Activities 0 0 0 0 0
Total Financing Sources of Cash 1,320 2,060 3,080 4,590 7,100

Cash Flow Applied for Financing:

Payments on Loans & Debt (1,500) (1,800) (2,500) (4,000) (6,000)
Dividends Paid to Shareholders (2,500) (3,000) (4,000) (4,000) (3,000)
Purchase / Retire Stock 0 0 0 0 0
Other Financing Activities 0 0 0 0 0
Total Financing Applications of Cash (4,000) (4,800) (6,500) (8,000) (9,000)

Total Change to Cash 992 626 (329) 1,339 1,230

Beginning Cash Balance 870 1,862 2,488 2,159 3,497

Forecasted Ending Balance 1,862 2,488 2,159 3,497 4,728

Pro Forma Balance Sheet

Cash and Cash Equivalents 1,862 2,488 2,159 3,497 4,728

Short Term Marketable Securities 0 0 0 0 0
Accounts Receivable 2,607 2,641 2,632 2,636 2,634
Inventory 2,086 2,113 2,105 2,108 2,107
Other Current Assets 1,695 1,717 1,711 1,713 1,712
Total Current Assets 8,249 8,959 8,606 9,955 11,181

Fixed Assets 31,600 34,600 37,700 41,600 46,200

Accumulated Depreciation (3,480) (3,970) (4,470) (4,990) (5,540)
Net Fixed Assets 28,120 30,630 33,230 36,610 40,660
Longterm Investments 705 1,605 2,705 1,905 1,205
Investments in Other Companies 912 1,662 2,162 2,162 2,162
Intangibles and Other Assets 75 100 150 150 100
Total Non Current Assets 29,812 33,997 38,247 40,827 44,127

Tab 13 - Exponential Smoothing

Total Assets 38,061 42,956 46,853 50,782 55,308

Accounts Payable 4,432 4,490 4,474 4,480 4,478

Short Term Borrowings 3,128 3,170 3,158 3,163 3,161
Short Term Portion of LT Debt 30 30 25 20 15
Other Current Liabilities 1,564 1,585 1,579 1,581 1,580
Total Current Liabilities 9,155 9,274 9,236 9,244 9,234

Longterm Debt / Borrowings 3,750 3,950 4,450 4,950 5,950

Other Longterm Liabilities 700 750 800 800 800
Total Non Current Liabilities 4,450 4,700 5,250 5,750 6,750

Total Liabilities 13,605 13,974 14,486 14,994 15,984

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
Retained Earnings 17,505 14,505 10,505 6,505 3,505
Adj for Foreign Currency Transl (5,000) (3,500) (1,000) 0 0
Treasury Stock (1,550) (1,550) (1,550) (1,550) (1,550)
Total Equity 18,855 17,355 15,855 12,855 9,855

External Financing Required (EFR) 5,602 11,627 16,513 22,932 29,469

Tab 13 - Exponential Smoothing

Scenario Analysis for
X Y Z Corporation USA

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
formula in another cell.

Annual Annual Annual Annual Annual

Period Period Period Period Period
2001 2002 2003 2004 2005

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 43,190 48,373

Cost of Goods Sold (12,024) (13,467) (15,083) (16,893) (18,920)
Operating Expenses (7,483) (8,381) (9,387) (10,513) (11,775)
NonOperating Expenses (3,200) (3,200) (3,100) (3,100) (3,000)
ExtraOrdinary Items 650 650 650 700 700
Net Income 8,685 10,033 11,643 13,384 15,378

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 42,000 47,569

Cost of Goods Sold (11,607) (12,847) (14,087) (15,327) (16,567)
Operating Expenses (7,750) (8,693) (9,636) (10,579) (11,522)
Non Operating Expenses (3,549) (4,088) (4,627) (5,166) (5,705)
Extra Ordinary Items 271 271 271 271 271
Net Income (formula cells) 9,430 10,584 11,738 11,199 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 goal of $ 13,500 Net Income

Tab 14 - Scenario Analysis

 Worst Case

-5752.08691
-3964.02317
-1096.6
24.6

Page 50
Budget Analysis for
X Y Z Corporation USA

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
revenue forecast:

Annual Annual Annual Annual Annual

Period Period Period Period Period
2001 2002 2003 2004 2005

Summarize Revenue Forecast:

Simple Projection Model 30,742 34,431 38,562 43,190 48,373
Linear Trend Model 32,064 35,940 39,816 43,692 47,569
Wt Moving Avg Model 26,070 26,413 26,316 26,355 26,340
Declining Growth Model 29,644 31,422 32,679 33,170 31,000
Historical Data 12,076 16,719 21,196 24,737 27,448

Projection using declining growth rates:

Gross Revenues 29,644 31,422 32,679 33,170 31,000

Forecast Comparisons
60,000

50,000
Simple Projection
Total Revenues

40,000 Model
Linear Trend Model
30,000 Wt Moving Avg Model
Declining Growth
20,000 Model
Historical Data
10,000

0
2001 2002 2003 2004 2005
Tab 15 - Non Linear
Periods
 Linear Trend Model

Total Reve
30,000 Wt Moving Avg Model
Declining Growth
20,000 Model
Historical Data
10,000

0
2001 2002 2003 2004 2005
Periods

In addition to using linear models for forecasting, we can apply four different 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.
Polynomial - Used when rate of change fluctuates with no pattern.

Logarithmic Trend
Actual Predicted Slope Intercept
Formula for Logarithmic Trendline x factor Values Value y c factor b factor
1 12,076 (11,242) 9600.91841 11242.3365
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 Slope Intercept
y = b * x^c x factor Values Value y c factor b factor
1 12,076 11,951 0.51758981 9.38859823
2 16,719 17,109 11951.3346
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

Tab 15 - Non Linear

Exponential Trendline < - calculate using c and b factor - >
Actual Predicted Slope Intercept Predicted
x factor Values Value y c factor b factor ( c * x) EXP Value y
y = b * EXP ( c * x ) 1 12,076 13,061 0.20339009 9.27401935 0.20339 1.2255504 13,061
2 16,719 16,007 10657.5022 0.40678 1.5019739 16,007
3 21,196 19,618 0.61017 1.8407448 19,618
4 24,737 24,043 0.81356 2.2559256 24,043
5 27,448 29,465 1.01695 2.7647506 29,465
6 36,111 1.22034 3.3883414 36,111
7 44,256 1.42373 4.1525833 44,256
8 54,238 1.62712 5.0892003 54,238
9 66,472 1.83051 6.2370717 66,472
10 81,464 2.03390 7.6438461 81,464

Polynomial Trendline
Actual Predicted
y = (c2 * x^2) + (c1 * x^1) + b x factor Values Value y c2 c1 b
1 12,076 11,997 -342.85714 5933.34286 6406.6
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 1999 2000 2001 2002 2003
Logarithmic Trendline (11,242) (4,587) (695) 2,067 4,210 5,960 7,440 8,722
Power Trendline 11,951 17,109 21,104 24,493 27,491 30,212 32,721 35,063
Exponential Trendline 13,061 16,007 19,618 24,043 29,465 36,111 44,256 54,238
Polynomial Trendline 11,997 16,902 21,121 24,654 27,502 29,664 31,140 31,930
Actual Revenues 12,076 16,719 21,196 24,737 27,448

Non Linear Trends

Tab 15 - Non Linear
100,000
 Non Linear Trends
100,000

80,000 Logarithmic Trend-

line
Total Revenues

60,000 Power Trendline

Exponential Trend-
40,000 line
20,000 Polynomial Trend-
line
0 Actual Revenues
9 96997998999000001002003004005
(20,000)
1 1 1 1 2 2 2 2 2 2
Periods

Tab 15 - Non Linear

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)

 a and placed it into a set of
ssumptions for a final budget.
ed in our forecast for improved
finalize all assumptions
et 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

This report was generated when we used Solver to find the minimal Mean Square Error in Cell G60 in Tab 13 - Pro
n Cell G60 in Tab 13 - Pro Forma (Exponential Smoothing)
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%

This report was generated when we used Solver to find the minimal Mean Square Error in Cell G46 in Tab 13 - Pro
 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%

Error in Cell G46 in Tab 13 - Pro Forma (Exponential Smoothing)