Ongoing Individual Project Guidelines
PART IV: Forecasting and Predicting Future Company Performance
1. Using your adjusted financials statements, develop a set of forecasted future financial statements and the assumptions used for your company. Project three years of future financial statements.
The work should be performed on a separate tab in your Financial Analysis Excel file. Make a separate tab for each forecasted financial statement.
Must include an income statement, balance sheet and cash flow statement. Must have a summary of the assumption logic used for each assumption made. Format is as follows:
Historical
Account
Yea
Name
2014
Assumption
2015
Assumption
2016
Assumption
2017
Ex.
Revenue
25,000
25,000 * 1.05
26,250
26,250 * 1.05
27,563
27,563 * 1.05
28,941
2. You must include the Financial Footnote for “Debt” and “PP&E” in a file copied from your 10K. You can also include any forward-looking statements made in your 10-K that you are using for assumptions copied into your file as a resource.
3. For each year of your forecasted financial statements, complete a new set of financial ratio calculations.
The work should be performed on a separate tab in your Financial Analysis Excel file. You should be able to use all your formulas for the previous ratio tab. If you calculated a ratio inco
ectly in Part II or III, you must co
ect the ratio for Part IV.
POINTS AVAILABLE: 80 POINTS
4. Prepare a summary of the conclusions reached through your forecasted financial statements and ratio analysis. This should be a 1-2 page summary of the trends and what your projections reveal about the future of your company’s financial health.
Your ForecastAnalysis should be completed and saved in a file named ForecastAnalysis_”YourLastName”. Example: ForecastAnalysis_White
POINTS AVAILABLE: 20 POINTS
TOTAL POINTS AVAILABLE: 100 POINTS
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