Instructions
This exercise is two-part in nature:
1) Using the attached data, which represents five years of actual results of a publicly traded company, please create a dynamic financial model. The financial model should include a P&L, Balance Sheet, and Cash Flow statement for Years 1 through 5, as well as project out Years 6 through 8. The financial model should allow for dynamic adjustment of business case assumptions.
2) Based upon your analysis, what insights can you derive about the business? Please include a summary of meaningful business metrics and a
ief (~1 page) na
ative explaining what you observed, what key assumptions you made, and how you used those to determine your findings.
Data
$ 000's Actuals
Year 1 Year 2 Year 3 Year 4 Year 5
Product Revenue $ 1,344 $ 1,280 $ 1,280 $ 1,346 $ 1,370
Service Revenue - 0 123 137 169 215
Total Revenue 1,344 1,402 1,418 1,515 1,585
Cost of Products Sold 500 433 434 444 462
Cost of Services Provided - 0 53 58 77 98
Cost of Goods Sold 500 486 491 522 560
SG&A 616 624 640 680 691
Interest Expense 46 44 48 47 38
Cash 16
A/R 66 66 69 70 88
Inventory 22 22 22 23 29
Other Cu
ent Assets 27 19 62 71 70
PP&E 457 459 466 463 462
Accumulated Depreciation (335) (338) (353) (359) (361)
Accounts Payable 61 60 65 65 71
Accrued Expenses 92 94 87 96 95
Other Cu
ent Liabilities 41 50 63 51 51
Long Term Debt 743 748 656 657 400