Quantitative Analysis
Instructions:
• On the Excel Financial Forecast worksheet, fill in the information highlighted in red with data from your company.
• Repeat the formulas in column C row 18-37 in column D. Doing this should allow you to adjust values in the Fact and Assumptions part of column D and see its effect in rows 18-27 of the same column. https://www.youtube.com/watch?v=d0GyMLC8bZs
• Using the Excel Financial Forecast worksheet, determine the ‘sensitivity’ of the model by adjusting the growth rate in sales and cost of goods sold in column D. Increase and decreases the % values for 2017 and observe and record the results. Create an Excel chart for each (growth rate in sales and cost of goods sold) the resulting impact on external funding required.
• Explain your observations on: o How did adjusting the growth rate of sale and cost of goods sold affect the income statement and
balance sheet? o What is External Funding Required, and how was it affected by adjusting sales projections and cost
of goods sold?
Requirements:
• All questions posed must be addressed completely.
• Length: two-page Executive Summary
• Include the two charts.
• All sources used must be properly cited in APA format.
• Forecast model must be included with the word document.
Be sure to read the criteria, by which your assignment will be evaluated, before you write, and again after you write.
Evaluation Rubric for Sensitivity of Financial Data Assignment
Criteria Exemplary Proficient Deficient
(18-20 Points) (13- 17 Points) (0 – 12 Points)
Growth Rate of Sales Chart
Chart and evaluation are clearly presented, including all key details.
Chart and evaluation are presented, though key details may not be clearly or completely presented.
Chart and evaluation are inadequate or missing.
Cost of Goods Sold Chart and evaluation are clearly presented, including all key details.
Chart and evaluation are clearly presented, including all key details.
Chart and evaluation are inadequate or is missing.
Results Analysis Analysis fully addresses the results of the growth rate in sales and cost of goods sold.
Analysis mostly addresses the results of the growth rate in sales and cost of goods sold.
Analysis is inadequate or missing.
Impact Analysis Analysis fully addresses how the results may affect the external funding.
Analysis mostly addresses how the results may affect the external funding.
Analysis is inadequate or missing.
(9-10 Points) (7-8 Points) (0-6 Points)
Length 2 pages 1 page Less than 1 page or more than 2 pages
Clear and Professional Writing and APA Format
Writing and format are clear, professional, APA compliant, and error-free.
Few errors that do not impede professional presentation.
Errors impede professional presentation; guidelines not followed.
