FINANCIAL MODELING

Final assignment

SUBMITTED TO: SUBMITTED BY: DATE:

Sir Sohaib Jamal Maham Maqsood (5882) 26-12-2011

QUESTION 1
The directors require a cash budget for the four months October 2004 to January 2005 to be prepared from the following information. 1. Sales in September 2004 were $40 000. 2. Forecast sales are as follows: 2004 October $48 000 2005 January $36 000 November $60 000 February $36 000 December $54 000 3. 25% of all sales are cash transactions. One months credit is allowed on the remainder. 4. A gross profit of 331/3 % is made on all sales. 5. Goods are purchased one month before sale and paid for one months after purchase. 6. Wages of $28 000 and overheads of $10 000 are paid each month. 7. The ordinary dividend for the year ended 30 September 2004 will be paid on 1 January 2005. 8. A machine costing $30 000 will be purchased and paid for in November 2004. REQUIRED (A) Prepare a cash budget in columnar form for each of the four months October 2004 to January 2005. (All calculations should be made to the nearest $000.) (B)Proper text formatting & number formatting is required. (C)Apply Data Validation on inputs. (D)Draw Data Table with 1 input of your choice. (E)Make graph of total receipt and total payment. (F)Prepare 4 Scenarios of your choice and also prepare summary comparison report. (G) Apply ATLEAST 3 conditional formatting in your model and mentioned them in your excel file

QUESTION 2
Angelicus and Co. manufactures three different qualities of lock, Domestic, Commercial and Industrial. The companys results for the year ended 31 March 2003 were as follows. Domestic Sales (units) 120 000 Commercial 45 000 Industrial 56 250 Total 221 250

Sales (total value) Total costs Direct material Direct labour Variable overheads Fixed overheads Total Profit (loss)

240000

180000

450000

870000

108000 60000 24000 54000 246000 (6000)

66000 30000 54000 33000 183000 (3000)

84000 150000 120000 42000 396000 54000

258000 240000 198000 129000 825000 45000

Fixed overheads are absorbed on the basis of 50% of direct materials. REQUIRED (A) For the year ended 31 March 2003 calculate, for each type of lock, (i) the contribution per unit; (ii) the contribution as a percentage of sales. Give answers to a maximum of three decimal places. (B) Calculate the break-even point for each type of lock in both units and dollars. (C)Proper text formatting & number formatting is required. (D)Apply Data Validation on inputs. (E)Draw Data Table with 1 input of your choice. (F)Make graph of any choice (G)Prepare 2 Scenarios of your choice and also prepare summary comparison report. (H) Apply ATLEAST 3 conditional formatting in your model and mentioned them in your excel file

QUESTION 3
The following are the summarized Profit Statements and Balance Sheets for Greenyards Ltd, a manufacturing company, and Poynder Ltd, a retailer. Greenyards Ltd Profit Statements for the years ended 31 March 2001 $000 Sales Cost of sales Operating costs Loan interest paid Net profit Balance sheets at 31 March Fixed Assets at Net Book Value Stock Debtors Bank Creditors Total Share capital Retained profit Long term loans Total REQUIRED (A) Use six ratios to compare the managements performance from 2001 to 2002 for each company. Use yearend figures, not averages, to calculate ratios. (B)Apply Data Validation on inputs. (C)Draw Data Table with 1 input of your choice. (D) Draw Data Table with 2 inputs of your choice. 150 50 20 10 (25) 205 50 95 60 205 225 60 30 (35) (20) 260 50 110 100 260 220 27 13 (35) 225 50 100 75 225 175 20 57 (50) 202 50 127 25 202 500 2002 $000 610 Poynder Ltd 2001 $000 425 (210) (190) (7) 18 2002 $000 460 (230) (200) (3) 27

(245) (355) (225) (230) (7) 23 (10) 15

(E)Make graph of your choice (F)Prepare 4 Scenarios of your choice and also prepare summary comparison report. (G) Apply ATLEAST 3 conditional formatting in your model and mentioned them in your excel file