2023 Text book Mastering Financial Modeling A Professional s Guide to Building Financial | Assignments Online

 

Text book :  Mastering Financial Modeling: A Professional’s Guide to Building Financial Models in Excel by Eric Soubeiga  2010

Assignment : case study 3 .Phone factory revisited 

Let us fast-forward the Phone Factory case study by two years. The plant has now been built, and we are ready to start operations. The market for mobile phones has turned out to be much larger. Let us fast-forward the Phone Factory case study by two years. The plant has now been built, and we are ready to start operations. The market for mobile phones has turned out to be much larger than we had initially anticipated (two years ago). As a result, the factory has been built with a much bigger production capacity. Furthermore, demand for mobile phone handsets is so strong that the starting selling price is 50 percent higher than we had initially forecast. Sales are forecast to reach $6 million for the first year (about 30,000 handsets sold at an average of $200).

With the factory now up and running, your manager has asked for a revised 10-year financial model setting out projections for the profit and loss, balance sheet, and cash flow for the Phone Factory. The model will be presented to the board of your company.

Question : We need to build an integrated financial model including the profit and loss statement, the balance sheet, and the cash flow statement. The model will take inputs, make calculations, and produce the required outputs in the form of a profit and loss statement, a balance sheet, and a cash flow statement.