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...

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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.
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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 brief (~1 page) narrative explaining what you observed, what key assumptions you made, and how you used those to determine your findings. Data $ 000'sActuals Year 1Year 2Year 3Year 4Year 5 Product Revenue$ 1,344$ 1,280$ 1,280$ 1,346$ 1,370 Service Revenue- 0123137169215 Total Revenue1,3441,4021,4181,5151,585 Cost of Products Sold500433434444462 Cost of Services Provided- 053587798 Cost of Goods Sold500486491522560 SG&A616624640680691 Interest Expense4644484738 Cash16 A/R6666697088 Inventory2222222329 Other Current Assets2719627170 PP&E457459466463462 Accumulated Depreciation(335)(338)(353)(359)(361) Accounts Payable6160656571 Accrued Expenses9294879695 Other Current Liabilities4150635151 Long Term Debt743748656657400
Answered 206 days AfterFeb 05, 2022

Answer To: Instructions This exercise is two-part in nature: 1) Using the attached data, which represents five...

Tanmoy answered on Aug 30 2022
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DYNAMIC FINANCIAL MODEL
Contents
Introduction    3
Analysis    3
Conclusion    4
Work Cited    5
Introduction
    Based on the financial statement it can be observed that the company has already earned profit in the first five years. The projected net income of the company from Year 6 to Year 8 declined slightly but increased in the Year 8th. This financial statement can be represented by application of a mathematical model to the business which is known as the Dynamic Financial Model. It is a model which have an impact on the operation of the company and helps in stimulating the potential conditions and for determining the financial condition of the firm for separate consequences....
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