PART IV: Forecasting and Predicting Future Company Performance

1. Using your adjusted financials statements, develop a set of forecasted future financial statements and the assumptions used for your company. Project three years of future financial statements. 

The work should be performed on a separate tab in your Financial Analysis Excel file. Make a separate tab for each forecasted financial statement.

Must include an income statement, balance sheet and cash flow statement. Must have a summary of the assumption logic used for each assumption made. Format is as follows:

Historical

Account Year

Name 2014 Assumption 2015 Assumption 2016 Assumption 2017

Ex.

Revenue 25,000 25,000 * 1.05 26,250 26,250 * 1.05 27,563 27,563 * 1.05 28,941 

2. You must include the Financial Footnote for “Debt” and “PP&E” in a file copied from your 10K. You can also include any forward-looking statements made in your 10-K that you are using for assumptions copied into your file as a resource.

3. For each year of your forecasted financial statements, complete a new set of financial ratio calculations.

The work should be performed on a separate tab in your Financial Analysis Excel file. You should be able to use all your formulas for the previous ratio tab.  If you calculated a ratio incorrectly in Part II or III, you must correct the ratio for Part IV.

4.  Prepare a summary of the conclusions reached through your forecasted financial statements and ratio analysis. This should be a summary of the trends and what your projections reveal about the future of your company’s financial health.