Description
A. Project the company’s likely consolidated financial performance for each of the next three years. Support your analysis with an appendix spreadsheet showing actual results for the most recent year, along with your projections and assumptions. Remember that your supervisor is interested in fresh perspectives, so you should not just replicate existing financial statements: You should add other relevant calculations or disaggregations to help inform decisions.
B. Modify your projections for the coming year to show a best- and worst-case scenario based on the potential success factors and risks you identified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and including relevant calculations and disaggregations beyond those in the existing financial reports.
C. Discuss how your assumptions, forecasting methodology, and information gaps affect your projections. Why are your projections appropriate? For example, are they consistent with the company’s mission and priorities? Aggressive but achievable? How would changing your assumptions change your projections?
Sample Solution
