Finance Modelling Assignment

Assignment details: There are three blocks to this module and your task is to develop and focus upon a relevant case study and to identify and apply the appropriate financial model studied during the respective block. You are expected to undertake modelling work in Excel with a suitable financial model such as contained within the exercises at the end of the relevant chapters in the Drury text. Select a ‘robust’ model. As a theme for your case study, you should use the Food Industry. Hint: This assessment can be likened to a jigsaw puzzle. The financial model itself is the completed jigsaw puzzle. Every piece of the jigsaw puzzle (no matter how small) is equally important to the puzzle’s successful completion! IN YOUR HARDCOPY, SHOW YOUR EXCEL FOMULAE, ROW AND COLUMN IDENTIFIERS AND GRIDLINES Word limit: Minimum of 1000 to Maximum of 2000 A MAXIMUM PAGE LIMIT OF UP TO TWENTY PAGES (EVERYTHING!) DIRECTIONS FOR YOUR ASSESSMENT • Set up a model for a Financial Plan for a company operating as in the theme above. • Provide a minimum of three years projections for profit & loss, cash flow and balance sheet within your financial plan. Assumptions • In developing your plan you may assume that you have access to a maximum of £150,000 of equity finance which is available from family and friends. The precise amount of equity included in your financial plan is for you to decide. You can also assume that use can be made of loan capital as far as this is practicable and prudent. However, in all cases the method you propose to finance the business must be clearly stated in your plan. Reflection • Needs to include some level of sensitivity analysis to validate the understanding of your model. Remember, your reflection is worth up to fifty percent of your final mark for this assessment. Your reflection must contain information relating to how you would re-address and re-submit your work using a different approach or perspective, how you formulated your ideas for your original work, what methods you used in your research, what library references you found useful, how confident you are in your model etc. etc. In particular (and in addition to the work you undertake in your financial plan), address and resolve the following two questions in relation to your financial plan: Question 3.1 Suppose your company’s projected profits do not meet with your company objectives and your Company Accountant decides to advise the Board of Directors later. Discuss and explain the reasons why delaying the release of this information relating to your company’s financial plan may be ineffective. Include any assumptions you make. Question 3.2 Assume that in the second year of your company operations, an unexpected economic upturn occurs, resulting in a 3% change in your company’s projected profits from year 2 to year 3. In planning terms, explain and demonstrate how you would accommodate this increase in costs in your Financial Plan for year three. More detail will be send to successful employee. Need it within 24 hours time. My budget is quite low for the information