Entrepreneurial Finance

Assignment 4
(in-class and off-class activity)

Objective:
Build a simple forecast for the income statement (or P/L) for a public company.

Introduction:
This is short assignment. The objective is to apply some of the concepts you have seen in forecasting,
both income and expenses.

How to complete the assignment?

1. Select a company, better a company for which it is easy to get information on their number of
sales and other market data. It can be one of the companies you have used for Assignment 3.
2. Replicate the structure of the income statement of that company in your own excel spreadsheet.
3. Build the next three years for that company (will be your forecast).
4. Add an exchel sheet to describe your assumptions, call it assumptions. Explain what infor-
mation have you used to calculate each of the concepts in the income and expense statement.

SUBMISSION:
Check for Assignments in the e-learn space, and select assignment 4, you only need to upload the
excel sheet..

The evaluation of this assignment will take into account the following aspects:
Have all three years been calculated? Has a formula been used to estimate growth?
Have the same drivers used to estmate growth, also been used to estimate variable costs growth.
Does the forecast include changes in the fixed or mixed costs?
Are there justified assumptions regarding the increase or decrease in sales or other costs.
Has a % been added to be able to see the contribution of each income source and cost source in relation to the total of
revenues.
The use of graphics or other aspects that facilitate the visualization of the forecasts results will contribute to an excellent
evaluation of this assignment.