create a forecast for a fictitious company using the attached spreadsheet template.

  In this assignment you will create a forecast for a fictitious company using the
attached spreadsheet template. Input the following as assumptions in the assumption
part of the spreadsheet (grey highlighted cells at the top of the spreadsheet) and then
reference those cells when projecting the appropriate income statement, balance sheet,
or break-even account. Do NOT hard code numbers into your projections.
Project 2023 – 2025 Income Statement and Balance Sheet.
Assumptions:
• Sales growth rates in each of next 3 years: 26%, 33%, 44%
• Operating expenses/sales percentage stay at 2022 level
• Cost of goods sold as % of sales stays at 2022 level for 2023 and then
improves (goes down!) by .05 in 2024 and by another .03 in 2025
• 40% tax rate on Earnings Before Taxes
• No new stock issued
• Interest expense fixed at $400 / year
• Bank loan and LT debt stay constant
• 2023 A/R days = year 2022 days, then decrease by 3 days in 2024 &
another 3 days in 2025
• 2023 Inventory days = year 2022 days then decrease by 3 days in
2024 & another 3 days 2025
• A/P days stays at year 2022 days
• Net fixed assets and accruals: use 2022 % of sales
• Required cash fixed at 1000
• Calculate Additional Funds Needed as plug (to get Balance Sheet to
balance!)
Calculate 2023 breakeven revenues and units.
Assumptions:
• Use SG&A expenses as fixed costs
• Average price per unit is $50
GRADING: You will be assessed both on the accuracy of your projections as well as
your proper use of spreadsheet projection etiquette (such as not hard coding numbers into cell