Professional Documents
Culture Documents
1. Excel - SIMPLIFICATION of Financial Model
1. Excel - SIMPLIFICATION of Financial Model
1. Excel - SIMPLIFICATION of Financial Model
this from scratch in your own spreadsheet (repeat what I have done in video)
ete below excercise (use instructions) - NO SOLUTION PROVIDED FOR THIS - DIY
te the forecast using Names
ht cells K23:L25 and create name for cells L23, L24, and L25
te "Next Year Sales"(L27) using Names
te "Cost of Sales" (L28) using names
Cost of sales from Next year sales to get "Gross Profit" (L29)
Exercise
Current Sales 14,500.0
Sales Growth 10%
Gross Margin 60%
Next Year Sales 15,950.0 2. First select cell C12, the go to Data Menu
Seek
Cost of Sales -6,380.0
Gross Profit 9,570.0 3. Ensure "Set cell" is set to C12 - this is the
goal
"Set cell" is set to C12 - this is the cell where we set of our
Gross Margin
9,570.0 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
8.00% 6,264.0 7,830.0 9,396.0 10,962.0 12,528.0 14,094.0
10.00% 6,380.0 7,975.0 9,570.0 11,165.0 12,760.0 14,355.0
12.00% 6,496.0 8,120.0 9,744.0 11,368.0 12,992.0 14,616.0
Sales Growth 14.00% 6,612.0 8,265.0 9,918.0 11,571.0 13,224.0 14,877.0
16.00% 6,728.0 8,410.0 10,092.0 11,774.0 13,456.0 15,138.0
18.00% 6,844.0 8,555.0 10,266.0 11,977.0 13,688.0 15,399.0
20.00% 6,960.0 8,700.0 10,440.0 12,180.0 13,920.0 15,660.0
22.00% 7,076.0 8,845.0 10,614.0 12,383.0 14,152.0 15,921.0
24.00% 7,192.0 8,990.0 10,788.0 12,586.0 14,384.0 16,182.0
Practical Exercise you need to do
On the 'Error Alert' tab, set the style to 'Warning' and type the error
ssage you want. For Eg - "Recheck Sales growth percent, historically it
between 0%-10%"