Exercise 14
Create a Complex Financial Model
This exercise is similar to Exercise 13, but is a lot more complex. Whereas Exercise 13 had just three worksheets, the spreadsheet file for Exercise 14 has eighteen (18) worksheets.
Download and save the spreadsheet for Exercise 14. Right click this link and select "Save Target As" and then save to folder of your choice on your computer. Then open the file using Microsoft Excel, rather than attempt to open the file directly in Internet Explorer.
The first worksheet in Exercise 14 looks like then following. Notice, in the yellow box, is a profit figure of minus $64,776 ( a Loss therefore). In the spreadsheet for Exercise 14, you will be able to change any of the figures and immediately see the change in profit. For example, see what happens if you increase the Player numbers.
The spreadsheets in Exercise 14 incorporate a very important technique called "LINKING", an essential skill for all persons working with spreadsheets for budgeting. If you would like to know more about LINKING click here.
Very Important Note
It should be noted that it is very often the case that the first attempt to construct a budget for an organisation results in a predicted loss. Then the management team have to work on the budget, changing business plans as necessary, until the budget is no longer showing a loss
Your Task
Basically your task is to make some sensible business decisions, as if this was a real life situation, that will improve the predict profit to at least zero. It simply would be bad management to knowingly set a budget that would lose the organisation large amounts of money.
Make small changes on the first worksheet only wherever you think appropriate. Be as realistic as you can. The customers or members of the organisation will likely accept the situation of changes are as small as possible. You will not be able to make changes to all other sheets as they are protected.
blog comments powered by Disqus