Search results for: 'Financial Forecast'
Heinz: Warren Buffett´s bid for the Ketchup giant DF1-225-I-M
In 2013, 3G and Berkshire Hathaway acquired the Heinz group in a multi-billion dollar deal. But how much did they pay? And how did Warren Buffett, one of the richest people on the planet, even know what was a reasonable amount to offer?
In this interactive case study, students assume the role of finance managers advising Mr. Buffett. Through video animations and Excel spreadsheets, they will need to make forecasts and ultimately predict a reasonable price for the acquisition of H. J. Heinz Company.Academic Area:Finance
Financial Forecasts DF2-105-I-M
This interactive tutorial teaches students the procedures that need to be followed to make financial forecasts. This multimedia resource comprises brief theoretical explanations graphs and an interactive exercise. The exercise will be solved step-by- step as students advance through the program starting with an analysis of the historical data and finishing with the calculation of the funds required.
At the end of this multimedia tool a sensitivity analysis allows students to identify the changes in their forecasts (funds needed or excess funds) that would have occurred had some of the important variables been modified. For example increases or decreases in the cost of goods sold changes in the average collection period of clients changes in the average payment period to suppliers etc.Academic Area:Finance
FINANCIAL FORECASTS DF2-105-I
This tutorial gives a step-by-step look at how a company’s future plans are quantified through financial forecasts and explains the purpose and importance of forecasts. It emphasizes that although many people are overwhelmed when it comes to financial forecasts, it is something that must be dealt with and is a tool that financial professionals will never stop using. It explains how students must look at the company’s history and then create the balance sheet and P&L accounts for future years. To do so, it provides past financial results for Ártica and describes what has been happening with its sales, operating costs, expenses, etc. in recent years. It walks students through how to analyze the company’s accounts and then provides steps so that students can create a financial forecast. It demonstrates how you can create an optimistic forecast but also how you must imagine alternatives where things do not go well.Academic Area:Finance
How to analyze the economic feasibility of a busines … DF2-209-I
This technical note takes a look at the feasibility of a joint venture, UTE Construmás, which was set up to build a parking lot. Readers must figure out how much money they need in order for the joint venture to be feasible and what financial resources must be provided over Construmás’s lifetime. In order to do so, the case walks readers through six stages to analyze its economic viability: establishing the time horizon of the forecast, determining the assumptions for the forecast, deriving the forecast profit and loss statement for the company, calculating the balance sheet associated with the forecast profit and loss statement, deducing the forecast cash flow situation, and drawing conclusions. Readers are provided with details and financial information for each stage. After going through the stages, a conclusion is reached about building the parking lot through a join venture and its profitability from an accounting point of view. However, it must also cover a peak liquidity requirement which cannot be solved by increasing turnover.Academic Area:Finance