FINANCIAL MODELING (SPRING 2014)

QUIZZ-1 SEC B (WED)

13TH MARCH 2014
Q. 1. Babu Bhai Corporation has bank balances of Rs. 100,000 as on January 1st
2012. The sales forecast for the next six months are as follows:
a) Sales forecast for the six month are as under:
Months Amount (Rs.) Months Amount (Rs.)
January 850,000 April 800,000
February 750,000 May 900,000
March 800,000 June 950,000
b) The recoveries trend is made as follows
Debtors Recovery Pattern
55% in the month of sales
30% in the following month of sales
10% in second month after sales, and
05% in third month after sales
c) Cost of sales are 80% of sales, payable immediately to avail 5% cash
discount of cost.
d) Other costs are 10% of sales
e) Personal drawings are Rs. 25,000 per month. (Scroll Bar, Range 20,000-
35,000 with 1,000 increment)
f) Any short fall (manual feeding) will be financed by bank @ 12% interest
per annum worked out on the closing balance of the month. Interest is
payable next month.

REQUIRED
1. You are required to prepare a Cash Budget (Six Months) and a Budgeted
Income Statement for the period ending 30th June 2012. (Marks-8)
2. The output required is Total Receipts, Total Payments, Overdraft
each month and Net Income for the period ended 30th June 2012.
Marks (6)
3. Apply text and number formatting (Marks-4)
4. Apply Data Validation on all INPUTS where required (Marks-4).
5. Define Data Table 1 of your choice
6. Define Data Table 2 of your choice
7. Define Scenario Manager with 3 Scenarios and it summary