Financial Strategies Capstone Assignment - Writing about the Linkages Model
Purpose of the model
- Explanation of the how to use the model:
- Review of financial goals (the yellow cells) and the strategies to achieve them:
- Review of expected results:
- Review of risk mitigation (the data tables and strategies to assure better performance):
- Review of the request to the XXX:
- Recommendations and suggestions for implementation:
Questions -
1. What should be in a spreadsheet forecast? Hint: Look to Linkages.
2. Are there opportunities for principled leadership and the ethical use of power in financial strategies/forecasting? Explain. Be specific.
3. How are the financial statements connected? Why is it called 'Linkages'? Be specific.
4. Why does every model need an 'Overview' or 'Introduction'?
5. Why do forecasts of financial statements need to stay unbalanced?
6. What is the most important part of the forecasted balance sheet? Why?
Using a blank Excel file, load your Johnson & Johnson's Income Statement (left to right three years) and Balance Sheet (left to right two years) presented by the company's 10K report. You may be asked to provide more information from the financial notes.
Do not use the professor's Apple model as that is Apple's unique format. All companies are unique.
Using formulas in Excel, calculate past ratios under each line of the Income Statement and Balance Sheet that you will be forecasting, e.g. sales growth, cost of x as a percent of sales, tax rate, DSO, Inventory Days, Days Payable, PPE as a % of sales.
Using the Excel file attached, fill in the blanks for a reusable water bottle company.