Budget_and_Financial_Reporting_for_the_Enterprise_5.pptx

finacial modeling

1. Sesi 5 BUDGETING AND BUSINESS REPORT Financial Modeling: Tools for Budgeting and Profit Planning www.esaunggul.ac.id

2. VISI Menjadi perguruan tinggi kelas dunia berbasis intelektualitas, kreatifitas dan kewirausahaan, yang unggul dalam mutu pengelolaan dan hasil pelaksanaan Tridarma Perguruan Tinggi. MISI Menyelenggarakan pendidikan tinggi yang bermutu dan relevan Menciptakan suasana akademik yang kondusif Memberikan pelayanan prima kepada seluruh pemangku kepentingan www.esaunggul.ac.id

3. TOPIK SEBELUM UTS Budgeting: An Introduction Forcasting Sales Forcasting Operating Budget Financial Modeling: Tools for Budgeting and Profit Planning Financial Budget Capital Expenditures Budget www.esaunggul.ac.id

4. TOPIK SETELAH UTS Capital Budgeting Business structures and Business Report Accounting and Business Decision Making Accounting in society Accounting Quality, Development and Deployment of Information at the Functional Level Budget Report, Financial Report and Performance Budget Report, Financial Report and Performance www.esaunggul.ac.id

5. BUKU REFERENSI 1. Budgeting basics and beyond: Jae K. Shim, Joel G. Siegel, Allison I. Shim. Published by John Wiley & Sons, Inc., Hoboken, New Jersey, 2012 2. Financial Planning & Analysis And Performance Management, Published by John Wiley & Sons, Inc., Hoboken, New Jersey, 2018 3. Business Forecasting, John E. Hanke Dean Wichern, Ninth Edition, 2014 4. Financial Reporting, Financial Statement Analysis and Valuation, 8e, James Wahlen , Stephen Baginski , Mark Bradshaw, 2015 www.esaunggul.ac.id

6. BUKU REFERENSI Managerial Accounting Tools for Business Decision-Making, Fifth Canadian Edition, Jerry J. Weygandt Ph.D., CPA; Paul D. Kimmel Ph.D., CPA; Donald E. Kieso Ph.D., CPA; Ibrahim M. Aly Ph.D. 2017 Accounting: business reporting for Decision Making, Jacqueline Birt , Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver. Edition: Sixth edition. John Wiley & Sons, Australia, Ltd 2017 Financial forecasting, analysis, and modelling : a framework for long-term forecasting / Michael Samonas , John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom, 2015

7. PENILAIAN Present = 15 % Mid = 30 % Final = 30 % QUIZ = 10 % Task = 15 % www.esaunggul.ac.id

8. What Is a Financial Model ? A financial model is a forecast for a specific business of key financial information , usually done in MS Excel, that uses a set of assumptions , in order to see the financial effects of decisions.

9. What are the benefits of a financial model? Accounting packages are historical, while business owners and managers need forward looking information, to make decisions. Financial models are key to any financing decision – a bank will usually want to understand future cash flows Key to any major capital investment – we want to understand the return on capital invested Important in a sale of the business or raising of capital – investors want to understand future profits and cash flows to estimate future share price and dividend stream

10. Key financial information Focuses on key financial aspects – cannot contain all information; it needs to summarise information eg look at sales by major product group, not by every single product

11. Key Aspects – Example Sales information Product Category Sales Dog food X Large Dog food 10 500 Dog food Large Dog food 10 000 Dog food Medium Dog food 20 000 Cat food Large Cat food 25 000 Cat food Medium Cat food 20 000 Cat food small Cat food 10 000 Total 95 500 Category Sales Dog food 40 500 Cat food 55 000 Total 95 500 Detail Summary

12. Typical key information (historical) Sales volume (units or monetary) Product costs Variable costs – costs that vary depending on sales volume eg sales commission or delivery expenses Fixed costs – costs that do not vary when sales volumes change eg rent

13. Typical key information (historical) Sales growth – price and volume Gross profit margins. This can be overall, split per customer group or product group Cost as % of sales – useful for variable costs Inflation Interest rates Tax rates

14. Typical Assumptions Sales growth – price and volume Gross profit margins. Variable costs ( eg % of sales) Fixed costs – current cost + inflation Planned capital expenditure (new machinery) Planned changes – new staff, new premises Interest rates Tax rates Constraints – which is how much more you can sell or manufacture given the current business eg given your current factory size and layout, you can only expand by another 10%

15. Modelling Process

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