i need it in 10 hours!!!
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The Body Shop International PLC 2001:
An Introduction to Financial Modeling
Guidance Sheet
Synopsis and Objectives
In this case, the student is cast in the role of adviser to Anita Roddick, the managing director of the Body Shop. The student must prepare a three-year forecast of the firm’s income statements and balance sheets. use a spreadsheet program on the personal computer. The case emphasizes the importance of being able to speak plainly about one’s financial forecast and the insights that are of use to the general manager.
Instructions to Students
Work through the exercises in this case, first using pencil and paper, and then using your personal computer. Then follow the directions in the case to make the three-year forecast, and prepare responses to the questions posed at the end of the case.
The Microsoft Excel spreadsheet file, UVA-F-1349X, supports student analysis and saves a few keystrokes in formatting and entering data for the final exercise of the case.
Questions:
1. Why would a company like the Body Shop want to forecast its financial statements? Let us vault past the exercise questions and go straight into the three-year forecasts: How did you prepare your forecast and what numbers did you get?
2. How much debt financing will the Body Shop need over this forecast period? What are the key drivers of this need, and how much do debt needs vary as the assumptions vary?
3. What issues does this analysis raise for Roddick?
Note: A spreadsheet is provided but students are free to create their own analysis, financial models, and projections etc. Please provide all supporting data and schedules.