Mastering Financial Modeling: A Professional’s Guide to Building Financial Models in Excel

CHAPTER THREECASE STUDY 1:The Phone Factory

3.1 INTRODUCTION

This case study has been designed to give a context for the teaching of financial modeling in Microsoft Excel. Case studies will be at the center of the reader’s learning of modeling. For this first case study, you are asked to build a cash flow model only; that is, no income statement account and no balance sheet are required. Thus, little knowledge of accounting and finance is needed here.

Yet within this case study, a number of important financial and modeling concepts will be used; thus, completing the case study will teach you a number of useful and important techniques for building good models despite having little knowledge of accounting and finance.

3.2 FINANCIAL CONCEPTS COVERED ...