From the course: Excel: Learning Cash Flow Forecasting

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Challenge: Forecasting the profit and loss and scenarios in Excel

Challenge: Forecasting the profit and loss and scenarios in Excel

From the course: Excel: Learning Cash Flow Forecasting

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Challenge: Forecasting the profit and loss and scenarios in Excel

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(upbeat music) - [Narrator] We now have a fully built out P&L. Our sales forecast is up at the top. Our direct costs and our indirect expenses are forecast from our cost and expense assumptions over here on this schedule. Leslie Barrington, the owner of Barrington Chocolate, is happy with your P&L forecast that can be easily updated and toggled for new assumptions. But now she wants to consider various business scenarios that are on the table. Scenario number one, despite 25% sales growth year over year, Leslie has never increased her prices. Yet, as a luxury brand, she wants to differentiate her chocolates from others in the market and be seen as the premier chocolatier. She's considering increasing prices between five and 15% and wants to run scenarios to see the impact on net income. And eventually, as we build out our cashflow forecast, she wants to know how this price increase will translate over to cashflow. Scenario two. She's also received an expression of interest from one of…

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