09 July 2010
As an Example to explain you, lets take the example where we have 1st as teh actula year, 2nd year as the estimated , and next two years is projected.
These 4 years are put in vertical format in 4 columns of the excel sheet.
1. Put the actuals values in the first year column. 2. Enter the estimated value in 2nd column with the actual incurred to date and convert them into yearly basis proportionately. 3. Now for the projected anayise the trend from the last 2 years and if it is increasing put the figures in an increasing way in the 3rd and 4th year or if decreasing then decreasing. 4. Also consider any special consideration or event which the management tells you like purchase of an aset in next 2 years or introduction of additional capital or raising of any loans and adjust the projected figures accordingly.
As an example.
Sales 55,740 61,250 65000 72000
Tel Exp. 2356 2640 2900 3200 Assets 76523 81250 90000 140000 (Suppose management says that they are purchsaing special machinery of 40000 in 5th year)
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