This assignment is a more advanced version of the 'Simnle Comnanv Model' develoned in Develoning a Model (Workbook 7) to imblement various hvnothesis driven forecasts. 122 We have created hypothesized scenarios for you to forecast: 124 For every scenario leave all forecasts at the "nave" number pre-set and then change the info as required. Hypothesized Scenario 1 Assume a new competitor enters the market and that drives Gross Margin to 25\% What is the forecasted Net Income? What is the forecasted Cash balance? Hypothesized Scenario 2 Set the DSO equal to 10 days Leave the Gross Margin at 25% What is the forecasted Cash balance? See how the: Reduction of DSOs reduced 'Accounts Receivable' on the Balance Sheet and Impacted '-Increase in Accounts Receivable' on the Cash Flow Statement, Which impacts 'Cash' on the Balance Sheet. Hypothesized Scenario 3 Construct a new plant increasing CapEx to $100 (remember that this is a 100 in the model as it is a use of cash) Leave the Gross Margin at 25% and the DSO at 10 days. What is the forecasted Cash balance? What is the forecasted PP\&E balance? See how the: Investment in Capex has an impact on PP\&E, Affects Cash Flow on the Cash Flow Statement, Reduces the Cash Balance on the Balance Sheet and Lowers GAAP Net Income as Depreciation rises. This assignment is a more advanced version of the 'Simnle Comnanv Model' develoned in Develoning a Model (Workbook 7) to imblement various hvnothesis driven forecasts. 122 We have created hypothesized scenarios for you to forecast: 124 For every scenario leave all forecasts at the "nave" number pre-set and then change the info as required. Hypothesized Scenario 1 Assume a new competitor enters the market and that drives Gross Margin to 25\% What is the forecasted Net Income? What is the forecasted Cash balance? Hypothesized Scenario 2 Set the DSO equal to 10 days Leave the Gross Margin at 25% What is the forecasted Cash balance? See how the: Reduction of DSOs reduced 'Accounts Receivable' on the Balance Sheet and Impacted '-Increase in Accounts Receivable' on the Cash Flow Statement, Which impacts 'Cash' on the Balance Sheet. Hypothesized Scenario 3 Construct a new plant increasing CapEx to $100 (remember that this is a 100 in the model as it is a use of cash) Leave the Gross Margin at 25% and the DSO at 10 days. What is the forecasted Cash balance? What is the forecasted PP\&E balance? See how the: Investment in Capex has an impact on PP\&E, Affects Cash Flow on the Cash Flow Statement, Reduces the Cash Balance on the Balance Sheet and Lowers GAAP Net Income as Depreciation rises