These are projects posted by the students of Dr. Gove Allen at Brigham Young University. These students have taken one semester-long course on VBA and generally have had no prior programming experience

Wednesday, April 11, 2012

Proforma Profit and Loss Statement Generator

Sports Event Company (SEC) is an independent promoter of high-profile soccer matches in the United States. SEC enters into agreements with domestic and foreign soccer clubs and national teams to play exhibition matches in American football stadiums. After securing the involvment of two teams for a potential game, SEC engages stadium operators in negotiations to get the best deals possible on stadium rent and operating expenses. The nature of the business is extremely risky. SEC bears significant costs to secure the participation of the soccer teams and to reserve stadiums. Ticket sales is the major revenue source and is subject to large fluctuations in demand depending on factors like weather, attractiveness of the teams, local market demographics, and competing entertainment options (theatre, home entertainment, etc.). SEC is not a well capitalized company and must deliver strong financial results for each game it promotes in order to stay in business.

Given the levels of risk associated with the business and SEC’s limited capital, SEC is very cautious about making the decision to promote a game. SEC management prefers to examine several different options, create proforma profit and loss statements and perform sensitivity analyses to measure risk. The negotiating window for these games is small and SEC must often make quick decisions about whether or not to take on a game. With the large number of unique inputs required for each P&L and the limited time frame, errors often creep into the proforma as financial analysts cut and paste data from previous games to expedite the analysis.

To help SEC with its decision making and to minimize errors from careless cutting and pasting, I created a user form that allows the user to select a stadium, enter unique inputs about team costs, specify revenue assumptions, select parameters for a sensitivity analysis, and indicate a target profit level. When the user pushes the “run” button, a proforma P&L statement is generated that incorporates all the revenue and expense assumptions, generates the user specified sensitivity analysis and highlights the breakeven and target profit scenarios.

Final Report

Excel Workbook

1 comment:

  1. Hi. You can find a blank Fillable Sample Profit and Loss Statement for Self Employed Borrowers here.

    You can fill out the form, save it, fax it, and email it. Please feel free to use it.


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