Widget Budget is an actual case from the Financial Modeling World Cup 2021, Stage 10 (October 15-18) competition. This case study was created to give you a flavor of budget planning. Although, real-life budgets are much more complicated. This case will specifically test your understanding of revenue and expense forecasting due to volume growth and inflation.

Case description:

As the CFO of Widget Manufacturing Co., the goal is to create a monthly Profit & Loss budget model for the year 2022, based on the actuals from 2021.

The main challenge is to create a budget model that accurately predicts WMC’s profits and losses in 2022. The model must account for sales price increases, unit sales growth, cost of goods sold (COGS) increases, and expense increases. Additionally, the model must take into account three expense items (Depreciation, Interest, and Professional fees) that do not follow the same rules as the other expenses. All calculations must be made without rounding at any point.

The downloadable file consists of the following:
–Task: PDF file with Case Materials; PDF file with Questions; Excel file with Case Assumptions
–Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold

This model awarded 350 regular points, while the whole 2h Stage allowed to earn 1,150 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at info@fmworldcup.com
You can also buy tickets to participate in the future FMWC Stages at https://fmworldcup.com/shop