Microsoft Office Tutorials and References
In Depth Information
Scenario Summary worksheet after formatting
Interpreting the Results
Now that you have good data, what do you do with it? Remember, you wanted to see if taking a $100,000
business loan to expand the thrift shop was a good financial decision. This is a relatively simple business case,
and the shop
s success so far ($350,000 of sales in 2011) would seem to make expansion a good risk. But
how good?
After building the spreadsheet and doing the analysis, you can make comparisons and interpret the
results. Regardless of the economic outlook or inflation, all four scenarios indicate that expanding the
business should provide greater Net Income After Taxes and End-of-year Cash on Hand (after two years) than not
expanding. So, the DSS model not only provides a quantitative basis for expanding, it provides an analysis
that you can present to prospective lenders.
What decision would you make about expansion if you only looked at the 2012 forecast? You could go
back to the original spreadsheet and look at the figures for 2012, or you can go to Scenario Manager and
create a new summary, specifying the 2012 cells C12 through C15. See Figure C-28.
Creating a new Scenario Summary for 2012 instead of 2013
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