Case Study: Ofoq Retail Co.
Ofoq Retail Co. is a fast-growing retail startup. The CFO has asked you — the new financial analyst — to prepare next year’s projected financial statements for a board presentation.
Available data (base year)
| Item | Value |
|---|---|
| Revenue | EGP 2,400,000 |
| Gross margin | 45% |
| Operating expenses | 30% of revenue |
| Debt balance | EGP 500,000 at 8% interest |
| Tax rate | 22.5% |
| Beginning cash | EGP 180,000 |
| Beginning net PP&E | EGP 900,000 |
| Common stock | EGP 300,000 |
| Beginning retained earnings | EGP 280,000 |
Assumptions for next year
- Expected revenue growth: 15%
- Planned Capex: EGP 220,000 (new store expansion)
- Depreciation: EGP 150,000
- Dividend payout ratio: 10% of net income
What’s required
- Download the blank Excel template from the course overview page and build the full income statement for next year.
- Link net income into the cash flow statement, applying the depreciation add-back and Capex deduction.
- Build the ending balance sheet and confirm it balances (assets = liabilities + equity).
- Compare your result to the downloadable “solved model” file — only after you’ve tried it yourself.
- Test your understanding on the quiz page.
Tip: use the same logic from the interactive lab in lesson three as your reference, but with Ofoq Retail Co.’s new numbers.