3 Statement Financial Model For AFM Exam Solution, Financial Modeling Institute (FMI)

Description
The financial model is built based on the 2017 (Henderson Manufacturing) FMI case study data and the questions provided by FMI.

Go to https://fminstitute.com to get access to information about the exam and the case study.
FMI candidates are required to build a similar model in 4 hours as part of their practical assessment and accreditation to being a certified financial modeler under the FMI.

This particular exam solution is for the Advanced Financial Modeler (AFM) certification exam (1st level). AFM candidates are required to build a fully integrated financial model (Income Statement, Balance Sheet and Cash Flow Statement) of a company using Excel. The 3-statement model includes IS, BS and CFS but also includes some complex calculations and detailed schedules including dealing with circularity issues in interest calculations.

We choose to use a circular switch to control for circular references which uses iterations but it can also be switched off to avoid any issues in the model. It is suggested that candidates are familiar with all various approaches and practice solving circularity problems prior to taking the exam.
In this model we also use macros to copy and paste as values key items and ratios under the different scenarios. In addition we use a macro to save the file as a pdf document. This is not required by FMI for this exam.

The model has been designed to assist AFM candidates with learning the fastest way to complete the exam, but not necessarily the best way to present such a model to clients. For example models should contain charts and outputs, table of contents etc. We have not included those as they are not required for the exam and no additional marks are provided for creating these. Hence this model is very much a technical solution, not a client demonstration version.