Creating a Spreadsheet for Decision Support - Business Decision Making - ثاني ثانوي

Creating a Spreadsheet for Decision Support You will produce a spreadsheet that models Electric Car's financial situation. Then, you will use the spreadsheet for decision support and write a report that documents your analysis and findings. First, you will create the spreadsheet model of the decision. The model covers the three years from 2023 to 2025. This section helps you set up each of the following spreadsheet components before entering cell formulas: Constants · Inputs . Summary of key results Calculations . Income and cash flow statements . Debt owed. QUICK TIP For currency, remember to change the number format to currency, SAR. For this exercise, numbers should contain two decimal places. A discussion of each section follows. Scan the QR code to access the workbook (Chapter 14 data file.xlsx) you'll be using for the rest of this lesson. Constants Section Your spreadsheet should include the following constants (see Figure 14-2): Minimum cash needed to start year: The company wants to have at least SAR 3.75 billion in cash at the beginning of each year (C4:E4). This will provide them with sufficient working capital to manage their opera- tions through the year. Assume that the company could borrow from a bank at the end of a year in order to begin the next year with this required amount. Projected capital costs: The company expects to spend SAR 7.5 billion a year on the expanded manufacturing line, battery factory, and other projects (C5:E5). Research and development costs: R&D is ongoing at an expected SAR 1.875 billion a year (C6:E6). Fixed costs: Expenses for the year, such as sales and administrative costs, are expected to be SAR 1.875 billion a year (C7:E7). Cost of operating a charger station yearly: Expenses associated with each charger station average SAR 375,000 a year (C8:E8). وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 469 The Electric Car Project 469 30/06/2023 14:29

FIGURE 14-2: The completed Constants section AutoSave Off File Home Insert Page Layout Formulas Data Review View Calibri 12 A A = Paste BIU ▾ Ax Undo Clipboard Б Font 12 117 17 XVfx A B 1 Electric Car Company 2 3 Constants 2022 4 Minimum cash needed to start year NA 5 Projected capital costs NA 6 Research and development costs NA 7 Fixed costs NA 8 Cost of operating a charger station NA 9 10 Inputs Cont of dasoline (D/S/U) 2022 Search Automate Help Acrobat Wrap Text Merge & Center - Alignment C 2023 General % Number Cell Conditional Format as Formatting Table Styles Styles Insert Delete Format Cells D 2024 E 2025 SAR 3,750,000,000.00 SAR 3,750,000,000.00 SAR 3,750,000,000.00 SAR 7,500,000,000.00 SAR 7,500,000,000.00 SAR 7,500,000,000.00 SAR 1,875,000,000.00 SAR 1,875,000,000.00 SAR 1,875,000,000.00 SAR 1,875,000,000.00 SAR 1,875,000,000.00 SAR 1,875,000,000.00 SAR 375,000.00 SAR 375,000.00 SAR 375,000.00 2023 NA 2024 NA 2025 MA F QUICK TIP To format the values of a cell, right-click the cell, select Format Cell, and choose the format you want to apply (Number, Currency, etc.) Or, at the top of the main ribbon you can click on the appropriate symbol to quickly set the format. Inputs Section Your spreadsheet should include the following inputs for the years 2023 to 2025 (see Figure 14-3). • . Cost of gasoline (D/S/U): The cost of a liter of gasoline has an effect on electric car sales and selling prices. When the cost of fuel goes up, more electric cars are sold, and for a higher price. When the cost of fuel goes down, the effects are the opposite. Thus, Electric Car management hopes for higher gas prices in the coming years. Enter "D" if the price of gasoline is expected to go down, "U" if the price is expected to go up, and "S" if the price is expected to be stable. The entry applies to all years. Put a "U" in B11 for now. Guarantee claim rate: What percentage of the possible SAR 3.75 billion liability will be claimed? The company expects it to be 1% each year, so enter "0.01" in C12:E12. Format these cells as percentages. Unit cost reduction factor: As the company learns more about making cars and modernizes its plant, the unit cost of a car should decline. If you expect a 1% decline each year, for example, enter "0.01" in C13:E13. Format these cells as percentages. Number of new charger locations: As a marketing tool, the company needs to keep expanding the number of locations. As an initial value, 30 new locations each year in C14:E14. 470 14 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 470 30/06/2023 14:29

. Units (market momentum effect) (percentage points): Management thinks that time is on its side: Over time, buying an electric car will be seen as the progressive thing to do, and car sales will increase as a result. Management calls this the market momentum effect-each year the market will move the company's way to a certain extent, regardless of other economic factors. If you expect the number of cars sold to increase by 7% in a year, for example, enter "0.07" Enter this value in cells C15:E15 initially. Format these cells as percentages. DEFINITION Market momentum effect: The expectation that, once a trend has been established, the market will move in the same general direction- only the rate will change. FIGURE 14-3: The completed Inputs section AutoSave Search File Calibri Home Insert Page Layout Formulas Data Review View 12 -AA Automate Help Acrobat Paste BIU A- E Wrap Text Merge & Center General S Font Alignment Cell Insert Delete Format Cells % Number Conditional Format as Formatting Table Styles Styles Undo Clipboard H20 ixx A B C D 10 Inputs 11 Cost of gasoline (D/S/U) 2022 2023 2024 E 2025 12 Guarantee claim rate 13 Unit cost reduction factor 14 Number of new charger locations 15 Units (Market momentum effect) ZZZZc NA NA NA NA 1% 1% 1% NA 1% 1% 1% NA 30 30 30 NA 7% 7% 7% 16 of key results 2023 2024 QUICK TIP To echo a value from one cell in a worksheet to another, use =CellReference. For example, to echo the contents of cell M65 in cell C12, you would type =M65 in cell C12. The value in M65 will be echoed. Summary of Key Results Section the For each year, your spreadsheet should compute net income, cash on hand at the end of the year, and debt owed (to noteholders and the bank) at the end of year. You will calculate these values later in your spreadsheet and then echo those values here (see Figure 14-4). For example, the value for Net Income in 2023 is calculated in cell C56. So, type =C56 in cell C18 to echo the value in this summary section. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 471 The Electric Car Project 471 30/06/2023 14:29

FIGURE 14-4: The completed Summary of key results section AutoSave On File Home Insert Page Layout Formulas Data Review View Help Acrobat X Cut Arial 12 A Wrap Text General Copy Paste BIU- Merge & Center $ -% Format Painter Clipboard Font Alignment Number B11 U 17 Summary of key results 18 Net income 19 End-of-year cash on hand 20 End-of-year debt owed 22 Calculations 23 Charger locations 24 Change in units sold (%) 25 Market momentum effect Gas price effect 2022 NA NA NA 2022 600 NA NA NA 2023 Search (Alt- D 2024 Normal 2 Conditional Format as Neutral Formatting Table- Normal Calculation Bad Check Cell Styles E 2025 SAR 1,841,106,000.00 SAR 1,447,688.215.20 SAR 5,962,053,751.11 SAR 3,750,000,000.00 SAR 3,750,000,000.00 SAR 3,750,000,000.00 SAR 20,591,106,000.00 SAR 26,643,417,784.80 SAR 28,181,364,033.69 2023 630 7% 5% 2024 660 7% 5% 2025 690 7% 5% Calculations Section You should calculate intermediate results (see Figure 14-5) that will be used in the income and cash flow statements that follow. Use absolute cell referencing when necessary. Values must be computed by cell formula; hard-code numbers in formulas only when you are told to do so. Cell formulas should not reference a cell with a value of "NA." FIGURE 14-5: The skeleton of the Calculations section AutoSave off Search File Calibri 11 Home Insert Page Layout Formulas Data Review View Automate Help Acrobat AA EU Paste BIU. 4.A5 Wrap Text Merge & Center General %88 Undo Clipboard Fu Fort Alignment Number Conditional Format as Cell Formatting Table Styles Styles Insert Delete Format Cells K61 fx A D 2024 E 2025 F G 22 Calculations 23 Charger locations 24 Change in units sold (%) 25 B 2022 C 2023 600 Market momentum effect 26 Gas price effect 27 New charger location effect 28 Total change ZZZZZ NA NA NA NA NA 29 Units sold (Sport) 30 Units sold (Family) 53,000 0 31 Change in selling price (%) NA 32 Market momentum effect NA 33 Gas price effect NA 34 New charger location effect NA 35 Total change NA 36 Selling price (Sport) 37 Selling price (Family) 38 Unit cost (Sport) SAR 280,000.00 SAR 290,000.00 39 Unit cost (Family) 40 41 Income statement and Cash flow statement 42 Beginning-of-year cash on hand 472 14 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 472 SAR 0.00 SAR 0.00 2022 2023 2024 2025 NA Charger locations: There were 600 locations at the end of 2022. The number of locations will increase each year by the number in the Inputs section (from C14). You will populate these values later in the project when you create models for different scenarios. 30/06/2023 14:29

Pil QUICK TIP =IF($B$11="U",0.05,IF ($B$11="D",-0.05,0)) QUICK TIP =IF(C14>100,0.05,IF (C14>75,0.03,IF(C14> 25,0.02,0))) QUICK TIP The formula for this would be 53,000+(53,000 × 0.10). Mathematically, we can simplify this equation to (1+0.10) x 53,000, which is B29*(1+C28). QUICK TIP Hard code 20,000 in the formula in C30, =20000* (1+C28). In D30:E30 use the Units Sold in the previous year in the formula. Ministry of Education 2024-1446 . . . . Change in units sold (%): Three factors will affect the number of sports cars and family sedans sold in a year-the market momentum effect, the cost of gasoline, and the number of new charger locations. Market momentum effect: This percentage increase is echoed from the Inputs section (from C15). Gas price effect: The direction of the price of gas is a value from the Inputs section. Use a nested =IF formula to determine this value. - Test 1: If the price is expected to drop, the effect is -5% (in other words, unit sales will decline by 5% in the year). Test 2: If the price is expected to increase, the effect is +5% (unit sales will increase by 5% in the year). Otherwise, if prices are expected to be stable, there is no effect ('0'). New charger location effect: Use a nested =IF function to determine this value. - - Test 1: If there are more than 100 new charger locations, the expected effect on units sold is +5%. Test 2: If there are more than 75 new charger locations, the expected effect is +3%. Test 3: If there are more than 25 new charger locations, the expected effect is +2%. Otherwise, there will be no effect ("0"). Total change: The total expected percentage change in units sold is the sum of the Market momentum effect, the Gas price effect, and the New charger location effect C25:C27. Units sold (Sport): The number of sports cars sold in a year is the sum of the number sold in the prior year and the total percentage change in units expected (C28). For example, if 53,000 sports cars were sold in 2022 and a 10% increase was expected in 2023, the number of units sold would be (1+0.10) × 53,000 = 58,300. Units sold (Family): No family sedans were sold in 2022. Management thinks 20,000 will be sold in 2023, plus or minus the expected change in units sold. Thus, if a 10% increase was expected in 2023, the number of The Electric Car Project 473 Business Decision Making S1 S2 S3.indb 473 30/06/2023 14:29

QUICK TIP |=IF($B$11="U",0.03,0) . . . units sold would be (1+0.10) × 20,000 = 22,000. In succeeding years, the number of units sold will be the sum of the number sold in the prior year and the total percentage change in units expected. Change in selling price (%): Three factors will affect the selling price of sports cars and family sedans sold in a year-the Market momentum effect, the cost of gasoline, and the number of new charger locations. Market momentum effect: This value is echoed from the Inputs section (from C15). Gas price effect: Use an =IF statement to calculate the effect of gas prices. - - Test: If gas prices are expected to go Up, sports car and sedan selling prices will increase by 3% each year. Otherwise, there will be no effect on selling prices. New charger location effect: Use an =IF statement to calculate the effect that new chargers will have. - Test: If the number of new charger locations exceeds 25, sports car and sedan selling prices will increase by 1% in the year. QUICK TIP |=IF(C14>25,0.01,0) - Otherwise, there will be no effect on selling prices. QUICK TIP You may hard code 130000 in the formula in cell C37, -130000*(1+C35). The formulas for cells D37:E37 should use the prior year's price in the formula. . . Total change: The total expected percentage change in sports car and family sedan selling prices is the sum of the Market momentum, the Gas price, and the New charger location effects C32:C34. Selling price (Sport): The selling price in a year is a function of the prior year's price and the total percentage change expected (C35). For exam- ple, in 2022 the selling price was SAR 280,000. If a 5% total change was expected, the 2023 selling price would be (1+0.05) × SAR 280,000 = SAR 294,000. = Selling price (Family): No family sedans were sold in 2022, so there is no 2022 selling price. Management thinks SAR 130,000, plus or minus the expected change, should be the selling price in 2023. Thus, if a 5% increase was expected in 2023, the selling price would be (1+0.05) × SAR 130,000 = SAR 136,500. In succeeding years, the price will be the sum of the price in the prior year and the total percentage change expected. 474 14 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 474 30/06/2023 14:29

. Unit cost (Sport): The unit cost of production in a year is the prior year's cost minus the cost reduction factor, which is a value from the Inputs section (C13). For example, the unit cost in 2022 was SAR 290,000. If a 2% decrease was expected in 2023, the unit cost would be (1−0.02) × SAR 290,000, or SAR 284,200. Unit cost (Family): No family sedans were made for sale in 2022. Management estimates a unit cost of SAR 112,500 in 2023, minus the effect of any cost reduction factor (from C13). Thus, if a 2% decrease was expected in 2023, the unit cost would be (1-0.02) × SAR 112,500, or SAR 110,250. In succeeding years, the unit cost will be the cost in the prior year minus the cost reduction factor expected in the year. FIGURE 14-6: The completed Calculations section AutoSave off File Home Insert Page Layout Formulas Data Review View 19 12 A A == Calibri Paste BIU Undo Cipboard Font 142 fx A 3 A 3 Б Search Automate Help Acrobat Wrap Text General Merge & Center ▾ %88 V Alignment Number Conditional Format as Cell Formatting Table Styles Styles Insert Delete Format Cells 22 Calculations 23 Charger locations 24 Change in units sold (%) 25 Market momentum effect 26 Gas price effect 27 New charger location effect 28 Total change 29 Units sold (Sport) B 2022 C 2023 D E F 2024 2025 600 630 660 690 22222 7% 7% 7% 5% 5% 5% 2% 2% 2% 14% 14% 14% 53,000 60,420 68,879 78,522 30 Units sold (Family) 0 22,800 25,992 29.631 31 Change in selling price (%) 32 Market momentum effect 33 Gas price effect 34 New charger location effect 35 Total change 36 Selling price (Sport) NA NA 7% 7% 7% NA 3% 3% 3% NA 1% 1% 1% NA 11% 11% 11% SAR 280,000.00 SAR 310,800.00 SAR 344,988.00 SAR 382,936.68 37 Selling price (Family) 38 Unit cost (Sport) SAR 0.00 SAR 290,000.00 39 Unit cost (Family) SAR 0.00 SAR 144,300.00 SAR 281,300.00 SAR 109,125.00 SAR 160,173.00 SAR 177,792.03 SAR 272,861.00 SAR 105,851.25 SAR 264,675.17 SAR 102,675.71 40 41 Income statement and Cash flow statement Beginning-of-year cash on hand 2022 2023 2024 2025 MA SAR 9,000,000,000.00 SAR 3,750.000.000.00 SAP 2 750 000.000.00 CHECK YOUR PROGRESS Compare your calculation results with the values shown. If yours are different, carefully re-check your formulas and cell addresses. Income and Cash Flow Statements The forecast for net income and cash flow starts with the cash on hand at the beginning of the year. This value is followed by the income statement and the calculation of cash on hand at year's end. For readability, format cells in this sec- tion as currency with zero decimals. Values must be computed by cell formula; hard-code numbers in formulas only if you are told to do so. Cell formulas should not reference a cell with a value of "NA." Your spreadsheets should look like those shown in Figures 14-7 and 14-8. A discussion of each item in the section. follows each figure. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 475 The Electric Car Project 475 744 30/06/2023 14:29

FIGURE 14-7: The skeleton of the Income and Cash flow statements section AutoSave off Search File Home Insert Page Layout Formulas Data Review View Automate Help Acrobat Calibri 11 A A Wrap Text General Paste BIU Merge & Center ~ % Undo Clipboard Б Font 19 Alignment K69 fx 2022 NA 2023 41 Income statement and Cash flow statement 42 Beginning-of-year cash on hand 43 44 Revenue 45 Auto sales (Sports car) 46 Auto sales (Family sedan) 47 Total revenue 48 Costs and expenses 49 Cost of sport autos sold 50 Cost of family autos sold ZZ ZZZ NA NA NA NA NA 51 Research and development costs NA 52 Charger location operating costs NA 53 Price guarantee payments NA 54 57 Fixed costs 55 Total costs and expenses 56 Net income 58 Scheduled capital expenditures ment to note holders NA NA NA NA Number Fy D 2024 Conditional Format as Cell Formatting Table Styles Styles E 2025 Insert Delete Format Cells 19 QUICK TIP Some of the data you need for this section can be found elsewhere in your spreadsheet. Remember not to hard-code data unless you're told to; using |= followed by the cell reference to echo the information. Go back to Chapter 10 if you need to refresh your memory. . Beginning-of-year cash on hand: This value is the cash on hand at the end of the prior year (B42). Auto sales: Sports car and family sedan revenues are the product of the units sold and the selling price, which are values from the Calculations section (C29:C30 and C36:C37). Total revenue: This value is the sum of sports car and family sedan rev- enues C45:C46. Cost of sport and family autos sold: These values are the product of the units sold and the unit cost, which are taken from the Calculations section C29:C30 and C38:C39. Research and development costs: This value is echoed from the Constants section (from C6). Charger location operating costs: This amount is the product of the number of charger locations (from C23 in the Calculations section) and the charger station operating cost (from C8 in the Constants section). Price guarantee payments: This amount for 2023 is a function of the guarantee claim rate for the year (from C12 in the Inputs section) and the assumed SAR 3.75 billion liability (= Guarantee Claim Rate × Liability). You should hard-code SAR 3.75 billion into your formula for 2023. In succeeding years, the amount is the product of the guarantee claim rate 476 14 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 476 30/06/2023 14:29

QUICK TIP In 2024 =D12* (3750000000-(C53)) In 2025 =E12* (3750000000-(C53+D53)) . . for the year and the remaining liability, which is SAR 3.75 billion minus any claims paid in prior years (= Guarantee claim rate × (Liability 2023 Payment 2023)). For example, if SAR 375 million in claims are paid in 2023, the assumed liability would be reduced to SAR 3.375 billion in 2024. In 2025, the Liability Claim Rate, × would be (SAR 3.75 billion (Payment 2023 + Payment 2024)). 2025 Fixed costs: This value is echoed from the Constants section (C7). - Total costs and expenses: This value is the sum of the cost of all cars. sold, R&D costs, charger location operating costs, price guarantee pay- ments, and fixed costs (C49:C54). . Net income: This value is the difference between Total revenue and Total costs and expenses, C47-C55. Line items for the year-end cash calculation are shown in Figure 14-10. In the figure, column B represents 2022, column C is for 2023, and so on. Year 2022 values are NA except for end-of-year cash on hand, which is SAR 9 billion. Values must be computed by cell formula; hard-code numbers in formulas only when you are told to do so. Cell formulas should not reference a cell with a value of "NA." FIGURE 14-8: The completed Income statement and Cash flow statement AutoSave Off Search File Home Insert Page Layout Formulas Data Review View Automate Help Acrobat Calibri 12 AA 三 Paste BIU- Wrap Text Merge & Center General % Conditional Format as Cell Formatting Table Styles Insert Delete Format Undo Clipboard E Font E Alignment Б Number Б Styles Cells 168 fx 41 Income statement and Cash flow statement 42 Beginning-of-year cash on hand 43 44 Revenue 45 Auto sales (Sports car) B 2022 NA C 2023 D 2024 E 2025 SAR 9,000,000,000.00 SAR 3,750,000,000.00 SAR 3,750,000,000.00 NA 46 Auto sales (Family sedan) NA 47 Total revenue 48 Costs and expenses NA SAR 18,778,536,000.00 SAR 23,762,359,454.40 SAR 30,068,889,653.60 SAR 3,290,040,000.00 SAR 4,163,216,616.00 SAR 5,268,134,305.89 SAR 22,068,576,000.00 SAR 27,925,576,070.40 SAR 35,337,023,959.48 49 Cost of sport autos sold NA SAR 16,996,146,000.00 SAR 18,794,338,246.80 SAR 20,782,779,233.31 50 Cost of family autos sold NA 51 Research and development costs NA SAR 2,488,050,000.00 SAR 1,875,000,000.00 52 Charger location operating costs NA SAR 236,250,000.00 53 Price guarantee payments NA SAR 37,500,000.00 54 Fixed costs NA 55 Total costs and expenses 56 Net income NA NA SAR 2,751,285,690.00 SAR 1,875,000,000.00 SAR 247,500,000.00 SAR 37,125,000.00 SAR 1,875,000,000.00 SAR 1,875,000,000.00 SAR 1,875,000,000.00 SAR 23,507,946,000.00 SAR 25,580,248,936.80 SAR 27,870,654,699.31 SAR 1,439,370,000.00 SAR 2,345,327,133.60 SAR 7,466,369,260.17 SAR 3,042,371,716.00 SAR 1,875,000,000.00 SAR 258,750,000.00 SAR 36,753,750.00 57 Scheduled capital expenditures NA SAR 7,500,000,000.00 SAR 7,500,000,000.00 SAR 7.500 000 000.00 pil CHECK YOUR PROGRESS Compare your calculation results with the values shown. If yours are different, carefully re-check your formulas and cell addresses. Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 477 The Electric Car Project 477 30/06/2023 14:29

End-of-Year Cash on Hand Section FIGURE 14-9: The skeleton of the End-of-year cash on hand section AutoSave Search File Home Insert Page Layout Formulas Data Review View Automate Help Acrobat 2. Calibri 11 AA 三 Paste BIU- a Undo Clpboard 19 Font J71 fx 58 Scheduled capital expenditures 59 Repayment to note holders 60 Net Cash Position (NCP) before borrowing 61 Add (Borrowing from bank) 62 Equals (End-of-year cash on hand) 63 64 Debt owed Beginning-of-year debt owed *4444 B NA NA NA NA Wrap Text General Merge & Center Cell Conditional Format as Formatting Table Styles Insert Delete Format Alignment 19 Number 19 Styles Cells D E F G 2022 ΔΙΑ 2023 2024 2025 QUICK TIP |=C4+C56-C58-C59 QUICK TIP =IF(C60<C4,C4-C60,0) • Scheduled capital expenditures: These outlays are echoed from the Projected capital costs in the Constants section (C5). They reduce cash on hand. Repayment to note holders: SAR 11.25 billion is owed to noteholders at the end of 2022, with five years remaining on the debt. SAR 2.25 bil- lion must be repaid each year to noteholders. You can hard-code the amount for each year. Net Cash Position (NCP): This amount equals cash at the beginning of the year plus the year's net income, minus scheduled capital expendi- tures and minus payments to noteholders. Add (Borrowing from bank): If the company doesn't have the mini- mum cash needed to start the next year, it can borrow from a bank. You will use an =IF statement to calculate this. - Test: If NCP before borrowing < Minimum cash needed, Then: borrow from the bank (Min. Cash Needed - NCP), 478 14 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 478 - Otherwise: nothing is borrowed ("0") . Equals (End-of-year cash on hand): This amount is the NCP plus any bank borrowing, C60+C61. 30/06/2023 14:29

FIGURE 14-10: The completed End-of-year cash on hand section AutoSave Search File Home Insert Page Layout Formulas Data Review View Automate Help Acrobat Calibri 12 A A HU Wrap Text General Paste B 1U- Merge & Center % Undo Clipboard. E Font Alignment Number Conditional Format as Cell Formatting Table Styles Styles Insert Delete Format Cells 168 fx A C D E F 58 Scheduled capital expenditures 59 Repayment to note holders 60 Net Cash Position (NCP) before borrowing 61 Add (Borrowing from bank) 62 Equals (End-of-year cash on hand) 63 B ZZZZ NA NA NA NA SAR 9,000,000,000.00 SAR 7,500,000,000.00 SAR 7,500,000,000.00 SAR 7,500,000,000.00 SAR 2,250,000,000.00 SAR 2,250,000,000.00 SAR 2,250,000,000.00 SAR 7,439,370,000.00 SAR 3,654,672,866.40 SAR 1,466,369,260.17 SAR 11,189,370,000.00 SAR 7,404,672,866.40 SAR 2,283,630,739.83 SAR 3,750,000,000.00 SAR 3,750,000,000.00 SAR 3,750,000,000.00 2023 2024 CHECK YOUR PROGRESS Compare your calculation results with the values shown. If yours are different, carefully re-check your formulas and cell addresses. Debt Owed Section This section shows a calculation of debt owed to noteholders and to the bank, as shown in Figure 14-11. Year 2022 values are NA except for End-of-year debt owed, which is SAR 11.25 billion for the remaining notes payable (shown in Figure 14-12). FIGURE 14-11: The skeleton of the Debt owed section وزارة التعليم Ministry of Education 2024-1446 AutoSave off H File Search Home Insert Page Layout Formulas Data Review View Automate Help Acrobat Calibri 11 A A == Patte BIU- AM Undo Clipboard Font 173 23 fx Б Wrap Text General Merge & Center % Alignment E Number 64 Debt owed 65 Beginning-of-year debt owed 66 Add (Borrowing from bank) 67 Less (Repayment to noteholders) 68 Equals (End-of-year debt owed) 69 B C 2022 2023 NA NA NA SAR 11,250,000,000.00 70 Business Decision Making S1 S2 S3.indb 479 D 2024 Cell Insert Delete Format Conditional Format as Formatting Table Styles Styles E 2025 Cells G Values must be computed by cell formula; hard-code numbers in formulas only when you are told to do so. Cell formulas should not reference a cell with a value of "NA." • . . Beginning-of-year debt owed: Debt owed at the beginning of a year (C65) equals the debt owed at the end of the prior year (B68). Add (Borrowing from bank): This amount is echoed from the Borrowing from bank section (C61). Borrowing increases the amount of debt owed. Less (Repayment to noteholders): This amount is echoed from the repayment to note holders (C59). Repayments reduce the amount of debt owed. The Electric Car Project 479 30/06/2023 14:29

. Equals (End-of-Year debt owed): This is the amount owed at the begin- ning of a year plus borrowing during the year, minus repayments to noteholders during the year. FIGURE 14-12: The completed Debt owed section AutoSave Off Search File Home Insert Page Layout Formulas Data Review View Automate Help Acrobat Calibri 12 AA E Wrap Text General Paste BIU Merge & Center E % Alignment 15 Number Б Unda Clipboard 15 Fort Б K85 fx A Conditional Format as Cell Formatting Table Styles Styles Insert Delete Format 64 Debt owed 65 Beginning-of-year debt owed 66 Add (Borrowing from bank) 67 Less (Repayment to noteholders) 68 Equals (End-of-year debt owed) 69 B 2022 NA NA NA C 2023 D 2024 E 2025 SAR 11,250,000,000.00 SAR 20,189,370,000.00 SAR 25,344,042,866.40 SAR 11,189,370,000.00 SAR 7,404,672,866.40 SAR 2,283,630,739.83 SAR 2,250,000,000.00 SAR 2,250,000,000.00 SAR 2,250,000,000.00 SAR 11,250,000,000.00 SAR 20,189,370,000.00 SAR 25,344,042,866.40 SAR 25,377,673,606.23 Cells CHECK YOUR PROGRESS Compare your calculation results with the values shown. If yours are different, carefully re-check your formulas and cell addresses. Copy all formulas from column C (2023) to column D (2024) and column E (2025). REVIEW QUESTIONS 1. If the buy-back program were to continue, how much would a used sports car from Electric Car be re-purchased for in 2024? a. SAR 162,000 b. SAR 169,000 c. SAR 166,000 d. SAR 172,000 2. Which two groups are most likely to enter into a joint venture? a. Customer and supplier b. Supplier and manufacturer c. Business and competitor d. Bank and customer 3. What is the Net Cash Position (NPC)? a. Cash at the beginning of the year + the year's net income - scheduled capital expenditures - payments to noteholders b. Cash at the end of the year + the year's net income - scheduled capital expenditures + payments to noteholders c. Cash at the beginning of the year - the year's net income + scheduled capital expenditures - payments to note holders d. Cash at the end of the year - the year's net income + scheduled capital expenditures + payments to note holders 480 14 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 480 30/06/2023 14:29