Develop a dynamic financial forecast model in Excel.

Instruction: Create a model that projects future financial performance based on variable input parameters. Include assumptions for revenue growth, cost percentage changes, and capital expenditure. Ensure the model is dynamic, allowing the user to easily modify assumptions and immediately see the impact on the forecast.

Context: This question assesses the candidate's ability to build an Excel forecast with explicit assumptions, linked formulas, input validation and sensitivity checks, while clearly stating the model's scope and excluded financial items.

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Use separate assumptions, calculations and outputs, and state the model's scope. This simplified annual operating model is a teaching exercise, not a complete three-statement forecast.

On Assumptions, enter B2 = 1000000 for prior-year revenue, B3 = 10% growth, B4 = 40% variable-cost share, B5 = 200000 fixed operating cash costs and B6 = 80000 capital expenditure...

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