Chapter 6. Case study:

Case study questions:

1) Prepare forecast financial statements for Qantas in 2014, based on the most likely forecasts.

2) Choosing the least favourable forecast for each item for which a range of possible forecasts

are given, prepare a ‘worst-case’ forecast financial statements for Qantas in 2014. What

level of borrowing or equity-raising is required in this scenario?

3) Choosing the most favourable forecast for each item for which a range of possible forecasts

are given, prepare a ‘best-case’ forecast financial statement for Qantas in 2014. What level

of borrowing or equity-raising is required in this scenario?

4) Update the forecast assumptions for the most recent Qantas annual report available to you.

Prepare the forecast financial statements for Qantas for the following year.

5) How confident do you feel about any of these forecasts, and why?

6) Discuss how you would apply the “7 steps to mastering the business of superforecasting” by

Susan Muldowney? Explain the key lessons and implications for our analysis?

7) Using your knowledge of the topics so far (strategy analysis, accounting analysis etc…), and

using the Qantas example, critique the validity of the forecasts that we make.