Learn how to calculate forecasted long-term debt and its effect on liabilities and interest expense.
- [Instructor] Let's keep knocking out some more…of these line items in the balance sheet.…I'm in 03_05_BS_Begin if you want to join me.…And I want to turn my attention in particular…to the long-term debt.…That's our current portion in row 29 under liabilities.…The amounts that we input here are the amounts owed…as of the last day of each year.…This is pretty straightforward.…I don't imagine that the current portion…of long-term loans will change too much.…For the sake of having a little bit of flexibility,…let's increase the amount 2% each year.…
So to do that, I'm going to click on D29 for projected 2018,…and I'll simply say equals Historical 2017 times 1.02.…We're increasing it by 2% each year.…So I'm going to go ahead and apply the same type of logic…to my other years.…And you'll see that the long-term portion…is increasing little, by little, by little.…Okay, so let's think about the long-term debt section…while we're at it.…For now, I'm just going to assume that other long-term debt…in row 35 is going to remain the same over the years,…
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- Explain the four different types of financial statements.
- Distinguish between the types of moving averages.
- Determine a seasonal adjusted trend.
- Break down pro-forma financial statements.
- Identify cash flows, and what increased liabilities and decreased earnings generally indicate.
- Tell what a regression is.
- Outline the naive approach.