In your Excel budget, modify the budget to use percent of sales assumptions for expense categories.
- [Instructor] Now that we have a sales forecast…built out through the end of the year,…it's time to take another step forward…and figure out what our expected cash flows are…in the budget.…Cash is critical to a successful firm.…A business that runs out of cash,…even if it's profitable on paper risks bankruptcy.…In the corporate finance world then,…there's very few things more important…than an effective cash flow budget.…I'm in the 04_04_Begin Excel file.…
Now what we see at the bottom of the sheet here…is a basic cash flow budget.…We don't know what the previous year's sales are,…so we're simply starting by assuming…that at the end of Q1 we have a cash balance…of one million dollars.…That means that going into the beginning of Q2,…we also have a cash balance of one million dollars.…That's a key point to remember.…Whatever our cash ending total is for one quarter,…that's going to be the beginning total for the next quarter.…
In addition, one thing that's not nescessarily standard…in industry, but just to help you to better understand…
- Capital budgeting in Excel
- Using Excel in project selection
- Analyzing capital structure using Excel
- Estimating weighted average cost of capital (WACC)
- Applying Excel to operational budgeting
- Cash flow budgeting
- Stress test tools for budgets
Skill Level Intermediate
Excel 2016: Power Query (Get & Transform)with Oz du Soleil1h 49m Intermediate
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
1. Critical Tasks in Corporate Finance
2. Project Selection in Excel
3. WACC and Capital Structure in Excel
4. Operational Budgeting in Excel
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