From the course: Financial Analysis: Making Business Projections
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Excluding exceptional items - Microsoft Excel Tutorial
From the course: Financial Analysis: Making Business Projections
Excluding exceptional items
- Just like what we did with revenue, we need to start by excluding exceptional items and make two separate projections: one for stable expenditures and one for exceptional expenditures. We'll use the same criteria, time and magnitude, in order to identify those expenditures that need to be excluded. If it's big and does not happen often, it should definitely be on your exceptional list. Let's set those exceptional elements aside for now, as we will reintroduce them into our plan later on.
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