From the course: Excel for Accountants
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Historical statements to forward projections - Microsoft Excel Tutorial
From the course: Excel for Accountants
Historical statements to forward projections
- [Instructor] In addition to recording and synthesizing information, accountants are sometimes called upon to make forward looking forecasts. The flexibility of Excel makes this easy to do. I'm in the 04_01_Begin Excel file. Now, what we have here, are the financial statements for the firm, the income statement, the balance sheet, and our statement of cash flows. We've also made a series of assumptions about the firm based on projections and reality. So we've made assumptions about market share and revenue growth on a forward-looking basis. These forward-looking basis, assumptions, are often based at least in part on what's happened historically. So in this case, we've simply taken a simple rolling four-year average to come up with what we think projected market share and market growth will be going forward. When it comes to the most important financial forecast we're going to make, though, that's probably going to be built around revenue growth, there's two ways to look at the…
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