From the course: Financial Modeling Foundations

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Putting it all together

Putting it all together - Microsoft Excel Tutorial

From the course: Financial Modeling Foundations

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Putting it all together

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- [Instructor] Once we've made a set of forward-looking assumptions about how we think the firm's revenue, cost and assets and liabilities will change over time, we're prepared to then begin making projections about the firm's financial condition on a forward-looking basis. I'm in the 02 07 Begin Excel file. Now what we have here are the projections we made around revenue, growth around various firm metrics, etcetera. What we want to do is go through and build out the remainder of the income statement. We can use the same process to build out the remainder of our balance sheet and cash flow statement. So, how do we get started. Well begin with we're simply going to take our assumed revenue growth for 2019 and then multiply that by the previous year's revenue. We can then extend this out over a five year time horizon. Next, we'll want to determine our cost of good sold based on our assumption about COGGS as a percentage of revenue multiplied by the revenue. And we can extend this out…

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