We take you step-by-step through the assumptions section of your model, focusing on the inputs and structure that will drive the revenue and cost of goods sold components of the income statement. At their core, all M&A, DCF, and LBO models depend on forecasts produced in the 3-statement model. This…

Strangely, CapEx is below D&A in each projected year, but it’s not necessarily “wrong” for a low-growth company like this one. In this case, the company provides specific guidance on the Dividend Payout Ratio, so we increase it slightly over the period to match their targets (see below). Lease accounting…

The contents of the opening entry generally include the initial funding as well as any initial debts incurred and assets obtained by the firm. The opening of a firm will vary from business to business, this depends on the inclusion of contents of the opening balance sheet. Double Entry Bookkeeping…