Forecasting APIC
Hi Everyone,
I am currently building a 3 statement financial model and i am trying to figure out how to forecast additional paid in capital? In the last three year it has been 2017: 126,490; 2018: 937,965; and 2019: 949,321? I am at a lose on how i should project this into the future and it is a major line item especially when it comes to balancing my cash flow statement, so any help would be greatly appreciated.
Best,
Spruce
You shouldn’t be forecasting any additions to APIC unless you are assuming the company will raise additional equity capital
You can build that in as a plug into the model to fill a cash burn hole, but to the extent you are using the analysis for an investment proposal or pitch I’d be sure to incorporate the impact of consistent capital raises
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