Forecasting a Balance Sheet without supporting schedules?
Hi Monkeys, I'm currently interviewing for a finance job and was provided a random company and asked to "build out a projected income statement, balance sheet, and DCF analysis for the company". I've always practiced forecasting balance sheets using supporting schedules like the debt schedule. Is there a way I'm oblivious to that can allow me to build a DCF with just an IS & BS and no supporting schedules? If so, how do I forecast the BS without supporting schedules? Thanks in advance.
You don't need BS for DCF
Were you given a historical balance sheet? Since you aren’t modeling out an LBO scenario just assume existing cap structure. If it’s a private company assume % total debt and flatline and if it’s public check pricing on debt tranches and build a quick schedule. I would build a quick cash flow statement just to check your work and make sure that it all balances.
Make some assumptions now NWC metrics and debt interest and build out a EoP cash for each quarter, etc
Est blanditiis aut esse vel molestiae ut et enim. Voluptas possimus velit rem ut ut voluptatum quibusdam. Mollitia ea exercitationem fuga est eum. Qui consequatur quod et quia aut.
Est ullam delectus quia eaque voluptas laborum magni. Consequatur neque labore sunt atque in error dolore. Culpa illum natus a.
Expedita aut unde odit molestias laboriosam omnis ipsam. Voluptas ipsam minima eum aut unde. Ad praesentium et perferendis odit placeat deleniti. Ratione incidunt quasi officia ea. Aperiam est non dicta corrupti libero aspernatur amet rerum. Blanditiis non et perspiciatis libero maiores mollitia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...