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
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