I'm currently doing a case study for a lateral Analyst position at a boutique and i'm having trouble on a couple of parts of the model. I've done ~90% of it, but can't really progress without figuring the next step out. Also need to build an abridged CIM that's dependent on this information. I'm given an incomplete historical client Income Statement showing ~4 years and a complete historical Balance Sheet showing ~4 years.
I have to project the Balance Sheet about a year and a half out, but they've removed which line items should be included and I don't know which ones are most important to add. There is a Assets = Liabilities + Equity check built in that helps me somewhat identify how to structure it, but other than AR, AP, and a couple of the prominent ones, I do not know which line items to include while staying within the format, considering there's like 100 total line items in the client financials and only room for about 1/5 of them. (It is a COS-heavy business with no inventory).
Would be super appreciative if anybody's got any insight.
I'd be happy to take a look; pm me.
Bundling together line items from the 10k --> model is up the the users discretion. Here is a BS from a model used for AAPL. I'd say this would be a good start but obviously dependent on the company you have.
Cash & equivalents, ST and LT marketable securities
Accounts receivable
Inventories
Other current assets
Property, plant & equipment
Other non current assets
Total assets
Accounts payable
Other current liabilities
Deferred revenue (current)
Commercial paper / revolver
Long term debt (includes current portion)
Other non current liabilities
Total liabilities
Common stock
Retained earnings
Other comprehensive income
Total equity
Doing well on this test means they expect you to know how to do this. If you can't solve this and need additional help, then maybe you don't really have the skills necessary to succeed in this field.
That being said, I don't think even associates have ever had to do anything as cmplex as what they gave you when you're actually on the job.
snake it till you make it ya stiff
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