Will someone here verify that I linked everything in the statements correctly for 12 months worth of data. I'm a novice undergrad, and if done correctly this can get me in the door with a small boutique. This will only take a couple of minutes for someone who knows their accounting. It would be greatly appreciated.
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Send it over to me in a private message.
check your pm, thanks.
ok, can someone answer this basic question for me...ending cash in Jan. will be what shows on balance sheet for cash in Feb and so on, correct?
Well ending cash in January is beginning cash in February. However, the balance sheet for February should show the balance as of the end of February. Hence it should show ending cash in January + change in cash over February.
Not sure if this is too detailed, but to expand on the previous post - your change in cash for the month will be driven by net cash flows from the following:
1) Cash Flows From Operating Activities: Net Income to Common Equity + D&A + Any Other Non-Cash Expenses (e.g., preferred PIK interest, seller note PIK interest, mezz PIK interest, etc.) + Changes in Working Capital
2) Cash Flows From Investing Activities: Capital Expenditures + Earnouts Paid to Management (less common)
3) Cash Flows From Financing Activities: Increase (Decrease) in any securities (e.g., increases in the revolver, term loans, convertible notes, mezz securities, preferred stock, common stock, management options, etc.)
If you're modeling an LBO there are some additional things that go into the process (e.g., mandatory cash sweeps based on leverage ratios), but hopefully the list above gives you a decent (and not too confusing) view of what would change cash from period to period.
smug - I could be wrong, but you may have gone over his head a little bit :-). However, you are entirely accurate.
EYEDEA - a very simplified way to think of the financial statements is that a balance sheet captures a moment in time while an Income Statement captures that period.
For example, 2006 Financials (assuming an accounting year of january 1 - dec 31, 2006). Balance sheet items (cash, receivables, notes payable, etc..) are the item's exact value on December 31, 2006. If a company has 1 bank account with $1mm in it on December 31, the amount on their balance sheet is $1mm for 2006.
An Income Statement shows the entire period, so sales on the income statement show every sale from january 1 through december 31, 2006. Same with expenses.
This is overly simplified, but a good way to get the right train of thought goin in your head.
i get what you guys are saying, my question is on January 31st i have 1mm in ending cash from my CF statement...is this 1mm then carried over to the Feb cash on the balance sheet? I have a BS, CF, and P&L...if one of you can take a quick look at it I would greatly appreciate. You would be helping me get an internship.
btw im not expecting anyone to do this for me....just a quick review of what I've done, 5min tops.
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