Hi Monkeys,
I was wondering if in your LBO modeling tests do you start Cash Flow Statement from EBITDA or Net Income?
I usually start with Net Income as it looks 'cleaner' to be with regards to taxes. However, I am considering if the reviewer might hold this against me - one could save a few lines and do it from EBITDA / starting from Net Income might be deemed as 'inefficient'.
Any views would be appreciated!
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cash flow statement starts with NI - this is basic accounting indirect method. any interviewer that would hold this against you would be asinine. you are overthinking
It doesn't really matter, just do whatever is quicker for you
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