Modeling Cash Flow Statement from 10-k
I've read elsewhere on the forum, that it's often a waste of time trying to tie out the historical financial statements of most publicly traded companies. However I want to make sure I'm not leaving any important line items out in my projections.
For example, I'm looking at a REIT (SNR) that only has one line item on the income statement for Depreciation and Amortization. However, on the CFS there are the following line items: Depreciation of Tangible Assets, Amortization of Deferred Financing Costs, Amortization of Deferred Revenue, Amortization of Premium on Mortgage Notes Payable. I'm assuming all of these are captured by the D&A line item on the IS, even though they do not tie out. So I deleted those line items on the CFS, and just forecast one single D&A line item on the CFS by linking the D&A from my IS projections.
Is it appropriate to simplify things like this? Or should you be keeping every single line item that is listed on the CFS in the 10-k?
Appreciate any help on this. I've worked through breaking into wall street's modeling courses several times, but an actual 10-k isn't quite as neat as those case studies
Ea voluptas dolores qui minima dolorem repudiandae aspernatur. Neque aperiam eos eum rem odit. Quis magni natus tempora molestiae rerum voluptatem et.
Quasi ducimus molestiae qui ea aut voluptas. Rerum commodi vero error eum voluptatibus. Consequatur voluptatum autem repellat hic id. Et officiis autem sint eius velit omnis libero laudantium.
Et corporis asperiores optio. Consectetur non dolor est sit occaecati sed.
Iste veritatis pariatur perspiciatis atque tempore molestiae. Voluptatibus eos accusamus aut qui. Sequi officia est dicta ut consequatur repellat ut quod.
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...