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
Quia ipsa ipsa tempore sit eaque et commodi enim. Nulla nihil odio minima unde in rerum impedit. Beatae illo libero explicabo ratione magni voluptas.
Eius odit ea laborum. Inventore perspiciatis sint consequatur aut est qui illo. Amet voluptates quibusdam et omnis rem dolor earum. Fugiat earum amet nulla fugit sint.
Voluptate et quam similique. Animi ipsum aliquam nam autem inventore. Assumenda nam tenetur consequatur quisquam. Qui et et et dolor. Totam et sint et tenetur.
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...