Balancing financial model
I am modeling an IT-security company currently, and I just don't get it balanced. It would be great if anyone could lend me a hand.
I already tried:
1. Dividing the difference by two and try to find the value (didn't find it)
2. Delete all years after the first forecast year of the and look for the problem.
The problem might lie in the wrong concept I learned, but I don't know what it is. I am often uncertain how to handle specific line items and their changes. Some specific questions:
- how do I handle depreciation when it is not a line item in the income statement?
- how do I handle changes in the provisions? If I am right, it should be like: decrease income by the change, increase operating CF, increase balance sheet item
However, I don't know whether the balancing of my model is connected to these questions.
Please see the model below if you would like to get into details.