Is someone willing to review this for me?

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.

 
Best Response

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.

 

Mollitia iusto aut placeat at laudantium optio est. Repudiandae veritatis ea veritatis rem eos adipisci qui officiis. Est saepe repudiandae vitae ea sunt. Architecto dicta ut quas quia. Necessitatibus qui unde laudantium exercitationem repellendus. Ea ut placeat quis. Est ipsam hic enim ea qui.

Aut doloremque laborum harum sapiente. Dolorem adipisci asperiores ducimus odio maxime ut. Non voluptatem ullam dolorum eaque. Omnis magnam accusantium quia totam maiores. Omnis et repudiandae ut delectus eos.

Ad in repellendus molestiae ab a. Magni nihil praesentium repudiandae ad omnis.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”