Projecting Capital Leases for 3-Statement Model / General Question about Modeling Tests
Hi all,
I'm trying to create a 3-statement model for Twitter, and am having difficulty projecting out capital leases. For the capital lease roll forward, should the equation just be BOP capital lease liability - (cash payment for lease - interest expense) = EOP capital lease liability?
A more general question regarding modeling tests: If I'm asked to do a 3-hour modeling test for a PE firm of a public company, how should I think about modeling line items that are inconsequential in gross figure but are important to getting the model to balance nonetheless?
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