Integrated Financial Statements Forecast Example

Overview

Prior Statements

Base Model

The integrated approach

Interest Expense

Interest Expense can be a tricky item, in particular if new debt is to be issued during the current accounting period. As a simple first example, interest expense is taken as a given interest rate times the debt balance from the balance sheet at the beginning of the period.

Income Tax

Income tax is the tax rate applied to the income before taxes. In this case, we take the tax rate to be 35%.

Full Model

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