3 Statement Financial Modeling: Step 5

In the previous video we just completed historical and forecasted assumptions, and now we're getting into finishing supporting schedules for working capital, depreciation, debt schedule, and retained earnings schedule.

Let's start with a working capital schedule. Please notice that we already basically built it for historical years, and we can just take the formulas we already built and fill it to the right for all forecasted years. Please note that because we did not fill the forecast period for the balance sheet for accounts receivables, inventories, and accounts payable yet up above, we can see lots of zeros here.

The situation will change as soon as we fill up the balance sheet. So just trust the steps — you know that the formulas are correct here. Trust the steps and it all will be filled up back into our financial statements. In this case scenario, after the balance sheet will be filled, my working capital schedule will be filled and change in net working capital will go into my cash flow statement for the forecasted period. Trust the steps here.