Clip here on cashflow is really good. It explains real possible cashflow scenario. It covered some subprocesses on cashflow and explained casflow items clearly. It was useful for testing my cashflow design module as part of my online accounting system design project at work. Really appreciate this video. Thank you.
Sir, I was so thrilled 2 c all 3 statements on a single excel sheet. That is so impressive and makes the CFS e-z 2understand. Its something i had in mind for quite some time. A million thanks for the same. Also, thank u 4 taking the trouble 2 prepare all this, that i would like 2use 2practice. Also, a lot of explaining nicely&clearly done, step-by-step, in just 12 minutes. Graćias & blessing$.
Videos like this are classic and comprehensive for one’s understanding…I do appreciate your works to the community! It’s being a year and half now I’ve been trading the forex market, making gains and a loss at same time while learning under Mr. Ray Perkins mentorship platform. He’s the best I’ve worked with I earn on weekly basis having him manage my account and portfolio!
Great Video!! I am trying to understand that before any corporation begins its activities (any industry; from software to manufacturing), considering that its creditors will be paid after X days, and its debtors will pay in Y days, How does the firm ascertain how much finance/cash is needed on a monthly basis to actually run the business? Since Cash inflows and Outflows will not be immediate, how does it ensure that it has sufficient funds available to run the business?
Hi Gary, The link is active - some browsers have a problem downloading excel files directly so try to right click over the link and select "Save Target As'...that should do it, but let me know if you still have a problem.
its very use full techniques to be understand cash flow i m much thankful to you that you uploaded love from india sir i want learn how to know project balance sheet
Any chance of having an example worksheet. I used the hyperlink an it states 'page not found'. Would it be possible to send me a copy or post online? Good explanation and good tutorial. I am undertaking my MBA and this has helped immensely. Cheers Gary
Can someone who's is familiar with the matter explain to me, why "depreciation&amortization" is taken as a inflow of cash from operations? As I understand, d&a represent how much less your inventories are worth over a period of time. Thus, it does not generate cash at all, and can potentially subtract an amount. In other words why it's positive instead of negative? P.S: very nice and useful tutorial/walkthrough. Keep on doing good work. :)
Depreciation & Amortization are non-cash expenses, they represent the systematic and rational allocation of cost over time. This is done to better tie the expense of an asset to the accounting period in which it generates revenue. Thus they need to be added back to cash.
ok...in accrual accounting, you can take as an expense depreciation and amortization charges to your Income Statement as deductions when arriving at your EBIT...Taking these expenses help to reduce the actual amount of taxes you pay. However, no actual cash goes out of the company and you can therefore add that cash back to your net income to get a more correct net cash position..depreciation and amortization are not typically related at all to inventories...Inventories are typcially linked and related to COGS, Cost of Good Sold figures..
why some people try to make this sort of modeling using VBA and macros i 'm just tring to understand the idea of macros because as i see a a fixed formula can make the task no mater if we change datas on balance sheet or income statement can someone explain me please
Dear Friends, I have 1 question regarding Financial Modeling: 1/ Please tell me the difference between Scenario analysis, sensitivity analysis, stress test?, and the intended use of each?. Thank you.
I was calculating a cash flow statement and there was something called comprehensive income on the balance sheet which accounted for changes in unrealized gains on available for sale investments. If I didn't include this amount, the change in cash wouldn't tie out...but I don't get it because it's only a balance sheet item and never hits the income statement or involves a cash transaction. Help!!
You said we need a 2 periods statement to build a cash flow. What if it's the first year of the business? Does it mean you can't make a cash flow statement or does it work different?
Deferred taxes are shown in the balancesheet as long term item but considered in the cash flow statement under operating activities. Can u kindly clarify.
Hey I didn’t see you record PP&E under CFI. I can understand that Capex serves the same purpose but then I saw another uploader deduct pp&e(there it’s listed as “purchase of land and equipment” which I understood as pp&e, the same item on your worksheet) directly under cfi without calculating/even mentioning Capex so I’m very very confused...there’s a difference of depreciation between Capex and gross pp&e so idk when i should use Capex and when to directly use pp&e...
!- can i have CF from day 1 ? because its seems like we can have both income St and BS from day 1 but CF not because we need other data to compare its with, for example year 1 and year 2 or QTR 1 and 2, am i right? 2- if we can start from day one how can we do that? as we don’t have info ? as there is only one data of inventory for example not 2 to compare, thanks
Hi, im from Mexico, Can someone explain me all this financial terms? Im accountant too, but i want to learn how USA work in accountability. I really want to lear to increace my knoledge. I can explain some mexican accountability too.
![Financial Modeling Quick Lessons: Cash Flow Statement (Part 1) [UPDATED]](http://i.ytimg.com/vi/JDdLdAUY-vc/mqdefault.jpg)
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![Build a 3-Statement Financial Model [Free Course]](/img/n.gif)
• Source: Wall Street Prep's Quick Lesson Series
• Instructor: Matan Feldman
• Cash Flow Statement Excel Template: www.wallstreetprep.com/knowledge/financial-modeling-quick-lesson-cash-flow-statement-part-1/
• Financial Modeling Templates and Guides: www.wallstreetprep.com/wsp-blog/
Clip here on cashflow is really good. It explains real possible cashflow scenario.
It covered some subprocesses on cashflow and explained casflow items clearly.
It was useful for testing my cashflow design module as part of my online accounting system design project at work. Really appreciate this video. Thank you.
Sir,
I was so thrilled 2 c all 3 statements on a single excel sheet. That is so impressive and makes the CFS e-z 2understand. Its something i had in mind for quite some time.
A million thanks for the same.
Also, thank u 4 taking the trouble 2 prepare all this, that i would like 2use 2practice.
Also, a lot of explaining nicely&clearly done, step-by-step, in just 12 minutes.
Graćias & blessing$.
Best video I’ve seen thus far on this topic
First-rate tutorial - You explained it infinitely better than my university lecturer
Excellent presentation with clear logic behind the accounting principles and interlink between the three financial statements. Very easy to follow!!
Wow, although I have background doing this I’ve never seen anyone explain this so well. Truly awesome job!
Videos like this are classic and comprehensive for one’s understanding…I do appreciate your works to the community!
It’s being a year and half now I’ve been trading the forex market, making gains and a loss at same time while learning under Mr. Ray Perkins mentorship platform. He’s the best I’ve worked with I earn on weekly basis having him manage my account and portfolio!
Thanks for providing a link to the template!
Nice job! Understood everything
Great Video!! I am trying to understand that before any corporation begins its activities (any industry; from software to manufacturing), considering that its creditors will be paid after X days, and its debtors will pay in Y days, How does the firm ascertain how much finance/cash is needed on a monthly basis to actually run the business? Since Cash inflows and Outflows will not be immediate, how does it ensure that it has sufficient funds available to run the business?
If assets go up, it's a use of cash, and if liabilities go up, it's a source of cash. I will use this forever.
Fr , makes everything so much clearer now
Hi Gary,
The link is active - some browsers have a problem downloading excel files directly so try to right click over the link and select "Save Target As'...that should do it, but let me know if you still have a problem.
its very use full techniques to be understand cash flow
i m much thankful to you that you uploaded love from india
sir i want learn how to know project balance sheet
Excellent explanation, learnt much
Did wall street prep make a video on leveraged dcf? Want to assess the non-ebit model
Seems to work fine - try to refresh your page.
Excellent presentation!
Any chance of having an example worksheet. I used the hyperlink an it states 'page not found'. Would it be possible to send me a copy or post online? Good explanation and good tutorial. I am undertaking my MBA and this has helped immensely. Cheers Gary
Thank you
Are financial models like the one in your video what interviewers in finance job interviews ask about?
Can someone who's is familiar with the matter explain to me, why "depreciation&amortization" is taken as a inflow of cash from operations? As I understand, d&a represent how much less your inventories are worth over a period of time. Thus, it does not generate cash at all, and can potentially subtract an amount.
In other words why it's positive instead of negative?
P.S: very nice and useful tutorial/walkthrough. Keep on doing good work. :)
Because it has been subtracted to arrive at your net income, and since it wasn't actually an outflow, it must be added back in the cash flow statement
It is not taken as an inflow but an add back because it was subtracted as an expense even though it is a non cash item and have no impact on cashflow
NeverSayDonkey bc it isn't real
Depreciation & Amortization are non-cash expenses, they represent the systematic and rational allocation of cost over time. This is done to better tie the expense of an asset to the accounting period in which it generates revenue. Thus they need to be added back to cash.
ok...in accrual accounting, you can take as an expense depreciation and amortization charges to your Income Statement as deductions when arriving at your EBIT...Taking these expenses help to reduce the actual amount of taxes you pay. However, no actual cash goes out of the company and you can therefore add that cash back to your net income to get a more correct net cash position..depreciation and amortization are not typically related at all to inventories...Inventories are typcially linked and related to COGS, Cost of Good Sold figures..
why some people try to make this sort of modeling using VBA and macros
i 'm just tring to understand the idea of macros
because as i see a a fixed formula can make the task no mater if we change datas on balance sheet or income statement
can someone explain me please
Great video!
What do you do if your first year is zero? Starting from scratch?
Dear Friends,
I have 1 question regarding Financial Modeling:
1/ Please tell me the difference between Scenario analysis, sensitivity analysis, stress test?, and the intended use of each?. Thank you.
Awesome Explanation
Excellent
I was calculating a cash flow statement and there was something called comprehensive income on the balance sheet which accounted for changes in unrealized gains on available for sale investments. If I didn't include this amount, the change in cash wouldn't tie out...but I don't get it because it's only a balance sheet item and never hits the income statement or involves a cash transaction. Help!!
You said we need a 2 periods statement to build a cash flow. What if it's the first year of the business? Does it mean you can't make a cash flow statement or does it work different?
Yes you can off course and mean that all the beg are 0
Deferred taxes are shown in the balancesheet as long term item but considered in the cash flow statement under operating activities.
Can u kindly clarify.
so basically you using indirect method right?
Hey I didn’t see you record PP&E under CFI. I can understand that Capex serves the same purpose but then I saw another uploader deduct pp&e(there it’s listed as “purchase of land and equipment” which I understood as pp&e, the same item on your worksheet) directly under cfi without calculating/even mentioning Capex so I’m very very confused...there’s a difference of depreciation between Capex and gross pp&e so idk when i should use Capex and when to directly use pp&e...
Hi Thanks for your Video. But Please can I present cash flow with just one year's statement. No Prior year
Thanks!
!- can i have CF from day 1 ? because its seems like we can have both income St and BS from day 1 but CF not because we need other data to compare its with, for example year 1 and year 2 or QTR 1 and 2, am i right?
2- if we can start from day one how can we do that? as we don’t have info ? as there is only one data of inventory for example not 2 to compare,
thanks
Sir why havent you accounted income tax payable in cash flow statement?
can anyone suggest me which is the best institute to learn financial modeling
why do you add depreciation & amortization instead of depreciation & amortization net of tax?
Thank you!
Thanks for Templets
Hi, im from Mexico, Can someone explain me all this financial terms? Im accountant too, but i want to learn how USA work in accountability. I really want to lear to increace my knoledge. I can explain some mexican accountability too.
:D HOLY CRAP IT MAKES SENSE.
YEAH BROOOO
Sir sand me excel file please
need to be so patient
Why the other current liability are not considered?
they are considered in the next video under Investing, Financing Activities..unrelated to Cash Flow from Operations..
I think there is an error, cash flow should start with profit from operation with no deduction of tax expenses
can you give me this excel sheet?? please
s3.amazonaws.com/wsp_sample_file/2013/Accounting_Quick_Lesson.xls
to*
Digf