From the course: Financial Modeling Foundations

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Getting started with the project

Getting started with the project

From the course: Financial Modeling Foundations

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Getting started with the project

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- [Instructor] As we get ready to dive into building financial models, I want to talk a little bit about how you structure these types of models and the general guidelines you should follow. I'm in the 01_06_Begin Excel file. Now what you see here is a pro forma set of financial statements and we've got financial assumptions up top, an income statement, a balance sheet, and a statement of cash flows down below, and this is, across the top, we've got a set of years running from 2021 through 2030. Now you'll notice in the middle after 2025 there's a vertical line, so that's telling us where our historical stop and then our projections for the future continue from there. This is a pretty standard setup for a financial model. We've got the assumptions clearly laid out, whether they're up top or off to the side over here. They're easy to find and identify. Those assumptions are linked to other parts of the financial…

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