Basic Package – Wall Street Prep

Course Overview

Basic Package by Wall Street Prep presents the process of building a 3-statement model from A to Z. Through this course, you can input historical data and assumptions about financial statements to develop an efficient model. It serves as a solid foundation for financial statement modeling.

Course Outline

Chapter 1: Overview

• Introduction
• Excel Settings for Modeling
• Keyboard Shortcuts
• The Boost Excel Add-In

Chapter 2: Financial Modeling Best Practices

• Formatting Conventions
• Modeling Best Practices
• Naming, Linking & Deleting Cells
• Model Structure

Chapter 3: Preparing for the Case Study

• Gathering Documents for Modeling (the “PIB”)
• Apple Case Study Introduction

Chapter 4: The Income Statement

• Modeling the Historical Income Statement, Part 1
• Modeling the Historical Income Statement, Part 2
• Introduction to Forecasting
• Segment-Level Revenue Forecasting
• Operations Forecasting

Chapter 5: Forecasting the Balance Sheet: Working Capital

• Inputting the Historical Balance Sheet
• Working Capital Forecasting & Roll-Forward Mechanics
• Accounts Receivable, Part 1
• Accounts Receivable, Part 2
• Inventory
• Accounts Payable
• Accrued Expenses & Deferred Revenue

Chapter 6: Long Term Assets & Liabilities

• Intangible Assets
• Modeling Intangible Assets
• PP&E
• Modeling PP&E
• Other Balance Sheet Assets
• Modeling Other Current Assets
• Deferred Tax Assets
• Deferred Tax Liabilities
• Other Liabilities
• Modeling Deferred Taxes & Other Balance Sheet Items

Chapter 7: Debt

• Debt
• Modeling Debt

Chapter 8: Balance Sheet Equity

• Capital Stock
• Modeling Capital Stock
• Treasury Stock
• Modeling Treasury Stock
• Retained Earnings and OCI
• Modeling Retained Earnings
• Modeling Other Comprehensive Income
• Linking Schedules Back to the Balance Sheet

Chapter 9: The Cash Flow Statement

• Cash Flow Statement Introductions
• Review: The Cash Flow Statement
• Cash From Operations
• Modeling Cash from Operations
• Cash From Investing & Other Financing Activities
• Modeling Cash from Investing & Other Financing Activities
• The Lemonade Stand

Chapter 10: The Model Plugs: Revolver & Cash

• Understanding the Role of the Revolver in Financial Models
• Modeling the Revolver
• Modeling Interest Income
• Dealing with Circularities in Financial Models

Chapter 11: Earnings Per Share

• EPS
• Modeling EPS

Chapter 12: Finishing Touches

• Integrity Checking & Balancing the Model
• Sensitivity Analysis Using Data Tables
• Scenario Analysis

Chapter 13: Deeper Dives

• Depreciation Waterfall

What Will You Learn?

• Effective Excel shortcuts and functions in financial modeling.
• Best practices of Excel settings and formatting in financial models.
• The creation of model plugs via the revolver and cash sweep.
• How to handle circularities in the model.
• How to develop a fully integrated 3-statement model through the established projecting and schedule conventions.
• How to balance the model and insert automatic checks.
• How to conduct powerful sensitivity and scenario analysis.
• How to detect errors, accuracy, and integrity of models.

Who Is This Course For?

Basic Package by Wall Street Prep is for those who are interested in making a financial model for banks and want to build up a strong base of fundamentals.