Finishing off the Income Statement
- 02:08
Finishing off the income statement
Transcript
Finally, the calculated values from further on in the model now need to be pulled back into the income statement.
The first of those is depreciation and amortization, which were calculated within the balance sheet workings on both pp and e and intangible assets.
They're both negative balances showing up as an expense.
So that is the sign that we want.
Finally, then, is the finance income and costs.
We need an if statement around these so that we can use a circular switch.
So, uh, if the name sales switch equals one, then we're gonna pick up the finance income from the cashflow tab.
That's our interest income. If not, we're gonna get zero.
Same thing for our finance costs.
So if the switch, circular switch equals one, then we're gonna pick up the finance expense from our cashflow statement.
If not zero. Just need to make sure that we turn that to be negative.
As you can see, we're getting no finance income or finance costs coming through.
But the final two things we need to change.
Firstly, turn on our iterative calculations and then also turn on our circular switch.
We should now see our finance costs and finance income populating through into the income statements.
Having got everything in our first forecast year now working for us, we can highlight the whole of the income statement and copy across for our four forecast years.
Not all of these balances are coming through yet because we need to do the same thing within our balance sheet and cash flow statements.
And Then we have our fully completed financial forecast.