Chapter 7: Asset and Debt Schedules

The projected balance sheets and profit and loss accounts are now complete, except for the effects of Capital Expenditure (CapEx)—purchase, disposal, and depreciation of long-term assets and long-term debt; fresh issues; repayments; and interest charges.

The fixed asset, depreciation, interest, and debt schedules are very important to our model as they tend to be very significant amounts in financial statements. They are long-term balances and are not covered by growth drivers.

You will learn how long-term assets and long-term debts are treated in financial statements, along with how we arrive at the different amounts to be included in the balance sheet and profit and loss account and how the values change from year to year.

This chapter covers the following topics:

• Understanding the BASE and corkscrew concepts
• Asset schedule
• Approaches to modeling assets
• Asset and depreciation schedule
• Debt schedule
• Creating...