Depreciation Schedule | How to Calculate & Link into 3 Financial Statements
34.8 هزار بار بازدید -
4 سال پیش
-
We learn how to forecast
We learn how to forecast a depreciation schedule based on our CAPEX plan and then link D&A back into the balance sheet (accumulated depreciation), cash flow, and income statement.
✅ Download the Excel template: http://bit.ly/deprdwnld_mlchp
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Related Financial Modeling Videos:
🚩 Build a 3-Statement Financial Model: 3 Statement Financial Model | Buildin...
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In this video, we walk through a very straightforward depreciation schedule example so you can get some practice as we learn the concepts.
Knowing how to build a depreciation schedule is one of the fundamental skills in financial modeling. Depreciation itself is just a concept that helps us spread the cost of an asset over the time period that we use it.
Interestingly, depreciation hits the balance sheet, the income statement, and the cash flow statement, so it's a core concept in building a 3 statement financial model as well.
In order to forecast depreciation, you need three things:
(1) the CAPEX plan ("fixed assets")
(2) the useful life of each asset you are purchasing
(3) the historical depreciation you have rolling forward from prior years
Once you have all this, calculating depreciation expense is pretty easy, you just take the cost of the fixed asset and divide it by the useful life (the number of months you expect to use it). That gives you a total monthly depreciation number.
Once you've got the monthly D&A calculated, you can easily link it into the balance sheet, income statement, and cash flow statement and them all together.
By the end of this lesson, you will be confident in building a depreciation schedule.
If you have questions - please leave a comment below and I'll try to help. Cheers!
► Subscribe for more finance videos: https://bit.ly/EricAndrewsSubscribe
#depreciationschedule #financialmodeling #ericandrews
✅ Download the Excel template: http://bit.ly/deprdwnld_mlchp
🚀 If you want to master the finance skills & frameworks to successfully scale technology startups, secure your spot in my "Finance for Startups" program, today: https://www.ericandrewsstartups.com/f...
Communities:
💼 Linkedin: LinkedIn: eric-andrews-1624b656
☑️ Twitter/X: Twitter: eric__andrews
🌟 Instagram: Instagram: ericandrews_startups
🔥 Discord: https://bit.ly/discord_eric
💻 Newsletter: https://bit.ly/joinericnewsletter
🎥 Clips: @ericandrewsclips7818
Related Financial Modeling Videos:
🚩 Build a 3-Statement Financial Model: 3 Statement Financial Model | Buildin...
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
In this video, we walk through a very straightforward depreciation schedule example so you can get some practice as we learn the concepts.
Knowing how to build a depreciation schedule is one of the fundamental skills in financial modeling. Depreciation itself is just a concept that helps us spread the cost of an asset over the time period that we use it.
Interestingly, depreciation hits the balance sheet, the income statement, and the cash flow statement, so it's a core concept in building a 3 statement financial model as well.
In order to forecast depreciation, you need three things:
(1) the CAPEX plan ("fixed assets")
(2) the useful life of each asset you are purchasing
(3) the historical depreciation you have rolling forward from prior years
Once you have all this, calculating depreciation expense is pretty easy, you just take the cost of the fixed asset and divide it by the useful life (the number of months you expect to use it). That gives you a total monthly depreciation number.
Once you've got the monthly D&A calculated, you can easily link it into the balance sheet, income statement, and cash flow statement and them all together.
By the end of this lesson, you will be confident in building a depreciation schedule.
If you have questions - please leave a comment below and I'll try to help. Cheers!
► Subscribe for more finance videos: https://bit.ly/EricAndrewsSubscribe
#depreciationschedule #financialmodeling #ericandrews
4 سال پیش
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