Income Statements

How to forecast the various types of accounts is explained below.

Revenue

Revenue account growth is determined by the Growth or Inflation Rate on the Inputs worksheet.

Common Size Accounts

The following accounts are projected using common size proportions (percentage of total revenues):

Cost of Goods Sold

Operating Expenses

Other Income/(Expense)

Income Taxes

Interest Expense

Depreciation

Amortization

Other Non-Cash

By default these accounts are projected at the same common size proportions as Year 0 (the last fiscal period in the historical data). You set the common size proportions by overwriting the percentages in the Maintain Common Size column. For help restoring the calculated percentages, see Restoring Cells.

All Other Accounts

All of the remaining accounts are calculated from the accounts explained above.