A page of notes about industry, innovation, disruption, accounting (sometimes) and of course...models.


 

  • 068 05/12/2017

    I recorded the first video for this website in 2013 with a $27 microphone I purchased at Best Buy. Since that time, the technology and software used at ASM has improved significantly, and I thought it was time to update the original recording. 

    In addition to improved audio and video quality, the two videos that replace the original benefit from years of questions submitted by ASM visitors and subscribers.

    I have included Part I of the new recording and the original file in this post to provide an easy comparison. Both of the new videos are presently available free of charge in the video series titled Integrating Financial Statements, and regardless of whether or not the new videos are ever put behind the paywall, the original will remain free at all times.

    New Recording: Building a Three Statement Model (Part I of II)
     

     
    Original Recording (recorded in 2013): Integrating Financial Statements

     

 



  • 067 05/02/2017
    In response to subscriber email traffic, I thought I would post a couple examples of monthly debt schedules. This post includes an Excel template with two examples (available for download at the bottom of this post). The first it labeled "Senior Term Loan," and the second is labeled "Subordinated Notes."

    Senior Term Loan: This example debt schedule provides the option to project interest payments at LIBOR + a fixed rate, and includes mandatory quarterly principal payments. There is a row for the cash flow sweep, but it is included as a manual input in this model (for a dynamic version in please see the leveraged buyout video series).

    Subordinated Notes: This example debt schedule includes a toggle that permits a portion of the interest be paid in kind (Payment-in-Kind or PIK). This feature can be activated or deactivated for any monthly period with a simple "Y" / "N" input.

    Formulas and Functions: As you explore the template, you may notice functions that have not been explained previously on ASM. For a video explanation please see the following:


    Template available for download: Download Template

    Monthly Debt Schedule Examples in Microsoft Excel Financial Templates.

 



  • 066 05/02/2017

    One of the challenges you will encounter building monthly debt schedules is the need to calculate and show interest expense in each month, and then reflect the payment of interest at the end of the quarter. This video provides a helpful approach.

    Click on the icon in the lower right-hand corner of the video player to expand to full screen.


    The template used in the video is available for download: Download Template

    What you will learn in this video:

    1. How to use =MOD() in an =IF() statement to calculate quarterly interest payments.
    2. Multiple uses of the =OR() function.

 




 



Models are:
 
A) really boring
B) pretty sweet
C) super important
D) somewhat easy
E) kind of hard
F) fun
G) all of the above

 

 


*Answers a, b, c, d, e, f and g are all correct.