From the course: Excel for Accountants
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Terminal values in Excel - Microsoft Excel Tutorial
From the course: Excel for Accountants
Terminal values in Excel
- [Instructor] One major issue in accounting is cash versus non-cash items. While we need to record the non-cash items, from a business point of view, cash flow is often seen as the key driver of business valuation. Identifying and itemizing these cash flows for a business is critical though. I'm in the 04_02_Begin Excel file. Now what we have here is a portion of the cash flow statement. In particular, we're looking at the section for operating activities and the cash generated as a result. This is often what we care about from the point of view of establishing whether a business is viable as a going concern. The firm's not going to be around for the long term if it's consistently generating negative operating cash flows. However, when we're trying to forecast these cash flows on a forward looking basis, we're really talking about what's going to happen going forward in the future. We could certainly make projections about individual items in the cash flow statement, the income…
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