How To Forecast Income Statement In Excel

In this guide we address the common approaches to forecasting the major line items in the income statement in the context of an integrated 3 statement modeling exercise.

How to forecast income statement in excel. Known x s is historical sales. If you want to give it a shot highly recommended you can download continue reading how to forecast the. Formula here is forecast b11 c3 c10 b3 b10 net income equals. Forecasting the income statement is a key part of building a 3 statement model because it drives much of the balance sheet and cash flow statement forecasts.

In this forecast example let s consider datasets for known y s values and known x s values and calculate a forecast value for 30 on the basis of known values x s and y s. Forecast function as worksheet function. Statistical tools are applied to historical data to forecast future incomes. You want to calculate net income for 500 000 sales.

This means taking the given values and adding formulas where necessary. Example 2 forecasting net income. In this video video you will learn how to build an income statement in excel with data for any company. Lets do one more example.

Forecast formula in excel can be used as a worksheet function and as a vba function. I hope forecast funtion is easy and clear. So start by rebuilding the financial statements. The income projection template is an estimate of the financial results of the business in a future time.

Forecasting the income statement is the first step to building rebuild the historicals to forecast the income statement you have to understand the historicals. X is 500 000 known y s is historical net income.