Working Capital

Prepaid expenses

Dear Modano community, hope you are all well!

I wanted to hear from you what have you found to be the best approach to represent prepaid expenses from the current existing templates? Is there a way? For me I insert it as a user defined module similar to CAPEX + depreciation representation, but I thought there must be an easier way for sure from the existing templates that we have on the Modano library.

 

Thank you so much,

Gammal

Multiple Bank Accounts

Hi Modano, 

Is there a way to incorporate multiple bank accounts in the historical balance sheet and also be able to allocate different payments from different accounts?

Regards,

Gabriel 

Cash Payment delay days

There are some costs that are paid at different times throughout the year eg: Audit (Decemeber and June) – I want to know what is the best method to show this in the WC TAB?

ACC fee accrual – paid annually

Audit Fee accrual – 6 monthly

Credit accrual– annual

ACC accrual – quarterly

How do I show the days for this? 

Thanks, 

Angus 

Working capital allocation drop down box not aligned

Hi, 

I am working in a historical and forecast model - Generic COA 2.

On the working capital assumptions sheet, the drop-down boxes for the allocation of which expense line is allocated to a creditors account do not align to the expenses, screenshot:

Extra Creditors Category 1 in Allocation Drop down box in Creditors assumptions in Working Capital

Hi, I have been working on one of the practical exercises in the training section of the website (Modano_Generic Financial Model that incorporates the historic and forecast financial model).

 Just wondering if anyone has encountered the situation where Modano inserts an 'extra' Creditors Category in Creditors Assumptions in the Working Capital sheet. I have included a screen shot below.

I am not sure how to fix it, or if it is impacting on the integrity of the model.

I noticed that there was a similar issue in the Rev_Exp sheet when I was uploading assumptions.

Seasonality Adjustment to Enterprise Value

Has anyone amended the Enterprise / Equity Value modules to allow for adjustment from ending working capital to average working capital? 

Days vs Terms Modeling

You might see reference to "days" versus "terms" in reference to working capital. 

The following example illustrates these two main approaches to modeling working capital side-by-side. This applies to any working capital but for simplicity has been illustrated here using revenue and trade debtors.

The Debtor Days methodology is employed by the vast majority of modelers, typically using the following calculation steps:

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