Now that we've begun to build our income statement let's switch gears and set up our balance sheet. For now, we are going to simply plug in historical balance sheet data and leave room for transaction adjustments that will help us calculate the target's pro forma balance sheet at the close of the transaction.
In the spreadsheet above, you'll observe that we shifted our operating case assumptions and income statement to the right to line their year columns with the balance sheet. You should always be sure that your various financial statements, assumptions, etc. are lined up this way to reduce errors and make checking your work easier.comments powered by Disqus