In this work we show a simplified financial planning model. In reality, financial planning models are huge and cumbersome. This is a very simplified model compared with what is found in practice.We present some basic principles for constructing the financial statements needed for valuation. We...

In this teaching note the reader finds a simplified financial model. In reality, financial models are huge and cumbersome. What we present is very simplified model in comparison to what is found in practice. We indicate the formulas that have to be utilized in the construction of the financial...

When forecasting financial statements care has to be taken to construct a consistentand correct model. This is not an easy task. Even the most experienced expert in modelingmakes mistakes. This is especially relevant when we construct a financial model withoutplugs and without circularity. In...