Re: Advanced bank financial modeling question
This inconsistency is unavoidable because we do not have full information so we can only proxy it as best as we can. In our full blown Bank model, we do a more detailed build-up of our Gross Loans balance which we make the assumption that those are "origination volume" pre-charge-offs. And... This inconsistency is unavoidable because we do not have full information so we can only proxy it as best as we can.
In our full blown Bank model, we do a more detailed build-up of our Gross Loans balance which we make the assumption that those are "origination volume" pre-charge-offs. And in the future projected years, we do a cumulative charge off amount to get each project year's updated figures. Read More

Re: Excel related question
When a worksheet is inserted, since it is blank, there cannot possibly be blue and black formatting (again since everything is blank). Our macros, in our WST Macros, under Auditing submenu (download and install our macros at http://... When a worksheet is inserted, since it is blank, there cannot possibly be blue and black formatting (again since everything is blank).
Our macros, in our WST Macros, under Auditing submenu (download and install our macros at http://www.wallst-training.com FREE RESOURCES), we have a macro that automatically formats constants as blue and formulas as black:

Ctrl+H select Hardwired constants
Ctrl+B change selection to blue font
Ctrl+I select Formula cells
Ctrl+K change selection to black font
Notes:
1) When hitting the first macro, do not put your active cell as A1
2) Make sure there aren't any other macros that conflict with these shortcuts; if there are, go thru our menus instead of keystrokes
3) You would have to do this for each worksheet; we recommend doing this as you build each worksheet

Other macros can be written that automatically change your cells to blue or black as you create your spreadsheet, but we discourage the use of this for two important reasons:
1) slows down Excel considerably and causes Excel to crash as it needs to constantly evaluate in the background
2) reduces the user's flexibility if you wanted to change a font color as an exception (such as red, green or white) Read More

Re: Advanced bank financial modeling question
Great question. If we didn't cover it in the video, we apologize. Here is the source: 6/2/2009 $5BIL at $35.25, 142 MM shares http://investor.shareholder.com/jpmorga ... eID=3... Great question. If we didn't cover it in the video, we apologize.

Here is the source:
6/2/2009
$5BIL at $35.25, 142 MM shares
http://investor.shareholder.com/jpmorga ... eID=387392 Read More

Re: Problem with choose and average formulas
Got it. Circular references should ONLY be created due to average balance. Take a look at our circular reference exhibit course, which is part of your online course logins at the bottom of your courses (Supplementary Exhibits). In our models, if you are on 1 for Beginning Balance, you should not ha... Got it.

Circular references should ONLY be created due to average balance. Take a look at our circular reference exhibit course, which is part of your online course logins at the bottom of your courses (Supplementary Exhibits). In our models, if you are on 1 for Beginning Balance, you should not have a circ. If you do (circular or calculate at the bottom left of excel's status bar), then you have an error elsewhere in the model. If a circ is created ONLY when you switch to 2 (for average balance), then that is expected. This entire logic of debt/interest and circs are covered in great detail in our Advanced Financial Modeling - Core Model class (the LBO class focuses on LBO structuring and modeling) - but as mentioned, the Circ Reference exhibit included in your login should explain 90% of it.

Our best practices preach to avoid a circular reference to begin with. Which isn't all that helpful if you already have one now. The most common "bad" circs are due to simple errors, like including yourself when summing up a range of numbers or accidentally referencing a column to the right (next year). Mostly silly mistakes! We generally advise that as you build your models, always check no circs/no calculate and as soon as one is created (NOT due to 2=avg balance), then CTRL+Z (undo) immediately because you just instantly introduced an error. Remember, NO circs EXCEPT for average balance.

If you'd like us to troubleshoot your COTT model, please sign up for our verification, in which we analyze for you. As we are sure you can understand and agree with - attention to detail is beyond critically important! Read More

Re: Estimated Taxes
We think your starting premise is wrong to begin with. Net Income is a GAAP number and as such reflects the full tax load (higher or lower, depending on NOL created or used). In other words, EBT is $1000. GAAP taxes is $400 (assume 40% for simplicity across the board). Net Income is therefore $600.... We think your starting premise is wrong to begin with.

Net Income is a GAAP number and as such reflects the full tax load (higher or lower, depending on NOL created or used).
In other words, EBT is $1000. GAAP taxes is $400 (assume 40% for simplicity across the board).
Net Income is therefore $600.

Assume you had a $200 NOL that you used up. Thus CASH taxes is $800 x 40% = $320.
You might want to split that as Current Taxes of $320 and Deferred of $80.

The $80 difference does NOT hit the Income Statement, but lowers DTA on the BS.
As DTA goes down, CFO goes UP as this asset goes down. and Cash Flow statement is reconciled.
Viola.

This is covered extensively and modeled out in our Enhancements Part II course on Taxes. DTA, DTL, Section 382 caps, etc. Read More