Pro Excel Financial Modeling: Building Models for Technology Startups

CHAPTER 10Statements of Profit and Lossand Cash Flow

This is the first chapter of three (Chapters 10, 11, and 12) that deal with the financial and financial reporting aspects of modeling the startup technology company. In previous chapters, we have built financial models of operational components of the company and planned and quantified key operating aspects. We have modeled staffing (STAFF), operating and capital expenditures (OPEX and CAPEX), sales and revenues (REV), and cost of goods sold (COGS). We have also modeled the costs of sales and marketing (COSM) and product development (DEV).

In this chapter, we will create a consolidated view of the operations and financial performance of the company by developing two key financial statements ...