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Welcome. I'm so glad to have you here for the Fundamentals of Financial Modeling video
series provided by the Illinois State Library System, CARLI, and Open Education Resources.
My name is Dr. Al Kamienski, and I am a professor of finance here at North Park University in
beautiful Chicago, Illinois. This video series is intended to help perhaps young high school
students who are interested in knowing what careers in study and business are like. Or
perhaps you are a current college student in an undergraduate program studying business
where you'd really like to get a head start on understanding finance and the software
Microsoft Excel that's used as a primary application for building Pro Forma models.
Or maybe you're a young professional who wants to upgrade their skills in Microsoft Excel,
and maybe you're just intellectually curious, you like numbers, and you like software, and you want
to see how it is that we do this type of work. So what is it that we're going to cover in this
video series? Well, this video series in total will be 17 different videos that cover separate
parts of the entire process of building a Financial Model. Starting with this video right now,
number one, you're getting an introduction to everything that we're going to do. After that,
you'll have several videos on how to set up your environment and how to follow the instructions
that will help you build a functional Financial Model. After we get that Baseline set up, we'll
have five different categories of videos that will help us build each of the components of
the Financial Model. The first few videos will help us build the Assumptions page,
which is the single most important page because it's the area in which we document all the things
that we assume that will drive the calculations that come out in the rest of the model. The first
of those outputs in the model then will be a five-year Pro Forma Income Statement, where we will
analyze everything from the Net Sales that we see all the way down to the profits that we can
anticipate. Once we have an Income Statement constructed then, we'll build a five-year projected
Balance Sheet that will help us understand everything from our Cash position to our long-term
Debt and down to our shareholders' Equity. When the Balance Sheet's done then, we'll have a video
that helps us predict the Statement of Cash Flows, where we can look by our separate categories to
understand the ways in which Cash may change under different operating conditions. After we've
completed those three outputs, we'll build a visual Dashboard. This is a really neat way to take
different sets of Assumptions and compare them to what we originally predicted versus what we
might predict if we were to change some strategic decisions that will help Derek Milenko better
manage Brilliant Beginnings, his young toy company that is on the verge of having spectacular growth.
In the next video then, we will go ahead and cover the different technology-based setup
instructions so that you can sit down and get ready to Financial Model. So grab a cup of coffee
or maybe a glass of water or your favorite energy drink because it's time to get down
to the fundamentals of Financial Modeling. We'll see you there.
35 segments