Breaking into wall street free course download

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1 BIWS Premium Financial Modeling Course: Course Outline If you re reading this document, you re probably considering signing up for one of the Breaking Into Wall Street Financial Modeling Training Courses. If that s you, then this Special Report explains Everything you get in the course, in detail. How this training is different from anything else on the market. How you can save money by signing up for the lowest possible enrollment fee. Breaking Into Wall Street Has Worked For Others. It Will Work For You Too. If you ve already signed up for our free video tutorials, you will have already seen how Breaking Into Wall Street can benefit just about anyone interested in moving into finance and anyone who wants to advance within the industry. Here are just a handful of the hundreds of customer testimonials we have received about our Courses: Great Value For Money And I ve Recommended BIWS To A Lot For Friends

2 From Academic Probation To A Full Time Analyst Offer

3 I Received 12 Summer Internship Offers Based Upon My BIWS-Centric Preparation BIWS Is The Best Value Proposition To Learn Financial Modeling

4 It s An Easy System To Use And Has Given Me Confidence In Interviews. I Have Recommended This Course To Pretty Much Everyone That Has Ever Asked Me About IB/PE or Modeling Specifically, and Have Found It Is Not Only Useful to Undergrads and Business School Students, But Also People That Are Quite Experienced in Modeling. You ll find many, many more comments from happy customers right here:

5 Course Highlights The topics in Breaking Into Wall Street are designed to prepare you for what you ll need to know when: 1. You re interviewing with banks and other finance firms; and 2. Once you start working at a bank (or private equity firm, or hedge fund, or other finance firm). Everyone is coming in with a different level of technical knowledge, and that s why we ve made it easy to tackle the lessons in any order you want. If you re in a time crunch and needed answers yesterday, you can skip to whatever you need help with but if you want to go through everything from top to bottom, you can do that too. There are 390 videos with accompanying Excel files for everything. That amounts to 145 hours of video altogether, which may seem like a ton of content. But don t worry: everything is broken into bite-sized chunks so you can digest it easily. All the content is downloadable to your preferred device (works with QuickTime and most other media players and on desktops, laptops, tablets, ipads, iphones, ipods, and yes, even Android-based and other smartphones as well). You also get full transcripts of all the videos. There are ~1.7 million words total, and all the transcripts are also downloadable. Use the transcripts to learn via written text rather than video, or to quickly revisit key concepts without having to find the exact location in the videos. Easily keep track of your progress: As you move through the lessons, you can check off what you ve completed and what s still on your to-do list. Fast answers to all your questions: Our expert support team is standing by to answer any questions you have about any of the content, 365 days a year. Quizzes and Certifications. After you have completed each course, you will be eligible to take our challenging Certification Quiz. Once you pass the Quiz, you ll receive a Certificate that you can add to your resume / CV and refer to in interviews. Included Lifetime Access: You also get lifetime access, so you can come back to the course whenever you need it whether that s in 1 month, 1 year, or 10 years. One final note: I ve listed everything below every single module and lesson in the full package. However, you don t have to sign up for everything if you don t need it. You have 3 signup options, which I ll outline at the end of this document. Excellence With Excel Outline Financial Modeling Fundamentals Outline Advanced Financial Modeling Outline Bonus Case Studies Outline Signup Options & Enrollment Fee

6 To be clear, the following document outlines everything that s in the BIWS Premium package the Excellence with Excel, Financial Modeling Fundamentals, and Advanced Financial Modeling courses. However, if you only sign up for one of those courses then you only get what s in that course. So if you sign up for only the Advanced Financial Modeling course, you will NOT get what s included in the Excellence with Excel or Financial Modeling Fundamentals courses. To get everything outlined here, you must sign up for the BIWS Premium package (this package also offers you, by far, the best value). You receive the Bonus Case Studies if you sign up for the Excel & Fundamentals course, the Advanced Modeling course, OR the BIWS Premium package. You do NOT receive the Bonus Case Studies if you sign up for the Excellence with Excel course separately, but other than that ANY sign-up option available for these courses will give you access to the Bonus Case Studies. Excellence With Excel 2.0 In this course, you ll master Microsoft Excel (both the PC and Mac versions are covered) via two extended case study exercises: Case Study #1: Wal-Mart Operating Model and Valuation Case Study #2: Customer and Sales Rep Due Diligence Data In both case studies, you ll assume the role of an investment banker representing or analyzing the company in question, and you ll use your analysis to answer key questions about the companies and address concerns from potential investors. These case studies are equally applicable if you re learning Excel for other roles, such as equity research, corporate finance, corporate development, private equity, hedge funds, or anything else that involves financial statement analysis, valuation, and data analysis. The main difference is that you ll be analyzing the data and asking the questions in those roles, instead of using the data to pitch your client effectively. Case Study Objectives: Wal-Mart Valuation Create a correctly formatted, fully functional 3-statement model and valuation of Wal-Mart, with all the errors fixed and all the standard features you d expect to see in such a model. Also add key features such as sensitivity tables to determine the company s valuation under different assumptions.

7 Customer and Sales Rep Due Diligence File Fix the formatting of the customer and sales rep due diligence data, add lookup and database functionality, create graphs and charts based on the data, and use more advanced features of Excel to speed up the formatting and analysis. Files & Resources: PC Excel 2007 / 2010 / Shortcuts Quick Reference Guide PC Excel 2003 Shortcuts Quick Reference Guide Mac Excel 2008 / 2011 Shortcuts Quick Reference Guide Excel Formatting Best Practices Quick Reference Guide Excel Functions and Formulas Quick Reference Guide Excel Custom Number Formats Quick Reference Guide Excel Charts & Graphs Quick Reference Guide Module 1: Overview & Excel Setup In this module, you ll watch the lessons and make sure that you ve set up Excel correctly on your own computer, so we do not dive into the case study in much detail yet. If you already know Excel quite well and you re taking this course to refresh your memory of certain topics, skip to the last lesson and the quick start guide so you can decide what to focus on. Case Study Objectives: Make sure that all your Excel settings (calculations, plugins, display, etc.) are correct before you jump in and start modifying the case study files Course Overview (19:28) In this lesson, you ll get an overview of the Excellence with Excel 2.0 course and you ll learn the key topics we re going to cover, how you should approach the material, and the differences between using the PC vs. Mac versions of Excel How to Set Up Excel Properly (22:18) You ll learn how to set up Excel properly in this lesson, regardless of whether you re using PC or Mac Excel, and you ll learn how to change key settings in the Options menu to ensure that Excel works correctly throughout this course Tour of Excel Interface (13:49) You ll get a tour of the Excel ribbon menu interface and program window in this lesson, and you ll learn how to enable and disable key items for added space in your spreadsheets Quick Start Guide to the Course (16:07)

8 In this lesson, you ll learn the proper lessons to focus on in this course depending on your experience level with Excel, how much time you have, and what you are preparing for. Module 2: Navigation & Data Manipulation In this module, you ll skip between the two case study files and complete portions of both of them to master different features of Excel related to navigation and data manipulation. You ll learn how to insert, edit, and delete rows, columns, cells, worksheets, and workbooks, and how to enter formulas, text, and numbers properly, as well as how to use absolute and relative references and name and jump to cells. Case Study Objectives: Wal-Mart Valuation Add rows for several important supplemental calculations and metrics, such as the gross profit margin, and use absolute vs. relative references effectively in these formulas. Also, determine which cells to name and which cells to leave as is, and reorder worksheets so that they follow a more logical order. Customer and Sales Rep Due Diligence File Insert, edit, and delete key rows and columns in the file and enter information for missing text, numbers, and formulas.

9 You ll learn the most important shortcuts for evaluating formulas, copying and pasting special items (formulas, formats, values), and changing the indentation of cells in this lesson Refreshing and Calculating Results (6:52) In this lesson, you ll learn how to set the Calculations options within Excel correctly and how to refresh and update spreadsheets to see the results of formulas and functions References and Anchoring Cells (16:29) You ll learn the difference between absolute and relative references in this lesson, as well as how to anchor the row and column portion of cells (and how the shortcuts differ on the PC vs. the Mac) Naming and Jumping to Cells (23:45) You ll learn how to name key cells in your spreadsheets and jump back to them whenever you need, the best use cases for this functionality, and also how to highlight all constants and formulas in your spreadsheet for color-coding purposes Copying, Deleting & Moving Workbooks & Worksheets (17:15) You ll learn how to copy, delete, and move both workbooks and worksheets in this lesson, including the most important shortcuts across different versions of Excel Hiding, Naming & Coloring Worksheets (14:31) In this lesson, you ll learn how to hide, name, and color worksheets, the key points to be aware of, and why you have to be very careful when doing any of this in Excel. Module 3: Formatting, Importing & Sorting Data In this module, you ll fix much of what s incorrect in both case study files by applying proper formatting and changing around the background colors, font colors, fonts, font sizes, alignment, and more. You ll also learn key formatting mistakes to avoid, and how to perform common tasks such as colorcoding your financial models and cleaning up data by using text, date, and time functions in Excel. Case Study Objectives: Wal-Mart Valuation Add the appropriate fills and borders to the model and fix the numerical formatting; color-code the model for constants, formulas, and links to other worksheets, and use date and time formatting to ensure that the dates are shown correctly. Use custom number formats for valuation multiples and balance checks on the balance sheet. Customer and Sales Rep Due Diligence File Make the worksheets easier to read and fix all the date and time references. Import additional external data, clean up text to fix incorrect cases and combine the contents of different cells, and then sort and filter the data. Finally, apply

10You ll also get firsthand practice applying all of this to create and fix dates in both the customer due diligence and Wal- Mart model files Custom Number Formats (32:25) You ll learn how to use Excel s custom number formats feature in this lesson to create formats for valuation multiples in the Wal-Mart file, as well as additional formats for Balance Sheet checks and more precise numbers in several parts of the model Importing and Exporting Data (16:13) You ll learn how to import and export data from and into Excel in this lesson, and you ll see how we might add missing customer due diligence data from a text file plus, why it can be dangerous to maintain these data connections to external files Text Manipulation (16:29) You ll learn how to use text manipulation functions to fix customer data, such as the address fields, in this lesson, and you ll understand which functions are highly useful vs. which ones are optional.

11 3.Module 4: Grouping, Hiding, Zooming & Printing This module will teach you how to group and hide rows and columns, when it s appropriate and inappropriate to do so, and also how to freeze panes and zoom in and out in Excel so that you can print out exactly what you want and nothing more. You ll learn how to change the print and worksheet settings to change everything from headers and footers to grid lines and even the order that pages get printed in. Case Study Objectives: Wal-Mart Valuation Group and hide rows such as the balance check, freeze panes in the correct places for easier viewing, and set the print range and other settings appropriately for an intelligible printout of the model.

12 Customer and Sales Rep Due Diligence File Group and hide the appropriate columns, freeze the top row for easier viewing, and then change the print settings to support a header, footer, and the correct print area Grouping & Hiding Rows and Columns (17:41) In this lesson, you ll use the grouping and hiding features built into Excel to make it easier to scan through both the customer due diligence file and the Wal-Mart model and valuation and you ll learn why hiding rows and columns can be dangerous if used improperly Freeze Panes and Zooming (15:39) In this lesson, you ll learn how to freeze panes in Excel to make it easier to view everything, and how to zoom in and out quickly so you can magnify certain parts of the screen. Then, you ll get practice applying both of these to the customer due diligence file and Wal-Mart model and valuation Printing Overview (26:20) You ll get a crash course on all the features and shortcuts required to print out Excel files in this lesson, from setting the print area to viewing page breaks to showing print previews to adjusting all of those and more and you ll get practice applying them to make both files we re working with into printable documents Printing Exercise (20:31) You ll get practice applying all the printing and formatting shortcuts we ve learned in this lesson by correctly formatting all the remaining spreadsheets in the Wal-Mart model, adding a header and page numbers, and ensuring that everything fits onto pages properly. Module 5: Formulas, Lookups & Calculations In this module, you ll learn how to use Excel s built-in arithmetic, logical, and financial functions and how to write and manipulate your own formulas for calculation and lookup purposes. In addition, you ll learn how to validate data, set up scenarios, audit formulas and handle errors, work with circular references, and use features such as sensitivity tables, goal seek, and pivot tables to analyze the output of models under different assumptions. Case Study Objectives: Wal-Mart Valuation Add several missing formulas to the file, properly link valuation data using lookup and transpose functions, and add support for multiple revenue growth scenarios in the model. Properly link the net interest income / (expense) number using circular references, and audit, explain, and error-check key formulas in the operating model and valuation.

13 Customer and Sales Rep Due Diligence File Add lookup functions and variations such as INDEX, MATCH, and database functions to the file to enhance functionality and make it easier for normal people to use. At the end, add in a pivot table so you can slice and dice the data and group it dynamically according to different criteria. Additional Practice Exercise Practice lookup functions, INDEX, MATCH, and related formulas by completing a drill based on a real estate data file that lists attributes of properties in different regions and the REITs that own all of them Arithmetic Functions (35:07) You ll learn the key built-in and arithmetic functions in Excel in this lesson, and you ll get firsthand practice applying them to both the customer due diligence file and the Wal-Mart model, to fix certain calculations and add in new ones Financial Functions (32:55) In this lesson, we ll take a break from the normal case study and you ll learn all about two of the most important functions in Excel: IRR and NPV (and XIRR and XNPV), from what they mean to how to use them in financial models. We ll also cover functions to calculate mortgage principal and interest and depreciation under different methods Logical Operators (17:19) You ll learn how to write formulas using logical operators (IF, OR, AND, etc.) in this lesson and you ll use this new functionality to add to and expand on formulas throughout the customer due diligence file (on the analysis and summary tab) and in the Wal-Mart model Copying, Pasting, and Moving Formulas (12:27) You ll learn the key time-saving shortcuts for copying and pasting formulas of all types and for all purposes in this lesson from copying formulas down and right to copying links and a mix of formulas and/or number formats. Then, we ll apply these new shortcuts to both case study files Lookup Functions (30:05) You ll learn all about VLOOKUP and HLOOKUP in this lesson, see how they re useful and why we use them, and then significantly enhance both case study files by adding lookups in key spots of the customer due diligence file and by pulling in data for the public comps for the Wal-Mart file INDEX, MATCH, and INDIRECT (32:03) You ll learn how to use the INDEX, MATCH, and INDIRECT functions (as well as ADDRESS) in this lesson to enhance the normal lookup functionality in Excel, and you ll see how those functions improve upon VLOOKUP and HLOOKUP. We ll add additional lookup functionality to the customer due diligence file, and then you ll get to practice on your own with a case study where you compare the financial performance of several REITs and have to work with messy data to do so.

14 5.

15 5.15 Sensitivity Tables (15:16) In this lesson, you ll learn why sensitivity tables are so important in any type of financial analysis and you ll get practicing creating your own sensitivity tables in the Wal-Mart operating model and valuation to determine the approximate range of share prices that the company might be worth Goal Seek (8:56) You ll learn how to analyze different What If? scenarios in this lesson by using the Goal Seek version in Excel, and you ll get practice using it to determine the conditions that must be true for a company to be worth a certain per-share amount under different assumptions Pivot Tables (27:25) You ll learn the power of pivot tables in this lesson, and you ll create your own pivot table that lets you analyze customer data by dozens, if not hundreds, of different splits and combinations so that you can view the average order size, total dollar value of orders, number of orders, and more, by different criteria. Module 6: Graphs and Charts You ll learn how to create the most important graphs and charts that you use in investment banking, private equity, and related fields in this course, from simple line and column graphs to combination graphs to valuation metrics and multiples and the football field graph. You ll also learn how to create price-volume graphs for stock analysis and how to create waterfall graphs for EBITDA bridge analysis or a Sum-of-the-Parts valuation. Case Study Objectives: Wal-Mart Valuation Create a chart showing Wal-Mart s revenue growth and margins, its valuation metrics and multiples, the metrics and multiples of its comps, and a football field valuation graph that presents a summary of everything. Customer and Sales Rep Due Diligence File Create pie charts to demonstrate the regional concentration of sales and the percentage of sales contributed by each sales rep. Also add in revenue growth and CAGR graphs for the company to chart its revenue, customer count, and average contract value over time. Additional Practice Exercise Create an EBITDA bridge chart that demonstrates how a company will grow its EBITDA by 15% in the next year, in response to a due diligence request from a potential private equity acquirer. They don t believe your client s numbers, and have requested additional support for its EBITDA projections before they can invest Line and Column Graphs (22:19)

16its valuation multiples in forward, projected years, and you ll learn how to automatically highlight the company that you are analyzing in graphs for comparable public companies Creating the Football Field Valuation Graph (24:27) In this lesson, you ll learn how to create the infamous football field valuation graph that shows a company s implied per share value across different methodologies and assumptions, and the 25th quartile to 75th quartile for each one. To complete this graph, we ll combine the graphing tools we just learned with the LOOKUP and TRANPOSE functions from the previous module Price-Volume Graphs (24:57) In this lesson, you will get practice creating price-volume charts for Wal-Mart and one of its peer companies. The actual chart creation is fairly simple, so we focus on how to adjust the formatting and fix axis and labeling problems with the built-in graph which is the trickiest part of the entire process Multi-Year Waterfall Bridge Charts (30:15) In this lesson, we ll take a break from the two normal case studies and move through a case study where you assume the role of a banker convincing a PE firm that your client can achieve its revenue

17 projections. You ll do that here by creating a multi-year waterfall chart for a subscription services company that demonstrates visually how a company grows via new territories, additional marketing, and even how lost subscribers impact its revenue Waterfall Charts with Connectors (26:24) We ll continue with this case study in this lesson, and extend the waterfall chart by building connector lines in between each different step of the graph, so that you can see more easily the progression over time and how one segment of revenue or EBITDA builds on the previous ones to contribute to a company s total in the next year. Module 7: Intro to VBA, Macros, Form Controls, Custom Shortcuts, and User- Defined Functions In this module, you ll get an introduction to the more advanced and programming-like features of Excel, such as macros, VBA (Visual Basic for Applications), user-defined functions, form and ActiveX controls, interactive charts, and custom keyboard shortcuts. You ll learn how to use these features to save time and perform common operations, such as colorcoding your financial models, more efficiently. If you want to learn more, you ll learn about recommended resources for learning these features in greater depth. Case Study Objectives: Wal-Mart Valuation Add and modify a macro for formatting and color-coding the financial model and valuation. Customer and Sales Rep Due Diligence File Use VBA to format messy imported phone number data and turn it into a usable format. Create a user-defined function to better summarize data, create a dynamic chart that allows the user to view data in multiple different formats, and create custom keyboard shortcuts for common data-related functions How to Record and Edit a Macro (38:06) In this lesson, you ll learn to record macros for common data manipulation and formatting tasks, you ll understand the relationship between VBA and macros, and you ll use the VBA Editor to modify your macro in code form so that it works properly. You ll practice yourself by recording a macro that fixes the fonts in the Summary tab of the Wal-Mart model Introduction to VBA, Conditions, and Loops (51:32) You will use loops and conditionals in VBA in this lesson to build and modify your own macro for accepting customer order data, and then you ll use what you learned here to fix a broken macro for color-coding a financial model and turn it into something that works properly by using the VBA Editor Using VBA to Create User-Defined Functions (22:40)

18 In this lesson, you ll learn how to extend VBA by creating User-Defined Functions (UDFs) that allow you to check for additional conditions and perform additional error-checking and create brand-new built-in functions in Excel. You ll get practice creating one UDF that calculates Net Income and one that calculates the previous and next years for use in models Fixing Messy Formatting with VBA (28:24) In this lesson, you ll learn another use case for VBA and user-defined functions: fixing messy formatting of text fields such as phone numbers. You ll get practice writing VBA code as part of a user-defined function that will properly format a series of inconsistently-formatted telephone numbers and detect which country each one corresponds to Dynamic Charts with Form Controls (44:28) In this lesson, you ll turn existing charts and graphs in the Wal-Mart and customer due diligence files into dynamic objects with scroll bars and check boxes that allow you to see only a portion of the graph, or only certain data series on the graph and you ll learn how to link form controls to formulas, functions, and graphs within Excel Create Custom Keyboard Shortcuts (9:12) In this final lesson in the Excel course, you ll enhance the power of Excel once again by creating your own custom shortcuts for the functions that you use the most often, and then make them easily accessible with the Alt + Number Key combination. We ll also do a recap of the course and summarize the lessons.

19 Financial Modeling Fundamentals 3.0 This course is based on 8+ global case studies from companies and deals all around the world: You'll start from the very basics, with key financial concepts such as the time-value of money and what "financial modeling" actually means, and you'll learn all about accounting and the financial statements. Then, you'll create 3-statement projections for companies and move into the coverage of valuation, including detailed lessons on Equity Value vs. Enterprise Value and valuation multiples, as well as comparable public companies, precedent transactions, and the discounted cash flow (DCF) analysis. You'll learn not only the mechanics of valuation, but also how to INTERPRET the numbers and use them in investment banking pitch book and client advisory presentations, equity research reports, and hedge fund stock pitches. The last several modules cover simplified and more advanced merger models and leveraged buyout (LBO) models, and you'll understand how to analyze deals, make recommendations to potential clients, and also how to make investment recommendations as if you were working at a private equity firm. Module 1: What "Financial Modeling" Is, and the Core Concepts In this module, you'll learn exactly what financial modeling is, why we care about it, and how it is used in real life in roles such as investment banking, private equity, hedge funds, equity research, corporate finance, and more.

20 You'll also see examples of how bankers and investors have used financial modeling in real life to present their arguments about different companies. You will also learn the key financial concepts that you'll use throughout the rest of the modules in this course, including the time-value of money, Net Present Value (NPV), the Internal Rate of Return (IRR), and more. If you already have some background in financial modeling, you should SKIP this module. But if you re brand new to it, or you need to review the ropes, you should start here and move through the relevant lessons. 1.1 What is Financial Modeling? (21:19) In this lesson, you ll learn what financial modeling is, how you can use it to tell and resolve the story of a company, and you ll learn why many people do not understand the purpose of financial modeling or the process behind it. 1.2 The Financial Modeling Process (38:30) In this lesson, you ll learn the 6-step process you can use to create any type of financial model, and how you use models to make decisions, invest, and advise clients in real life. 1.3 Financial Modeling in Real Life (26:51) You ll learn how to apply financial modeling in real life in this lesson, based on 3 examples: a hedge fund stock pitch, an investment banking advisory presentation, and a private equity investment recommendation. 1.4 What a Guy Dressed in Pink Rabbit Suit Can Teach You About the Time-Value of Money (33:00) In this lesson, you ll learn about the time-value of money by hearing a story about a guy in a pink rabbit suit in a bar in Korea. You ll also learn how the very odd real estate system there can teach you an important real-life lesson about this critical concept. 1.5 What Money is Worth: NPV, IRR, and the Discount Rate (WACC) (57:17) You ll learn about different ways to measure the value of money and make investment decisions in this lesson, including the Net Present Value (NPV), the Internal Rate of Return (IRR), and the Weighted Average Cost of Capital (WACC) and you ll get to help Sir Richard Branson travel to Jupiter in the process (maybe). 1.6 What Genghis Khan Can Teach You About The Ethics of Financial Modeling (26:09) In this lesson, you ll learn about why you CANNOT just rely on the numbers when making advisory and investment decisions, and why you need to also consider the ethical side and you ll learn about Genghis Khan and the 13th century Mongols in the process.

21 1.7 How to Use This Course Efficiently and Effectively (32:11) You ll learn how to get the most out of the course with the minimal time invested in this lesson, whether you have 8 hours, 1 week, or 2-3+ weeks or more to complete the lessons. You will also learn which topics to focus on and which topics to skip over, depending on the roles you are aiming for. Module 2: The 3 Financial Statements Every accounting textbook ever published attempts to explain the 3 financial statements (the Income Statement, Balance Sheet, and Cash Flow Statement). However, their explanations are often boring or overly academic. More importantly, they don t explain why the financial statements are important to YOU, as a banker or financier. In this case study, we ll approach the topic in a much different way and show you why and how the financial statements are necessary for real companies. To do this, we'll create a set of financial statements for THIS company (Breaking Into Wall Street) and use them to illustrate how business decisions and different business models create the need for these statements. At the end of this module, you'll also get a concise set of rules that sum up the items on the Income Statement, Balance Sheet, and Cash Flow Statement. Finally, you'll learn about the financial statements differ in different industries and different countries (US GAAP vs. IFRS), and you'll understand important concepts such as Working Capital, Free Cash Flow, and Key Metrics and Ratios used in financial statement analysis. 2.1 Module Overview (8:24) In this lesson, you ll get an overview of this module and you will learn the material to expect in each lesson plus, which lessons to skip if you already have more advanced knowledge. 2.2 The Income Statement for THIS Business (15:11) In this lesson, you ll learn what an Income Statement is, what it looks like, the different revenue and expense categories, and the criteria that must be satisfied for an item to appear on the Income Statement. 2.3 Installment Payments and Accounts Receivable (11:33) You ll learn what happens when a company decides to accept installment payments in this lesson, and how those get reflected in Accounts Receivable as well as the cash flow impacts of Receivables.

22 2.4 Prepaid Expenses (9:44) You will learn how Prepaid Expenses work in this lesson, including why they come up in the normal course of business and how they impact a company s Net Income and cash flow. 2.5 Accounts Payable and Accrued Expenses (10:30) In this lesson, you ll learn what Accounts Payable and Accrued Expenses are, why they come up as a business grows, and how they impact Net Income and cash flow. You ll also learn the distinction between Accounts Payable and Accrued Expenses. 2.6 Monthly Subscriptions and Deferred Revenue (10:10) In this lesson, you ll learn what happens when this BIWS business introduces a monthly subscription service, and how that impacts its Net Income and cash flow and how the Deferred Revenue line item works. 2.7 Selling Physical Products and Buying Inventory (11:57) In this lesson, you ll learn what happens when a company starts ordering Inventory for use in selling physical products, and how it impacts Net Income and cash flow. At the end, you ll also understand exactly why we need the Balance Sheet and Cash Flow Statement, in addition to the Income Statement. 2.8 Buying Offices: PP&E, Capital Expenditures, and Depreciation (11:55) In this lesson, the BIWS business will expand by purchasing offices and equipment, and you ll understand how Capital Expenditures, Depreciation, and Plants, Property & Equipment (PP&E) work on the financial statements. 2.9 How to Spend Cash: Short-Term and Long-Term Investments (10:02) In this lesson, you ll learn how a company records purchases of investments and interest income from those investments on its financial statements, and why a company would want to spend cash on investments in the first place Funding Your Company by Raising Debt (11:20) You will learn how to reflect a debt issuance, interest expense paid on debt, and debt principal repayment on the 3 financial statements in this lesson and you ll learn why a company might want to raise debt rather than equity (or other funding sources) Gains and Losses on Asset Sales (13:35) You ll learn how and why a company might sell some of its assets to raise additional funds, and how it would record gains and losses when selling those assets, in this lesson Raising Equity to Fund the Business (10:28)

23 In this lesson, you ll learn why a company might want to raise equity rather than debt to fund its operations, and you ll understand how an equity issuance impacts the 3 financial statements Deferred Taxes and Deferred Tax Liabilities (16:46) You ll learn why a company might defer some of its taxes to future periods in this lesson, and you ll see how methods such as accelerated depreciation can create deferred tax liabilities; you will also learn how deferred taxes impact the 3 financial statements Equity Investors Come Knocking: Dividends and Share Repurchases (11:30) You will learn about 2 different ways that a company can pay equity investors in this lesson: dividends and share repurchases. non-cash revenue and expenses, investing and financing activities, and non-cash expenses embedded within other line items Balance Sheet Rules and Summary (25:47) In this lesson, you ll get a concise set of rules for what goes on the Balance Sheet and where it shows up and you ll understand how each Asset and Liability fits the universal definition for Assets and Liabilities. You will also learn more about what goes into the (Shareholders ) Equity section of the Balance Sheet, and how it s linked to the Cash Flow Statement Cash Flow Statement Rules and Summary (19:08)

24 You ll learn the key rules for the Cash Flow Statement in this lesson, including why we need it, what goes into each section, and how to link the financial statements based on what s on the Cash Flow Statement US GAAP vs. IFRS on the Statements (21:07) You ll learn some of the key differences between US GAAP and IFRS on the financial statements in this lesson, and you ll get a real-life example of how you d have to adjust the financial statements for a non- US-based company Industry-Specific Differences on the Statements (43:12) In this lesson, you ll learn how the financial statements of companies in different industries differ and you ll understand the major differences between their business models, as represented on the financial statements. We ll cover the food & beverage, pharmaceutical, railroad, restaurant, retail, automotive, power & utilities, construction/engineering, telecom/media, maritime/shipping, chemicals, cleantech, infrastructure, software, and airline industries Working Capital and the Change in Working Capital (22:02) You ll learn why most definitions of Working Capital are completely wrong in this lesson, and why you can t trust the Internet; you will also learn what it really means, and how to calculate, analyze, and interpret the Change in Working Capital for real companies, using an example for Wal-Mart vs. Amazon vs. Salesforce Free Cash Flow and What to Do With It (21:22) In this lesson, you ll learn what Free Cash Flow (FCF) means, why it s such an important metric when analyzing and valuing companies, how to interpret positive vs. negative FCF, and what different numbers over time mean using a comparison between Wal-Mart, Amazon, and Salesforce as our example Key Metrics and Ratios (41:30) In this lesson, you ll learn how to use key metrics and ratios, such as profitability and growth metrics and returns-based metrics such as ROA, ROE, and ROIC, to analyze and compare companies. You will also get practice calculating and using Balance Sheet-based metrics, such as Turnover ratios. Finally, you will get practice calculating all these metrics for yourself for Amazon, and you ll learn how to compare Wal- Mart, Amazon, and Salesforce through the lens of these metrics and ratios. Module 3: Accounting Interview Questions & More Advanced Topics In this module, you'll get a crash course on the 4 main categories of accounting-related interview questions. We'll step through each question category sequentially, starting with simple changes to revenue and expenses and moving all the way up through multi-step scenarios across the first 30 lessons.

25 You'll understand how to walk through all these items in an interview, using an Excel model we designed specifically for answering these interview questions and tracing their impact on the financial statements, using conditional formatting. At the end of the module, you'll also get an introduction to more advanced accounting topics, including LIFO vs. FIFO for Inventory, Operating Leases vs. Capital Leases, Unrealized Gains and different security types, Pension Accounting, Equity Investments and Noncontrolling Interests, Net Operating Losses, PIK interest, and tax-related items on the financial statements. 3.1 Module Overview (13:00) In this lesson, you ll learn how and why this 3-statement accounting interview question model is set up the way it is, how you can use it to practice answering interview questions, and the 6 major categories of questions you need to understand. 3.2 Revenue and Expense Changes (5:15) You ll learn how true cash changes such as actual cash revenue, cash expense, and cash interest changes, impact all 3 financial statements in this lesson. 3.3 Depreciation and Amortization (5:45) You ll learn how to answer the most classic interview question of all time how changes to Depreciation (and Amortization) affect the 3 statements in this lesson, plus variations on that question and the INTUITION behind the answer. 3.4 Stock-Based Compensation (3:54) In this lesson, you ll learn how increases in Stock-Based Compensation affect the 3 financial statements and the intuition behind all the changes. 3.5 Asset Impairments and Write-Downs (5:31) You will learn how Goodwill Impairments and PP&E Write-Downs flow through the 3 financial statements in this lesson, as well as the intuition behind all the changes. 3.6 Realized Gains and Losses (7:16) In this lesson, you ll learn how gains and losses on asset sales (PP&E or Investments) impact the 3 financial statements, including how you reflect and re-classify items on the Cash Flow Statement and why the treatment may seem counter-intuitive. 3.7 Write-Down of Owed Debt (5:48) You will learn how write-downs of liabilities work in this lesson, including the very odd accounting behind them and why companies would write down liabilities such as owed debt in the first place.

26 3.8 Accounts Receivable Changes (6:26) You will learn how changes to operationally-related Balance Sheet items such as Accounts Receivable impact the 3 financial statements in this lesson, as well as the distinction between AR increasing and AR decreasing. 3.

27 3.Accounts Payable affects the 3 financial statements in this lesson Inventory to Products, Part 2: Selling the Product (6:11) You ll learn how to reflect a company purchasing Inventory and then turning it into products that it sells to customers in this lesson, including the full impact on the financial statements.

28 3.FIFO (OPTIONAL) (13:53) In this lesson, you ll learn how Inventory and Cost of Goods Sold (COGS) differ under the LIFO (Last-In, First-Out) and FIFO (First-In, First-Out) methods, and you ll understand their impact on the financial statements. This lesson is ONLY applicable if you are in the US under IFRS, which most other countries follow, only FIFO is allowed Operating Leases vs. Capital Leases (OPTIONAL) (29:36) In this lesson, you ll learn how operating leases differ from capital leases, and how they impact the financial statements and key metrics and ratios differently; you ll also get an example of how to check if an operating lease should be counted as a capital lease, using Southwest Airlines financial statements Unrealized vs. Realized Gains and AFS vs. HTM vs. Trading Securities (OPTIONAL) (17:40) You ll learn the differences between Available for Sale (AFS) vs. Held-to-Maturity (HTM) vs. Trading Securities in this lesson, and you ll understand how to reflect unrealized gains from each of them on the financial statements Pension Accounting Introduction (OPTIONAL) (45:34) In this lesson, you ll get a crash course on pension accounting, and you ll learn what items impact a company s pension-related assets and liabilities and the pension expense shown on the Income

29 Statement. You ll also learn how to tell if a company is following aggressive or conservative pension practices, and what the assumptions for the discount rate, rate of salary increases, and targeted asset allocation tell you More Advanced Items: Equity Investments, Noncontrolling Interests, NOLs, Tax Items, PIK Loans (OPTIONAL) (32:00) In this lesson, you ll learn the basics of Equity Investments (Associate Companies) and Noncontrolling Interests (Minority Interests), as well as Net Operating Losses (NOLs) and Deferred Tax Assets (DTAs), tax-related Balance Sheet items, tax benefits from Stock-Based Compensation, and Paid-in-Kind (PIK) Interest on loans. Module 4: Projecting the 3 Statements (Atlassian) In this module, you will learn how to project the 3 financial statements of Atlassian, a private software company based in Australia. You will use these 3-statement projections to analyze 2 separate investments in the company: an initial $60 million investment by Accel at a valuation of $400 million, and another $150 million investment 4 years later by T. Rowe Price at a valuation of $3.3 billion. Instead of just blindly projecting revenue and expenses based on simple percentages, you will dig into the company's customer segments and pricing, and use information on its sales & marketing spending per new and existing customer to come up with the key numbers. Then, at the end, you will write a detailed 18-page document with your investment recommendation and answers to the other case study questions we posed in the beginning. Ultimately, you'll answer a simple question with these projections: Can Accel and T. Rowe Price achieve their targeted IRRs or money-on-money multiples under reasonable future assumptions? 4.1 Case Study and Module Overview (23:48) In this lesson, you ll get an overview of the Atlassian case study, you ll learn more about the company s products/services and its historical financial performance, and you ll begin filling in the Excel model we ll use to build 3-statement projections. 4.2 Revenue Projections (17:06) You will learn how to project a company s revenue based on its average customer value by segment, pricing growth, and customer growth rates in this lesson. You ll also understand the 3 different methods of projecting revenue, in general, and how to ensure that your numbers are not wildly off the mark in future periods. 4.3 Expense Projections (26:31)

30 In this lesson, you will learn 3 different methods you can use to project a company s Income Statement expenses, and you ll see which is appropriate for Atlassian s different expense categories. You will also learn how to split sales & marketing spending by customer type, and how to flesh out the Income Statement and check your numbers at the end, based on the expense projections. 4.4 Balance Sheet and Cash Flow Statement Drivers (24:45) In this lesson, you ll learn how to project Current Assets, Current Liabilities, and key Cash Flow Statement line items based on the company s historical trends and future cash flow profile. You ll also learn which items are projected independently on the Balance Sheet, and which items flow in from changes on the Cash Flow Statement. 4.5 CapEx and Depreciation Assumptions (19:25) You will learn how to project a company s CapEx, Depreciation, and PP&E in this lesson, including how you can use a compromise solution that is more complex than simple % revenue estimates, but not as involved as a full schedule with individual assets projected in detail. 4.6 Linking the Statements (22:23) In this lesson, you will learn how to link the financial statement projections properly, tie together all the items, and ensure that the Balance Sheet balances and you ll learn the principles and step-by-step process you can use to do this for any company. 4.7 IRR and Money-on-Money Multiple Calculations (18:38) In this lesson, you will learn how to calculate the internal rate of return (IRR) and money-on-money (MoM) multiples to both Accel and T. Rowe Price, under the assumption that Atlassian is sold or goes public in the future. You ll also understand why these numbers matter, and how to look at the figures under different scenarios. 4.8 Case Study Answers Returns and Financials (30:30) In this lesson, you will learn how to answer the first few case study questions, make an investment recommendation, explain why Atlassian does or does not represent a good investment, and also analyze Accel s prior venture capital investment in the company and determine whether or not it should have sold its stake. 4.9 Case Study Answers Atlassian Business Model (31:58) You ll learn how to analyze Atlassian s business model, market, competitive strengths, and financial profile vs. those of other enterprise software companies in this lesson you will also understand how to use press releases and online research to reach conclusions about the company s prospects Debt Schedule (14:35)

31 In this lesson, you ll learn how to complete one of the case study bonus tasks and add a simple debt schedule to the 3-statement model for Atlassian including how to factor in additional draws and repayments, interest, and the impact on the company s cash balance Simplified Quick Model (24:08) You will learn how to simplify the 3-statement model for Atlassian even further in this lesson, including how you might consolidate and simplify items and remove supporting schedules to get the same numbers and reach the same conclusions. This process is critical for time-pressured interviews as well as rushed tasks and emergencies on the job. Module 5: More Advanced 3-Statement Projections (EasyJet) In this case study, you will create more complex 3- statement projections over a 5-year period for EasyJet [LSE: EZJ], the largest airline in the UK, with over 600 routes in 32 countries. EasyJet reported 4.3 billion in revenue with operating profits of 497 million in its most recent fiscal year. The company was also one of the best-performing stocks in the FTSE100 during the past year, driven by stronger yields, more business travel, successful cost control, and an allocated seating policy driving revenue and profits. Perhaps most impressively, its Return on Capital Employed (ROCE) increased from 3.6% five years ago to 17.4% in its most recent fiscal year. Your job is to determine if this type of increase is sustainable over the next 5 years. You will use your own insights into the company s revenue, expenses, and capital structure to analyze its key metrics and ratios on a historical and forward basis, and draw some initial conclusions based on your work. 5.1 Case Study Overview and Financial Statement Adjustments (43:23) In this lesson, you ll understand the key topics in the EasyJet case study and how it differs from the simplified 3-statement projections in the previous module. You will also learn how to adjust and consolidate EasyJet s financial statements to make your life easier later on in the model. 5.2 Financial Statement Consolidation Practice Exercise (21:54) You will get additional practice consolidating and simplifying the financial statements in this lesson, using Chipotle as an example and you ll understand how it s often easier to link the statements for USbased companies.

32 5.3 Airline Revenue Projections (33:40) In this lesson, you will learn how to project revenue for an airline, including how you move from Available Seat Kilometers (ASK) to seats flown and # of passengers flown, revenue per seat and passenger, and ultimately total revenue. You ll also learn how to use channel checks, equity research, and investor presentations to inform your numbers, and how to create an annual roll-up summary. 5.4 Aircraft Fleet Projections (20:50) In this lesson, you ll learn how to project EasyJet s mix of A319 vs. A320 vs. A320neo aircraft, how those figures influence the model, and how to estimate the # of aircraft that are operating leased vs. the ones that are owned or finance leased (capital leased). 5.5 Fuel Expense Projections (26:46) You will learn how to project EasyJet s Fuel Expense in this lesson, including how to factor in the tons of fuel used per ASK, the impact of hedged fuel prices, and the USD to GBP exchange rate and you ll understand why it s so important to allow for different scenarios in this schedule. 5.6 Non-Fuel Expense Projections (28:45) You ll learn how to project non-fuel expenses in this lesson, including crew salaries, airport and ground handling fees, navigation, maintenance, sales & marketing, and other expenses and you ll fill out the company s partial Income Statement and roll up everything into annual figures on both the Income Statement and the Non-Fuel Expense Schedule. 5.7 CapEx, Depreciation, and Leasing Projections (38:38) In this lesson, you ll learn how to project CapEx, Depreciation, Finance Leases, and Operating Leases for EasyJet, despite the lack of detailed / granular information in its filings and presentations and you ll understand how to foot the numbers with reality and adjust unrealistic numbers. 5.8 Balance Sheet and Cash Flow Statement Drivers (32:05) You will learn how to project the company s operational assets and liabilities in this lesson, including how to factor in very different half-year historical results and seasonality; you ll also learn which Income Statement line item each Balance Sheet item should link to. 5.9 Other Balance Sheet and Cash Flow Statement Items (30:35) You will learn how to project non-operational Balance Sheet and Cash Flow Statement line items in this lesson, including Other Intangible Assets, Dividends, Share Issuances and Repurchases, Short-Term Investments, and changes to many smaller accounts Debt Schedule Repayments and Borrowings (21:58)

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