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COGS Part 2
When to use
When constructing a basic financial model.
Once the working capital adjustments and the control accounts have been calculated, the Income statement figure can be linked to the calculations. This is an expense account and so needs to be entered as a negative:
- The formula is linked from the control account in the calculations:
- Next the Cash Payments can be linked into the Cash Flow Statement:
- Finally, the Accounts Payable can be lined into the Balance Sheet:
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