OPEX Part 3
When to use
When constructing a basic financial model.
- The next step in working out Operating Expenditure (OPEX) will be to calculate the control account.
- It is still necessary to enter a control account for Opex even though all expenses are assumed to be paid as incurred. This will make it easier in future in case anything changes.
- The working capital and the control account can be copied and pasted from the COGS section.
- Bring in the ‘Days Payable’ in cell E157 =E53
- Highlight cells J157:N157 and style this as ‘Empty’
- You will notice that the calculations will not need to be performed for the control account due to copying and pasting the same format as the previous control accounts.
- Once the control account has been calculated the balances can be transferred into the Financial Statements.
- Transfer ‘Opex’ as a negative number into the Income Statement:
- Transfer the ‘Cash Payments’ into the Cash Flow Statement:
- Transfer the ‘Accounts Payable Closing Balance’ into the Balance Sheet:
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