From the course: Excel for Finance: Building a Three-Statement Operating Model

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Forecasting the accounts payable

Forecasting the accounts payable - Microsoft Excel Tutorial

From the course: Excel for Finance: Building a Three-Statement Operating Model

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Forecasting the accounts payable

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- [Instructor] All right, so now let's just keep going. Let's model out the accounts payable. Let's just do one more double check on the notes from the CFO just to make sure we're doing it right. So inventory was based on all the COGS and DOH of 90, so we could actually carry that through or leverage the previous month's assumption. I'll just double check that when we go. And then accounts payable, we're going to use DPO of 60. So I'm imagining the CFO thinks it probably takes us about two months to pay our vendors but I will double check that as well. So let's go down and build that calculation and validate that assumption. And so as it relates to the inventory, I've got about 94 here. In my mind, that's close enough. I can leave it alone. Again, the simplicity of the model is I can just change it if needed. So for accounts payable, same exact idea as inventory. We're just referencing a different account. We're going…

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