The ability to construct a reliable financial model that projects future performance is essential for the forward-looking business professional. This book provides the essential knowledge needed to become proficient at forecasting and modeling. It does so by discussing the different types of forecasting methodologies, the situations in which they should be used, and how to construct them. The book also examines the layout and formulation of a financial model, and addresses specific issues within such a model, including the treatment of depreciation, debt, equity, and working capital. Further, the manual describes the construction of short-term and longer-term cash forecasts, and concludes with a review of the Excel functions that can be used for financial forecasting and modeling.