Post a new topic
    1 Reply Latest reply on Jan 30, 2009 7:50 AM by LUCKIEST

    Bottoms up income statement

    cmingo Newbie

      A potential investor of mine asked me for an detailed bottoms up income statement for my restaurant. Is there anyone who can give me an idea of how to construct that type of statement.
        • Re: Bottoms up income statement
          LUCKIEST Guide

           

          Top-down and Bottom-up


          Investors can use either a top-down or bottom-up approach.

          • The top-down investor starts his analysis with global economics, including both international and national* economic indicators* , such as* GDP* growth rates,* inflation* ,* interest* rates,* exchange rates* ,* productivity* , \\ and energy prices. He or she narrows his search down to \\ regional/industry analysis of total sales, price levels, the effects of \\ competing products, foreign competition, and entry or exit from the \\ industry. Only then does he narrow his search to the best business in \\ that area.
          • The bottom-up investor starts with specific businesses, regardless of their industry/region.