Forecast operations and working capital
Part of the Investment Banking learning and recruiting path. Read the explanation and example, attempt the task, then open the self-check.
Know what to learn for your role.
From foundations to a work sample, with sources, tasks and self-checks.
Understand
Build revenue from price and volume, then costs. Increases in receivables and inventory generally consume cash; payables generally release cash. Separate assumptions, formulas and outputs.
Worked example
Simplified operating cash flow: cash earnings 30, receivables +8, inventory +4, payables +3 gives 30 − 8 − 4 + 3 = 21.
Examples and numbers are educational, not employer questions, live market data or hiring criteria.
Practise and keep your output
Build a three-year revenue and working-capital forecast. Change growth and collection days separately and record the cash impact.
Keep inputs and sources, assumptions, steps, results and uncertainties in your own document. Attempt independently before checking below.
After attempting: answer and self-check
Longer collection periods should tie up more cash. Revenue growth need not improve cash flow. State day-count and period assumptions.
Official channels and further reading
Pathline authors these starter lessons. These supplementary field links do not imply provider review or endorsement. Confirm Hong Kong availability and eligibility separately.
- JPMorganChase · Investment Banking Analyst Internship ↗
Read responsibilities and training; separately check Hong Kong and the current intake.
- Khan Academy · Accounting and financial statements ↗
Supplementary accounting and financial-statement lessons.