Introduction to 3-Statement Financial Modeling

Take a tour of the 3-statement financial model, starting with inputs and revenue drivers and including scenarios, costs, capex, working capital, debt and equity, then the statements and outputs.

Build and actualize a three-statement model using historical actuals for the income statement and balance sheet. Learn to finalize the cash flow statement with linking schedules, depreciation, and corkscrew formulas.

Learn to construct a revenue schedule by linking price increase and unit growth inputs, calculating revenue as price times quantity, and propagating year-over-year formulas.

Compute accounts receivable using revenue and dso, inventory via cogs and dio, and accounts payable with cogs and dpo; forecast accrued expenses as a percent of revenue for cash flows.

Develop capex and depreciation skills by modeling a capex schedule from inputs, applying annual straight-line depreciation, and building the asset and PPE balance through a corkscrew schedule.

Build income statement by linking revenue and COGS, calculating gross profit, operating expenses, EBITDA, depreciation (schedule), EBIT, and net income using a tax rate and max function; copy formulas across.

Link net income and depreciation to the cash flow statement, compute operating cash flow from working capital, and summarize investing and financing activities to finalize cash balance and balance sheet.

Build a professional cover page with error checks and variance formulas that tie each schedule to the financial statements, ensuring balance sheet accuracy and catching linking errors.