From the course: Financial Modeling Foundations

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Three-statement financial model

Three-statement financial model - Microsoft Excel Tutorial

From the course: Financial Modeling Foundations

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Three-statement financial model

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- [Instructor] One of our first tasks in building out a financial model, especially a three-statement financial model is to go through and evaluate the financial statements and make sure they're complete. Now what we have here are three different financial statements for a basic model, the income statement, the balance sheet, and the statement of cashflows. We have this on a historical basis for the period 2014 to 2018. And while we filled out most of the model, there are certain pieces that are missing, like Operating Income, Income Before Tax, etc. We'll need to fill these in using formulas. In addition, we have helpful comments added at various points in time that give us a sense for how different figures were arrived at. So let's go through and fill out this model, shall we? So for Operating Income, we are going to be basing this on our operating expenses versus our revenue. In this particular case, we'll have C22, our Revenue, minus C27, our Unusual Expenses, minus our Total…

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