Browse MBAs SECTION 3: Corporate Finance & Valuation

The Three-Statement Model Builder

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The Three-Statement Model Builder

Help me build a three-statement financial model for this business.

Business: [DESCRIBE]
Drivers and assumptions: [REVENUE MODEL, MARGINS, CAPEX, WORKING CAPITAL,
FINANCING]
Horizon: [YEARS]

Lay out:
1. The income statement projection and the assumptions behind each line
2. The balance sheet projection and how it links to the P&L
3. The cash flow statement and how it ties the other two together
4. The circular points to watch (interest on debt that depends on cash,
   etc.) and how to handle them
5. The handful of driver cells I should build the whole model to flex

Describe the structure and formulas clearly enough that I can build it in
a spreadsheet, and note where a calculation tool should verify the maths.

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