3_Statement_Financial_Model_Template.xlsx

	A	B
1	3-Statement Financial Model Template
2	Income Statement + Balance Sheet + Cash Flow Statement — fully linked, editable
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4	How this workbook is built
5	Color code
6	Blue text on yellow fill	A hardcoded input. Type over these numbers with your own figures.
7	Black text	A formula. Do not overwrite — it recalculates automatically from inputs above/around it.
8	Green text	A live link pulling a number from another sheet (e.g. Net Income flowing from the Income Statement into the Balance Sheet and Cash Flow Statement).
9	Red bold text	A balance check. Should always read 0. If it doesn't, an input was changed in a way that breaks the link between statements.
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11	How the three statements connect
12	Income Statement -> Balance Sheet	Net Income flows into Retained Earnings; Depreciation & Amortization flows into Cash Flow.
13	Income Statement -> Cash Flow	Net Income is the starting line of Cash Flow from Operations; D&A is added back.
14	Balance Sheet -> Cash Flow	Year-over-year changes in Accounts Receivable, Inventory, Prepaid Expenses, Accounts Payable and Accrued Liabilities drive the working-capital lines.
15	Cash Flow -> Balance Sheet	Ending Cash Balance on the Cash Flow Statement is linked into the Cash line on the Balance Sheet.
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17	To edit
18	Change any blue input	e.g. Sales Revenue, COGS, tax rate, Accounts Receivable, Capital Expenditures — every formula downstream recalculates automatically.
19	Add a period	Insert a column, copy the formulas from the adjacent period column across, and update any year-over-year references.
20	Rename line items	Just overwrite the label in column A; formulas reference cell addresses, not text, so this is safe.
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22	Notes / assumptions used in this template
23	Year 1 working-capital changes	Set to 0 in the Cash Flow Statement because there is no prior-period Balance Sheet to compare against. Once you add real historical data, replace with the actual change.
24	Tax	Calculated as Income Before Tax x an editable Tax Rate assumption, not a hardcoded tax expense.
25	PP&E, Debt, Common Stock, Retained Earnings	Roll forward automatically: Gross PP&E moves with Capex, Accumulated Depreciation with D&A, Long-term Debt with Debt Issued/(Repaid), Common Stock with Equity Issued, and Retained Earnings with Net Income and Dividends. Edit the Cash Flow Statement inputs, not these Balance Sheet cells, to change them.
26	Other Investing Activities	Left at 0 by default because it has no matching Balance Sheet line in this template. If you use it, also adjust a Balance Sheet asset so the Balance Check stays at zero.
27	All figures	Are illustrative placeholders — replace every yellow-highlighted cell with your own numbers before relying on this model.
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29	Ratio Analysis tab
30	What it does	Evaluates all three statements together: profitability, liquidity, leverage, efficiency and cash flow ratios, each computed live from the Income Statement, Balance Sheet and Cash Flow Statement. Nothing to edit here — every cell is a green cross-sheet formula that updates automatically as you change inputs elsewhere.
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