From the course: Excel: Financial Modeling with Dynamic Arrays

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Financial statements modelling

Financial statements modelling - Microsoft Excel Tutorial

From the course: Excel: Financial Modeling with Dynamic Arrays

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Financial statements modelling

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- [Instructor] Let's take a closer look now at each of the financial statements and how they might link with each other. So starting with the income statement, this will tell us if the business is making money, and they usually contain each of these lines or something similar. So we start out with the revenue. We deduct the cost of goods sold, which will give us our gross profit. We take away the expenses, which will give us our EBITDA. We then need to refer to the depreciation schedule to get our depreciation and amortization, which will give us our EBIT. We then deduct the interest, so that will come from our debt schedule, which will give us our earnings before tax. We take away the tax and we are left with our net income, and that will drive the cash flow and it will also feed into the balance sheet in the form of retained earnings. So when we build the income statement, we need to link these rows to the other parts of our financial model. Moving on to the cash flow statement now,…

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