CFI Webinar – Link the 3 Financial Statements

CFI Webinar Series: How to link the 3 financial statements in Excel

This webinar on how to link the 3 financial statements in Excel is brought to you by the Corporate Finance Institute.   In this webinar, we will perform a live demonstration of how to build a simple 3 statement model in Excel, which will form the basis for all other levels of financial modeling.

 

 

To learn more, launch our financial modeling courses.

 

Download the Excel template

 

 

Live demonstration

The main purpose of this webinar is to perform a live demonstration of how to link the 3 financial statements together in Excel.  Using a simple example of a company with several years of historical data, we are able to build the forecast a 3 statement model including the income statement, balance sheet, and cash flow statement.

 

Webinar agenda

The agenda of this quarterly webinar is as follows:

  1. Why do we link the 3 financial statements?
  2. What is the best layout?
  3. Iterative approach
  4. Live demonstration

 

Prerequisites

This webinar assumes you have a basic knowledge of the concepts covered in these free CFI courses:

 

Why link the 3 financial statements?

Linking the 3 statements is the basic building block on which all other models are built.  As the diagram below illustrates, more completed models such as a DCF model, M&A model, scenario analysis and sensitivity analysis are all dependent on the 3 statement foundation.

3 statement model foundation

 

To learn more, launch our financial modeling courses.

 

What is the best layout?

The best layout for you model may be a matter of personal preference.  A standard layout is to have each of the statements on separate worksheets, however, this increases the risk of error when linking between sheets.  A single worksheet or single tab model will be easier to work with and is a better foundation for more complex models such as M&A models or corporate operating models that consolidate multiple business units.

2 layouts

 

To get this template, launch our financial modeling courses.

 

Iterative approach

In order to build the model, we use an iterative approach where we complete whatever sections of each of the financial statements we can, and then move to the next statement when we get stuck.  The diagram below illustrates what this approach looks like.

approach to modeling

 

This approach is covered in more detail in our financial modeling courses.

 

 

Download the Excel template

 

 

More financial modeling training

We hope you enjoyed this webinar and look forward to seeing you again next quarter.

The best way to stay in the loop for all future webinars is to enroll in our Full Access Bundle where you will have lifetime access to all our courses and certificates.

More relevant resources include: