Question: 3 statement financial model: how to build from start to finish Income statement / cash flow => flow statements, represent periods of time Balance sheet

3 statement financial model: how to build from start to finish Income statement / cash flow => flow statements, represent periods of time Balance sheet => represents one specific moment in time Income statement => money you made and expenses related to those sales Cash flow => changes in what you own and what you owe (fundraising/debt/cash, for example off P&L) Step 1 Build income statement => leave depreciation & interest blank Step 2 Create CAPEX and depreciation schedules Step 3 Build balance sheet on historical #s Step 4 Tied cash flow to the balance sheet

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