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The 3-Statement Build

A blank sheet, a set of assumptions, and one integrated model built across the whole course. Income statement, balance sheet and cash flow, linked, balancing, with a debt schedule and real interest circularity.

20 graded exercises8 lessons

Course Content

Setup & Conventions

0/2 lessons
56 minutes total
0% complete

Conventions and the assumption block

Blue for inputs, black for formulas, one switched column every driver is read out of, and a period row that re-dates the model from a single cell.

22 min

Revenue and operating cost buildFull access

Volume times price rather than a growth rate, a cost that follows revenue, a cost that follows itself, and the two subtotals the rest of the model hangs off.

34 min

Supporting Schedules

0/2 lessons
77 minutes total
0% complete

Working capital — DSO, DIO, DPOFull access

The cash a growing business ties up before it ever sees it: the cycle history ran at, the balances that cycle implies, and the cash flow line whose sign is the whole answer.

36 min

PP&E and the depreciation waterfallFull access

The roll-forward every balance-sheet schedule is shaped like, a depreciation grid that knows an asset cannot wear out before it is bought, and the first line this model sends back up into a statement.

41 min

Debt & Circularity

0/2 lessons
77 minutes total
0% complete

The debt schedule and the revolverFull access

The cash a business actually has left after everything it must pay, the clause that takes most of it, and the facility that covers the year it comes up short.

46 min

Interest circularity and the circuit breakerFull access

Interest is charged on a balance that interest itself changes. What the sheet does about that, and the one cell that gets you out when it goes wrong.

31 min

Integration

0/2 lessons
84 minutes total
0% complete

Linking the three statementsFull access

The statement that contains no new information, the one line on the balance sheet that is not a copy, and a model that balances without anything being plugged.

50 min

The balance check, and finding the breakFull access

The two claims a model can make about itself, and the method that turns a red check row into one wrong cell in about five minutes.

34 min

Course Info

20 graded exercises across 8 lessons
294 minutes of reading

What you'll learn:

  • • Setup & Conventions
  • • Supporting Schedules
  • • Debt & Circularity
  • • Integration
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