Accounting 3-Statement Model: A Comprehensive Tutorial with Video Walkthrough

Welcome to our comprehensive tutorial on the accounting 3-statement model. In this tutorial, we will guide you through the process of completing a 90-minute timed modeling test from a blank Excel sheet. We have prepared a full video walkthrough and a written guide to help you master this essential skill in financial analysis.

What is a 3-Statement Model?

Before we dive into the tutorial, let's start by understanding what a 3-statement model is. A 3-statement model is a financial model that incorporates the three key financial statements: the income statement, balance sheet, and cash flow statement. It provides a comprehensive view of a company's financial performance, position, and cash flows over a specific period.

Types of 3-Statement Modeling Tests

There are various types of 3-statement modeling tests that you may encounter in your career. These tests can range from simple timed exercises to more complex scenarios involving debt schedules and other supporting calculations. It is essential to be familiar with different types of tests to excel in financial modeling.

The 90-Minute 3-Statement Model from a Blank Sheet

Our tutorial focuses on a 90-minute 3-statement model from a blank sheet. This exercise is designed to simulate real-world scenarios where you need to build a financial model from scratch. We will guide you through each step, starting from inputting the historical statements to projecting the income statement, balance sheet, and cash flow statement.

Table of Contents:

• 3-Statement Model, Part 1: Inputting the Historical Statements
• 3-Statement Model, Part 2: Income Statement Projections
• 3-Statement Model, Part 3: Balance Sheet Projections
• 3-Statement Model, Part 4: Cash Flow Statement Projections
• 3-Statement Model, Part 5: Linking the Statements
• 3-Statement Model, Part 6: Debt and Stock Repurchases
• 3-Statement Model, Part 7: Model Checks, Reviews, and Final Comments

How to Master the 3-Statement Model

To master the 3-statement model, it is crucial to practice regularly and gain a deep understanding of the underlying concepts. Here are a few tips to help you excel in financial modeling:

• Practice with real-world examples: Working on real-world examples will give you hands-on experience and enhance your problem-solving skills.
• Understand the key drivers: Identify the key drivers that impact the financial statements and develop a strong understanding of their relationships.
• Utilize shortcuts and Excel functions: Excel offers a wide range of functions and shortcuts that can significantly speed up your modeling process. Familiarize yourself with these tools to work more efficiently.
• Stay updated: Keep up with the latest industry trends and changes in accounting standards. This will help you build accurate and relevant financial models.

By following these tips and practicing regularly, you can become proficient in the 3-statement model and enhance your financial analysis skills.

Further Learning

If you're looking to further enhance your skills in financial modeling, there are several resources available. Online courses, books, and video tutorials can provide you with additional knowledge and practice exercises to sharpen your abilities.

About the Author

Our tutorial is prepared by a team of financial experts with years of experience in the field. We are passionate about sharing our knowledge and helping aspiring professionals excel in their careers.