Module VI· Three-Statement Model MechanicsBasic
Question

In what order do you build an integrated three-statement model?

Answer

Build historical financials first, then income statement forecast, supporting schedules, working capital, PP&E / D&A, debt and interest, cash flow statement, balance sheet, and checks. The balance sheet should be last because it depends on many schedules. Finish with error checks, debt / cash plug, and sensitivity outputs.