Simple three statement Excel cash flow model
Originally published: 07/08/2018 12:51
Last version published: 02/01/2019 16:45
Publication number: ELQ-73079-6
View all versions & Certificate

Simple three statement Excel cash flow model

Simple three statement (cash flow, Balance Sheet and Income statement) forecasting model & valuation

The Excel model template has the ability to enter up to 8 years. The user has the ability to enter both actuals and forecast numbers. The user will also have the ability to build up assumptions for a discount rate based on WACC (Weighted Average Cost of Capital) and calculate a valuation for the business.

The Income Statement includes revenue with the ability to add monthly seasonal trends. Cost of sales is calculated as a margin on sales and admin costs are calculated as a percentage of sales. Interest expenses and interest income are also calculated.
The corporation tax is calculated in a flexible way to allow the user to fully determine the tax payments to correctly reflect their own tax jurisdiction.

Significant Balance Sheet items include stock, debtors and creditors driven by working capital days assumptions. Calculations include sales tax (referred in the model as VAT), corporation tax, interest, capital expenditure (and depreciation) and dividends.

The Balance Sheet also includes a number of balances that are held constant throughout the model timeline such as other fixed assets and other net working capital. The model contains basic debt and accrued interest calculations that are typed in over the timeline.

With this tool comes a PDF slide of instructions on how to use the model Additionally, there are multiple notes and labels within the model's assumptions pages in order to guide the user when filling in their assumptions.

This Best Practice includes
1 excel model and 1 powerpoint slide of instructions

Acquire business license for $30.00

Add to cart

Add to bookmarks


Further information

To generate a simple forecast set of financial statements for a business and produce a valuation. The model also has the ability to enter historic balances if there are any

The user has some basic understanding of discounted cash flow valuations
The user has enough understanding of the business to enter sales, costs, working capital, and capex assumptions
The user has a basic understanding of accounting
The user requires flexibility in the tax calculations to correctly reflect their own tax jurisdiction

If the user requires more than one type of depreciation rate for assets
When the user wishes to model intangibles or the Investments balance in a flexible way (ie not held constant)
If the user requires more than one type of working capital assumptions for each of debtors, creditors and stock

3.0 / 5 (1 votes)

please wait...