3 Statement Financial Modeling: Step 8

And we are at our last final step of building a three statement model. We will fill up the cash flow statement, calculate closing cash balance, link this closing cash balance to the balance sheet in the first line item, and we will see and check if our balance sheet is balancing. If yes, then our model is correct and we are good to go.

So let's start with operating cash flow. Net income line item in our cash flow statement—I can find my net income in my income statement in row 16. My depreciation and amortization I can find again in the income statement in the row.

As for changes in working capital, I'm going to go ahead to my supporting schedules and find change in net working capital in row 84. And remember, I want to convert the sign, so I put minus J. So that would be my cash outflow in my cash flow statement. And for cash from operations, I will fill the formula from the previous year.