Financial Modeling Quick Lesson: Cash Flow Statement (Part 1)

Learn the building blocks of a financial model. In this video, we'll build a cash flow statement given an income statement and balance sheet in Excel. To download the Excel template that goes with this video, go to http://www.wallstreetprep.com/blog/financial-modeling-quick-lesson-cash-flow-statement-part-1/ The accounting here is a simplified presentation of how the three major financial statements are inter-related and lays the foundation of financial statement models in investment banking. Many accounting questions that we see time and again in finance interviews are designed to test the understanding explained in this exercise.

Comments

1. Sir why havent you accounted income tax payable in cash flow statement?
2. Great video!
3. Excellent
4. can anyone suggest me which is the best institute to learn financial modeling
5. need to be so patient
6. :D HOLY CRAP IT MAKES SENSE.
7. !- can i have CF from day 1 ? because its seems like we can have both income St and BS from day 1 but CF not because we need other data to compare its with, for example year 1 and year 2 or QTR 1 and 2, am i right?
   
   2- if we can start from day one how can we do that? as we don’t have info ? as there is only one data of inventory for example not 2 to compare,
   thanks
8. Question:  In this video, he adds back in D&A in the operating section because it is a non-cash expense.  In his next video, he subtracts D&A from PPE and Intangibles from the change in the investing section.  In my mind, he's accounting for D&A twice when he should only being doing it once.  What am I missing?
9. Awesome Explanation 
10. Can someone who's is familiar with the matter explain to me, why "depreciation&amortization" is taken as a inflow of cash from operations? As I understand, d&a represent how much less your inventories are worth over a period of time. Thus, it does not generate cash at all, and can potentially subtract an amount.
    In other words why it's positive instead of negative?
    P.S: very nice and useful tutorial/walkthrough. Keep on doing good work. :)
11. Great video! It provides me comprehensive knowledge of basic financial modeling, in a very simple & easy understanding way, a lot better and more efficient than I read text book by myself.  Many thanks!
12. I was calculating a cash flow statement and there was something called comprehensive income on the balance sheet which accounted for changes in unrealized gains on available for sale investments. If I didn't include this amount, the change in cash wouldn't tie out...but I don't get it because it's only a balance sheet item and never hits the income statement or involves a cash transaction. Help!!
13. why do you add depreciation & amortization instead of depreciation & amortization net of tax?
14. Nice job! Understood everything
15. that is really helpful for analysis.
16. why some people try to make this sort of modeling using VBA and macros
    i 'm just tring to understand the idea of macros
    because as i see a a fixed formula can make the task no mater if we change datas on balance sheet or income statement
    can someone explain me please
17. Excellent presentation with clear logic behind the accounting principles and interlink between the three financial statements. Very easy to follow!!
18. Seems to work fine - try to refresh your page.
19. Video starts at 6:00
20. Hi Gary, The link is active - some browsers have a problem downloading excel files directly so try to right click over the link and select "Save Target As'...that should do it, but let me know if you still have a problem.