Financial Statements Templates
Balance Sheet Excel Template
Income Statement Excel Model Template
Cash Flow Statement Excel Template
Detailed Income Statement Template
Consolidated Financial Statement
Financial Statements Templates
Browse the library of financial statements Excel templates to find the tools that best fit your needs.
What are the Three Financial Statements?
The three financial statements are:
- Income Statement
- Balance Sheet
- Cash Flow Statement
These three statements are closely linked and dependent on each other. In financial modeling, the three statements serve as the foundation of which additional analyses and advanced modeling are built on top as such discounted cash flow (DCF) analysis and sensitivity analysis. Finance and accounting professionals must be familiar with the three statements to perform their daily duties efficiently.
Overview of the Three Financial Statements
1. Income Statement
Income statement shows the profits and losses of a business over a period of time. Income statement usually starts with sales revenue at the very top, followed by the cost of the goods sold to arrive at the gross profit. Next, all operating expenses are deducted from the gross profit to calculate the operating profit (EBIT) figure. Lastly, all non-operating expenses such as interest and taxes are subtracted from EBIT to arrive at the net income (or net profit).
2. Balance Sheet
Balance sheet displays a company’s assets, liabilities, and shareholders’ equity at a point of time. It is used to determine the financial position of the business. According the accounting equation, total assets should always equal to the total liabilities and shareholders’ equity on a balance sheet.
The asset section usually begins with cash and equivalents, which should always equals to the ending cash balance found on the cash flow statement. On the other hand, net income from the income statement always flows into the balance sheet in the calculation of retained earnings.
3. Cash Flow Statement
Cash flow statement summarizes a company’s cash inflow and outflow in a period of time. There are three sections in a cash flow statement: operating cash flow, investing cash flow, and financing cash flow. At the end of the statement, the opening balance of cash, change in cash, and ending balance of cash are displayed to represent the company’s cash movements.