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

Рет қаралды 568,384

11 жыл бұрын

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 www.wallstreetprep.com/blog/fi...
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.

Пікірлер: 60

@wallstreetprep 2 жыл бұрын

• Source: Wall Street Prep's Quick Lesson Series • Instructor: Matan Feldman • Cash Flow Statement Excel Template: www.wallstreetprep.com/knowledge/financial-modeling-quick-lesson-cash-flow-statement-part-1/ • Financial Modeling Templates and Guides: www.wallstreetprep.com/wsp-blog/

@sadhubaba77 10 жыл бұрын

Excellent presentation with clear logic behind the accounting principles and interlink between the three financial statements. Very easy to follow!!

@jamesperry3837 11 жыл бұрын

Sir, I was so thrilled 2 c all 3 statements on a single excel sheet. That is so impressive and makes the CFS e-z 2understand. Its something i had in mind for quite some time. A million thanks for the same. Also, thank u 4 taking the trouble 2 prepare all this, that i would like 2use 2practice. Also, a lot of explaining nicely&clearly done, step-by-step, in just 12 minutes. Graćias & blessing$.

@dyVal 2 жыл бұрын

Clip here on cashflow is really good. It explains real possible cashflow scenario. It covered some subprocesses on cashflow and explained casflow items clearly. It was useful for testing my cashflow design module as part of my online accounting system design project at work. Really appreciate this video. Thank you.

@melaniefontes1692 2 жыл бұрын

Wow, although I have background doing this I’ve never seen anyone explain this so well. Truly awesome job!

@roger3457 10 жыл бұрын

Nice job! Understood everything

@peanurse 11 жыл бұрын

First-rate tutorial - You explained it infinitely better than my university lecturer

@kboone8739 6 жыл бұрын

Excellent presentation!

@IamINERT Жыл бұрын

Best video I’ve seen thus far on this topic

@MrAlexander336 4 жыл бұрын

Thanks for providing a link to the template!

@akrish1982 6 жыл бұрын

Excellent explanation, learnt much

@alexkaras4397 7 жыл бұрын

Great video!

@lorettawolfgang403 2 жыл бұрын

Videos like this are classic and comprehensive for one’s understanding…I do appreciate your works to the community! It’s being a year and half now I’ve been trading the forex market, making gains and a loss at same time while learning under Mr. Ray Perkins mentorship platform. He’s the best I’ve worked with I earn on weekly basis having him manage my account and portfolio!

@Asadullah 9 жыл бұрын

Awesome Explanation

@davidxrod 6 жыл бұрын

Are financial models like the one in your video what interviewers in finance job interviews ask about?

@wallstreetprep 11 жыл бұрын

Thanks!

@ikemmanuels3464 6 жыл бұрын

Hi Thanks for your Video. But Please can I present cash flow with just one year's statement. No Prior year

@yac0123 10 жыл бұрын

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

@alexmartino5949 10 жыл бұрын

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!!

@mohammeds1255 8 жыл бұрын

!- 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

@sarahnyakazingo2978 7 жыл бұрын

Excellent

@GaryHutsonVBA 11 жыл бұрын

Any chance of having an example worksheet. I used the hyperlink an it states 'page not found'. Would it be possible to send me a copy or post online? Good explanation and good tutorial. I am undertaking my MBA and this has helped immensely. Cheers Gary

@abedmh5956 3 жыл бұрын

Thank you

@iynur 6 жыл бұрын

Hey I didn’t see you record PP&E under CFI. I can understand that Capex serves the same purpose but then I saw another uploader deduct pp&e(there it’s listed as “purchase of land and equipment” which I understood as pp&e, the same item on your worksheet) directly under cfi without calculating/even mentioning Capex so I’m very very confused...there’s a difference of depreciation between Capex and gross pp&e so idk when i should use Capex and when to directly use pp&e...

@wallstreetprep 10 жыл бұрын

Seems to work fine - try to refresh your page.

@pkpk1555 7 жыл бұрын

can anyone suggest me which is the best institute to learn financial modeling

@ashwatraja9692 7 жыл бұрын

Sir why havent you accounted income tax payable in cash flow statement?

@akhilchittle7908 4 жыл бұрын

Deferred taxes are shown in the balancesheet as long term item but considered in the cash flow statement under operating activities. Can u kindly clarify.

@wallstreetprep 11 жыл бұрын

Thank you!

@jitendraprakash6063 4 жыл бұрын

Thanks for Templets

@MarkEm 2 жыл бұрын

Did wall street prep make a video on leveraged dcf? Want to assess the non-ebit model

@jimbokraut640 Жыл бұрын

Great Video!! I am trying to understand that before any corporation begins its activities (any industry; from software to manufacturing), considering that its creditors will be paid after X days, and its debtors will pay in Y days, How does the firm ascertain how much finance/cash is needed on a monthly basis to actually run the business? Since Cash inflows and Outflows will not be immediate, how does it ensure that it has sufficient funds available to run the business?

@wallstreetprep 11 жыл бұрын

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.

@kulladbro8851 4 жыл бұрын

its very use full techniques to be understand cash flow i m much thankful to you that you uploaded love from india sir i want learn how to know project balance sheet

@thenextpiece 10 жыл бұрын

why do you add depreciation & amortization instead of depreciation & amortization net of tax?

@rattananihao 8 жыл бұрын

need to be so patient

@MDCMANC 3 жыл бұрын

What do you do if your first year is zero? Starting from scratch?

@moisessalvadorosoriogonzal8054 4 жыл бұрын

Hi, im from Mexico, Can someone explain me all this financial terms? Im accountant too, but i want to learn how USA work in accountability. I really want to lear to increace my knoledge. I can explain some mexican accountability too.

@YemiIfe 4 жыл бұрын

You said we need a 2 periods statement to build a cash flow. What if it's the first year of the business? Does it mean you can't make a cash flow statement or does it work different?

@4nggoi 3 жыл бұрын

Yes you can off course and mean that all the beg are 0

@ntcuong01ct1 2 жыл бұрын

Dear Friends, I have 1 question regarding Financial Modeling: 1/ Please tell me the difference between Scenario analysis, sensitivity analysis, stress test?, and the intended use of each?. Thank you.

@joer736 8 жыл бұрын

:D HOLY CRAP IT MAKES SENSE.

@Fearlessfighter0 7 жыл бұрын

YEAH BROOOO

@zeezbrah271 11 жыл бұрын

to*

@justina7508 Жыл бұрын

If assets go up, it's a use of cash, and if liabilities go up, it's a source of cash. I will use this forever.

@IamINERT Жыл бұрын

Fr , makes everything so much clearer now

@NeverSayDonkey 9 жыл бұрын

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. :)

@nicke6303 9 жыл бұрын

Because it has been subtracted to arrive at your net income, and since it wasn't actually an outflow, it must be added back in the cash flow statement

@Asadullah 9 жыл бұрын

It is not taken as an inflow but an add back because it was subtracted as an expense even though it is a non cash item and have no impact on cashflow

@baloney_sandwich 7 жыл бұрын

NeverSayDonkey bc it isn't real

@seanbaumeister3906 6 жыл бұрын

Depreciation & Amortization are non-cash expenses, they represent the systematic and rational allocation of cost over time. This is done to better tie the expense of an asset to the accounting period in which it generates revenue. Thus they need to be added back to cash.

@casst346 5 жыл бұрын

ok...in accrual accounting, you can take as an expense depreciation and amortization charges to your Income Statement as deductions when arriving at your EBIT...Taking these expenses help to reduce the actual amount of taxes you pay. However, no actual cash goes out of the company and you can therefore add that cash back to your net income to get a more correct net cash position..depreciation and amortization are not typically related at all to inventories...Inventories are typcially linked and related to COGS, Cost of Good Sold figures..