3-Statement Financial Model
ForecastingSet a handful of assumptions — growth, margins, working-capital days, capex, financing — and project a fully linked income statement, balance sheet, and cash flow three years out, monthly. The balance sheet balances and cash ties, automatically.
5 years, built monthly · viewing annual · the download recomputes in Excel
Year 5 revenue
$2,509,617
Year 5 net income
$440,065
17.5% net margin
Ending cash
$890,499
Low point $123,706
Working capital
Capex & financing
Opening balance sheet
Set the assumptions above and the three statements project forward, linked: net income flows to retained earnings, capex and depreciation roll the fixed assets, working-capital days drive A/R, inventory and A/P, and the cash-flow statement ties ending cash back to the balance sheet. Switch Monthly / Quarterly / Annual any time.
Income statement
| Line | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | $1,061,502 | $1,316,262 | $1,632,165 | $2,023,885 | $2,509,617 |
| Cost of sales | $424,601 | $526,505 | $652,866 | $809,554 | $1,003,847 |
| Gross profit | $636,901 | $789,757 | $979,299 | $1,214,331 | $1,505,770 |
| Operating expenses | $462,451 | $538,879 | $633,650 | $751,165 | $896,885 |
| EBITDA | $174,451 | $250,879 | $345,650 | $463,165 | $608,885 |
| Depreciation | $19,983 | $24,939 | $31,055 | $38,616 | $47,971 |
| Operating income (EBIT) | $154,467 | $225,939 | $314,594 | $424,550 | $560,914 |
| Interest | $12,510 | $10,350 | $8,190 | $6,030 | $3,870 |
| Pre-tax income | $141,957 | $215,589 | $306,404 | $418,520 | $557,044 |
| Taxes | $29,811 | $45,274 | $64,345 | $87,889 | $116,979 |
| Net income | $112,146 | $170,316 | $242,059 | $330,630 | $440,065 |
Balance sheet
| Line | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Assets | |||||
| Cash | $159,513 | $243,040 | $383,372 | $593,727 | $890,499 |
| Accounts receivable | $146,156 | $181,234 | $224,730 | $278,665 | $345,545 |
| Inventory | $38,975 | $48,329 | $59,928 | $74,311 | $92,145 |
| Net PP&E | $112,477 | $140,188 | $174,419 | $216,759 | $269,173 |
| Total assets | $457,121 | $612,791 | $842,449 | $1,163,462 | $1,597,362 |
| Liabilities & equity | |||||
| Accounts payable | $38,975 | $48,329 | $59,928 | $74,311 | $92,145 |
| Debt | $126,000 | $102,000 | $78,000 | $54,000 | $30,000 |
| Revolver | $0 | $0 | $0 | $0 | $0 |
| Paid-in capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Retained earnings | $192,146 | $362,462 | $604,521 | $935,152 | $1,375,217 |
| Total liab. & equity | $457,121 | $612,791 | $842,449 | $1,163,462 | $1,597,362 |
| Balance check (≈ 0) | $0 | $0 | -$0 | $0 | $0 |
Cash flow
| Line | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash from operations | $105,973 | $160,177 | $229,619 | $315,311 | $421,156 |
| Cash from investing | -$42,460 | -$52,650 | -$65,287 | -$80,955 | -$100,385 |
| Debt repayment | -$24,000 | -$24,000 | -$24,000 | -$24,000 | -$24,000 |
| Owner distributions | $0 | $0 | $0 | $0 | $0 |
| Revolver draw / (repay) | $0 | $0 | $0 | $0 | $0 |
| Cash from financing | -$24,000 | -$24,000 | -$24,000 | -$24,000 | -$24,000 |
| Net change in cash | $39,513 | $83,527 | $140,332 | $210,356 | $296,772 |
| Ending cash | $159,513 | $243,040 | $383,372 | $593,727 | $890,499 |
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