Wall Street Prep

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. 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.

To download the Excel template that goes with this video, click here

(Click here for part 2)

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Jessica Veroba
Jessica Veroba

Please send me the Excel document models you use in your tutorials.

Thank you.

Haseeb
Haseeb

Jessica,

At the top of the page there's a link for your to click and download the relevant Excel files for the video - thanks.

- Haseeb

Caira
Caira

Thank you.

Baron
Baron

Great resource, thanks for sharing your expertise 😉

Anthony
Anthony

Does this not double-count Depreciation? Once in the early add-back for D&A and once in accounting for Cash from Investing?

Shannan
Shannan

Hi Anthony,
We are only adding back Depreciation once, in the Cash Flow from Operations section, the Cash Flows from Investing section will include spending on Capital Expenditures, Intangible Assets and other Long-term investments.
Shannan

Rishika
Rishika

It was really helpful!
Good job.

Haseeb
Haseeb

Thanks!

Gisella Perez
Gisella Perez

Thanks for sharing, you are a smart and generous professional.

Haseeb
Haseeb

Thanks - please spread the word about WSP!

X

The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.