fin-modeling
Three-Statement Financial Modeling
Framework
IRON LAW: The Three Statements Must Balance
Assets = Liabilities + Equity (Balance Sheet identity)
Net Income flows from IS to BS (retained earnings)
Cash flow bridges IS and BS through working capital and capex
If your model doesn't balance, there's an error. Check the cash line on
the BS against the ending cash on the CF statement. They MUST match.
Model Architecture
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