Building a 3-statement Financial model using MS Excel

A 3-day workshop on “Building 3-statement Financial model using MS Excel” was conducted

Mr. Avinash Bondu, Lecturer in the Accounting department to the students of the Third and Fourth stage of the accounting department in CUE on November 23, 30, and December 7, 2022, for two hours each day.

During the workshop, Mr. Avinash emphasized that “At present, financial modeling has been a trend in the corporate world which is being used by financial wizards such as investment bankers, credit analysts, risk analysts, portfolio managers for risk management, valuation of company, mergers, and acquisitions, Budgeting and forecasting, etc. The current topic is one of the most important methods in financial modeling that helps in forecasting the company’s performance in the future.”

The workshop deals with creating the forecasts of the three main financial statements of a company, namely, Income statement, Balance sheet, and cash flow using historical data and driving valid assumptions.

For this 3-day intensive workshop, the first day consisted of gathering and arranging the historical data and building the income statement, variances, and forecast period. The Second day dealt with developing the scenarios under the best case, base case, and worst case and populating the income statement of the forecast period, and developing the Balance sheet. And the third day included populating the forecast period of the balance sheet by creating the fixed assets roll forward statement, estimating financial liabilities, preparing the equity schedule, developing cash flow, and finally completing the 3-statement model.

The workshop has been very fruitful to the students since it is a head forward to the subjects which they learn at their graduation level and is currently in line with the competencies and the job requirements of the practical world which would surely support in shaping the career of the students.

CUE looks forward to organizing more workshops of this kind.