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whats up everyone its kenji here and in this video were going to be creating a dynamic three statement model where well be linking the balance sheet the income statement and the cash flow statement and you can download the file ill be working with for free as ill leave it in the description below so lets get into it and heres the steps well take to make this financial model firstly well organize and build our income statement using a set of assumptions secondly well create schedules to model out more complex line items like capital expenditures and depreciation following that well build out our balance sheet and lastly well build up the cash flow statement and link the three statements together and in case youre wondering when a three statement model is useful on the one hand its just for regular financial analysis and on the other hand this is usually the foundation for any sort of valuation work that you might do like for example a discoun