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In this tutorial, Eric teaches how to build a three-statement financial model in Microsoft Excel, including the income statement, balance sheet, and cash flow statement. Each statement serves a different purpose: the income statement and cash flow statement show flows over time, while the balance sheet represents a specific moment in time. The income statement details revenue and expenses, while the cash flow statement includes changes in what is owed and owned. Items like debt and investments are reflected in the balance sheet, not the income statement.