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hi everyone Eric here today we are gonna learn how to build a three statement financial model in Microsoft Excel the income statement the balance sheet and the cash flow statement how to connect them and what they really mean okay lets get started okay lets talk about each of these three financial statements and what they are and what they represent so first off the income statement and the cash flow statements are flow statements meaning they represent periods of time whereas the balance sheet represents one specific moment in time so the income statement tells us how much money we made and the expenses related to those sales but the cash flow its missing many things for instance changes in what you owe and what you own so if we raised debt if we raised growth investments things like this you would never see that on the income statement you would only see that on the balance sheet and then you would convert the balance sheet into a flow statement whic
