Spreadsheets Tutorial : Build a cash flow model

Want to learn more? Take the full course at https://learn.datacamp.com/courses/financial-modeling-in-spreadsheets at your own pace. More than a video, you'll learn hands-on coding & quickly apply skills to your daily work. --- Cash flow models are created from the income and balance statements that you built in the previous exercises. Let's take a closer look at their parts. The level of detail varies for cash flow statements, but they generally include operating expenses or the day to day work of the business. Investing sections involve the property and equipment a business owns, while financing includes money paid and borrowed from different sources. In this example, you can see the three parts of the cash flow document and how these values might look for the year 2016. Let's look at how each piece was added. First, you can use the income statement to add information about net income, depreciation, and cash dividends. These items are selected directly from the year 2016. These cell references work the same as within a sheet, including the row and column number, along with information about which sheet contains the information. The rest of the cells in this cash flow are estimated from the balance statement sheet. Here, we are examining change over the last year, so we want to subtract 2015 values from the same values in 2016 to see either growth, positive numbers, or decreases, negative numbers, in parentheses. You would type equals, then click on the year 2016 cell for each item type, minus, and then click on the 2015 cell for each item. These formulas are relative, so you can copy them across all three years for the sheet. In this picture, you can view the formulas a bit clearer. We have selected just year 2016 from the income sheets, and then created a change score for the balance sheet items. The cell references include quotes around the sheet name, followed by an exclamation point, and then the column letter and row number. An important part of busine