3 Statement Model Strictly Confidential

Table of Contents
3 Statement Model

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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© Corporate Finance Institute®. All rights reserved. Current Results Forecast Period
FINANCIAL STATEMENTS 2020 2021 2022 2023 2024 2025 2026 2027 2028
Balance Sheet Check OK OK OK OK OK OK OK OK OK

Assumptions
Income statement
Revenue Growth (% Change) #DIV/0! #DIV/0! #DIV/0! #DIV/0! 5.0% 4.5% 4.0% 3.5%
Cost of Goods Sold (% of Revenue) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 37.0% 37.0% 36.0% 36.0%
Salaries and Benefits ($000's) 6,000 - - - - 25,000 25,000 25,000 25,000
Rent and Overhead ($000's) 15,000 - - - - 10,000 10,000 10,000 10,000
Depreciation & Amortization (% of PP&E Open Bal) 1.1% 0.0% 0.0% 0.0% 0.0% 40.0% 40.0% 40.0% 40.0%
Interest (% of Debt Open Bal) 5.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Tax Rate (% of Earnings Before Tax) 0.0% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 28.0% 28.0% 28.0% 28.0%
Balance Sheet
Accounts Receivable (Days) #REF! #REF! #REF! #REF! #REF! 18 18 18 18
Inventory (Days) #REF! #REF! #REF! #REF! #REF! 73 73 73 73
Accounts Payable (Days) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 37 37 37 37
Capital Expenditures ($000's) - - - - - 15,000 10,000 25,000 10,000
Debt Issuance (Repayment) ($000's) - - (20,000) - - - - (20,000) -
Equity Issued (Repaid) ($000's) - - - - - - - - (150,000)

Income Statement
Reveneue - - - -
Cost of Utilizing Kharban App - - - - -
Gross Profit - - - - - - - - -
Expenses
Salaries and Operations 6,000 25,000 25,000 25,000 25,000
App Development 15,000 10,000 10,000 10,000 10,000
Marketing 40,000
Legal 545 15,008 15,005 13,003 17,802
Interest - 900 900 900 300
Total Expenses 61,545 - - - - 50,908 50,905 48,903 53,102
Earnings Before Tax (61,545) - - - - (50,908) (50,905) (48,903) (53,102)

Taxes - (14,254) (14,253) (13,693) (14,869)

Net Earnings (61,545) - - - - (36,654) (36,652) (35,210) (38,233)
© Corporate Finance Institute®. All rights reserved. Current Results Forecast Period
FINANCIAL STATEMENTS 2020 2021 2022 2023 2024 2025 2026 2027 2028
Balance Sheet Check OK OK OK OK OK OK OK OK OK

Balance Sheet
Assets
Kharban App Platform 100,000 #REF! #REF! #REF! #REF!
Total Assets 100,000 - - - - #REF! #REF! #REF! #REF!

Liabilities
Accounts Payable - - - - -
Debt - 30,000 30,000 10,000 10,000
Total Liabilities - - - - - 30,000 30,000 10,000 10,000
Shareholder's Equity
Equity Capital 100,000 - - - (150,000)
Shareholder's Equity 100,000 - - - - - - - (150,000)
Total Liabilities & Shareholder's Equity 100,000 - - - - 30,000 30,000 10,000 (140,000)

Check 0.000 0.000 0.000 0.000 0.000 #REF! #REF! #REF! #REF!

Cash Flow Statement

Operating Cash Flow
© Corporate Finance Institute®. All rights reserved. Current Results Forecast Period
FINANCIAL STATEMENTS 2020 2021 2022 2023 2024 2025 2026 2027 2028
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Net Earnings (61,545) - - - - (36,654) (36,652) (35,210) (38,233)
Cash from Operations (61,545) - - #REF! #REF! #REF! #REF! #REF! #REF!

Investing Cash Flow

Investments in Property & Equipment - 15,000 10,000 25,000 10,000
Cash from Investing - - - - - 15,000 10,000 25,000 10,000

Financing Cash Flow

Issuance (repayment) of debt - - - - - - - (20,000) -
Issuance (repayment) of equity - - - - - - - - (150,000)
Cash from Financing - - - - - - - (20,000) (150,000)

Net Increase (decrease) in Cash (61,545) - - #REF! #REF! #REF! #REF! #REF! #REF!
Opening Cash Balance - #REF! #REF! #REF! #REF!
Closing Cash Balance (61,545) - - #REF! #REF! #REF! #REF! #REF! #REF!

Check -161545.000 0.000 0.000 #REF! #REF! #REF! #REF! #REF! #REF!

Supporting Schedules
Working Capital Schedule
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 #REF! #REF! #REF! #REF!
Inventory 7,805 9,601 9,825 10,531 11,342 #REF! #REF! #REF! #REF!
© Corporate Finance Institute®. All rights reserved. Current Results Forecast Period
FINANCIAL STATEMENTS 2020 2021 2022 2023 2024 2025 2026 2027 2028
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Accounts Payable 3,902 4,800 4,912 5,265 5,671 - - - -
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210 #REF! #REF! #REF! #REF!

E a rn ing s (201 2 - 2016) Ca sh F low s ( 2012 - 2016)

Op e ra ti ng Inv e sti n g F Ina nci ng
 2029
OK

3.0%
35.0%
25,000
10,000
40.0%
3.0%
28.0%

18
73
37
15,000
-
-

-
-
-

25,000
10,000

14,681
300
49,981
(49,981)

(13,995)
(35,986)
 2029
OK

#REF!
#REF!

-
10,000
10,000

(150,000)
(150,000)
(140,000)

#REF!
 2029
OK
(35,986)
#REF!

15,000
15,000

-
-
-

#REF!
#REF!
#REF!

#REF!

#REF!
#REF!
2029
OK
-
#REF!
The sections of this financial model template are:
Assumptions – what will drive the business in the future
Income statement – a summary of the company’s profit or loss
Balance sheet – the company’s financial position at a point in time
Cash flow statement – the cash from operations, investing, and financi
Supporting schedules – calculations of depreciation, interest, and othe
Assets = Liabilities + Owners’ Equity
Assets are anything a company owns with quantifiable value.
Liabilities refer to money a company owes to a debtor, such as outstandin
Owners’ equity refers to the net worth of a company. It’s the amount of mo
Income statements typically include the following information:
Revenue: The amount of money a business takes in
Expenses: The amount of money a business spends
Costs of goods sold (COGS): The cost of component parts of what it take
Gross profit: Total revenue less COGS
Operating income: Gross profit less operating expenses
Income before taxes: Operating income less non-operating expenses
Net income: Income before taxes less taxes
Earnings per share (EPS): Division of net income by the total number of o
Depreciation: The extent to which assets (for example, aging equipment)
EBITDA: Earnings before interest, taxes, depreciation, and amortization
ofit or loss
a point in time
esting, and financing
interest, and other items as required

such as outstanding payroll expenses, debt payments, rent and utility, bonds paya
s the amount of money that would be left if all assets were sold and all liabilities pa

parts of what it takes to make whatever a business sells

ating expenses

he total number of outstanding shares

aging equipment) have lost value over time
and amortization
d utility, bonds payable, and taxes.
and all liabilities paid. This money belongs to the shareholders, who may be privat
who may be private owners or public investors.