About this lesson
How are the Financial Statements linked?
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Linking the Financial Statements
Discover how to link the Financial Statements.
When to use
When constructing a basic Financial Model.
- Two links between the three financial statements
- All other links sourced from calculations
- Conceptual order: Income Statement (smallest) --> Cash Flow Statement (middle) --> Balance Sheet (largest).
- The opening retained Profits will be linked from the Opening Balance Sheet
- The NPAT will link from the Income Statement
- To link the Opening Retained Profits to the Opening Bal sheet, enter the following formula: =IF(J$9=1,'Opening Balance Sheet'!$I$50,I50)
- To link the NPAT from the Income Statement, enter the following formula: ='Income Statement'!J28
- The Retained Profits, is the SUM of the above: =SUM(J47:J49)
- The Total Equity is the SUM of the Ordinary Equity and the Retained Profits =J46+J50
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