# 3 Statement Model > Three-statement financial model: income statement, balance sheet, cash flow statement — build integrated models, link statements, project financials, and stress-test assumptions - Skill: `uitbreidenos/3-statement-model` (Agent Skill) - Install (CLI): `npx skillmds@latest add uitbreidenos/3-statement-model` - Raw SKILL.md: https://api.skillmd.com/api/skills/uitbreidenos/3-statement-model/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: AI & ML - Author: UitbreidenOS (https://skillmd.com/u/uitbreidenos) - Updated: 2026-09-22 - Page: https://skillmd.com/skills/uitbreidenos/3-statement-model --- # 3-Statement Model Skill ## When to activate - Building a financial model that integrates P&L, balance sheet, and cash flow - Linking financial statements so changes flow through automatically - Projecting 3-5 year financials for planning or fundraising - Building a working capital and cash flow model - Stress-testing financial assumptions (bull/bear/base scenarios) ## When NOT to use - DCF valuation — use the dcf-model skill (which builds on this) - Pitch deck financial summary — use the pitch-deck skill - Monthly bookkeeping or reconciliation — use the quickbooks-workflow skill - Simple revenue projections without full balance sheet — a simpler model suffices ## Instructions ### Model architecture ``` Build a 3-statement financial model for [company]. Company type: [SaaS / ecommerce / services / manufacturing] Time period: [3-year / 5-year projection] Historical data available: [X years of actuals or none] Purpose: [fundraising / board reporting / internal planning / M&A] Model structure: TAB 1 — Assumptions (all inputs live here, nothing hardcoded in formulas): Revenue drivers: [growth rate / unit volume / price per unit / customer count] Cost drivers: [COGS%, headcount plan, marketing spend as % of revenue] Balance sheet assumptions: [DSO, DPO, inventory days, capex schedule] Tax rate: [X%] TAB 2 — Income Statement (P&L): Revenue Less: Cost of Goods Sold (COGS) = Gross Profit Less: Operating Expenses Sales & Marketing Research & Development General & Administrative = EBITDA Less: Depreciation & Amortisation = EBIT (Operating Income) Less: Interest Expense = Pre-Tax Income (EBT) Less: Tax Provision = Net Income TAB 3 — Balance Sheet: Assets: Current: Cash, Accounts Receivable, Inventory, Prepaid Non-current: PP&E (net of depreciation), Intangibles Liabilities: Current: Accounts Payable, Accrued Expenses, Deferred Revenue Non-current: Long-term Debt Equity: Retained Earnings, Paid-in Capital CHECK: Assets = Liabilities + Equity (must balance) TAB 4 — Cash Flow Statement: Operating Activities (indirect method): Net Income + Depreciation & Amortisation ± Changes in Working Capital (AR, AP, Inventory) = Cash from Operations Investing Activities: - Capital Expenditures ± Acquisitions / Disposals = Cash from Investing Financing Activities: + Debt Issuance / Repayment + Equity Issuance - Dividends = Cash from Financing Net Change in Cash = Operating + Investing + Financing Ending Cash = Beginning Cash + Net Change (must match Balance Sheet cash) Build this model structure with my specific inputs. ``` ### Statement linkages ``` Explain and set up the critical linkages in the 3-statement model. The 3 statements are integrated — a change in one propagates through all three. Key linkages to implement: P&L → Balance Sheet: Net Income → Retained Earnings (equity section) Formula: Retained Earnings (end) = Retained Earnings (begin) + Net Income - Dividends Depreciation (P&L expense) → PP&E reduction (Balance Sheet) Formula: PP&E (end) = PP&E (begin) + Capex - Depreciation P&L → Cash Flow: Net Income is the starting point of Cash from Operations Depreciation added back (non-cash expense) Balance Sheet → Cash Flow (working capital changes): If AR increases → uses cash (Operating CF decreases) If AP increases → provides cash (Operating CF increases) Formula: ΔAR = AR(end) - AR(begin) → subtract from Operating CF Formula: ΔAP = AP(end) - AP(begin) → add to Operating CF Cash Flow → Balance Sheet: Ending Cash on Cash Flow = Cash on Balance Sheet This is the "circular check" — if they don't match, the model is broken Capex linkage: Capex on Cash Flow → increases PP&E on Balance Sheet Depreciation on P&L → reduces PP&E on Balance Sheet Balance check formula: =IF(Assets = Liabilities + Equity, "BALANCED", "CHECK ERROR") Add this to every year column — if it ever shows an error, find the break. Implement these linkages for my model in [Excel / Google Sheets]. ``` ### Working capital model ``` Build the working capital section for [company]. Working capital = Current Assets - Current Liabilities Key drivers: DSO (receivables), DIO (inventory), DPO (payables) Working capital metrics: DSO (Days Sales Outstanding): Formula: (Accounts Receivable / Revenue) × 365 Benchmark: SaaS: 30-45 days / B2B services: 45-60 days / Enterprise: 60-90 days Model: AR = (DSO / 365) × Revenue DIO (Days Inventory Outstanding) — manufacturing/ecommerce only: Formula: (Inventory / COGS) × 365 Model: Inventory = (DIO / 365) × COGS DPO (Days Payable Outstanding): Formula: (Accounts Payable / COGS) × 365 Higher DPO = better cash conversion (pay suppliers later) Model: AP = (DPO / 365) × COGS Cash Conversion Cycle = DSO + DIO - DPO Positive = cash tied up in operations (needs working capital funding) Negative = suppliers fund your operations (Amazon-style negative CCC) Working capital change (for cash flow statement): ΔWorking Capital = WC(end) - WC(begin) Increase in WC = cash outflow (uses cash) Decrease in WC = cash inflow (provides cash) Build the working capital schedule with my industry inputs. ``` ### Scenario analysis ``` Build scenario analysis for [financial model]. Base assumptions: [current model] Scenarios to model: [bull / base / bear] or [upside / downside / stress] Scenario design principles: - Change 1-3 key assumptions per scenario (not everything) - Anchor to real events: "bear case = recession + 20% price pressure" - Each scenario should be internally consistent (not just cutting revenue) For a SaaS company: Bull case: 40% YoY growth, 120% NRR, CAC stays flat → Revenue: $Xm (bull) vs $Xm (base) Base case: 25% YoY growth, 110% NRR → Revenue: $Xm Bear case: 15% YoY growth, 100% NRR, CAC increases 20% → Revenue: $Xm, cash breakeven delayed by X months Stress test: 0% growth for 12 months (COVID-style shock) → How many months of runway at current burn? → What headcount reductions are required to survive 18 months? Model structure using INDEX/MATCH scenario toggle: Cell A1: Scenario selector [Bull / Base / Bear] Revenue formula: =INDEX(scenario_table, MATCH(A1, scenario_names, 0), MATCH(year, year_row, 0)) Or use named ranges in separate scenario tabs and link to output tab. Build the scenario analysis structure for my model. ``` ## Example **User:** I'm building a 3-year model for a B2B SaaS company. Year 1 ARR: $800K, growing at 80% YoY. Gross margin: 72%. Burn: $200K/month. How do I set up the P&L? **Claude's P&L structure:** ``` Year 1 Year 2 Year 3 Revenue (ARR) $800K $1,440K $2,592K [+80% each year] MRR average $667K $1,200K $2,160K [ARR ÷ 12, simplified] Revenue $800K $1,440K $2,592K COGS Infrastructure $96K $158K $259K [12% of rev] Customer Success $128K $202K $311K [16% of rev] Total COGS $224K $360K $570K [28% of rev] Gross Profit $576K $1,080K $2,022K [72% gross margin] OpEx Sales & Mktg $600K $900K $1,200K [declining as % of rev] R&D $480K $600K $720K [headcount-based] G&A $240K $288K $346K [30% growth, slower] Total OpEx $1,320K $1,788K $2,266K EBITDA ($744K) ($708K) ($244K) [approaching breakeven Y3] Implied monthly burn: $62K/month (Y1), $59K/month (Y2), $20K/month (Y3) Cash out at current runway: [calculate based on current cash balance] Key observations: - You reach EBITDA breakeven between Y3 and Y4 at these growth rates - Sales & Marketing spend is your biggest lever — model both 50% and 75% of rev scenarios - Build headcount tab → drives R&D and G&A more accurately than % of revenue ``` ---