Level 3: Debt and cash · Exercise 41 of 74

Three statements that balance

A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.

The task

Roll the 2025 balance sheet forward with the flows in rows 5 to 10. Cash (row 13) is last year's cash plus net income and depreciation, less capital spending, the increase in working capital, debt repayment and dividends. Working capital (row 14) rises by its increase, fixed assets (row 15) add capital spending less depreciation, debt (row 17) falls by the repayment and equity (row 18) adds net income less dividends. Then fill total assets (row 16), total liabilities and equity (row 19) and the balance check (row 20: total assets less total liabilities and equity).

What this exercise teaches

Each flow hits the balance sheet twice: capital spending lowers cash and raises fixed assets, net income raises cash and equity. When every flow is booked on both sides, the check row is zero in every year; a number there points to a flow that was booked once.

A hint if you get stuck

Every balance is last year's balance plus or minus this year's flows, so each formula starts with the cell one column to the left. Column B shows the pattern for the totals and the check.

Functions used: SUM