Three-Statement Financial Model
Financial Statements & Reporting
Quick Answer
Enter your key figures from all three financial statements. Paste into Claude or ChatGPT. Receive a narrative explanation of your three-statement model with linkage validation and assumption commentary.
What You Get
A three-statement model narrative covering P&L to balance sheet linkages, balance sheet to cash flow linkages, model coherence validation, key assumption commentary, and a plain-English explanation of what the model shows about business trajectory.
Who Is This For
Founders building financial models for investor presentations, CFOs producing integrated financial projections, and finance managers explaining the three-statement model to non-finance executives.
About This Template
The three-statement financial model — linking the income statement, balance sheet, and cash flow statement — is the foundation of financial modeling for investors, lenders, and strategic planning. This template guides finance teams through inputting the key line items from all three statements, then uses AI to produce a comprehensive model narrative explaining how the statements link together, validating the internal consistency of the model, and producing professional commentary on key assumptions and projections. Particularly valuable for founders building their first integrated financial model.
Fill In Your Details
Your company name
e.g. FY2026 forecast or Q2 2026 actuals
e.g. 3200000
e.g. 1920000
e.g. 640000
e.g. 480000
e.g. 520000
e.g. 180000
e.g. 2400000
e.g. 3550000
e.g. 1045000
e.g. 2505000
Growth rate, margin assumptions, capex plans, working capital assumptions
Gather these details then use them to fill in the prompt below.
AI Prompts
Generate three-statement model narrative
Paste this prompt into Claude or ChatGPT with your figures filled in.
You are a financial modeling expert reviewing a three-statement financial model. Using the data below, produce a comprehensive model narrative and validation. Company: [company_name] Period: [period] Revenue: [revenue] Gross profit: [gross_profit] EBITDA: [ebitda] Net income: [net_income] Operating cash flow: [operating_cash_flow] Capex: [capex] Ending cash: [ending_cash] Total assets: [total_assets] Total liabilities: [total_liabilities] Total equity: [total_equity] Key assumptions: [key_assumptions] Produce: 1. Balance Sheet Check — confirm assets equal liabilities plus equity 2. P&L to Cash Flow Linkage — explain the reconciliation from net income to operating cash flow 3. Cash Flow to Balance Sheet Linkage — confirm ending cash matches balance sheet cash 4. Key Margin Analysis — gross margin EBITDA margin and net margin with commentary 5. Cash Conversion Quality — operating cash flow versus net income ratio and what it indicates 6. Assumption Critique — evaluate the key assumptions for reasonableness 7. Model Story — plain English summary of what this model shows about the business trajectory Flag any mathematical inconsistencies in the model. Calculate all margins from the numbers provided.
Sample Output
This is an example of what AI produces when you use this template.
Balance Sheet Check
Balance sheet balances: Total assets of $3,550,000 equals total liabilities of $1,045,000 plus total equity of $2,505,000. The model is internally consistent on this fundamental check. Retained earnings movement implied by net income of $480,000 is consistent with the equity increase from prior period — the equity roll-forward ties correctly.
Model Story
This model describes a capital-efficient software business generating $3.2M in revenue at a 15 percent net margin and converting 108 percent of net income to operating cash flow — a strong quality-of-earnings signal. The $2.4M cash balance provides 18 months of operating expense coverage. The model shows a business that is past the cash-burning growth phase and generating sustainable free cash flow while still growing. The primary risk in the model assumptions is the 35 percent growth rate, which requires 108 percent net revenue retention from existing customers plus significant new customer acquisition.