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Model Depreciation, Interest, Dividends, and Retained Earnings

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This lesson teaches how to model depreciation, interest, dividends, and retained earnings using Excel. Integrate these into a dynamic 3-statement financial model.

This video covers the following learning objectives:

  1. Model Depreciation using the straight-line method.
  2. Integrate Depreciation into the income statement, cash flow statement, and balance sheet.
  3. Calculate and model Interest Expense using a debt schedule.
  4. Link Interest Expense to the income statement and analyze its effect on net income.
  5. Calculate Dividends Paid based on a payout ratio and link to the financing section of the cash flow statement.
  6. Forecast Retained Earnings using a dynamic schedule.
  7. Connect all four components (depreciation, interest, dividends, and retained earnings) to build a fully integrated 3-statement model.

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