About this lesson
Linking the three statements, with a balance check
Link the statements so each balance moves by the flows that change it: cash = last year's cash + net change in cash (=B16+C13), retained earnings = last year's + NPAT − dividends (=B23+C3-C4), fixed assets = last year's + capex − depreciation. Then a balance check, total assets − total liabilities and equity (=C19-C24), must be zero.
Using Google Sheets? Do this lesson in Sheets.
=C3+C5-C7What you'll practise
Roll Quokka Packaging's balance sheet forward a year from its profit and cash flow, then prove it with a balance check.
4 steps · 40 points · the cells outlined in gold below
- three-statement model
- cash flow statement
- balance sheet
- retained earnings
- balance check
The data
| A | B | C | |
|---|---|---|---|
| 1 | ($m) | FY25 | FY26 |
| 2 | From the income statement and plan | ||
| 3 | NPAT | 24.6 | |
| 4 | Dividends paid | 14.0 | |
| 5 | Depreciation | 9.2 | |
| 6 | Capex | 15.5 | |
| 7 | Increase in working capital | 3.1 | |
| 8 | |||
| 9 | Cash flow | ||
| 10 | Operating cash flow | ||
| 11 | Investing cash flow | ||
| 12 | Financing cash flow | ||
| 13 | Net change in cash | ||
| 14 | |||
| 15 | Balance sheet | ||
| 16 | Cash | 18.4 | |
| 17 | Working capital | 42.7 | |
| 18 | Fixed assets | 136.9 | |
| 19 | Total assets | ||
| 20 | |||
| 21 | Debt | 60.0 | |
| 22 | Share capital | 80.0 | |
| 23 | Retained earnings | 58.0 | |
| 24 | Total liabilities and equity | ||
| 25 | Balance check |