Building Financial Models with Microsoft Excel: A Guide for Business Professionals / Edition 2by K. Scott Proctor
Pub. Date: 12/09/2009
Microsoft Excel has become a critical element for decision-making in the modern business environment. It is particularly effective in the logical, step-by-step process of building a financial model—the quantitative representation of a company's past, present, and future business operations—where each component builds upon or feeds into another component… See more details below
Microsoft Excel has become a critical element for decision-making in the modern business environment. It is particularly effective in the logical, step-by-step process of building a financial model—the quantitative representation of a company's past, present, and future business operations—where each component builds upon or feeds into another component. These financial models serve as the foundation and basis of today's standard financial accounting reports. But while many business professionals are familiar with consolidated financial statements, few are truly proficient at building an accurate and effective financial model from the ground up.
Building Financial Models with Microsoft Excel, Second Edition offers a detailed and easy-to-understand guide for anyone who needs to build or analyze financial models using Microsoft Excel 2007. Written in a straightforward and accessible manner, it is a comprehensive resource for business professionals with a beginner or intermediate level of experience in both Microsoft Excel, and finance or accounting. K. Scott Proctor provides a thoughtful and coherent link between financial/accounting theory and common Wall Street practice by addressing key questions in financial modeling like what to build, how to build, and how to analyze.
Part One covers the steps involved in building the master budget—detailing its two key elements, the operating budget and financial budget. You'll learn the fundamentals of the budgeting process and how various components of a master budget relate to one another—from sales, inventory, and operating expenses to capital budgets, cash budgets, and balance sheets. Part Two explains consolidated financial statements and free cash flows, providing a guide to building these statements from scratch. Part Three tackles the various ways to analyze a financial model, including sensitivity analysis, contribution margin analysis, and financial ratios analysis. The book also includes a companion CD-ROM, which contains sample Excel worksheets that allow you to follow the examples illustrated within the book or build your own financial models according to your specific situation.
Filled with in-depth insights and easy-to-understand instructions, this fully revised Second Edition of Building Financial Models with Microsoft Excel is a readable, practical guide to understanding and creating fully functioning financial models.
Table of Contents
PART ONE: The Master Budget.
CHAPTER 1. Overview of Budgets and Financial Models.
CHAPTER 2. Operating Budget—Assumptions, Sales, and Collections.
CHAPTER 3. Operating Budget—Cost of Goods Sold, Inventory, and Purchases.
CHAPTER 4. Operating Budget—Operating Expenses.
CHAPTER 5. Operating Budget—Income Statement.
CHAPTER 6. Financial Budget—Capital Budget and Cash Budget.
CHAPTER 7. Financial Budget—Balance Sheet.
PART TWO: Financial Statements and Free Cash Flows.
CHAPTER 8. Consolidated Financial Statements.
CHAPTER 9. Free Cash Flows and Dashboard.
PART THREE: Analysis of a Financial Model.
CHAPTER 10. Sensitivity Analysis.
CHAPTER 11. Contribution Margin Analysis.
CHAPTER 12. Financial Ratios Analysis.
CHAPTER 13. Valuation.
CHAPTER 14. Capitalization Chart.
Answers to Chapter Questions.
General Overview of Microsoft Excel 2007 Features and Functionality.
About the CD-ROM.
About the Author.
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