Financial modeling for decision making : using MS-Excel in accounting and finance / Ron Messer.

Format:

Book

Author/Creator:

Messer, Ron, author.

Language:

English

Subjects (All):

Microsoft Excel (Computer file).

Finance--Mathematical models.

Physical Description:

1 online resource (xxiii, 330 pages) : illustrations

Edition:

1st ed.

Place of Publication:

Bingley, England : Emerald Publishing, [2020]

Summary:

This book provides accounting students in post-secondary institutions with an advanced level understanding of how to use MS-Excel to make business decisions. It reflects real-life applications of this important analytical tool, which has become the accepted industry standard for spreadsheet software.

Contents:

Intro

Half title page

Title page

Copyright page

Dedication

Contents

About the Author

Brief Summary

Preface

Chapter 1: Better Learning Decisions

How to Learn (and Teach) Financial Modeling

Learning Financial Modeling

Teaching Financial Modeling

Steps in Developing a Financial Model

Some Common Excel Terminology

Good Financial Modeling Practices4

Demonstration Exercise

Case Facts5

Part 1: Decisions Made about the Future

Planning

Chapter 2: Break Even Decisions

Background Theory

Cost-Volume-Profit Analysis

Determining Cost Functions

Break-even Volumes

Financial Management Techniques

Relevant MS-Excel Functionality

Case Facts

Chapter 3: Times Series Forecasting Decisions

Types of Forecasting Models

Detecting Patterns in Time

Time Series Forecasting Methods

Relevant Excel Functionality

Step 1: Create a Scatterplot to Assess whether a Pattern Exists

Step 2: Perform a Moving Average Forecast for at Least Three Time Intervals

Step 3: Perform an Exponential Smoothing Forecast Using at Least Two Dampening Factors

Step 4: Optimize the Exponential Smoothing Dampening Coefficient

Step 5: Calculate and Evaluate the MAPE for all Forecasts

Chapter 4: Capital Budgeting Decisions

The Importance of Cash Flows

NPV, IRR, and Payback Period

The Discount Rate

Step 1: Determining the Discount Rate Using a Risk-adjusted Cost of Capital

Step 2: Determining the Incremental Net Cash Flows for the Project

Step 3: Developing a Base Case Scenario for to the Key Decision Variables.

Step 4: Determining the NPV, IRR and Payback Period for Each Scenario

Chapter 5: Regression Analysis Decisions

Finding Correlations

Determining Causation

Regression Analysis

Step 1: Exploring Relationships

Step 2: Creating Scatterplots

Step 3: Measuring Correlations

Step 4: Determine Dependent and Independent Variables

Step 5: Create a Single-variable Regression

Step 6: Create a Multivariable Regression

Step 7: Optimize the Model

Nonnumeric Variables

Interaction Variables

Part 2: Decisions Made about the Present

Control

Chapter 6: Linear Programming Decisions

Some History

Product Mix

Production Scheduling

Demonstration Exercise 1

Step 1: Create the Excel Worksheet Model

Step 2: Complete the Excel Solver Dialog Box

Step 3: Activate Solver and Generate the Sensitivity Report

Demonstration Exercise 2

Case Facts3

Chapter 7: Business Valuation Decisions

Analyzing the Cost of Capital

Pro-forma Financial Statements

Forecasting Assumptions

Step 1: Calculate Financial Ratios for Forecasting

Step 2: Develop Reasonable Forecast Assumptions

Step 3: Create the Forecast Income Statement and Balance Sheet

Step 4: Convert Net Income into Cash Flows

Step 5: Calculate the Present Value of the Cash Flows

Step 6: Determine the Share Value and Test Sensitivities

Chapter 8: Pivot Tables Decisions

Everything Old Is New Again

Some Data Terminology

Types of Data Analytics.

Financial Management Techniques

Creating Data Tables

Cleaning Data

Descriptive Analytics

Step 1: Identify the Fields Needed to Answer the Question

Step 2: Put the Fields in Rows and Columns

Step 3: Determine the Type of Values Function

Step 4: Select a Field for the Values Function

Step 5: Numeric Format for Results

Diagnostic Analytics

Some Additional Analytic Functions with Power Pivot

Part 3: Decisions Made about the Past

Feedback

Chapter 9: Financial Dashboard Decisions

Some Common Financial Measures

Some Dashboard Principles

Step 1: Create the Database

Step 2: Create the Data Engine

Step 3: Create the References

Step 4: Create the Dashboard

About Power BI (Business Intelligence)

Loading Power BI

Using Power BI

Using Power Query

Creating Data Visualizations

Current Ratio Metric

Profitability Metric

Cash Flow Metric

Return on Equity Metric

Sales and Income Trends

Chapter 10: Budget Management Decisions

Budget Development

Budget Management

Cash Flow Budgets

Preparing the Income Statement Budget

Preparing the Monthly Income Statement Budget

Preparing the Cash Flow Budget

Preparing the Analysis of Variances

Chapter 11: Amortization Table Decisions

Corporate Bonds

Bank Borrowing

Property, Plant, and Equipment

Using MS-Excel Functionality

Property, Plant, and Equipment1.

Part 4: Decisions Made in Time

Putting It All Together

Chapter 12: Making a Lot of Decisions

(Capstone) Demonstration Exercise

Appendix 1: Excel Shortcut Keys

Appendix 2: Common Financial Ratios

Index.

Notes:

Description based on print version record.

Description based on publisher supplied metadata and other sources.

ISBN:

1-78973-413-4

OCLC:

1190855153