Spreadsheet Models for Managers

Getting Access to Spreadsheet Models for Managers

If Spreadsheet Models for Managersyou use Excel to model businesses, business processes, or business transactions, this course will change your life. You’ll learn how to create tools for yourself that will amaze even you. Unrestricted use of this material is available in two ways.

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Order "Spreadsheet Models for Managers, on-line edition, one month" by credit card, for USD 69.95 each, using our secure server, and receive download instructions by return email.
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To use the course software you’ll need some other applications, which you very probably already have. By placing your order, you’re confirming that you have the software you need, as described on this site.

Spreadsheet Models for Managers

The main points 8/9
Session Links
  • Three external financial statements
    • Income Statement (Revenue and Expenses for a given period)
    • Balance Sheet (Financial Position at the end of the period)
    • Cash Flow (Statement of Changes in Financial Position during the period)
  • What are capital transactions?
    • Either purchases or sales
    • They have effects beyond the current reporting period
  • Capital transactions affect all three financial statements
    • Income Statement
      Depreciation, Maintenance
    • Balance sheet
      Value of the equipment is added to assets
    • Cash Flow
      If purchased for cash, the purchase affects cash on hand

In this session we reviewed how capital transactions affect the three basic financial statements. We noted that when a class of transactions has complex impact on the three financial statements, we get more reliable results by assembling all elements of that class in one place, and then computing and dispersing the effects from that point onto the three financial statements.

Last Modified: Wednesday, 27-Apr-2016 04:15:26 EDT

Using Named Formulas

In the demonstration for this session, we installed a formula for depreciation that looked pretty complicated. It does save maintenance trouble, though, when the depreciation term changes for any reason. But what happens when the depreciation schedule changes in a more radical way? What if the depreciation schedule is made to be some form other than linear?

The end of this session’s demonstration gives an example of an alternative schedule, but as you can see, its formula is very different. If we’re developing a complex model with several applications of depreciation formulas, and the depreciation formulas must be changed, we would have a significant maintenance task on our hands. To avoid that kind of labor, we can define a user-defined name that contains the depreciation formula. For more about this technique, see the tip box in the narrative for this session’s demonstration.