Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By : Shmuel Oluwa
Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By: Shmuel Oluwa

Overview of this book

Financial modeling is a core skill required by anyone who wants to build a career in finance. Hands-On Financial Modeling with Microsoft Excel 2019 explores terminologies of financial modeling with the help of Excel. This book will provides you with an overview of the steps you should follow to build an integrated financial model. You will explore the design principles, functions, and techniques of building models in a practical manner. Starting with the key concepts of Excel, such as formulas and functions, you will learn about referencing frameworks and other advanced components for building financial models. Later chapters will help you understand your financial projects, build assumptions, and analyze historical data to develop data-driven models and functional growth drivers. The book takes an intuitive approach to model testing and covers best practices and practical use cases. By the end of this book, you will have examined the data from various use cases, and have the skills you need to build financial models to extract the information required to make informed business decisions.
Table of Contents (15 chapters)
Free Chapter
Section 1: Financial Modeling - Overview
Section 2: The Use of Excel - Features and Functions for Financial Modeling
Section 3: Building an Integrated Financial Model

Cash flow statement

At this stage, our profit and loss accounts for the projected years are now completely populated. However, our balance check is still showing a red FALSE, indicating that there is something missing from the balance sheet. Unlike other items, it is not possible to project cash. The cash balance is a fallout from all transactions carried out during the period under review. This fact is captured in the cash flow statement, which considers the inflows and outflows of cash. The net result is then applied to the opening cash balance to arrive at the closing cash balance at the period end. The following screenshot shows a completed cash flow statement, which ends with a closing balance for cash, which is taken to the balance sheet:

When the closing cash balance is taken to the balance sheet, the balance check for the projected years should now show a white TRUE on...