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Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition

You're reading from  Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition

Product type Book
Published in Jun 2022
Publisher Packt
ISBN-13 9781803231143
Pages 346 pages
Edition 2nd Edition
Languages
Author (1):
Shmuel Oluwa Shmuel Oluwa
Profile icon Shmuel Oluwa

Table of Contents (19) Chapters

Preface Part 1 – Financial Modeling Overview
Chapter 1: An Introduction to Financial Modeling and Excel Chapter 2: Steps for Building a Financial Model Part 2 – The Use of Excel Features and Functions for Financial Modeling
Chapter 3: Formulas and Functions – Completing Modeling Tasks with a Single Formula Chapter 4: Referencing Framework in Excel Chapter 5: An Introduction to Power Query Part 3 – Building an Integrated 3-Statement Financial Model with Valuation by DCF
Chapter 6: Understanding Project and Building Assumptions Chapter 7: Asset and Debt Schedules Chapter 8: Preparing a Cash Flow Statement Chapter 9: Ratio Analysis Chapter 10: Valuation Chapter 11: Model Testing for Reasonableness and Accuracy Part 4 – Case Study
Chapter 12: Case Study 1 – Building a Model to Extract a Balance Sheet and Profit and Loss from a Trial Balance Chapter 13: Case Study 2 – Creating a Model for Capital Budgeting Other Books You May Enjoy

Troubleshooting

It is unprofessional to share a model that is full of errors. You should always check your model for errors and then take steps to correct them.

The following are guidelines to follow when errors are detected in your model:

  • Precedents are those cells that have been referred to in arriving at the value in a particular cell.
  • Dependents are those cells that have included the cell in focus in their formula.

The following illustration will be used to explain this further:

Figure 11.03 – Cells connected as dependents or precedents

Look at cell K8. The formula in that cell is =K6*(1-$D$7). The formula relies on the contents of cells K6 and D7, which makes them precedents of cell K8. On the other hand, cell K8 is a dependent of both cells K6 and D7.

On the formula ribbon, in the formula auditing group, selecting trace precedents or trace dependents reveals thin blue arrows linking a cell to either its precedents or...

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