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

By: Messer, Ron [author].

Material type: materialTypeLabel

BookPublisher: Bingley, United Kingdom : Emerald Publishing Limited, 2020Copyright date: ©2020Description: online resource (xxiii, 330 pages) : illustrations.Content type: text Media type: computer Carrier type: online resourceISBN: 9781789734140 (paperback); 9781789734133 (e-book) .Subject(s): Microsoft Excel (Computer file)

| Finance -- Mathematical models -- Computer programs

| Electronic spreadsheets -- Computer programs

| Corporations -- Finance -- Computer programs

DDC classification: 332.0285554 Online resources: E-book

Contents:

Better learning decisions -- Break even decisions -- Times series forecasting decisions -- Capital budgeting decisions -- Regression analysis decisions -- Linear programming decisions -- Business valuation decisions -- Pivot tables decisions -- Financial dashboard decisions -- Budget management decisions -- Amortization table decisions -- Making a lot of decisions.

List(s) this item appears in: School of Business Emerald E-book Collection

Holdings
Item type	Current library	Call number	Status	Date due	Barcode	Item holds
e-BOOK	MTU Bishopstown Library eBook	332.0285554 (Browse shelf(Opens below))	Not for loan

Total holds: 0

Enhanced descriptions from Syndetics:

Most books on Microsoft Excel for accounting and finance serve primarily academic research purposes: they are relatively unstructured and dominated by discussions of rather esoteric and infrequently used applications. None addresses the growing need for an introduction to crucial data analytic skills (i.e., analysis of 'big data') and to the recent innovations by Microsoft Excel in this regard, including Power Query (data cleaning and management), Power Pivot (advanced pivot tables using databases) and Power BI (creating executive KPI dashboards).
In Financial Modeling for Decision Making: Using MS-Excel in Accounting and Finance , Ron Messer provides just such a practical, advanced-level guide to this essential program. Crucially, he focuses on using Excel in situations encountered by accounting and finance students and professionals, and he structures these in terms of the past, present and future in order to reflect a typical operating cycle, which includes initial planning, exercising control, and receiving feedback. Throughout this book, Messer discusses real-life applications of this important analytical tool, which has become the industry standard for spreadsheet software.
For its clear structure and emphasis on practical usage, Financial Modeling for Decision Making is essential reading for accounting and finance professionals, as well as accounting and finance students in post-secondary institutions.

Includes index.

Electronic reproduction.: Emerald. Mode of access: World Wide Web.

Emerald e-book collection purchased under School of Business Fund.

Table of contents provided by Syndetics

About the Author (p. xiii)
Brief Summary (p. xv)
Preface (p. xvii)
Chapter 1 Better Learning Decisions (p. 1)
How to Learn (and Teach) Financial Modeling (p. 2)
Learning Financial Modeling (p. 2)
Teaching Financial Modeling (p. 3)
Steps in Developing a Financial Model (p. 4)
Some Common Excel Terminology (p. 5)
Good Financial Modeling Practices (p. 5)
Demonstration Exercise (p. 5)
Case Facts (p. 6)
Part 1 Decisions Made about the Future (p. 19)
Planning
Chapter 2 Break Even Decisions (p. 21)
Background Theory (p. 22)
Cost-Volume-Profit Analysis (p. 22)
Determining Cost Functions (p. 22)
Break-even Volumes (p. 22)
Financial Management Techniques (p. 22)
Relevant MS-Excel Functionality (p. 23)
Demonstration Exercise (p. 24)
Case Facts (p. 24)
Chapter 3 Times Series Forecasting Decisions (p. 39)
Background Theory (p. 40)
Types of Forecasting Models (p. 40)
Detecting Patterns in Time (p. 40)
Time Series Forecasting Methods (p. 40)
Financial Management Techniques (p. 41)
Relevant Excel Functionality (p. 43)
Demonstration Exercise (p. 43)
Case Facts (p. 43)
Step 1 Create a Scarterplot to Assess whether a Pattern Exists (p. 43)
Step 2 Perform a Moving Average Forecast for at Least Three Time intervals (p. 43)
Step 3 Perform an Exponential Smoothing Forecast Using at Least Two Dampening Factors (p. 47)
Step 4 Optimize the Exponential Smoothing Dampening Coefficient (p. 54)
Step 5 Calculate and Evaluate the MAPE for all Forecasts (p. 54)
Chapter 4 Capital Budgeting Decisions (p. 61)
Background Theory (p. 62)
The Importance of Cash Flows (p. 62)
NPV, TRR, and Payback Period (p. 62)
The Discount Rate (p. 62)
Financial Management Techniques (p. 63)
Relevant Excel Functionality (p. 63)
Demonstration Exercise (p. 63)
Case Facts (p. 64)
Step 1 Determining the Discount Rate Using a Risk-adjusted Cost of Capital (p. 64)
Step 2 Detennining the Incremental Net Cash Flows for the Project (p. 65)
Step 3 Developing a Base Case Scenario for to the Key Decision Variables (p. 65)
Step 4 Determining the NPV, IRR and Payback Period for Each Scenario (p. 68)
Chapter 5 Regression Analysis Decisions (p. 77)
Background Theory (p. 78)
Finding Correlations (p. 78)
Determining Causation (p. 78)
Regression Analysis (p. 78)
Financial Management Techniques (p. 79)
Relevant Excel Functionality (p. 80)
Demonstration Exercise (p. 80)
Case Facts (p. 80)
Step 1 Exploring Relationships (p. 81)
Step 2 Creating Scatterplots (p. 82)
Step 3 Measuring Correlations (p. 84)
Step 4 Determine Dependent and Independent Variables (p. 85)
Step 5 Create a Single-variable Regression (p. 85)
Step 6 Create a Multivariable Regression (p. 85)
Step 7 Optimize the Model (p. 95)
Nonnumeric Variables (p. 95)
Interaction Variables (p. 97)
Part 2 Decisions Made about the Present (p. 103)
Control
Chapter 6 Linear Programming Decisions (p. 105)
Background Theory (p. 106)
Some History (p. 106)
Product Mix (p. 106)
Production Scheduling (p. 106)
Financial Management Techniques (p. 106)
Relevant Excel Functionality (p. 107)
Demonstration Exercise 1 (p. 107)
Case Facts (p. 107)
Step 1 Create the Excel Worksheet Model (p. 109)
Step 2 Complete the Excel Solver Dialog Box (p. 109)
Step 3 Activate Solver and Generate the Sensitivity Report (p. 113)
Demonstration Exercise 2 (p. 118)
Case Facts (p. 118)
Chapter 7 Business Valuation Decisions (p. 127)
Background Theory (p. 128)
Analyzing the Cost of Capital (p. 128)
Pro-forma Financial Statements (p. 128)
Forecasting Assumptions (p. 128)
Financial Management Techniques (p. 129)
Relevant Excel Functionality (p. 129)
Demonstration Exercise (p. 129)
Case Facts (p. 132)
Step 1 Calculate Financial Ratios for Forecasting (p. 133)
Step 2 Develop Reasonable Forecast Assumptions (p. 133)
Step 3 Create the Forecast Income Statement and Balance Sheet (p. 134)
Step 4 Convert Net income into Cash Flows (p. 134)
Step 5 Calculate the Present Value of the Cash Flows (p. 140)
Step 6 Determine the Share Value and Test Sensitivities (p. 140)
Chapter 8 Pivot Tables Decisions (p. 149)
Background Theory (p. 150)
Everything Old Is New Again (p. 150)
Some Data Terminology (p. 151)
Types of Data Analytics (p. 151)
Financial Management Techniques (p. 152)
Relevant Excel Functionality (p. 153)
Creating Data Tables (p. 153)
Cleaning Data (p. 156)
Demonstration Exercise (p. 159)
Case Facts (p. 159)
Descriptive Analytics (p. 159)
Step 1 Identify the Fields Needed to Answer the Question (p. 167)
Step 2 Put the Fields in Rows and Columns (p. 167)
Step 3 Determine the Type of Values Function (p. 167)
Step 4 Select a Field for the Values Function (p. 167)
Step 5 Numeric Format for Results (p. 167)
Diagnostic Analytics (p. 172)
Some Additional Analytic Functions with Power Pivot (p. 172)
Part 3 Decisions Made about the Past (p. 187)
Feedback
Chapter 9 Financial Dashboard Decisions (p. 189)
Background Theory (p. 190)
Some Common Financial Measures (p. 190)
Some Dashboard Principles (p. 190)
Financial Management Techniques (p. 191)
Relevant Excel Functionality (p. 191)
Demonstration Exercise (p. 191)
Step 1 Create the Database (p. 192)
Step 2 Create the Data Engine (p. 192)
Step 3 Create the References (p. 195)
Step 4 Create the Dashboard (p. 195)
About Power BI (Business Intelligence) (p. 200)
Demonstration Exercise (p. 201)
Loading Power BI (p. 201)
Using Power BI (p. 206)
Using Power Query (p. 206)
Creating Data Visualizations (p. 213)
Current Ratio Metric (p. 222)
Profitability Metric (p. 228)
Cash Flow Metric (p. 228)
Return on Equity Metric (p. 233)
Sales and Income Trends (p. 233)
Chapter 10 Budget Management Decisions (p. 241)
Background Theory (p. 242)
Budget Development (p. 242)
Budget Management (p. 243)
Cash Flow Budgets (p. 243)
Financial Management Techniques (p. 243)
Relevant Excel Functionality (p. 244)
Demonstration Exercise (p. 244)
Case Facts (p. 244)
Preparing the Income Statement Budget (p. 245)
Preparing the Monthly income Statement Budget (p. 245)
Preparing the Cash Flow Budget (p. 245)
Preparing the Analysis of Variances (p. 245)
Chapter 11 Amortization Table Decisions (p. 259)
Background Theory (p. 260)
Corporate Bonds (p. 260)
Bank Borrowing (p. 260)
Property, Plant, and Equipment (p. 260)
Financial Management Techniques (p. 261)
Using MS-Excel Functionality (p. 261)
Demonstration Exercise (p. 261)
Corporate Bonds (p. 261)
Bank Borrowing (p. 263)
Property, Plant, and Equipment (p. 263)
Part 4 Decisions Made in Time (p. 275)
Putting It All Together
Chapter 12 Making a Lot of Decisions (p. 277)
Background Theory (p. 277)
(Capstone) Demonstration Exercise (p. 277)
Case Facts (p. 278)
Appendix 1 Excel Shortcut Keys (p. 321)
Appendix 2 Common Financial Ratios (p. 325)
Index (p. 327)

Author notes provided by Syndetics

Ron Messer is a faculty member of the School of Business at Kwantlen Polytechnic University whose research interests focus broadly on management accounting and decision-making. He is a CPA, Chartered Accountant and a Certified Management Accountant with 25 years of working experience in accounting, finance and information systems. His essays have appeared in publications in Canada, the United States, and the United Kingdom.