Building Financial Statements in Excel

Analyze the balance sheet where assets equal liabilities plus equity. Review current and fixed assets, depreciation, and equity items such as retained earnings.

Explore the cash flow statement by tracing operating, investing, and financing activities from net income, including depreciation, working capital changes, and capital expenditures, net cash flow, and free cash flow.

Learn to build income statements, balance sheets, and cash flow statements, see their interconnections and automatic updates, balance assets with liabilities and equity, using debt, depreciation, and a PPV schedule.

Build the cash flow statement in Excel by linking net income, depreciation, and working capital to operating, investing, and financing activities, calculating net cash flow and beginning cash balance.

Build the PPE schedule in an integrated financial model by deriving depreciation from revenue using historical data and a five-year projection, linking PPE and capital expenditures to the balance sheet.

Learn liquidity ratios in Excel: compute the current ratio to gauge short-term liability coverage, apply the acid test ratio by excluding inventory and prepaid expenses, and determine net working capital.

Explore financing ratios and leverage by examining debt ratio and debt-to-equity ratio, using Excel to calculate how debt and equity fund assets and liabilities.

Explore activity ratios in Excel, including asset turnover and inventory turnover, to assess how efficiently assets generate revenue and how inventory turns over across years.