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Business Analysis with Microsoft Excel, 5th Edition

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  • Copyright 2019
  • Pages: 576
  • Edition: 5th
  • eBook (Watermarked)
  • ISBN-10: 0-13-486250-3
  • ISBN-13: 978-0-13-486250-7

Gain Deeper Insights, Make Smarter Decisions, and Earn More Profits

It’s time to put the full power of Excel quantitative analysis behind your management decisions!

Business analysis expert Conrad Carlberg shows you how to use Excel to perform core financial tasks all managers and entrepreneurs need to master: analyzing statements, planning and controlling company finances, making investment decisions, and managing sales and marketing. Carlberg helps you make the most of Excel’s tools and features in everything from business case development to cash flow analysis.

Becoming an Excel expert has never been easier. You’ll find crystal-clear instructions, real-world examples, insider insights, step-by-step projects, and much more. It’s all complemented by extensive web-based resources, from sample journals and ledgers to business forecasting tools.

·         Get more insight from income statements and balance sheets

·         Manage current assets and value inventories

·         Summarize transactions from journal to balance sheet

·         Analyze working capital, cash flow, statements, and ratios

·         Optimize budgeting and planning cycles

·         Make more accurate and useful forecasts and projections

·         Measure product or service quality

·         Plan investments, set decision criteria, and perform sensitivity analyses

·         Analyze profits, pricing, costs, contributions, and margins

·         Make better decisions in uncertain conditions

·         Understand and maximize the value of fixed assets

·         Efficiently import and export business data

·         Use Excel and Power BI to analyze data from QuickBooks or other sources 



Download: Workbook Files (1.9 MB .zip)


Author's Site

Please visit the author's site at http://conradcarlberg.com/publications.html.

Sample Content

Sample Pages

Download the sample pages (includes Chapter 1)

Table of Contents

Chapter 1 Working with Income Statements

Keeping Score

    Choosing the Right Perspective

    Defining Two Purposes for Accounting

Using the Income Statement

    Choosing a Reporting Method

    Cells in Excel

    Measuring the Operating and Nonoperating Segments

Moving from the General Journal to the Income Statement

    Getting the General Journal into Excel

    Understanding Absolute, Relative, and Mixed References

    Getting the Journal Data to the Ledger

    Getting the Ledger Data to the Income Statement

Managing the Financial Analyses with Accrual Accounting

    Using Straight-Line Depreciation

    Preparing the Trial Balance

    Moving Information into an Income Statement

Organizing with Traditional Versus Contribution Approaches

About Power BI

    Power BI Desktop

    Power BI Service and Mobile Apps


Chapter 2 Balance Sheet: Current Assets

Designing the Balance Sheet

    Understanding Balance Sheet Accounts

    Understanding Debit and Credit Entries

Getting a Current Asset Cash Balance

    Using Sheet-Level Names

    Getting a Cash Balance for Multiple Cash Accounts

    Handling Restricted Cash Accounts

Getting a Current Asset Accounts Receivable Balance

    Allowing for Doubtful Accounts

    Using the Aging Approach to Estimating Uncollectibles

    Using the Percentage of Sales Approach to Estimating Uncollectibles

    Displaying Doubtful Account Balances with Power BI

    Managing the Sort Order Via the Axis Values

    Managing the Sort Order with Another Field

Getting a Prepaid Expenses Balance

    Dealing with Insurance as a Prepaid Expense

Getting a Current Asset Balance

    Understanding the Inventory Flow

    Closing the Inventory Account

    Closing the Revenue and Expense Accounts


Chapter 3 Valuing Inventories for the Balance Sheet

Understanding Perpetual and Periodic Inventory Systems

    Perpetual Inventory Systems

    Periodic Inventory Systems

Valuing Inventories

    Valuation Methods Summarized

    Using Specific Identification

    Using Average Cost

    Using the Moving Average Method

    Using FIFO

    Using LIFO

Comparing the Four Valuation Methods

    Specification Identification

    Average Cost



Handling Purchase Discounts

Calculating Turns Ratios


Chapter 4 Summarizing Transactions: From the Journals to the Balance Sheet

Understanding Journals

    Understanding Special Journals

    Structuring the Special Sales Journal

    Structuring the Special Purchases Journal

    Structuring the Cash Receipts Journal

    Structuring the Cash Payments Journal

Excel Tables and Dynamic Range Names

    Building Dynamic Range Names

    Using Dynamic Range Names in the Journals

    Choosing Between Tables and Dynamic Range Names

Understanding Ledgers

    Creating the General Ledger

    Using Subsidiary Ledgers

    Automating the Posting Process

Getting a Current Liabilities Balance


Chapter 5 Working Capital and Cash Flow Analysis

Matching Costs and Revenues

Broadening the Definition: Cash Versus Working Capital

    Determining the Amount of Working Capital

    Determining Changes in Working Capital

Analyzing Cash Flow

    Developing the Basic Information

    Summarizing the Sources and Uses of Working Capital

    Identifying Cash Flows Due to Operating Activities

    Combining Cash from Operations with Cash from Nonoperating Transactions


Chapter 6 Statement Analysis

Understanding a Report by Means of Common-Sizing

    Using Common-Sized Income Statements

    Using Common-Sized Balance Sheets

    Using Comparative Financial Statements

Using Dollar and Percent Changes in Statement Analysis

    Assessing the Financial Statements

    Handling Error Values

    Evaluating Percentage Changes

Common-Sizing for Variance Analysis

Common-Sizing by Headcount

Showing Common-Sized Statements with Power BI


Chapter 7 Ratio Analysis

Interpreting Industry Averages and Trends

Comparing Ratios Within Industries

    Analyzing Ratios Vertically and Horizontally

    Getting a Basis for Ratios

Analyzing Profitability Ratios

    Finding and Evaluating Earnings Per Share

    Determining Gross Profit Margin

    Determining Net Profit Margin

    Determining the Return on Assets

    Determining the Return on Equity

Analyzing Leverage Ratios

    Determining the Debt Ratio

    Determining the Equity Ratio

    Determining the Times Interest Earned Ratio

Analyzing Liquidity Ratios

    Determining the Current Ratio

    Determining the Quick Ratio

Analyzing Activity Ratios

    Determining the Average Collection Period

    Determining Inventory Turnover

Displaying Financial Ratios in Power BI Reports


Chapter 8 Budgeting and Planning Cycle

Creating Pro Forma Financial Statements

    Forecasting by Percentage of Sales

Using Excel to Manage the Analysis

    Performing Sensitivity Analysis

Moving from the Pro Forma to the Budget

    Projecting Quarterly Sales

    Estimating Inventory Levels

    Fitting the Budget to the Business Plan


Chapter 9 Forecasting and Projections

Making Sure You Have a Useful Baseline

Moving Average Forecasts

    Creating Forecasts with the Moving Average Add-In

    Dealing with the Layout of Excel’s Moving Averages

    Creating Moving Average Forecasts with Excel’s Charts

Forecasting with Excel’s Regression Functions

    Making Linear Forecasts: The TREND Function

    Making Nonlinear Forecasts: The GROWTH Function

    Creating Regression Forecasts with Excel’s Charts

Forecasting with Excel’s Smoothing Functions

    Projecting with Smoothing

    Using the Exponential Smoothing Tool

    Choosing a Smoothing Constant

    Making Smoothed Forecasts Handle Seasonal Data

Using the Box-Jenkins ARIMA Approach: When Excel’s Built-In Functions Won’t Do

    Understanding ARIMA Basics

    Charting the Correlograms

    Starting with Correlograms to Identify a Model

    Identifying Other Box-Jenkins Models

Displaying Forecast Data with Power BI

    Displaying Forecasts with Power BI

    Using Power BI to Display Correlograms


Chapter 10 Measuring Quality

Monitoring Quality Through Statistical Process Control

    Using Averages from Samples

    Using X-and-S Charts for Variables

    Interpreting the Control Limits


    Publishing Control Charts with Power BI

    Using P-Charts for Dichotomies

    Choosing the Sample Size

    Determining That a Process Is Out of Control

    Using X-and-MR Charts for Individual Observations

    Creating SPC Charts Using Excel

Performing Acceptance Sampling

    Charting the Operating Characteristic Curve

Using Worksheet Functions for Quality Control

Sampling Units from a Finite Population

Sampling Units from a Nonfinite Population

    Using NORM.S.DIST to Approximate BINOM.DIST

    Sampling Defects in Units

    Using the BINOM.INV Function


Chapter 11 Examining a Business Case: Investment

Developing a Business Case

    Getting Consensus for the Plan

    Showing Your Work

Developing the Excel Model

    Developing the Inputs

    Identifying the Costs

    Moving to the Pro Forma

    Preparing the Cash Flow Analysis


Chapter 12 Examining Decision Criteria for a Business Case

Understanding Payback Periods

Understanding Future Value, Present Value, and Net Present Value

    Calculating Future Value

    Calculating Present Value

    Calculating Net Present Value

    Optimizing Costs


Chapter 13 Creating a Sensitivity Analysis for a Business Case

Reviewing the Business Case

Managing Scenarios

    Saving a Scenario for the Base Case

    Developing Alternative Scenarios

    Developing Scenarios That Vary Expenses

    Summarizing the Scenarios

Measuring Profit

    Calculating Internal Rate of Return

    Calculating Profitability Indexes

    Estimating the Continuing Value

Varying the Discount Rate Input

Using the Goal Seek Tool


Chapter 14 Planning Profits

Understanding the Effects of Leverage

    The Effect of Business Risk

Analyzing Operating Leverage

    Evaluating the Financial Implications of an Operational Change

    Evaluating Fixed Expenses

    Evaluating Effect of Increasing Fixed Costs

    Planning by Using the DOL

Analyzing Financial Leverage

    Distinguishing Business from Financial Risk

    Determining the Debt Ratio

    Determining the Times Interest Earned Ratio


Chapter 15 Making Investment Decisions Under Uncertain Conditions

Using Standard Deviations

    Using Excel’s Standard Deviation Functions

Understanding Confidence Intervals

    Using Confidence Intervals in a Market Research Situation

    Calculating a Confidence Interval

    Interpreting the Interval

    Refining Confidence Intervals

Using Regression Analysis in Decision Making

    Regressing One Variable onto Another

    Interpreting the Trendline

    Avoiding Traps in Interpretation: Association Versus Causation

    Regressing One Variable onto Several Other Variables: Multiple Regression

    Using Excel’s Regression Add-In

    Interpreting Regression Output

    Estimating with Multiple Regression

    Using Excel’s TREND Function

Creating Charts in Power BI

    Creating a Scatter Chart

    Creating a Clustered Column Chart in Power BI


Chapter 16 Fixed Assets

Determining Original Cost

    Determining Costs

    Choosing Between Actual Cost and Replacement Cost

Depreciating Assets

    Understanding the Concept of Depreciation

    Matching Revenues to Costs

    Using Straight-Line Depreciation

    Using the Declining Balance Method

    Using the Double Declining Balance Function to Calculate Depreciation

    Using Variable Declining Balance Depreciation

    Using Sum-of-Years’-Digits Depreciation


Chapter 17 Importing Business Data into Excel

Creating and Using ODBC Queries

    Preparing to Import Data

    Specifying Data Sources

    Creating Queries with the Query Wizard

    Creating Queries with Microsoft Query

    Creating Parameterized Queries in Microsoft Query

    Using Joins in Microsoft Query

Working with External Data Ranges

    Include Row Numbers

    Adjust Column Width

    Preserve Column Sort/Filter/Layout

    Preserve Cell Formatting

    Insert Cells for New Data, Delete Unused Cells

    Insert Entire Rows for New Data, Clear Unused Cells

    Overwrite Existing Cells with New Data, Clear Unused Cells

    Managing Security Information

    Arranging Automatic Refreshes

    Setting Other Data Range Options

    Importing Data to Pivot Tables and Charts

Creating and Using Web Queries

    Get External Data and Get Data From Web

    Using Get Data with a Website

    Using Get External Data and VBA


Chapter 18 Exporting Business Data from Excel

Using VBA to Update an External Database

    Getting at VBA

    Structuring the Worksheet

    Establishing Command Buttons

Editing the Record’s Values

    Using Database Objects

Using With Blocks

    Finding the Right Record

    Editing the Record

Adding New Records to the Recordset

Choosing to Use ADO


Chapter 19 Using Excel 2016 and Power BI to Analyze QuickBooks Data

Exporting an Income Statement to Excel

Publishing a QuickBooks Report in Power BI

    Preparing the Data in Excel

    Moving the Report to Power BI

Using the QuickBooks Software Development Kit

    Parsing a Simple Subroutine

    Invoking QBFC

    Identifying the Sources of the Variables

    Understanding then Rationale

Running the Assembly Tracker

    Opening the QuickBooks Company File

    Opening the Excel File

    Allowing Access to QuickBooks Data

Chapter 20 Analyzing Contributions and Margins

Calculating the Contribution Margin

    Classifying Costs

    Estimating Semivariable Costs

Using Unit Contribution

    Producing Digital Video Discs (Continued)

    Increasing the Contribution Margin

    Creating an Operating Income Statement

Finding the Break-Even Point

    Calculating Breakeven in Units

    Calculating Breakeven in Sales

    Calculating Breakeven in Sales Dollars with a Specified Level of Profit

    Charting the Break-Even Point

    Choosing the Chart Type

Displaying a Break-Even Chart in Power BI

Making Assumptions in Contribution Analysis

    Linear Relationships

    Assignment of Costs

    Constant Sales Mix

    Worker Productivity

Determining Sales Mix


Chapter 21 Pricing and Costing

Using Absorption and Contribution Costing

    Understanding Absorption Costing

    Understanding Contribution Costing

Applying the Contribution Approach to a Pricing Decision: Goal Seek

Applying the Contribution Approach to a Pricing Decision: Solver

Using Contribution Analysis for New Products

    Allocating Expenses to Product Lines

    Varying the Inputs

Estimating the Effect of Cross-Elasticity


9780789759580   TOC   11/12/2018 


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