Explain the basic purpose of a spreadsheet program. Identify the various components of the Excel screen. Navigate the Excel worksheet (entering, correcting, and moving data within the worksheet). Explain the purpose and usage of Excel’s built-in functions and macro functions. | FINANCIAL ANALYSIS with Microsoft Excel 1. Spreadsheet Basics. 1 2. The Basic Financial Statements. 42 3. The Cash Budget. 68 4. Financial Statement Analysis Tools. 102 5. Financial Forecasting. 140 6. Break-even and Leverage Analysis. 164 7. The Time Value of Money. 184 8. Valuation and Rates of Return. 214 9. The Cost of Capital. 256 10. Capital Budgeting. 282 11. Risk Capital Budgeting and Diversification 326 Appendix. Excel 2000 Menu 1 Spreadsheet Basics After studying this chapter you should be able to 1. Explain the basic purpose of a spreadsheet program. 2. Identify the various components of the Excel screen. 3. Navigate the Excel worksheet entering correcting and moving data within the worksheet . 4. Explain the purpose and usage of Excel s built-in functions and macro functions. 5. Create graphics and know how to print and save files in Excel. The term spreadsheet covers a wide variety of elements useful for quantitative analysis of all kinds. Essentially a spreadsheet is a simple tool consisting of a matrix of cells that can store numbers text or formulas. The spreadsheet s power comes from its ability to recalculate results as you change the contents of other cells. No longer does the user need to do these calculations by hand or on a calculator. Instead with a properly constructed spreadsheet changing a single number say a sales forecast can result in literally thousands of automatic changes in the model. The freedom and productivity enhancement provided by modern spreadsheets presents an unparalleled opportunity for learning financial analysis.
