Index

Citation

Messer, R. (2020), "Index", Financial Modeling for Decision Making: Using MS-Excel in Accounting and Finance, Emerald Publishing Limited, Leeds, pp. 327-330. https://doi.org/10.1108/978-1-78973-413-320201021

Publisher

:

Emerald Publishing Limited

Copyright © 2020 Emerald Publishing Limited

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INDEX

Activity-based budgeting

, 243

Alpha Corp.

, 8

Amortization table decisions

bank borrowing

, 260

corporate bonds

, 260

demonstration exercise

, 261–273

equipment

, 260–261

financial management techniques

, 261

MS-Excel functionality

, 261

plant

, 260–261

property

, 260–261

Balanced scorecard budgeting

, 243

Break even decisions

break-even volumes

, 22

cost functions

, 22

cost-volume-profit analysis

, 22

demonstration exercise24–36

financial management techniques

, 22–23

MS-Excel functionality

, 23

Break-even volumes

, 23

Budget management decisions

analysis of variances

, 245–256

budget development

, 242–243

case facts

, 244

cash flow budgets

, 243, 245

CHILL-DUDE income statement budget

, 251, 253–256

definition

, 243

demonstration exercise

, 244–256

financial management techniques

, 243

income statement budget

, 244–245

monthly income statement budget

, 245, 247

relevant excel functionality

, 244

theory

, 242–243

Business intelligence

, 200–201

Business valuations

, 128–129

cost of capital

, 128

demonstration exercise

, 129–147

Excel functionality

, 129

techniques

, 129

Capital asset pricing model (CAPM)

, 63, 128

Capital budgeting

cash flows

, 62

demonstration exercise

, 63–76

discount rate

, 62–63

Excel functionality

, 63

internal rate of return (IRR)

, 62

net present value (NPV)

, 62

payback period

, 62

Capstone demonstration exercise

, 277–319

Case facts

activate Solver

, 113–118

base case scenario

, 65–68

color coding and comments

, 9, 16

dependent and independent variables

, 85

discount rate

, 64–65

Excel Solver dialog box

, 109–113, 117, 122

Excel worksheet model

, 109–111

expected fixed costs

, 24

exponential smoothing dampening coefficient

, 54, 55–56

exponential smoothing forecast

, 47–53

financial information

, 8

financial ratios

, 133

forecast income statement and balance sheet

, 134

High-As-A-Kite (HAAK)

, 132

incremental net cash flows

, 65

initial public offering (IPO)

, 129

interaction variables

, 100–102

internal rate of return (IRR)

, 68–76

Junior Achievement (JA)

, 6, 8

Mean Absolute Percentage Error (MAPE)

, 54–59

measuring correlations

, 84–88

model optimization

, 95

moving average forecast

, 43, 46, 48

multivariable regression

, 85, 95

named ranges

, 9, 12, 14–15

net present value (NPV)

, 68–76

nonnumeric variables

, 95–97

packages

, 25

Park & Wash (See Park & Wash) payback period

, 68–76

present value of cash flows

, 140, 143

reasonable forecast assumptions

, 133–134

relationships

, 81–82

scatterplots

, 43–44, 82–85

Screw-It case facts

, 107–109

sensitivity report

, 113–118, 123

share value and test sensitivities

, 140–147

Shoot-It unit production costs and sales volume

, 119

single-variable regression

, 85

variable costs

, 24

WTF Builders (WTF)

, 64

Cash flow budgets

, 243, 245

Cash flow metric

, 228–233

Causation

, 78

CHILL-DUDE income statement budget

, 251–256

Confidence interval

, 79

Contribution margin

, 22

Control decisions

, 291–306

Correlations

, 78

Cost functions

, 22–23

Cost of capital

, 62

forecasting assumptions

, 128

pro-forma financial statements

, 128

Cost of debt

, 63

Cost of equity

, 63

Cost-volume-profit (CVP) analysis

, 22

break-even model two-way data table

, 31, 34–36

break-even units and sales

, 31, 29

formulas

, 25, 27

goal seek

, 25, 28

one-way data table

, 25, 30–35

Cyclical sales pattern

, 41–42

Dashboard

, 195

Data access

, 150

Data analytic models

, 150–151, 152

data access

, 150

data analysis

, 151

data visualization

, 151

descriptive analytics

, 152

diagnostic analytics

, 152

predictive analytics

, 152

types

, 151–152

Data cleaning

, 156–159

Data engine

, 192, 195

Data tables

, 153–156

Data visualizations

, 151, 213–222

Data warehouses

, 150

Demonstration exercise

, 159–186

amortization table decisions

, 261–273

budget management decisions

, 244–252

case facts

, 159

definition

, 159

descriptive analytics

, 159–167

diagnostic analytics

, 172

financial dashboard decisions

, 191–200

food-stuff demographic data

, 161

give-it-to-me Entertainment (GIT-me)

, 201–239

numeric format

, 167, 172

Power Pivot

, 172–186

values function

, 167

Dependent variable

, 78

Descriptive analytics

, 152, 159–167

Diagnostic analytics

, 152, 172

Discounted cash flows (DCF)

, 62

Discount rate

, 62–63

Exponential smoothing dampening coefficient

, 54, 55–56

Exponential smoothing forecast

, 47–53

Feedback decisions

, 306–319

Financial dashboard decisions

common financial measures

, 190

dashboard principles

, 190

demonstration exercise

, 191–200

financial management techniques

, 191

give-it-to-me Entertainment (GIT-me)

, 191

internet-based content providers

, 191

relevant excel functionality

, 191

Financial management techniques

, 152–153

amortization table decisions

, 261

budget management decisions

, 243–244

data analytic models

, 152

financial dashboard decisions

, 191

interpretation

, 152

pivot tables

, 152

Financial model

, 4–5

communicate

, 4

data

, 4

demonstration exercises

, 5–6

development

, 4–5

Excel terminology

, 5

optimization

, 4

practices

, 5

problem definition

, 4

test

, 5

Food-stuff demographic data

, 161

Forecasting models

, 40

Functional redundancy

, 4

Give-it-to-me Entertainment (GIT-me)

business intelligence

, 200–201

dashboard

, 195, 200

database

, 192

data engine

, 192, 195

decisions

, 191–195

demonstration exercise

, 201–239

power business intelligence

, 201–205

references

, 195

High-As-A-Kite (HAAK)

, 132

Hurdle rate

, 62

Income statement budget

, 245, 247

Incremental cash flows

, 62

Independent variable

, 78

Initial public offering (IPO)

, 129

Interaction variables

, 97, 100–101

Internal rate of return (IRR)

, 62

Junior Achievement (JA)

, 8

Learning financial modeling

, 2–3

Linear programming

applications

, 106

demonstration exercise

, 107–118, 118–125

Excel functionality

, 107

history

, 106

machine hours (MH)

, 107

production scheduling

, 106

product mix

, 106

unit contribution margin (UCM)

, 106–107

Line of best fit

, 79

Machine hours (MH)

, 107

Mean Absolute Percentage Error (MAPE)

, 41, 54–59

Monte Carlo simulations

, 1

Monthly income statement budget

, 245, 247

Moving average forecast

, 43, 46–47, 49

MS-Excel

, 2, 261

applications

, 2–3

business valuations

, 129

capital budgeting

, 63

financial model

, 5

functionality

, 5, 23, 43

internal rate of return (IRR)

, 63

linear programming

, 107–108

net present value (NPV)

, 63

regression analysis

, 80

Solver

, 107–108

Multicollinearity

, 83

Multivariable regression

, 85, 95

Net present value (NPV)

, 62

Nonnumeric variables

, 95, 97

Numeric format

, 167, 172

Omega capital budgeting decision model

, 285–286

Park & Wash

, 24

break-even model

, 24, 26

cost-volume-profit (CVP) model

, 25, 27

expected fixed costs

, 24

variable costs

, 24–25

Participative budgeting

, 243

Payback period

, 61–62

Pearson moment correlation coefficient

, 78

Pivot tables decisions

data analytics

, 150–151

data warehouses

, 150

demonstration exercise

, 159–186

financial management techniques

, 152

relevant excel functionality (See Relevant excel functionality)

Planning decisions

, 279–291

Power business intelligence

cash flow metric

, 228–233

data visualizations

, 213–222

power query

, 206

profitability metric

, 228

ratio metric

, 222–228

return on equity metric

, 233

sales and income trends

, 233–239

Power Pivot

, 172–186

Power query

, 206

Predictive analytics

, 152

Profitability metric

, 228

Quality assurance (QA)

, 4

Ratio metric

, 222–228

Regression analysis

causation

, 78

confidence interval

, 79

correlations

, 78

demonstration exercise

, 80–102

Excel functionality

, 80

Pearson moment correlation coefficient

, 78

predictive model

, 79–80

p-values

, 78

regression equation

, 79

residuals plot

, 79

standard error

, 79

strength of relationships

, 78

Relevant excel functionality

budget management decisions

, 244

data cleaning

, 156–159

data tables

, 153–156

financial dashboard decisions

, 191

Residuals plot

, 79

Response variable

, 78

Return on equity metric

, 233

Screw-It

, 107–109

Seasonal sales pattern

, 41–42

Single-variable regression

labor hours

, 85, 92

machine hours

, 85–89

output

, 85, 94–95

production runs

, 85, 93

Standard error

, 79

Strategic budgeting

, 243

Target operating income (TOI)

, 23

Teaching financial modeling

, 3–4

Time series patterns

cyclicity

, 40

seasonal patterns

, 40

trending

, 40

Times series forecasting

, 39–41

cyclical sales pattern

, 41–42

demonstration exercise

, 43–59

Excel functionality

, 43

Mean Absolute Percentage Error (MAPE)

, 41

seasonal sales pattern

, 41–42

steps

, 42

trending sales pattern

, 41

Top-down budgeting

, 242

Trending sales pattern

, 41

Unit contribution margin (UCM)

, 23, 106

Unit variable cost (UVC)

, 23

Values function

, 167

Weighted average cost of capital (WACC)

, 3, 62

West Texas Intermediate (WTI)

, 40

WTF Builders (WTF)

, 64

best case outcome

, 68, 73

investment base case outcome

, 68, 72

scenario summary

, 68, 75

worst case outcome

, 68, 74

Zero-based budgeting

, 242