Chapter_03

# Chapter_03 - Ross Westerfield and Jordan's Spreadsheet...

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by Brad Jordan and Joe Smolira Version 9.0 Chapter 3 In these spreadsheets, you will learn how to use The following conventions are used in these spr 1) Given data in blue 2) Calculations in red NOTE: Some functions used in these spreadsheets may the "Analysis ToolPak" or "Solver Add-In" be installed in To install these, click on the Office button then "Excel Options," "Add-Ins" and select "Go." Check "Analysis ToolPak" and "Solver Add-In," then click "OK." Ross, Westerfield, and Jordan's Spreadsheet Master Fundamentals of Corporate Finance, 9th edition IF SUMIF Absolute references Text boxes Shapes and lines Conditional formatting

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e the following Excel functions: readsheets: y require that in Excel.
Chapter 3 - Section 1 Cash Flow and Financial Statements: A Closer Look Below, we have the balance sheets for Prufrock Corporation. Each account also has a calc Pru 2008 2009 Change Current assets Cash \$84 \$98 \$14 Accounts receivable 165 188 23 Inventory 393 422 29 Total \$642 \$708 \$66 Fixed assets Net plant and equipment \$2,731 \$2,880 \$149 Total assets \$3,373 \$3,588 \$215 RWJ Excel Tip 2008 an We would like to construct a sources and uses statement; however, a strict sources and us end up with a lot of empty rows in both the sources and uses sections. Instead, we will cal cash, a decrease in an asset is a source of cash, an increase in a liability is a source of ca denote a use of cash and positive numbers to denote sources of cash. The column labeled decrease in that account. IF statements are used for a logical test. The IF function is located under Logical. The bas IF statement, we determine the possible conditions first, then determine what value we wa case, our possible conditions are that the each account will be a source of fund or a use of neither a source or use of funds in this example.) If an asset account increases in value, it So, for the account we will test if each account increased in value or not. If it did increase i as a source of funds. To have an IF statement return text, simple put the text in parenthese

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Account Increase in accounts receivable is a use of cash: Increase in inventory is a use of cash: Increase in fixed assets receivable is a use of cash: Increase in accounts payable is a source of cash: Decrease in notes payable is a use of cash: Decrease in long-term debt is a use of cash: Increase in common stock is a source of cash: Increase in retained earnings is a source of cash: We would also like a total of the sources and uses of cash. A simple sum will not work, but RWJ Excel Tip To sum only the positive numbers and sum only the negative numbers, we used the SUMI input box we used for the sources of cash we used looks like this:
Sources of cash: Uses of cash: Net additions to cash: The income statement for Prufrock, which we will use later on, is: Tax rate 34% Prufrock Corporation 2009 Income Statement Sales \$2,311 Cost of goods sold 1,344 Depreciation 276 Earnings before interest and taxes \$691 Interest paid 141 Taxable income \$550 Taxes 187 Net income \$363 Dividends \$121 Additions to retained earnings 242

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culation column to show the change in that account. ufrock Corporation
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Chapter_03 - Ross Westerfield and Jordan's Spreadsheet...

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