Business analysis with microsoft excel and power BI

About This E-Book EPUB is an open, industry-standard format for e-books However, support for EPUB and its many features varies across reading devices and applications Use your device or app settings to customize the presentation to your liking Settings that you can customize often include font, font size, single or double column, landscape or portrait mode, and figures that you can click or tap to enlarge For additional information about the settings and features on your reading device or app, visit the device manufacturer’s Web site Many titles include programming code or configuration examples To optimize the presentation of these elements, view the e-book in single-column, landscape mode and adjust the font size to the smallest setting In addition to presenting code and configurations in the reflowable text format, we have included images of the code that mimic the presentation found in the print book; therefore, where the reflowable format may compromise the presentation of the code listing, you will see a “Click here to view code image” link Click the link to view the print-fidelity code image To return to the previous page viewed, click the Back button on your device or app Business Analysis with Microsoft Excel Conrad G Carlberg Business Analysis with Microsoft Excel Copyright © 2019 by Pearson Education, Inc All rights reserved This publication is protected by copyright, and permission must be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights & Permissions Department, please visit www.pearsoned.com/permissions/ No patent liability is assumed with respect to the use of the information contained herein Although every precaution has been taken in the preparation of this book, the publisher and author assume no responsibility for errors or omissions Nor is any liability assumed for damages resulting from the use of the information contained herein ISBN-13: 978-0-7897-5958-0 ISBN-10: 0-7897-5958-6 Library of Congress Control Number: 2018960904 01 18 Trademarks All terms mentioned in this book that are known to be trademarks or service marks have been appropriately capitalized Que Publishing cannot attest to the accuracy of this information Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark Warning and Disclaimer Every effort has been made to make this book as complete and as accurate as possible, but no warranty or fitness is implied The information provided is on an “as is” basis The author and the publisher shall have neither liability nor responsibility to any person or entity with respect to any loss or damages arising from the information contained in this book Special Sales For information about buying this title in bulk quantities, or for special sales opportunities (which may include electronic versions; custom cover designs; and content particular to your business, training goals, marketing focus, or branding interests), please contact our corporate sales department at corpsales@pearsoned.com or (800) 382-3419 For government sales inquiries, please contact governmentsales@pearsoned.com For questions about sales outside the U.S., please contact intlcs@pearson.com Editor-in-Chief Brett Bartow Acquisitions Editor Trina MacDonald Development Editor Charlotte Kughen Managing Editor Sandra Schroeder Senior Project Editor Tonya Simpson Indexer Erika Millen Proofreader Lori Eby Technical Editors John Hagens Errin O’Connor Editorial Assistant Cindy Teeters Cover Designer Chuti Prasertsith Compositor codemantra Contents at a Glance Working with Income Statements Balance Sheet: Current Assets Valuing Inventories for the Balance Sheet Summarizing Transactions: From the Journals to the Balance Sheet Working Capital and Cash Flow Analysis Statement Analysis Ratio Analysis Budgeting and Planning Cycle Forecasting and Projections 10 Measuring Quality 11 Examining a Business Case: Investment 12 Examining Decision Criteria for a Business Case 13 Creating a Sensitivity Analysis for a Business Case 14 Planning Profits 15 Making Investment Decisions Under Uncertain Conditions 16 Fixed Assets 17 Importing Business Data into Excel 18 Exporting Business Data from Excel 19 Using Excel 2016 and Power BI to Analyze QuickBooks Data 20 Analyzing Contributions and Margins 21 Pricing and Costing Index Contents 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 Summary 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 Summary 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 FIFO LIFO Handling Purchase Discounts Calculating Turns Ratios Summary 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 Summary 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 Summary 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 Summary 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 Summary Budgeting and Planning Cycle Creating Pro Forma Financial Statements ... About Power BI Power BI Desktop Power BI Service and Mobile Apps Summary Balance Sheet: Current Assets Designing the Balance Sheet Understanding Balance Sheet Accounts Understanding Debit and Credit... viewed, click the Back button on your device or app Business Analysis with Microsoft Excel Conrad G Carlberg Business Analysis with Microsoft Excel Copyright © 2019 by Pearson Education, Inc All... 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