This time I will look a bit more in depth on how to use Microsoft Excel for financial calculations.
How can I use Excel to get the best out of my data?
Chances are that you are going to have to look into the data that you have entered again in a year or two years.
So how do I organize a spreadsheet so that I can see what I’ve done when I come back?
Excel is a very powerful tool once you know how to use it.
The secret is called labeling and with that I mean to properly label all the cells in order to easily be able to go back and change.
But to start off this chapter I will discuss some financial metrics and why they are important.
So why is it an exciting time to study finance?
The reason is that we had a financial crisis in 2009 and still to this day we are seeing the repercussions of that meltdown.
We all got into a lot of trouble and the financial institutions that we depend on for our daily lives lost a lot of money.
Some of the questions that people are asking themselves in the aftermath of the financial crisis are:
- Can markets really allocate resources efficiently?
- Are markets efficient?
- Are people always acting rationallly?
These are questions that people in finance and economics assumed they had the answer to for years, but now they are getting more cautious.
What I will be talking about in this chapter is:
- The reason why the corporation is an efficient business form.
- The structure of a corporation.
- The fundamental accounting equation: Assets = Liabilities + Equity.
- Define what finance is.
- The goal of financial management.
- Why we are studying finance.
- What the key questions in finance are.
- Define financial markets (primary and sceondary) and why they are important.
- What is the importance of cash flow.
The first part in using Microsoft Excel as a finance tool can be found here.
The post How to use Microsoft Excel as a finance tool – part 2 appeared first on LJ Nissen's blog.