Continuing simple models with balance sheets

Financial Modeling in Google Sheets

Erin Buchanan

Professor

What is a balance statement?

Balance statements contain three important parts:

  • Assets: Accounts receivable, inventory, equipment, depreciation
  • Liabilities: Accounts payable, debt, deferred income tax
  • Equity: Paid-in capital and retained earnings
Financial Modeling in Google Sheets

Example balance statement

Balance Sheet Example

Financial Modeling in Google Sheets

Completing the model

Convert the cells into financial format:

Highlight cells -> Format -> Number -> Financial

Balance Formating

Create sums for each section:

=sum(all subsection cells)

Balance Formulas

Financial Modeling in Google Sheets

Common size statements

  • Convert statements into percentages for comparison
  • Convert income statements to a percentage based on sales
  • Convert balance statements based on assets and equity/liabilities
Financial Modeling in Google Sheets

Create common size models

Common Size Formulas

Common Size Input

Financial Modeling in Google Sheets

Model a balance statement!

Financial Modeling in Google Sheets

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