Business and Financial Models

Marsh, an accountant who has worked for various corporations and consultancies, explains techniques and processes used in business and financial models, with a focus on modeling a company and its investment decisions. He describes the stages in the development of a business and financial model; developing the research question and output definition; using visual thinking to develop fundamental questions; identifying inputs and scenarios; building a simple business model; using Excel charts; modeling budgets, including sales, production-material, labor, and direct overhead budgets; how depreciation is calculated from fixed assets using spreadsheets; cash and cash modeling; investment appraisal models; the cost of capital; business valuation models; performance indicators; preparing a budgeted balance sheet, profit and loss statement, and ratio analysis; Excel's financial functions; building a model for a small start-up business; project models; integration and complexity; and business models for the green economy. Basic accounting and financial knowledge and familiarity with Excel is assumed. Annotation c2013 Book News, Inc., Portland, OR (booknews.com)