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01 - ABATT - Session 01.ppsx
01 - ABATT - Session 01.ppsx
Objectives
In this session, you will learn to:
Identify the meaning and use of financial statements
Examine various data analysis tools in Microsoft Excel
Examine various techniques to present financial data using Excel
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Advanced Business Analysis: Tools and Techniques
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Advanced Business Analysis: Tools and Techniques
Just a Minute
Which of the following statistical measures is NOT obtained by a 5-number
summary analysis?
a. Average
b. Median
c. Mode
d. Quartiles
Solution
c. Mode
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Advanced Business Analysis: Tools and Techniques
The figure shows the calculation of the effective interest rate using the EFFECT
formula.
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Advanced Business Analysis: Tools and Techniques
Just a Minute
What is the NPERY factor for calculating the effective rate of interest of a
bi-annual compounding government bond?
a. 2
b. 4
c. 6
d. 12
Solution
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Advanced Business Analysis: Tools and Techniques
Summary
In this session, you learned that:
Financial statements are used by the financial managers to analyze and present
financial data in a user-friendly manner.
Various Excel tools help the finance manager to analyze and present the financial
data to various end users in an effective manner.
Important Excel tools and techniques for data analysis and interpretation are:
Creating a 5-number summary for financial analysis
Analyzing financial data via repetition
Charting financial frequency trending with a histogram
Calculating depreciation of assets
Calculating the effective interest rate
Importing data lists from the Web
Debtors ageing analysis
Creditors ageing analysis
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Summary (Contd.)
A 5-number summary helps to shrink an enormous data set down to simple
numbers.
A histogram is used as a tool for frequency distribution plotting.
It is possible to import important data from the Web directly to Excel tables.
Analyzing financial data via repetition helps to create a visual chart on the number of
occurrences of an incident.
Debtors ageing analysis and creditors ageing analysis categorize a company’s
receivables and payment into various time buckets, which helps the management to
take various important decisions.
Common methods used to calculate depreciation are:
Straight Line method
Reducing balance method
Fixed percentage method
Excel can calculate depreciation by using the Straight Line method.
You can calculate the effective interest rate by using the EFFECT formula.
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What’s Next
Before the next session, please ensure to:
Read the following chapter from Book 1:
Chapter 2, “Concepts of Value and Return”
Cover the following topic in the e-learning session:
Financial Management: An Overview
Complete the assigned task for the project.
Attempt the Lab@Home exercises by clicking on the respective Lab@Home session
on the technology space on Cloudscape.
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