BM2109

Laboratory Exercise
Building Error Checks
Objectives:

At the end of the exercise, the students should be able to:

▪ Prepare a simple financial model with error checks.

Materials:

▪ MS Excel

Basic Principles:

Error Checks

Basic reconciliations can be built within a model. As much as possible, a well-built financial model should have
error checks included. It is to allow users or modelers to see at a glance if the formulas are calculating correctly.
For example, when creating management reports, the modeler may check the sum of each department’s report
adds to the company-wide total. This can be done by inserting a simple IF function or several other methods.

Procedures:
1. Open the 03 Laboratory Exercise 1 Template.xlsx.
2. Enter the information below and follow the correct formats and formula.

CELL DATA FORMAT FORMULA

D12 to O12 Arial, 10pt, Bold Insert =SUM(D7:D11) in cell D12.
Middle Align, Align right Then drag “fill handle” to cell O12.
Row Height: 12.50
Column Height: 12.50
D17 to O17 Arial, 10pt, Middle Align, Insert =D26-D11 in cell D17. Then
Align right drag “fill handle” to cell O17.
Row Height: 12.50
Column Height: 12.50
D18 to O18 Arial, 10pt, Bold Insert =D16-D17 in cell D18. Then
Middle Align, Align right drag “fill handle” to cell O18.
Row Height: 12.50
Column Height: 12.50
D20 to O20 Arial, 10pt, Middle Align, Insert D12-D18 in cell D20. Then drag
Align right “fill handle” to cell O20.
Row Height: 12.50
Column Height: 12.50
D21 to O21 Arial, 10pt, Middle Align, Insert =D25+D8+D10-D30-D16 in cell
Align right D21. Then drag “fill handle” to cell
Row Height: 12.50 O21.
Column Height: 12.50
D22 to O22 Arial, 10pt, Middle Align, Insert =D26-D11+D21-D17 in cell
Align right D22. Then drag “fill handle” to cell
Row Height: 12.50 O22.
Column Height: 12.50
D27 to O27 Arial, 10pt, Bold
Insert =D25-D26 in cell D27. Then
Middle Align, Align right
drag “fill handle” to cell O27.
Row Height: 12.50
Column Height: 12.50

03 Laboratory Exercise 1 *Property of STI

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 BM2109

3. Apply design to the sheets.

4. Refer to 03 Laboratory Exercise.xlsx for the structure of the output.
5. Save the excel file as “Surname_FMDExer3” and place it on the network drive.

Rubric for grading the output:

CRITERIA PERFORMANCE INDICATORS POINTS
Neatness and The spreadsheet has exceptional formatting, and the information is well-
20
Organization organized.
The spreadsheet formulas are well-developed and will correctly
Formulas 30
determine the needed information.
Titles, Labels, and
The spreadsheet contains clearly labeled rows and columns. 10
Headings
The spreadsheet provides a clear forecast and analysis of expenses
Content 40
and revenues.
TOTAL 100

03 Laboratory Exercise 1 *Property of STI

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