Project Finance and Excel - Build Financial Models from Scratch - Building the Balance Sheet

The video tutorial guides viewers through building a balance sheet in Excel, covering the setup of assets, liabilities, and equity. It explains how to use Excel formulas to calculate values and ensure the balance sheet balances. The tutorial also includes tips on formatting and checking for errors, providing a comprehensive overview of creating a financial statement.

What is the first step in setting up a balance sheet in Excel?

• Importing data from the P&L statement

• Calculating the total assets

• Setting up conditional formatting

• Creating a new Excel sheet and naming it

Where can the closing value of assets be found?

• In the cash flow statement

• In the amortization sheet

• In the liabilities section

• In the P&L statement

What issue is addressed when calculating equity in the balance sheet?

• Overestimation of debt

• Incorrect sum of all previous years' equity

• Misplacement of cash in hand

• Wrong formula for retained earnings

How is the balance of retained earnings calculated?

• By subtracting dividends from net profit

• By adding net profit and dividends to previous retained earnings

• By multiplying net profit by the number of years

• By dividing net profit by total assets

What is the purpose of the 'check' row in the balance sheet?

• To list all equity values

• To find the net profit

• To ensure assets equal liabilities

• To calculate total liabilities

What happens if the balance sheet does not balance?

• The sheet is highlighted in blue

• The balance sheet is automatically corrected

• A false value is shown in the check row

• The total assets are recalculated

What visual aid is used to indicate a balanced sheet?

• A yellow border

• A blue underline

• A red highlight

• A green highlight