Financial Analysis with Microsoft Excel, 4th Edition - Download as DOC

							Financial Analysis with Microsoft Excel, 4th Edition
Corrections and additional data:
    1.   Page 5, Under formula bar: “formula bar is one its” should be “formula bar is one of its”.
    2.   Page 25, last sentence: “select the…)” should point out the User Defined doesn‟t appear until the
         add-in is installed.
    3.   Page 29, last paragraph: After “follow the prompts exactly” need to make clear that they need to
         choose to insert chart in sheet 1.
    4.   Page 35, 3rd paragraph, last sentence: change “the copy” to “then copy”.
    5.   Page 56, second to last sentence: “less than zero” should be “less than one”.
    6.   Page 57, 4th paragraph: “financial statement” should be plural.
    7.   Pages 63 and 64: References to „Income Statement‟!C15 should read „Income Statement‟!B15 and
         references to „Income Statement‟!C10 should read „Income Statement‟!B10.
    8.   Page 104, problem 2: Ending cash balance for July is not given in problem 2. It should be
         $30,000.
    9.   Page 131, 2nd paragraph: The formula should be: =1.2*('Balance Sheet'!B8-'Balance
         Sheet'!B17)/'Balance Sheet'!B12+1.4*('Balance Sheet'!B21/'Balance Sheet'!B12)+3.3*('Income
         Statement'!B11/'Balance Sheet'!B12)+0.6*(C29/'Balance Sheet'!B19)+('Income
         Statement'!B5/'Balance Sheet'!B12). The reference to „Balance Sheet”!C17 should have been
         „Balance Sheet”!B17.
    10. Page 144, problem 1 d: Last sentence should say “Spacely‟s” not “Aspen‟s.”
    11. Page 145, problem 2 a: It should be noted that the inventory turnover ratio is calculated using cost
        of goods sold instead of sales. This becomes obvious as you proceed through the problem, but it
        isn‟t at first.
    12. Page 152: There could be some confusion regarding the formula at the bottom of the page. It
        makes references to both the Income Statement and Pro Forma Income Statement worksheets. It
        could have accomplished the same result with reference to only the Pro Forma Income Statement
        worksheet. Students need to carefully follow all of the steps in the chapter and pay very close
        attention to the details.
    13. Page 166: There should be a note about a limitation of the Regression tool in the Analysis
        ToolPak. It only works when the data are in columns, not rows. All examples in the text use data
        in columns, but it is never noted that you can‟t use row-oriented data.
    14. Page 174, Problem 1 b: The question should say that the “DFN will be absorbed by long-term
        debt.” Common stock should be excluded because there isn‟t enough data to use common stock
        unless several assumptions are made.
    15. Page 174, Problem 1 b: The student should have been given an interest rate to use for long-term
        debt. This is only an issue when using iteration. I calculated net interest expense of 4.65% using
        last year‟s interest expense divided by Long-Term Debt + Short-term Debt – Cash.
    16. Page 190, second paragraph: The DFL formula for cell B37 should be =B8/(B10-B14/(1-B25)). It
        currently references B23 for the tax rate when it should be B25.
    17. Page 265, Problem 3: There is no number of common shares given. I used 200,000. The problem
        doesn‟t specifically ask for a per share value, but it is implied.
    18. Page 285, third line: In the formula, there should be a comma after the B$2 in the EDate function.
        It should be =PRICE(B$2,EDATE(B$2,$A39*12),B$5,B$6,B$7,B$9,B$10)*10.
    19. Page 370, Problem 1: The WACC was not given in the problem. It should be 15%.