FIN3704 ASSESSMENT 2 SEM 2 OF
2025 EXPECTED SOLUTIONS ON
EXCEL
QUESTION 1
1.1 What Excel functions can you use to gather and analyse financial statement data?
Name two.
, 1. SUM(): This is a fundamental function used to calculate totals for key line items, such as
Total Revenue, Total Expenses, Total Assets, and Total Liabilities & Equity on balance sheets.
2. Vertical Lookup (VLOOKUP() or XLOOKUP()): These functions are used to retrieve specific
data points from a large financial dataset. For example, you could use them to find the "Cost
of Sales" or "Net Profit" figure from an imported income statement table based on the account
name.
1.2 When constructing a cash budget in Excel, what key components and factors must
be considered? Name two.
1. Opening and Closing Balances: The closing cash balance for one period must become the
opening cash balance for the next period. This creates a continuous and rolling budget.
2. Timing of Cash Flows (Receipts and Disbursements): It is crucial to record cash inflows (from
sales, etc.) and outflows (for expenses, purchases, loan payments, etc.) in the correct period
they are expected to be received or paid, not when the sale or expense is incurred (accrual
accounting).
1.3 Describe any two steps for projecting financial performance in Excel using
historical data.
2025 EXPECTED SOLUTIONS ON
EXCEL
QUESTION 1
1.1 What Excel functions can you use to gather and analyse financial statement data?
Name two.
, 1. SUM(): This is a fundamental function used to calculate totals for key line items, such as
Total Revenue, Total Expenses, Total Assets, and Total Liabilities & Equity on balance sheets.
2. Vertical Lookup (VLOOKUP() or XLOOKUP()): These functions are used to retrieve specific
data points from a large financial dataset. For example, you could use them to find the "Cost
of Sales" or "Net Profit" figure from an imported income statement table based on the account
name.
1.2 When constructing a cash budget in Excel, what key components and factors must
be considered? Name two.
1. Opening and Closing Balances: The closing cash balance for one period must become the
opening cash balance for the next period. This creates a continuous and rolling budget.
2. Timing of Cash Flows (Receipts and Disbursements): It is crucial to record cash inflows (from
sales, etc.) and outflows (for expenses, purchases, loan payments, etc.) in the correct period
they are expected to be received or paid, not when the sale or expense is incurred (accrual
accounting).
1.3 Describe any two steps for projecting financial performance in Excel using
historical data.
