Enstruct is committed to being the premier source of financial modeling instruction and is offering free downloads to make methodologies more accessible to anyone interested in learning. The current month’s download is available below.
Current Month’s Download: IS/BS Circularity
One critical problem people have in understanding models is how to automatically balance the assets, liabilities, and equity. This simplified example shows a method of setting up a balancing system by calculating a surplus and short term debt. For this system to work correctly we are setting up a circular reference on purpose and must have the Iterations box checked under Excel Options.
The Excel file can be downloaded by clicking here.