Microsoft Office Tutorials and References
In Depth Information
Financial Statements and Ratios
way to produce your own financial statements is to export the trial balance from your accounting
software package and use Excel to summarize the transactions for you. Figure 13-10 shows part
of a trial balance, which lists all the accounts and their balances.
Figure 13-10: A trial balance lists all accounts and balances.
Figure 13-11 shows a balance sheet that summarizes the balance sheet accounts from the trial
The class column of the trial balance is used to classify that account on the balance sheet or
income statement. The formula in cell B4 on the balance sheet is
The file financial statements.xlsx contains all the examples in this chapter and
can be found on the companion CD-ROM.
For all the accounts on the trial balance whose class equals Cash, their total is summed here. The
formula is repeated for every financial statement classification on both the balance sheet and
income statement. For classifications that typically have a credit balance — such as liabilities,
equity, and revenue — the formula starts with a negative sign. The formula for Accounts Payable,
cell B18, is