MMS Excel Model: Entries and Financial-Statement Effects

Topics:

  • Mighty Mascot Software (MMS) Company entries using BSE mini-matrix and journal entries
  • Financial statement effects for each entry:Balance sheet, Income statement, Indirect cash-flow statement

Mighty Mascot Software is a fictitious software company. This Excel model provides pro-forma first-year financial statements, meaning statements that are estimated for planning purposes prior to the start of the first year. Start-up companies such as MMS often include monthly, quarterly, and annual pro-forma statements in their business plans and the Computations sheet in this Excel model derives the monthly estimates that would be used for such statements. However, this Excel model reports annual statements only. The pro-forma record-keeping entries that are used to create these statements are based on the annual financial measures, which aggregate monthly data from the Computation sheet.

How can you use the MMS Model? You can check your record keeping entries and determine how each entry affects the balance sheet, income statement, and the cash-flow statement. In addition, you can easily identify the entries that affect an account, which is an essential skill for reverse engineering these entries for real companies.

Prior to using the MMS Model, students often have the misconception that they record entries into the Excel file. Instead, you record entries manually on paper and check your answers against entries recorded in the model.

To record entries, use the chart of accounts and descriptions of MMS's entries.  Then check your answers in the model as described in the Excel Model Reference document below.

Model:

MMS Model [xls]    You must enable macros.


Additional Materials:

Excel Model Reference [pdf]

Accounts: MMS's chart of accounts [pdf]            EntryInputs: Event descriptions [pdf] 

Balance sheet [pdf]

Income statement [pdf]

Indirect cash-flow statement [pdf]

 

Recently, the Mac version of Microsoft Excel no longer supports Visual Basic macros.
Unfortunately, the MMS Excel Model requires macros. Hopefully you have access to a PC.

 

Also see:

Cardinal Excel Model

Eagle Excel Model

 

 

 

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