Instructor for this course
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In this on-demand course, Excel expert David Ringstrom, CPA, brings his prior commercial real estate experience to the forefront by walking you through assembling a waterfall calculation from scratch. He begins with a blank worksheet and details every input and formula. Waterfall calculations are used to allocate cash flow among two or more partners based on their agreed-upon return parameters. David covers such concepts as range names, although he provides cell-address references you can use in lieu of range names if you so desire. He contrasts using the IRR worksheet function versus the XIRR worksheet function for computing investment returns. Additional worksheet functions—MIN, ROUND, DATE, SUMIF, and others—are included in the discussion. Check figures are used extensively throughout the model to ensure data integrity. Check figures also empower users to easily follow the calculations through the tiers. 

David demonstrates every technique at least twice: first, on a PowerPoint slide with numbered steps, and second, in the subscription-based Office 365 version of Excel. David draws your attention to any differences in the older versions of Excel (2019, 2016, 2013, and earlier) during the presentation as well as in his detailed handouts. David also provides an Excel workbook that includes most of the examples used in the course.

Office 365 is a subscription-based product that provides new-feature updates as often as monthly. Conversely, the perpetual licensed versions of Excel have feature sets that don’t change. Perpetual licensed versions have year numbers, such as Excel 2019, Excel 2016, and so on.

Topics Covered:

  • Summarizing the investment parameters to be incorporated into a waterfall calculation.
  • Building a waterfall calculation from scratch, starting with a blank worksheet.
  • Using range names to streamline formulas and bookmark key inputs within a workbook.
  • Utilizing Excel’s Name Manager feature to review and manage named ranges within a workbook.
  • Building a series of dates with the Fill Series command.
  • Improving the integrity of spreadsheets by using SUMIF to look up values in a more flexible fashion than VLOOKUP.
  • Building a series of self-updating dates with Excel’s DATE function.
  • Writing formulas by choosing named ranges with the Use In Formula command, thereby saving you time.
  • Incorporating decisions into calculations with Excel’s IF function.
  • Saving time by using the AutoSum formula to sum multiple columns at once with a mouse click or a keyboard shortcut.
  • Computing the internal rate of return for a series of cash flows with the IRR function.
  • Understanding how XIRR provides more accurate return calculations than IRR.
  • Computing returns on irregular cash flow distributions when needed.
  • Maximizing worksheet cells by using custom number formats to display text within cells that contain numeric values.
  • Returning the smallest value from two or more amounts by way of the MIN function.
  • Applying formatting to multiple locations within a worksheet by way of the Format Painter feature.
  • Using Excel’s ROUND function to round numbers to the nearest 10, 100, 1000, or beyond.

Learning Objectives

  • Discover the keyboard shortcut that enables you to transfer the contents of a cell across a row of adjacent cells that you’ve selected.
  • Identify which keyboard shortcut allows you to toggle the Bold settings for a cell or the selection of text on or off.
  • Recognize the location of the Name Manager command within Excel’s ribbon interface.
Last updated/reviewed: November 7, 2019

Included In Certifications

This course is included in the following Certification Programs:

17 CoursesCertified Excel Modeler

  1. Excel Efficiency: VLOOKUP
  2. Excel Efficiency: Logic Functions
  3. Excel Efficiency: Filtering and Formatting Data
  4. Excel Efficiency: Intermediate Pivot Tables
  5. Excel Efficiency: Auditing Spreadsheets
  6. Excel Efficiency: Minimizing Worksheet Errors
  7. Excel Efficiency: Workbook Links
  8. Excel Efficiency: What-If Analysis
  9. Excel Efficiency: Quick and Easy Financial Statements in Excel
  10. Excel Efficiency: Budget Spreadsheets
  11. Hands-On Excel: Waterfall Calculations
  12. Excel Efficiency: Table Feature
  13. Excel Efficiency: Intro to Macros Part 1
  14. Excel Efficiency: Intro to Macros Part 2
  15. Excel Efficiency: Excel Chart Speed Tips
  16. Excel Efficiency: Taming Large Spreadsheets
  17. Excel Efficiency: Internal Controls

4 Reviews (17 ratings)Reviews

5
Member's Profile
As a CPA working in the private sector (real estate) I really appreciate being able to get my required CPE through classes that are specialized like this and not just the usual Tax and Audit courses I usually find.
5
Member's Profile
very helpful. I actually liked the speed too. I get bored in Excel classes too easily and this one kept me moving.
5
Member's Profile
Great course because it provides practical real-world calculation. Lots of tips and handy tricks too.
4
Anonymous Author
informative course about calculations and the xirr functions in excel

Prerequisites

Course Complexity: Advanced

Experience building cash flow models or other detailed spreadsheets in Microsoft Excel.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  12:08Introduction to Hands-on Excel: Waterfall Calculations
  11:58Add Formulas and Range Names
  8:34Cash Flow Worksheet/Fill Series Command
  8:25Frame Out Cash Flow Section/DATE Function
  9:56Operating Cash Flow/IF Function
  10:38Introduction to XIRR Function
  10:00Hurdle 1 Section
  8:08Format Painter Features/ROUND Function
  14:10Framing Out Hurdle 2 Calculations
  7:42Rounding IRR/ROUND Function
  10:23Calculating Disposition Fee/MIN Function
  11:41Partner 1 Summary
CONTINUOUS PLAY
  2:03:42Hands-on Excel: Waterfall Calculations
SUPPORTING MATERIALS
  PDFSlides: Hands-On Excel: Waterfall Calculations
  PDFHands-On Excel: Waterfall Calculations Glossary/Index
  XLSXWorkbook: Hands-On Excel: Waterfall Calculations
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM