1. Here's a basic exercise that will help you understand what's going on in the modeling of financial statements.

Replicate the models in sections 3.2, 3.7, and 3.8. That is, enter the correct formulas for the cells and see that you get the same results as the book. (This turns out to be more of an exercise in accounting than in finance.

If you're like many financial modelers, you'll see that there are some aspects of accounting that you've forgotten!)