Build cross‑sheet links and statement checks in the real workbook
Build the Cross-Sheet Links in Your Workbook
Open the student workbook and build the three critical links plus integrity checks. By the end of this phase, all three statements should update together when you change one number.
Step 1: Link Net Income to Retained Earnings
On the Balance Sheet tab, find the Retained Earnings section. In the cell for “Net Income added this period,” enter:
='Income Statement'!B12
Verify: The cell should show the same Net Income number from the Income Statement.
Step 2: Link Ending Cash to the Balance Sheet
On the Balance Sheet tab, find the Cash line under Current Assets. Replace the hard-coded number with:
='Cash Flow'!B20
Verify: Cash on the Balance Sheet should now match Ending Cash on the Cash Flow Statement.
Step 3: Link Beginning Cash on the Cash Flow Statement
On the Cash Flow tab, find Beginning Cash. Link it from the Balance Sheet:
='Balance Sheet'!B4
Verify: Beginning Cash on the Cash Flow Statement matches the prior period Cash on the Balance Sheet.
Step 4: Add Integrity Checks
On the Balance Sheet tab, add these three checks below the main statement:
Balance Check: =IF(ABS(TotalAssets - (TotalLiab + TotalEquity)) < 0.01, "OK", "CHECK")
Cash Tie: =IF(ABS(BalanceSheetCash - CashFlowEndingCash) < 0.01, "OK", "CHECK")
RE Roll-forward: =IF(ABS(EndingRE - (BeginningRE + NetIncome)) < 0.01, "OK", "CHECK")
Verify: All three checks should display “OK” in green.
Test your links:
- Change Revenue on the Income Statement from $16,500 to $18,000
- Check that Net Income updates on the Income Statement
- Check that Retained Earnings updates on the Balance Sheet
- Check that the Balance Check still shows “OK”
- If any check shows “CHECK”, review your formulas for typos
- #REF! error: The sheet name is wrong or the cell reference is invalid. Check the tab name exactly.
- Wrong number showing: You may have linked to the wrong cell. Compare the source cell value to what appears.
- Check shows “CHECK”: The statements don't tie. Review each link and verify the source cells are correct.
- Number did not update: Make sure the formula starts with = and references the correct sheet name with single quotes.
- Net Income on the Income Statement links to Retained Earnings on the Balance Sheet
- Ending Cash on the Cash Flow Statement links to Cash on the Balance Sheet
- Beginning Cash on the Cash Flow Statement links from the Balance Sheet
- All three integrity checks display “OK”
- Changing one number on the Income Statement causes visible updates on the other two tabs
- Save your completed workbook as unit03-lesson05-[YourName].xlsx