How To Use Excel In A Spreadsheet Program

Transcription

1 CT2 Computer Tutorial Printing 5th Edition Spreadsheets Using Microsoft Excel 2007

2 Certified General Accountants Association of Canada North Fraser Way Burnaby, British Columbia Canada V5J 5K7 CGA-Canada, 2010, 2009, 2008, 2005, 2004, 2002, 2000, 1998, 1997 All rights reserved. These materials or parts thereof may not be reproduced or used in any manner without the prior written permission of the Certified General Accountants Association of Canada. Printed in Canada

3 ABOUT CGA-Canada CGA-Canada today CGA is the fastest-growing accounting designation in Canada. The CGA designation focuses on integrity, ethics and the highest education requirements. Recognized as the country s accounting business leaders, CGAs provide strategic counsel, financial leadership, and overall direction to all sectors of the Canadian economy. The Certified General Accountants Association of Canada CGA-Canada sets standards, develops education programs, publishes professional materials, advocates on public policy issues, and represents CGAs nationally and internationally. The Association represents 73,000 CGAs and students in Canada, Bermuda, the Caribbean, Hong Kong and China. Mission A proud history CGA-Canada advances the interests of its members and the public through national and international representation and the establishment of professional standards, practices, and services. CGA-Canada was founded in Montréal in 1908 under the leadership of John Leslie, vicepresident of the Canadian Pacific Railway. From the beginning, its objective was to encourage improvement in skills and job performance a goal the Association holds to this day. Structure and roles On April 14, 1913, Canada s Parliament passed the Act that incorporated CGA-Canada as a self-regulating professional Association. Over the decades that followed, branches became associations in their own right, affiliated with the national body. A revised Act of Incorporation, passed in 1999, updated CGA-Canada s powers and reflected the Association s objectives and initiatives for the next millennium. The Act also established a French name for CGA-Canada Association des comptables généraux accrédités du Canada. CGA-Canada is governed by a Board of Directors that includes regional representation as well as a public representative. An Affiliation Council, comprised of representatives of each CGA affiliate, sets the strategic plan of CGA-Canada and approves national policy. Individual CGAs are represented nationally through CGA-Canada, and regionally through their provincial/territorial/regional associations and local chapters. The Association: ensures national recognition for the profession and advocates on policy issues of concern to the profession raises the profile of the CGA designation and represents members internationally sets national educational standards, and develops and maintains an internationally competitive program of professional studies and examinations to certify CGAs in Canada and overseas provides a range of services to affiliates and members iii

4 contributes to the profession s body of knowledge through research and participation in international accounting organizations, particularly the International Federation of Accountants (IFAC) Nationally and internationally, CGA-Canada contributes to accounting standard-setting by sharing its research findings and views. The Association also contributes to public policy discussions, advocating for the interests of its members and the public. As a self-regulating organization, CGA-Canada also sets high standards of professionalism through its own Code of Ethical Principles and Rules of Conduct for members. This comprehensive set of rules and guidelines protects the public interest and ensures that CGAs maintain the highest ethical standards. Education and professional development For more information CGA-Canada s competency-based education program has long been acknowledged as a leader among distance learning education programs. Innovative technology is used not only in the delivery of the program, but is incorporated into the curriculum content as well. Similarly, ethical principles are also integrated throughout the curriculum. An education partnership with Laurentian University offers students options for meeting the mandatory degree requirement. Mandatory continuing professional education ensures that CGAs maintain their professional edge. CGA-Canada provides professional development opportunities in public practice, ethics, accounting and auditing standards, business valuation, taxation, and other topics. The Professional Development Network PD Net developed collaboratively with CGA affiliates, is an extensive and powerful online information resource for members. More information about CGA-Canada is available on its website at iv

5 Contents: Computer Tutorial 2 (Excel 2007) About CGA-Canada... Preface... Trademarks... The CGA computer tutorials... iii ix ix x Introduction to Computer Tutorial Lesson 1 Overview of Excel Lesson 2 Excel Help Lesson 3 Cells and styles 1.1 Definition and use of a spreadsheet program.... 1:1 1.2 Differences between a paper-and-pencil worksheet and a computer worksheet... 1:2 1.3 Plan, build, and verify... 1:4 1.4 Microsoft Excel... 1:4 1.5 The Excel window... 1:7 1.6 Excel ribbons... 1: Printing in Excel... 1: Saving workbooks and exiting Excel... 1: Self-testing questions... 1: Help contents... 2:1 2.2 Searching for Help topics... 2:3 2.3 Using context-sensitive Help... 2:5 2.4 Self-testing questions... 2:7 3.1 Selecting cells and ranges... 3:1 3.2 Entering data and simple formulas... 3:4 3.3 Changing formats... 3:8 3.4 Working with styles... 3: Previewing and printing worksheets and formulas... 3: Using Excel Help... 3: Self-testing questions... 3:19 v

6 Lesson 4 Editing cells and ranges Lesson 5 Workbooks and sheets Lesson 6 Formulas and functions 4.1 Copying cells and ranges... 4:1 4.2 Moving cells and ranges... 4:5 4.3 Inserting and deleting rows and columns.... 4:6 4.4 Inserting and deleting cells... 4:8 4.5 Finding and replacing cells... 4:9 4.6 Spell checking... 4: Naming ranges... 4: Deleting names... 4: Printing ranges... 4: Using Excel Help... 4: Self-testing questions... 4: Creating and opening workbooks... 5:1 5.2 Saving and closing workbooks... 5:6 5.3 Inserting and deleting sheets... 5:8 5.4 Naming sheets... 5: Moving and copying between sheets... 5: Printing multiple sheets and workbooks... 5: Designing worksheets and workbooks in good style... 5: Using Excel Help... 5: Self-testing questions... 5: Excel formulas... 6:2 6.2 Logical operators... 6:5 6.3 Controlling calculations... 6:7 6.4 Relative and absolute references... 6:9 6.5 Circular references... 6: Excel functions... 6: Random number generation... 6: Insert Function... 6: The IF function... 6: Using Excel Help... 6: Self-testing questions... 6:24 vi

7 Lesson 7 Charts Lesson 8 Lists Lesson 9 Financial functions Lesson 10 Statistical functions 7.1 Basic concepts... 7:2 7.2 Creating and modifying a chart... 7:3 7.3 Two- and three-dimensional charts... 7:8 7.4 Formatting a chart... 7: Creating a chart sheet... 7: Printing charts... 7: Types of charts... 7: Designing charts in good style... 7: Using Excel Help... 7: Self-testing questions... 7: Basic concepts... 8:1 8.2 Using a data form... 8:2 8.3 Locating a record... 8:6 8.4 Sorting a list... 8:8 8.5 Using lookup functions... 8: Filtering a list... 8: Using Advanced Filter... 8: Extracting filtered records... 8: Using Excel Help... 8: Self-testing questions... 8: Basic concepts... 9:2 9.2 Future value and present value... 9:6 9.3 Net present value... 9:9 9.4 Ordinary annuities and annuities due... 9: Principal and interest... 9: Compounding periods... 9: Interest rates... 9: Internal rate of return... 9: Amortization functions... 9: Using Excel Help... 9: Self-testing questions... 9: Basic concepts... 10: Descriptive statistics using Excel functions... 10: Descriptive statistics using data analysis tools... 10: Using the FREQUENCY function... 10: Creating a histogram... 10: Studying correlations... 10: Performing a regression analysis... 10: Using Excel Help... 10: Self-testing questions... 10:18 vii

8 Lesson 11 Pivot tables Lesson 12 Scenario Manager 11.1 Basic concepts... 11: Creating a simple pivot table... 11: Refreshing a pivot table... 11: Creating a pivot table with a page field... 11: Changing pivot table fields... 11: Formatting pivot table values... 11: Creating a pivot chart... 11: Using Excel Help... 11: Self-testing questions... 11: Basic concepts... 12: Creating multiple scenarios: One changing cell... 12: Displaying scenarios... 12: Editing and deleting scenarios... 12: Creating multiple scenarios: Several changing cells... 12: Creating a summary report... 12: Using Excel Help... 12: Self-testing questions... 12:11 Appendix A Solutions to self-testing questions... A:1 viii

9 Preface This tutorial is one of a set of CGA computer tutorials designed for hands-on study without the presence of an instructor. No computer experience is assumed. Through these tutorials, you can learn the basics of working with Microsoft Windows, the spreadsheet program Microsoft Excel, and the accounting program Sage Accpac ERP. The tutorials are designed in such a manner that you can learn them at your own pace in a few days if completed intensively, or over a longer period if a more leisurely pace is desired. These CGA tutorials are intended to help you learn to use computers and to become familiar with software that will be used in the CGA program of professional studies. If you are not familiar with the topics covered by the tutorials, you should study the tutorials before you enrol in Level 2 of the program. You will then be equipped to use the computer in your studies and be able to concentrate more effectively on course content. In order that students from a wide spectrum of experience will be able to complete the tutorials with little or no assistance, all instructions for hands-on exercises are specified in detail. After some practice, you may not require this level of detail, in which case you can use the instructions to check your proficiency. Trademarks Names of products mentioned in this tutorial are used in an educational context only. They are trademarks or registered trademarks of the companies indicated. Use of product names in this sense does not thereby indicate endorsement by the Certified General Accountants Association of Canada. ix

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11 The CGA computer tutorials Program requirements The CGA computer tutorials consist of: CT1 CT2 CT3 Copyright and professional ethics Windows Basics Spreadsheet Using Microsoft Excel Accounting Using Sage Accpac ERP When working with course materials in the CGA program of professional studies, you are expected to have acquired (through the indicated tutorials or otherwise): a. a minimum standard of competence and fluency in the set-up and operation of the basic computer system and printer and a working knowledge of the common file management commands b. a basic competence in working with Microsoft Windows [CT1] c. a basic competence in entering, manipulating, and presenting numerical data using the spreadsheet program Microsoft Excel [CT2] d. a basic competence in using the general ledger program Sage Accpac ERP [CT3] Although you can prepare a working copy for most computer programs, this does not give you the right to make copies to distribute or sell. Computer programs, like literary works, are the result of creative work; as such they are protected by copyright laws. You should honour the intellectual property rights of software publishers and refrain from distributing copies of software. This is particularly applicable to the educational versions of computer software used in the CGA program of professional studies. Software used in the CGA program of professional studies is provided to you under special discount arrangements. Distribution of copies of such software is illegal and unethical. Such action would reflect badly not only on your personal integrity, but also on that of other CGA students and members. xi

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13 Introduction to Computer Tutorial 2 (Excel 2007) Purpose The purpose of this tutorial is to present the basic features of Microsoft Excel that will enable you to create, edit, format, and print worksheets. This tutorial is designed for Microsoft Excel You must have access to this version of Excel in order to be able to work through this tutorial. Note: There are some minor differences in the appearance of the windows and dialog boxes among the different versions of Excel. Sometimes the buttons have slightly different names. However, you should have no difficulty working through the material in this tutorial. Minimum system requirements By working carefully through the tutorial, completing and checking the exercises and selftesting questions, you should learn the fundamental skills you will need for assignments in the CGA program of professional studies which support the use of Excel. However, you will need additional regular practice and more advanced application in order to become a fluent user. You are required to have access to a computer system and printer that meet the minimum or recommended system requirements specified in regional calendars or student handbooks. Your CGA regional office and the CGA-Canada website have the most current information about system requirements and recommendations for features to consider if you are making new purchases of equipment. Data files The Excel data files (workbooks) you will need to do the exercises in this course can be found at Software and supplies In addition to the access to a computer and printer meeting the minimum system requirements as described above, you will need for this tutorial the following software and supplies: Software Excel 2007 Note: Excel 2007 requires Windows Vista or Windows XP. This tutorial is primarily based on Excel 2007 running in Windows Vista. If you are using Windows XP, your screen may look a little different and there will be differences in the way Excel performs. Excel contains a handy feature called Interactive: Excel 2003 to Excel 2007 command reference guide. This feature allows you to click on a command using the Excel 2003 menus. You will then be shown where to find the equivalent command in the Excel 2007 ribbons. For more information on using this feature, refer to the Lesson 2 Overview. Computer Tutorial 2 Introduction 1

14 Supplies Prerequisite knowledge Reference material Overview any removable disk or storage device The material in this tutorial is based on the assumption that you have worked through the CGA Computer Tutorial 1 [CT1], or otherwise gained a working knowledge of its content. In particular, you must be quite familiar with the terms, concepts, and basic skills required to work with Windows, as covered in CT1. The material presented in this tutorial can be used without referring to other sources. Firsttime users are advised to acquire the basic skills of Excel from this tutorial. This tutorial contains 12 lessons and an appendix. Each lesson builds on material covered in a previous lesson. It is important that you master the material covered in one lesson before attempting the next. At the end of each lesson is a set of self-testing questions. Use these questions to gauge how well you have mastered the material; it is a good idea to do the questions while you still have Excel running, so that you can verify some answers by trying them hands-on. The instructions in the exercises in this tutorial are often detailed and explicit. As you become familiar with Excel, you may not need this level of detail, and you can then adjust your learning style accordingly. However, you are advised to follow the exercises closely, as the skills are progressive. It is generally assumed that you will follow the sequence of instruction as presented. On average, each lesson is designed to take about an hour or two to complete. Some lessons (for example, Lessons 6 and 7) may take a little longer. In any case, you should allow additional time to answer the self-testing questions at the end of each lesson and to do further practice. Only with constant practice will you gain confidence with a spreadsheet program. The general coverage of the lessons is as follows: Lesson 1: Overview of Excel This lesson describes the basic features of spreadsheet programs. It outlines the uses of an electronic worksheet and how it differs from the traditional paper-and-pencil worksheet. You become familiar with the various parts of the Excel workbook, learn how to start and exit Excel, and use the ribbons, scroll bars, sheet tabs, and the status bar. You also set up defaults for Excel. Lesson 2: Excel Help Excel provides extensive Help. In this lesson, you learn to make good use of Excel Help information using the Help icon. Lesson 3: Cells and styles Excel provides a number of features for working with cells, rows or columns, and sheets. In this lesson, you learn to create and display formulas, change the display format of cells, and create or apply cell format styles. You also preview and print formulas in your workbooks. 2 Introduction Computer Tutorial 2

15 Lesson 4: Editing cells and ranges In this lesson, you learn to work with cells and ranges, copying the contents of cells to another range and copying the formats in the cells. You also learn to locate text in cells, replace text, and spell check your entire workbook. You assign names to ranges, making it easier to work with the ranges. Lesson 5: Workbooks and sheets In this lesson, you learn more about how to manage workbooks and the sheets inside them, including copying data and formulas between sheets, printing multiple sheets, and designing worksheets and workbooks in good style. Lesson 6: Formulas and functions In this lesson, you learn more about formulas and functions. Not only do you learn about the rules for constructing formulas and using functions, you also learn to use Excel s Insert Function, which provides step-by-step guidance to use Excel functions. Other techniques you learn include the use of relative and absolute references, circular references, and calculation control. You also learn to use the IF function to construct financial models. Lesson 7: Charts A chart is a graphic representation of information. Excel provides two easy methods to create charts from worksheet data. You can create a chart as an object embedded on a worksheet, or you can create it as a separate chart sheet, which can be useful if you want to show the chart on its own. In this lesson, you learn to create charts by both methods. You study the various types of charts that you can create in Excel. You also learn to design charts in good style, and to print charts. Lesson 8: Lists You can use Excel to manage information in the form of a list (database). A list in Excel is a series of rows containing similar data. Examples of lists include lists of inventory records, lists of transactions, and lists of names and addresses. You can use lists to efficiently organize data. In this lesson, you learn to create a list, modify a list, look up records in a list, sort a list, and filter a list. You also study the use of the VLOOKUP and HLOOKUP functions to look up values in a list. Lesson 9: Financial functions This lesson covers the financial functions most likely used by accountants in working with worksheets designed to solve financial planning and reporting problems. The subject of financial functions requires some understanding of the time value of money (present and future value, interest, compounding, discounting, and annuity calculations). It focuses on how these concepts are used in Excel, but not on the mathematics or financial logic of the formulas. Lesson 10: Statistical functions This lesson covers common statistical analyses that can be performed using an Excel workbook, and requires an understanding of basic statistics. It focuses on how to use Excel to calculate basic statistics, but not on the mathematics of the formulas. Topics covered include descriptive statistics, frequency distributions, histograms, correlation, and regression analysis. Computer Tutorial 2 Introduction 3

16 Lesson 11: Pivot tables A pivot table is a worksheet table that enables you to view data in different ways by rotating row and column headings. You can use pivot tables to display and analyze summary information in Excel workbooks or other applications (such as databases created using Microsoft Access or FoxPro). In this lesson, you learn to use pivot tables to analyze lists created in Excel workbooks. You also learn to set up pivot tables, specify row, column, and page fields, rotate the fields, and create pivot charts. Lesson 12: Scenario Manager There are times when you may need to work with more than one version of a workbook. Excel provides a Scenario Manager to create and manage multiple scenarios of a financial model without the need to save multiple copies of the workbook. In this lesson, you learn to create and edit scenarios, as well as to generate reports from the scenarios. Appendix A: This contains the solutions to the self-testing questions. 4 Introduction Computer Tutorial 2

17 LESSON 1 Overview of Excel Topic outline Overview 1.1 Definition and use of a spreadsheet program 1.2 Differences between a paper-and-pencil worksheet and a computer worksheet 1.3 Plan, build, and verify 1.4 Microsoft Excel 1.5 The Excel window 1.6 Excel ribbons 1.7 Printing in Excel 1.8 Saving workbooks and exiting Excel 1.9 Self-testing questions This lesson describes the basic features of spreadsheet programs. It also provides an overview of Microsoft Excel, a spreadsheet program that runs with Microsoft Windows. Note: Exhibits in this tutorial are primarily based on screen images of Excel 2007 running in Windows Vista. If you are using other versions of Windows or Excel, your screen will look different and there will be differences in the way Excel performs. Learning objectives Describe the main features and uses of a spreadsheet program. Contrast a paper-and-pencil worksheet and a computer worksheet. Explain the importance of planning and verifying the results from a computer worksheet. Explain the difference between a workbook and a worksheet in Excel. Start Excel. Set the working folder for Excel. Describe the major components of an Excel window. Use Excel toolbars. Preview and print worksheets. Close and save a workbook before exiting Excel. TOPIC 1.1 Definition and use of a spreadsheet program For centuries, accountants have been dealing with columns and rows of numbers. The most effective means of doing this has been columnar paper, which comes in many forms such as 4-column, 6-column, or 12-column. The paper-and-pencil worksheet has been the basic tool of accountants for many years. However, since their introduction in 1978, spreadsheet programs have been one of the most popular and productive applications of computer programming, particularly in the field of financial management. Computer Tutorial 2 Lesson 1 1

18 What features do spreadsheet programs offer that make them so popular? Modern programs do more than just mimic the paper-and-pencil worksheet. In addition to data entry into rows and columns, most spreadsheet programs offer the following features: a large worksheet area a simple means of constructing complex worksheet models automatic recalculation built-in functions to compute mathematical, financial, and logical formulas commands to control the format (appearance) of numbers and text commands to edit (change) worksheet data data management capabilities Some spreadsheet programs (for example, Microsoft Excel, Lotus for Windows, and Quattro Pro for Windows) offer a means of automatically converting spreadsheet data to graphs and displaying or printing those graphs, as well as desktop publishing features. A spreadsheet program can be used anywhere that columns and rows of numbers are present and anywhere a relationship between these numbers can be defined. Almost all financial reporting models such as income statements or balance sheets fall into this category. A spreadsheet program is equally useful where the relationships between numbers are subject to analysis, such as the ratio analysis of financial statements. A spreadsheet program is perhaps most useful for conducting what-if analyses. That is, once a set of mathematical relationships is built using a spreadsheet program, it can be recalculated at high speed, using different sets of numbers (assumptions). Portfolio management models that analyze the return on investment using different assumptions for interest rate and stock market indices are examples of such what-if models. Cash flow projection models that depend on different assumptions about cash flows and interest costs are other examples of what-if models for which a spreadsheet program is preferable to hand calculation. Other uses of spreadsheet programs include tax planning models, simple inventory management models, budgeting models, sales and profit projections, name and address databases, and project management tasks. TOPIC 1.2 Differences between a paper-and-pencil worksheet and a computer worksheet One obvious difference between a paper-and-pencil worksheet and its computer counterpart is the ease of calculating and recalculating numbers. Once all the formulas have been specified in a computer worksheet, any changes made to the numbers will be recomputed at the speed of the computer. With a manual worksheet, any change will require (sometimes major) recalculations by hand of all the affected entries. The differences in speed are more apparent when a worksheet includes annuities, future values, present values, or similar financial functions that can take considerable time to compute by hand, even if look-up tables are used. Using a computer worksheet, you do such calculations on the data either by entering a simple formula, or by entering the name of an automatic calculating command called a function. Most of these functions are no more difficult to use than those of a hand calculator and are much less prone to error. Another difference can be demonstrated by the following example. Suppose you wanted to build a worksheet containing data for a 12-month income statement. Using a computer worksheet, you need only specify the formulas for the first month. Then you copy all the formulas for the first month to the remaining months, using a few simple keystrokes. 2 Lesson 1 Computer Tutorial 2

19 As a final example, you can build several computer worksheets that reference one another for certain key information. You can also use some form of cross-referencing between worksheets. Any changes made to one worksheet will then be immediately reflected in all related worksheets. In well-designed worksheets, for instance, an updating task necessitated by a change in the interest rate can just be a matter of making one new entry, allowing instant update of any numbers in the worksheets affected by the interest rate. Now contrast a manual worksheet with a computer worksheet. On a manual worksheet, an entry might appear at the intersection of a column (such as Jan 07 ) and a row (such as Revenue ). On a computer worksheet, the entry again appears at an intersection of a column and a row, but uniquely identified by the column letter and row number. Columns in a computer worksheet are labelled A, B, C... and rows are numbered 1, 2, 3... The location of the entry is called a cell, and its cell reference (or address) consists of the identifying column letter and row number. Exhibit 1-1 shows a computer worksheet created using Excel, designed to present a consolidated income statement for the first three months of 2007 for Pacific Coast Limited. EXHIBIT 1-1 Example of an Excel worksheet Computer worksheets can be extended to contain more than just rows and columns on a single worksheet (known as a two-dimensional worksheet). The sample worksheet shown in Exhibit 1-1 is a two-dimensional worksheet, designed to hold the income statement of the whole company (consolidated statements). However, suppose Pacific Coast Limited has four divisions. If you want to design a worksheet model to hold income statements for each of the company s divisions, as well as the income statement for the entire company, you could design a model with five sheets. This would be called a three-dimensional model. If done manually on paper, each division would be on a separate piece of paper. Computer Tutorial 2 Lesson 1 3

20 TOPIC 1.3 Plan, build, and verify Verify all computer printouts TOPIC 1.4 Microsoft Excel Workbooks and worksheets Before you build any worksheet that is more than just a few cells in size, you should always consider planning its layout first. What information will be placed in the columns? What information will comprise the rows? Should there be one big worksheet or would it be more manageable if the problem were split into several worksheets? Planning is necessary, because once a worksheet is started, the cost of reorganizing it may be many hours of painstaking, repetitive work. Although a program such as Excel provides ways for you to change your mind, it s usually better to start with a clear plan. Once the plan is decided, you can later use Excel commands to insert or delete rows and columns anywhere on your worksheet, or move groups of cells from one worksheet location to another. Lesson 5 provides some guidance on the design of worksheets. As you make increasing use of Excel worksheets, you must be careful to avoid the false sense of security that users feel because of the authoritative look of computer output. Remember that you do not see the actual computations, and the validity of the results depends entirely on the formulas you initially specified. If you make an error composing a formula for one cell, for example, that same mistake could be compounded rapidly and spread throughout a large worksheet before you detect that something went wrong. Therefore, always check the computer printout thoroughly. If a worksheet includes any vertical or horizontal totals, for instance, be sure to verify the results just as you would on a paper-and-pencil worksheet with footings and cross-footings. You will learn simple ways to do this kind of verification when working with Excel. Microsoft Excel is a computer spreadsheet program for managing and presenting data in the Microsoft Windows environment. Excel offers advanced spreadsheet, charting, drawing, scenario management, and database features. Excel provides an easy-to-use interface including customizable toolbars, a Paste Function, tabs for sheets, and an easy-to-use menu bar. It also includes drag-and-drop moving and copying of data, improved database querying, a spelling checker, scenario management and auditing tools, and many functions that facilitate your worksheet design and formula construction. While this tutorial is not long enough to cover all these features, you will learn the basics you need for your Excel course work. Excel uses the concept of a workbook. A workbook is a file that can contain many worksheets, much like a book containing many pages. Within a workbook, each worksheet is referred to as a sheet. Exhibit 1-2 is an example of an Excel workbook with five sheets, one for each of the four divisions of Pacific Coast Limited, and one showing a consolidated summary. In this case, the workbook name is CT2L1P1S.XLS. Notice that the extension.xls may or may not appear. This depends on the way your operating system was initially set up. 4 Lesson 1 Computer Tutorial 2

21 Note: Excel files created using Excel 2007 use the extension.xlsx by default. All older versions of Excel, including Excel 2003 and Excel XP/2002, use the extension.xls. All.xls files can be opened by Excel 2007; however,.xlsx files cannot be opened by Excel 2003 or Excel XP/2002, unless the Microsoft Office Compatibility Pack is installed. The Compatibility Pack can be downloaded at Also notice that the tabs at the bottom of the workbook indicate which sheets are included in the workbook, and which sheet is currently displayed at the front. The sheet displayed is called the active sheet, and its tab is always bold. In Exhibit 1-2, the sheet named Consolidated is the active sheet. The four divisions are Computers, Stereo, TV, and Music. To make any of the sheets active, you simply click the corresponding sheet tab. EXHIBIT 1-2 Example of an Excel workbook Getting started In the following three exercises, you will install the CT2 data in the CT2 data folder, then start Excel and set Excel s working folder to the CT2 data folder. Computer Tutorial 2 Lesson 1 5

22 EXERCISE 1-1 Installing CT2 data to a hard disk 1. Start Internet Explorer and go to the website If you need help using Internet Explorer, please refer to CT1. 2. Follow the on-screen instructions to install the CT2 data files on your hard disk. The CT2 data files are now in the C:\CT2DATA folder. EXERCISE 1-2 Starting Excel Before starting Excel, the program must have been installed (as described in the Microsoft Excel User s Guide). Once you have started Windows, use the following procedure: 1. Click the Start button. 2. Point to All Programs to display the Programs menu. 3. Click Microsoft Excel if it is on the Program menu. For other versions of Excel, the Excel icon may be under the Microsoft Office folder. Locate the icon and click it. Note: If you need to exit Excel before the end of this lesson, click on the Office button and choose Exit Excel or press ALT+F4. If a dialog box appears, click No to exit without saving, or Yes if you wish to save your current workbook. If you elect to save your current workbook, you will need to type a name in the File name box, then click OK. EXERCISE 1-3 Setting the working folder Use the following steps to set the Excel working folder to C:\CT2DATA permanently so that the files you use or create in this tutorial are consistently saved there. 1. From Excel, click on the Office button. Then choose Excel Options. 2. Click on Save to display the save options. 3. In the Default file location box, type C:\CT2DATA. Click OK to return to the workbook. 6 Lesson 1 Computer Tutorial 2

23 TOPIC 1.5 The Excel window When you start Excel, it opens a window and displays a blank workbook with multiple sheets. Exhibit 1-3 shows a blank workbook with all of its major components labelled. Familiarize yourself with each component of the Excel window, because you will be referring to them throughout the tutorial. EXHIBIT 1-3 Excel window Office button Command tab Quick Access toolbar Workbook name Title bar Ribbon Name box Dialog Box Launcher Active cell Worksheet Formula bar Tab scrolling buttons Status bar Sheet tabs Scroll bars Scroll buttons Components of an Excel window Read the following in conjunction with Exhibit 1-3. Title/Workbook name The title identifies Microsoft Excel and the name of the workbook currently in use. Excel assigns the name of Book1 for the default blank workbook when you start the program. As you open other new workbooks, they are named Book2, Book3, and so on. If you open a previously saved workbook, the name of the workbook is displayed in the title. In Exhibit 1-2, the name of the workbook is CT2L1P1S.XLS. Ribbon The ribbon contains the commands that you use with Excel, usually visualized by an icon. As you click each command tab, a ribbon is displayed, giving you access to the commands in that ribbon. Commands are categorized into Groups. Some Groups contain a Dialog Box Launcher. A dialog box with further commands will open if you click on a Dialog Box Launcher. Ribbons are size-sensitive. The larger the Excel window is, the more commands Computer Tutorial 2 Lesson 1 7

24 will be displayed in the Groups for the displayed ribbon. Exhibit 1-4 shows the Home ribbon. The commands displayed in a ribbon are also context-sensitive. When a command is available, it will be displayed in black; if not, it will be greyed-out. For example, Exhibit 1-5 shows the Data ribbon displayed if a cell in a worksheet is selected, whereas Exhibit 1-6 shows the Data ribbon displayed if a chart is selected. There are seven standard command tabs: Home, Insert, Page Layout, Formulas, Data, Review, and View. Further command tabs may also become available, depending on the context. These are called contextual tabs. In Exhibit 1-6, with a chart selected, the contextual tabs Design, Layout, and Format have become available. EXHIBIT 1-4 Home ribbon (a) Larger Excel window (b) Smaller Excel window EXHIBIT 1-5 Data ribbon in a worksheet EXHIBIT 1-6 Data ribbon in a chart To find out what a particular command in a ribbon does, first press ESC a few times to make sure that you are in Ready mode, then move the mouse pointer over the icon. The name of the command, as well as an explanation of what it does, appears. Name box The name box shows the reference of the active cell. If some ranges are named, clicking the drop-down arrow to the right of the name box displays a list of the range names (you will study range names in Lesson 4). Formula bar The formula bar shows the exact contents in the active cell. If the active cell contains a formula, the formula is displayed in the formula bar. If it contains text or a number, the text or number is displayed. As you type information into the active cell, the information you type appears in the formula bar. 8 Lesson 1 Computer Tutorial 2

25 Worksheets and sheet tabs Most of your work in Excel will be in one or more worksheets. You enter data and formulas in a worksheet (see Exhibit 1-1 for an example). You can move from cell to cell in the worksheet area by using the arrow keys: the active cell is indicated by a bold border around the cell. In Excel, the row number and column letter of the active cell appear in orange or red for easier identification. You can also move to a cell and make it active by pointing and clicking the cell with the mouse. Excel gives each worksheet a name, shown on the sheet tab, the default names being Sheet1, Sheet2, and so on. To move from sheet to sheet, click the corresponding sheet tab. You can change the name of any sheet to a name of up to 31 characters, including spaces. You just double-click the sheet tab and type a new name. In Exhibit 1-3, the sheet tabs have the default names of Sheet1, Sheet2, and so on, but in Exhibit 1-2, the sheets have been renamed Consolidated, Computers, and so on. To the left of the sheet tabs are tab scrolling buttons (there are four of these) to move the sheet tabs in or out of view. Status bar At the bottom of the Excel window is the status bar. It indicates your current task. For example, the word Ready appears in the status bar when you first start Excel, indicating the program is ready to accept a command or other input. The status bar has two parts: the left side indicates operations in progress, such as opening or saving a file, copying cells, and editing; as well as whether keys such as CAPS LOCK, SCROLL LOCK, or NUM LOCK are turned on; the right side contains three View Shortcuts, the current zoom level, and the Zoom Slider. The contents of the status bar are customizable. Scroll bars Each worksheet has a vertical and a horizontal scroll bar. Use the scroll bars to show different parts of the worksheet inside the window. EXERCISE 1-4 Using sheets in a workbook In this exercise, you begin using some important features of an Excel window, including the menu commands and the sheet tabs. 1. Make sure a new workbook is displayed. If it is not, click on the Office button and select New, choose Blank Workbook (from the Blank and recent template), and click Create to display a blank workbook. Click the maximize button for the workbook. Notice that the workbook has a number of sheets (Sheet1, Sheet2, and so on). For this exercise, only click the sheet tabs as instructed. 2. Click Home to display the Home ribbon. While you do not have to remember the location of all the commands, your work will go much faster if you have a general idea where they are. 3. Click each of the other command tabs in turn to briefly view the commands. Notice that some commands are greyed-out, indicating they are not currently available. Click on the Dialog Box Launcher whenever it is available for a Group within a ribbon. (Note that you must close the Dialog Box that is displayed before you can proceed.) 4. After browsing through the command tabs, place the mouse pointer anywhere on the worksheet and press ESC twice to make sure the status bar shows Ready, indicating that Excel is ready to accept a command or input from you. Computer Tutorial 2 Lesson 1 9

26 5. Use the arrow keys to change the active cell. You can also make a cell active by clicking it. Click cell A1 to make that cell active. 6. Sheet1 should now be the active sheet, and the status bar shows Ready. With cell A1 active, type 1 (do not press ENTER). Notice that the status bar now shows Enter, indicating that you are entering information in the worksheet. Now press ENTER to place the value 1 in cell A1. The status bar shows Ready again. 7. Click the sheet tab for Sheet2 to make that sheet active. In cell A1, enter the value of 2, as described in step 7. Repeat this step for Sheet3 but enter 3 in cell A1. 8. Click the sheet tab for each sheet in turn and notice the value in cell A1 changes, depending on which sheet is active. 9. On any of the sheets, click the bottom scroll button on the vertical scroll bar to scroll the worksheet. 10 On your keyboard, toggle CAPS LOCK, NUM LOCK, and SCROLL LOCK on and off and notice the changes in the status bar. Make sure you turn SCROLL LOCK off before continuing. Leave this workbook open for the next exercise. TOPIC 1.6 Excel ribbons Ribbon commands Each ribbon in Excel shows a set of commands visualized by icons. (Excel refers to them as buttons.) To choose a command, you click it. (Note that a small down arrow is sometimes visible under a command. This indicates that more options are available for that particular command.) Sometimes you may not be able to click a command if a dialog box is open; in such cases, respond to and close the dialog box first. EXERCISE 1-5 Using commands In this exercise, which continues from Exercise 1-4, you use several commands: AutoSum, Copy, Paste, Undo, and Print Preview. 1. Click Sheet1 to make it active. If you can t find the tab for Sheet1, click the leftmost sheet tab scrolling button (see Exhibit 1-3) to scroll to the first tab in the workbook. Click cell A2 to select that cell. 2. Enter the values 2, 3, and 4 in cells A2 to A4. Click cell A5 to select this cell. 3. Locate the AutoSum icon in the Home ribbon. Click the AutoSum command and the formula =SUM(A1:A4) automatically appears in cell A5. This formula adds the contents of cells A1 to A4 and places the result in cell A5. Press ENTER and the result of 10 is displayed in cell A5. 4. Press UP ARROW until cell A1 is the active cell. Hold down SHIFT and press DOWN ARROW until cells A1 to A5 are selected (range A1:A5). Copy 5. Locate the Copy icon in the Home ribbon. Click this icon to copy the cells onto the Clipboard. Cells A1 to A5 are now highlighted with a flashing dotted box. 10 Lesson 1 Computer Tutorial 2

27 Undo Redo 6. Click cell B1. Locate the Paste icon on the toolbar and click this icon. A copy of cells A1 to A5 is now pasted into cells B1 to B5. Press ESC to cancel the flashing dotted box of cells A1 to A5. 7. Locate the Undo icon in the Quick Access toolbar. Click it once and step 6 is undone. Click it again, and step 3 is undone. To reinstate an undone result, click Redo. Excel has 100 levels of Undo to help build a perfect worksheet. However, only formatting and editing changes can be undone. If you save your work to a wrong file, there is no way to undo it. Print Preview EXERCISE Click on the Office button, hover over the Print icon, and click on the Print Preview icon to display the Print Preview window. Click the Zoom button to view the printout more clearly. Click Close Print Preview to return to the worksheet. Saving a workbook with your own filename In this exercise, you save the workbook you created in Exercise Click on the Office button and choose Save As. Choose Excel Workbook if you want the file to be readable in versions older than Excel Otherwise choose Excel Workbook. 2. The working folder C:\CT2DATA should show as the Save in folder. If it does not, follow the steps in Exercise 1-3 to set the working folder before continuing. 3. In the File name box, type a new filename to replace the default filename. To make it easier to identify the files you have created and saved, it is a good idea to use a consistent filenaming convention. For example, start with your three letter initials, followed by L1P1 (for Lesson 1, Problem 1). For example, if your initials are GRW, save the workbook as GRWL1P1. 4. Click Save. EXERCISE 1-7 Opening an Excel file To begin this exercise, open an Excel file from the CT2DATA folder, as follows: 1. Click on the Office button and choose Open. 2. In the File name box, select CT2L1P1S.XLS by clicking the filename once. Click Open. 3. This workbook looks similar to that shown in Exhibit 1-2. Scroll to display rows 18 and 19. Cell A18 shows a filename stamp, cell A19 shows a date stamp. You will learn more about the name and date stamps in Lesson 5 (Topic 5.7). TOPIC 1.7 Printing in Excel Excel uses the same print settings that have been set up in Windows. If you have not yet set up your printer to work with Windows, you must first do so. See the Windows Basics tutorial (CT1) for details. The commands in the Page Setup dialog box provide the specific printing options you need to control the appearance of your printed worksheets. Computer Tutorial 2 Lesson 1 11

28 The Page Setup dialog box When you click on the Dialog Box Launcher in the Page Setup group in the Page Layout ribbon, the Page Setup dialog box appears (see Exhibit 1-7). There are four tabs: Page, Margins, Header/Footer, and Sheet. Each tab displays a different set of options, and each set includes buttons for Print, Print Preview, and Options. These are some of the choices you can make with each tab of the Page Setup dialog box: Page Sets the orientation of the printed page, scaling, paper size, print quality, and so on. Margins Sets the four margins (top, bottom, left, and right) and controls centring on the page. Header/Footer Sets headers and footers for the printed page. Sheet Specifies titles and controls other features of the printed page such as print area, gridlines, and row and column headings. EXHIBIT 1-7 Page Setup dialog box 12 Lesson 1 Computer Tutorial 2

29 EXERCISE 1-8 Printing a worksheet In this exercise, you print the file CT2L1P1S.XLS. If this file is not currently open, then do so using the command Open before proceeding with this exercise. 1. In the View ribbon, choose Switch Windows, then click CT2L1P1S. 2. Click on the Dialog Box Launcher in the Page Setup group in the Page Layout ribbon. The Page Setup dialog box appears. 3. Click the Page tab and look over the available options. Make no changes. 4. Repeat step 3, selecting first the Margins tab, then the Header/Footer tab. Again, make no changes. 5. Click the Sheet tab. In the Print box, look at the Row and column headings and make sure it is not checked; otherwise, click to uncheck the box. 6. Click Print Preview. Click Zoom if necessary. Notice that no row headings (1,2,3,...) or column headings (A,B,C,...) are displayed. After viewing, click Print, then click OK to print. 7. Bring up the Page Setup dialog box again. Click the Sheet tab. In the Print box, check the box next to Row and column headings to turn this feature on. This can also be done through the Sheet Options in the Page Layout ribbon. Many commands can be found in more than one place. 8. Preview the page, then print it. Notice that the row and column headings are included in the output. TOPIC 1.8 Saving workbooks and exiting Excel After you have created a new workbook or made changes to an existing workbook, when you try to close the workbook, Excel prompts you to save the changes. You should close all the workbooks you have opened before exiting from Excel. Exercise 1-9 shows you how. EXERCISE 1-9 Closing a workbook 1. Click on the Office button and choose Close. If Excel prompts you to save changes made in that workbook, click Yes. 2. Repeat step 1 to close the remaining workbook. 3. Click on the Office button and choose Exit Excel to return to Windows. Computer Tutorial 2 Lesson 1 13

30 TOPIC 1.9 Self-testing questions 1. Unlike paper-and-pencil worksheets, which are difficult to change, computer worksheets are easily modified. Why should you plan before building a worksheet? 2. Briefly describe the steps you take to set the working folder to C:\CT2DATA. 3. The Excel window contains a title bar and command tabs. Briefly explain the purpose of each of these items. 4. What is the purpose of ribbon commands? How do you find out what action can be performed by a particular command? 5. What is a workbook? How does it differ from a worksheet? 6. What is a sheet tab? How do you change the name of a sheet tab? How do you move from sheet to sheet using the sheet tabs? 7. Where is the status bar? Briefly explain the type of information it provides. 14 Lesson 1 Computer Tutorial 2

31 LESSON 2 Excel Help Topic outline Overview 2.1 Help contents 2.2 Searching for Help topics 2.3 Using context-sensitive Help 2.4 Self-testing questions Excel provides extensive help. Once you have learned how to use the Excel Help window and search methods, you can display Help information on your desktop. Examples and demonstrations of many Excel operations can be started from the Help menu. The purpose of this lesson is to introduce you to the main features of Excel Help. Your goal at this point should be to gain familiarity and confidence in the use of Excel Help. You are not required to read every Help topic, nor should you try to understand the explanations they present. In the rest of this tutorial, you will have ample opportunity to make further use of Excel Help as you learn the features of Excel. Note: Excel Help contains a handy feature called Interactive: Excel 2003 to Excel 2007 command reference guide. This feature allows you to click on a command using the Excel 2003 menus. You will then be shown where to find the equivalent command in the Excel 2007 ribbons. To use the reference guide, type interactive in the Search box of Excel Help, click Search, and choose Interactive: Excel 2003 to Excel 2007 command reference guide. Click Start the guide to begin using it. If this feature was not installed with your version of Excel 2007, it may be downloaded from b3-9f b985&displaylang=en. Learning objectives Use the Excel Help contents and search features. Display context-sensitive Help information. Print Help topics for future reference. TOPIC 2.1 Help contents You can display the Excel Help window by clicking the Help icon (the question mark) or by pressing F1. Many dialog boxes also have a Help icon. Excel Help displayed with the F1 key or a Help icon in a dialog box is context-sensitive. For example, if you press F1 in the Format Cells dialog box, Excel will display a Help window for troubleshooting cell-formatting operations. Excel Help is similar in form to the Help provided in Microsoft Windows and other Windows applications. If you are unfamiliar with the Help concept, you may wish to review CT1. Computer Tutorial 2 Lesson 2 1

32 Using Help contents A good option to start with Excel Help is to click the Help icon. Then click the Show Table of Contents icon at the top of the Excel Help window. From the table of contents, choose Getting help, then Work with the Help window. Excel Help will show something similar to Exhibit 2-1. EXHIBIT 2-1 Excel Help Table of Contents Mouse pointer shape In an Excel Help window, the mouse pointer may have its usual shape (arrow) or it may change to a pointing finger. Whenever the mouse pointer is in the shape of a finger, you can click to display more information. EXERCISE Start Excel. 2. Click on the Help icon. Using the table of contents 3. The Excel Help window appears. Click the Show Table of Contents icon. From the table of contents, choose Worksheet and Excel table basics. A list of subtopics 2 Lesson 2 Computer Tutorial 2

33 appears. You can move the horizontal and vertical scroll arrows to adjust your view. Click Entering and editing data and a list of subtopics appears. 4. Click the vertical scroll bar to scroll through the information. 5. Click Entering and editing data to close or collapse the list of subtopics. Click Worksheet and Excel table basics to close or collapse the list of subtopics. 6. Hide the Table of Contents. 7. Keep the Excel Help window open for the next exercise and proceed to Topic 2.2. TOPIC 2.2 Searching for Help topics If you cannot find your topic in the table of contents or if you don t know where or how to start, you can perform a search for a Help topic. Suppose you want to find out how to use 3-D references. The following exercise shows you how. EXERCISE 2-2 Using the search function 1. Click the Search box at the top of the Excel Help window. 2. Type 3-D references in the box. Press ENTER. The Excel Help window displays a list of the most relevant topics (Exhibit 2-2). EXHIBIT 2-2 Excel Help Search results 3. Scroll up or down the list to find your topic. Once you find the topic, click on the blue text of that topic to view the actual information (Exhibit 2-3). Computer Tutorial 2 Lesson 2 3

34 EXHIBIT 2-3 An Excel Help topic 4. To print the topic, click the Print icon. Close the Print dialog box. 5. Click on the word range in the first paragraph to see its definition. Click on range again to hide the definition. 6. Click on Create a 3-D reference to quickly scroll to that section of the text. 7. Click the Back icon, and click on the grey text pertaining to the same topic; in this case, Working with names (Exhibit 2-4). 4 Lesson 2 Computer Tutorial 2

35 EXHIBIT 2-4 Finding related topics 8. A list of related topics appears (Exhibit 2-5). Click on any of the topics. Again, more Help information will appear. EXHIBIT 2-5 Related Help topics 9. Keep the window open for the next exercise. Proceed to Topic 2.3 Computer Tutorial 2 Lesson 2 5

36 TOPIC 2.3 Using context-sensitive Help The easiest way to get context-sensitive Help is by clicking the Help icon shown as a question mark at the top-right corner of most dialog boxes (Exhibit 2-6). EXHIBIT 2-6 A dialog box with a Help icon EXERCISE 2-3 Displaying context-sensitive Help 1. Click on any cell in the worksheet, right-click, and select Format Cells from the menu that appears. 2. Click the question mark icon in the top right corner. 3. An Excel Help window displaying information about cell-formatting options appears (Exhibit 2-7). If you see a different screen, check the bottom right corner of your screen and make sure you are connected to Office Online. 6 Lesson 2 Computer Tutorial 2

37 EXHIBIT 2-7 Context-sensitive Help 4. After viewing the information, close the Excel Help window to return to the worksheet. TOPIC 2.4 Self-testing questions 1. Explain how to use the Help function to learn how to print a worksheet. 2. Suppose you want to find out how to insert a chart. Explain the various Help options available. Computer Tutorial 2 Lesson 2 7

38 LESSON 3 Cells and styles Topic outline Overview Learning objectives 3.1 Selecting cells and ranges 3.2 Entering data and simple formulas 3.3 Changing formats 3.4 Working with styles 3.5 Previewing and printing worksheets and formulas 3.6 Using Excel Help 3.7 Self-testing questions Many Excel operations require you to select cells. Once you learn the basics of selecting cells, you can enter and edit data, create formulas, change the display format of cells, and create format styles. You can also preview and print formulas in your worksheets. In this lesson, you learn these basic operations, as well as the use of Excel Help for further information. Select cells and ranges. Select entire columns or rows. Select one or more sheets. Enter data and simple formulas. Edit cell contents. Change cell formats. Draw single and double underlines in cells. Create and apply cell styles. Display formulas. Preview and print formulas with row and column headings. Obtain Excel Help on cells, formulas, formats, and styles. TOPIC 3.1 Selecting cells and ranges A cell in an Excel worksheet is uniquely identified by a column letter and row number, and can hold one piece of data (number or text) or a formula. Before you can enter information into a cell, you must first select the cell. The selected cell is called the active cell, and its cell border is highlighted. To select a single cell, point the mouse pointer to the cell and click. You can also use the arrow keys to move to a cell to select it. A third method is to use the Go To command under Find & Select in the Home ribbon (or press F5) to display the Go To dialog box. Type the cell reference, then click OK. Exhibit 3-1 shows the Go To dialog box. Any range name already defined appears under the Go to list. You will learn how to define a range name in Lesson 4. Click a range name in the Go to list or type the reference in the Reference text box and click OK to select the cell. The fourth method applies to named ranges only. You can choose from the name box to go directly to the named range. Computer Tutorial 2 Lesson 3 1

39 EXHIBIT 3-1 Go To dialog box A range is a block of adjacent cells, and a range reference consists of the reference of the first and last cells in the range separated by a colon such as B5:D10. The range B5:D10 includes all the cells from B5 to B10, C5 to C10, and D5 to D10. A single cell is also considered a range such as B5:B5. A range must always be continuous and rectangular in shape; it cannot have gaps or an irregular shape such as more cells in one column than another. Selecting a range You can select a range using the mouse or the keyboard. To select a range using the mouse: 1. Point to a cell in one corner of the range. 2. Press the mouse button and drag the mouse slowly to highlight the desired range. 3. Release the mouse button when the range you want is highlighted. To select a range using the keyboard: 1. Using the arrow keys, move the active cell to one corner of the range. 2. Hold down SHIFT and use the arrow keys to highlight the range. To select a range by a combined method: 1. Click the top left cell of the range. 2. Hold down SHIFT and click the bottom-right cell of the range. To deselect any selected range (cancel a selection): Click any cell. 2 Lesson 3 Computer Tutorial 2

40 Exhibit 3-2 illustrates the selected range B5:E10. EXHIBIT 3-2 The range B5:E10 Select All button Tab scrolling buttons Selecting columns or rows Active sheet tab Horizontal scroll bar Vertical scroll bar To select an entire column or row, click the column or row heading in the worksheet frame. To select a range of columns or rows, click the heading of the first column or row in the range, then drag across the worksheet to the last column or row heading, and release the mouse button when the range is highlighted. To select all cells on a sheet, click the Select All button in the upper left corner of the sheet. You should use this button with caution, as a sheet including all the blank areas is very large in Excel Selecting all cells on a sheet usually results in slower worksheet operations, and takes up a large amount of RAM, so it is more efficient to select only the range of cells containing data. Moreover, if you use this button and accidentally format the entire sheet, when you print, this may result in a large number of unwanted pages being printed. Click any cell to cancel the selection. Selecting a sheet To select a sheet, click its tab. The active sheet tab appears in bold. You can press CTRL+PGUP or CTRL+PGDN to move from sheet to sheet. Computer Tutorial 2 Lesson 3 3

41 Selecting two or more sheets TOPIC 3.2 If the sheet tab you want is not shown, click the tab scrolling buttons at the lower left of the workbook window. To select a group of adjacent sheets, click the tab of the first sheet, then hold down SHIFT and click the tab of the last sheet you want to include in the group. The worksheet title shows [Group] to indicate that a group of sheets is active. To cancel the selection, click the tab of any sheet not included in the group. If all sheets are included in the group, click the tab of any adjacent sheet to cancel the selection. To select a group of non-adjacent sheets, hold down CTRL, then click the tab of each desired sheet. To cancel the selection, click the tab of any sheet not included in the group. Entering data and simple formulas You can enter data or a formula into a cell. To cancel an entry before you have pressed ENTER, press ESC. If you have already pressed ENTER, select the cell again, then press DEL to clear the cell contents. You can also enter data or formulas into successive cells in a range. To do so, first select the range, then enter data into each cell. As you press ENTER, the next cell is selected automatically within the range, working from top to bottom and left to right. Do not use the arrow keys because otherwise the range will be cancelled. To clear the contents of a range, select the range, then press DEL. EXERCISE 3-1 Entering data into cells and ranges In this exercise, you create a simple expense statement. When completed, your worksheet should look like Exhibit Start Excel. Excel displays a blank workbook with a number of worksheets. If it does not, click on the Office Button, choose New, then Blank Workbook, and click Create. 2. Select Sheet1 by clicking its tab. 3. Select A1 and type Expenses. Press ENTER. 4. Select the range B2 to C5. 5. Type the name of each expense as shown in Exhibit 3-3, pressing ENTER after each entry to move the active cell down. After entering the Misc. label in cell B5, when you press ENTER, cell C2 becomes the active cell. If at any point, the range selection is cancelled, you can reselect the range, then press ENTER to continue to the next empty cell. 4 Lesson 3 Computer Tutorial 2

42 EXHIBIT 3-3 A simple income statement 6. Type the value of each expense as shown in Exhibit 3-3, pressing ENTER after each entry to make the next cell active and ready for an entry. Data types Data that you enter into a cell can be a numerical value, text, or formula. A numerical value can be a number, a date, time, currency amount, percentage, or fraction. When it can, Excel automatically formats the numerical value you enter into a cell, guided by the information you provide with the entry. For example, if you enter a number with a dollar sign (such as $3,000), Excel formats this entry to currency format. If you enter a numerical value with a percent sign (such as 45%), Excel formats the cell to display the value as a percentage. Changing column width The number displayed is based on the format and may differ from the number stored in the cell. For example, if you enter a foreign exchange rate of in a cell, and the cell is formatted to display six decimal places, the cell will display , although the value stored in the cell is exactly as entered. There are two ways to change a column width. In the Home ribbon, click on Format and choose Column Width. In the Column Width dialog box, type the desired width. Alternatively, you can click the right border of the column heading and drag the border to the right to widen the column or to the left to narrow it. If a number is too long to be displayed in a cell, Excel widens the column as necessary, but only if you did not adjust the width of that column previously. If you adjusted the width of the column previously, Excel does not change it. Instead, it displays a series of number signs (####) in the cell. If you then widen the column enough, the number will display in the cell. If several cells in the column show ####, the easiest way to widen a column is to double-click the right border of the column heading. The column width then adjusts so that all the numbers in the column are displayed. Note: If a number in a cell is formatted as General, and has 12 or more digits, it is automatically displayed using scientific (exponential) notation. The scientific notation varies depending on the size of the cell. For example, the number , in a cell formatted as General, is displayed as E+11 if space allows, or as 1E+11 in a small cell. Excel switches to a series of number signs (####) if the cell is too small for any scientific notation. Computer Tutorial 2 Lesson 3 5

43 Date formats Text entries EXERCISE 3-2 Excel accepts several different date formats. For example, Excel accepts the date of January 14, 2000 using any of the following formats: 14-Jan Jan-00 14/1/ /1/00 14/01/00 Text can be characters or any combination of numbers and characters. If an entry contains characters, Excel will assume the entry is intended as text. When you enter text, Excel automatically aligns the contents to the left of the cell, unless you change the alignment. Entering numbers, dates, and text In this exercise, you record a U.S. bond transaction on a worksheet. When completed, your worksheet should look like Exhibit Select Sheet2 of the current workbook. 2. Enter the text labels in cells A1 to A5 as shown in Exhibit 3-4. EXHIBIT 3-4 Recording bond purchase 3. In cell B1, enter the exchange rate of Notice that the displayed value of differs from the value entered in the cell. But in the formula bar, you can see that the content of the cell is In cell B2, type the face value of the U.S. bond as $1,500,000 and press ENTER. Excel will automatically expand the cell size to accommodate the content if it is a number. If you reduce column B s width, cell B2 displays a series of ####, indicating that the column is not wide enough to display the value. Point the mouse to the right border of the heading for column B. The pointer changes to a double-arrow. Double-click and the column widens to display the value in cell B2. Notice that the value in cell B1 is now completely displayed. 5. In cell B3, enter the interest rate of 6.5%. Notice that Excel displays this amount as 6.50%. 6. In cell B4, type the start date of 02-mar-2007 and press ENTER. Select cell B4 again. Notice that Excel displays the date as 02-Mar-07, but it stores the date internally as the date format set up in Windows. 7. In cell B5, type the end date of 01-mar-2008 and press ENTER. 6 Lesson 3 Computer Tutorial 2

44 8. Save the workbook under your initials, with a new filename such as GRWL3P1. Leave the workbook open for the next exercise. Undo Editing cell contents After entering data into a cell, you can change the contents in a number of ways: Select the cell and type new data in the cell. or Double-click the cell and make changes. The Edit indicator on the status bar shows that you can now edit the contents of the active cell. or Select the cell, press F2, and edit the contents. In Edit mode, you can move to the beginning of the entry by pressing HOME or move to the end of the entry by pressing END. Use the left or right arrow keys to move to any part of the entry. You can also use BACKSPACE or DEL on any part of the cell. To reverse the effect of changes, click the Undo icon on the Quick Access toolbar. Entering a formula You can enter a formula into a cell. An Excel formula must begin with an equal sign (=) followed by numeric values, text, functions, or cell references, separated by arithmetic operators. Arithmetic operators accepted in Excel formulas include addition (+), subtraction ( ), multiplication (*), division (/), and exponentiation (^). You cannot use parentheses in an Excel formula to indicate a negative value. Negative values start with the minus sign. Excel provides a large collection of built-in functions to perform standard calculations. Examples are SUM (add the contents of cells), PV (return the present value of an investment), and MAX (return the maximum value in the range). The following are examples of Excel formulas: Formula Explanation = Add 100 and 78. =E7-E13 From the value in cell E7, subtract the value in cell E13. =(A6-B9)*C2 From the value in cell A6, subtract the value in cell B9, then multiply the result by the value in cell C2. =SUM(D9:D13) Use the SUM function to add the values in cells D9 to D13 inclusive. When you are entering a formula into a cell, the formula bar is active, and displays the formula as you type. Formulas and functions are explained in more detail in Lesson 6. EXERCISE 3-3 Entering simple formulas In this exercise, you add formulas to the workbook completed in Exercise 3-2. If that workbook is not already open, use Open (click on the Office button first) to open it before beginning. 1. Select Sheet1 by clicking its tab. In cell A6, enter the text: Total expenses. 2. Select cell C6. Type =C2+C3+C4+C5 and press ENTER. A value of 6000 should be displayed in cell C6. Computer Tutorial 2 Lesson 3 7

45 3. The formula you entered in step 2 works well if you are adding only a few cells. For a larger number of cells, the SUM function is more convenient. Select cell C6 again. Press DEL to clear its current contents. 4. Type =SUM(C2:C5) and press ENTER. A value of 6000 is again displayed. 5. Select Sheet2. In cell A6, type Cost in CDN and press ENTER. 6. Select cell B6. Type =B2*B1 and press ENTER. Cell B6 displays the result of $1,521, Save this workbook and leave it open for the next exercise. TOPIC 3.3 Changing formats Values entered in cells or values resulting from formula calculations can be formatted in a number of ways; for example, with a leading dollar sign to two decimal places, or with no dollar sign and commas separating the thousands. When you enter numbers, Excel formats them automatically as Comma, Currency, Percent, or Scientific, depending on the symbols you use. You can format a cell or range, an entire row, a column, or an entire sheet. You can change number formats by using the Number group in the Home ribbon. When you click on the Dialog Box Launcher, the Format Cells dialog box is displayed (see Exhibit 3-5). There are six tabs in this dialog box: Number, Alignment, Font, Border, Fill, and Protection. Each tab, when clicked, displays a dialog box with various settings. 8 Lesson 3 Computer Tutorial 2

46 EXHIBIT 3-5 Format Cells dialog box A quick way to format is to point to a cell, click the right mouse button, and when the shortcut menu appears (Exhibit 3-6), click Format Cells. Computer Tutorial 2 Lesson 3 9

47 EXHIBIT 3-6 A shortcut menu Format codes Excel uses a number of format codes to determine the display format of a cell. You can see the codes by displaying the Format Cells dialog box as shown in Exhibit 3-5, clicking the Number tab, and selecting Custom in the Category box. Format code Effect # Acts as a placeholder for digits. For example, #.## will display as (zero) Inserts a zero in the display if the actual number does not have a zero. For example, if the format code is #.00 and the number is 1.3, the displayed number is $ Displays a dollar sign where indicated. For example, $#.## will display as $ , (comma) Displays a comma where indicated. For example, #,###.# displays as 2, and $#,###.## displays it as $2, m Displays a month as a number without a leading zero. For example, 1 for January, 11 for November. mm Displays a month as a number with a leading zero. For example, 01 for January, 11 for November. mmm Displays a month as a three-character abbreviation (Jan to Dec). For example, Jan for January. dd Displays a day as a number with a leading zero if required. For example, 01 for the first, 11 for the eleventh. 10 Lesson 3 Computer Tutorial 2

48 yy Displays the year as a two-digit number (00-99). For example, 2003 will be displayed as 03. yyyy Displays the year as a four-digit number ( ). For example, 01 will be displayed as 2001, whereas 95 will be displayed as Notice that the pivot year is 1930; that is, 29 will be displayed as 2029, whereas 30 will be displayed as Therefore, it is advisable to enter years using four digits to avoid misinterpretation by Excel. EXERCISE 3-4 Setting display formats In this exercise, you add formats to the workbook you completed in Exercise 3-3. If the workbook is not already open, use the Open command after clicking the Office button. 1. Select Sheet1 by clicking its tab. 2. Select cell C2 and open the Format Cells dialog box. Click the Number tab. In the Category box, click Currency. 3. Type 0 (zero) in the Decimal Places text box. 4. Make sure $ is selected in the Symbol list box. Click OK. The value in cell C2 is displayed as $3, Select the range C3:C5. Point to the range, then click the right mouse button. 6. From the shortcut menu, choose Format Cells. Click the Number tab. In the Category list, click Number. Type 0 (zero) in the Decimal Places text box and check the Use 1000 Separator check box. Click OK. 7. Repeat steps 2 to 4 for cell C6. 8. Save the workbook and leave this workbook open for the next exercise. If you had difficulty with this exercise, compare your workbook with CT2L3P1S.XLS. 9. Excel provides an Accounting cell format. Unlike the Currency cell format, which provides a floating dollar sign, the Accounting cell format provides a left-aligned dollar sign. Accountants often prefer this format. To see the effect of the format, repeat steps 2 to 4 for cells C2 and C6. Choose Accounting instead of Currency in the Category box. Adding borders to cells Excel provides a simple method to draw borders in cells. You will be presented with a graphical sample as shown in Exhibit 3-7, with several choices to select: Outline (draw a box around the cell or range) Left (draw a line on the left) Right (draw a line on the right) Top (draw a line on the top) Bottom (draw a line on the bottom) Diagonal (draw a left and/or right diagonal line) You have several line styles to choose from, including dotted, broken, single, and double lines. The most common use of the border drawing feature is to draw a single or double underline in a cell. Computer Tutorial 2 Lesson 3 11

49 EXERCISE 3-5 Drawing underlines This exercise provides practice in drawing a single underline and a double underline. Continue with the workbook from Exercise Select cell C5. Open the Format Cells dialog box. 2. Click the Border tab. 3. In the Style box, make sure the single thin underline is selected. Click the button representing the bottom (Exhibit 3-7). You can see a graphical sample of how the cell looks in the dialog box. Click OK. Cell C5 now shows a single underline. EXHIBIT 3-7 Border dialog box 4. Repeat steps 1 to 3 for cell C6, but select the double underline in the Style box before clicking the border button. If you had difficulty with this exercise, compare your worksheet with Sheet1 of CT2L3P2S.XLS. 12 Lesson 3 Computer Tutorial 2

50 TOPIC 3.4 Working with styles You can define a combination of formats, then save it so that you can apply all of the formats at the same time. The combination is called a style. To create a style, first format a cell to the desired format. Then choose Format Style and type a style name. To apply a style to a cell, select the cell, then choose Cell Styles from the Home ribbon and click on the style you wish to apply. Styles that you have created yourself are listed at the top, under Custom. Click OK. Exercise 3-6 shows how to create and apply a style. EXERCISE 3-6 Creating and applying a style Make sure Sheet2 from Exercise 3-3 is displayed. 1. Select cell B2. It should be displayed as $1,500,000 already. If not, you probably missed step 4 in Exercise 3-2. Redo that exercise before continuing to step With cell B2 still selected, choose Cell Styles from the Home ribbon and click New Cell Style. Type New currency as the name of the style you wish to create (see Exhibit 3-8). Click OK. EXHIBIT 3-8 Style dialog box 3. Select cell B6. This cell displays a value of $1,521, Choose Cell Styles from the Home ribbon and click the style name of New currency. 5. Click OK. The value in cell B6 is now displayed in the currency style showing a value of $1,521,538, using the format as defined by cell B2. Computer Tutorial 2 Lesson 3 13

51 6. Save the workbook but leave it open for the next exercise. 7. You can use the same procedure to create and apply any style to any cell. If you had difficulty with this exercise, compare your workbook with CT2L3P2S.XLS. TOPIC 3.5 Previewing and printing worksheets and formulas You can print any part of a workbook: one cell, a range, an entire worksheet, several worksheets, or an entire workbook. You can also preview before you print. Previewing can save time as well as paper because you can look at the page before it is printed; if you do not like what you see, you can fix the problem before you print. When you choose Print after clicking the Office button, Excel displays the Print dialog box (see Exhibit 3-9). EXHIBIT 3-9 Print dialog box You can make a number of choices in the Print dialog box. Choice Printer Print range Copies Effect Select a printer to print to. The Properties button provides access to further customization of the printer for paper size, orientation, source, and print quality. Specifies the pages in the selected sheet to print. Usually, you specify All. Specifies how many copies you want. 14 Lesson 3 Computer Tutorial 2

52 Print what Preview Selection. Prints a selected cell range. Active sheet(s). Prints the sheet(s) currently selected. Entire workbook. Prints the entire workbook. Previews the output on-screen before printing. The Page Setup Dialog Box Launcher (in the Page Layout ribbon) can be used to customize various page settings. The Page Setup dialog box has four tabs: Tab Effect/Exhibit Page Set page settings (Exhibit 3-10) Margins Set print margins (Exhibit 3-11) Header/Footer Set page header and footer (Exhibit 3-12) Sheet Set sheet options (Exhibit 3-13) EXHIBIT 3-10 Page Computer Tutorial 2 Lesson 3 15

53 EXHIBIT 3-11 Margins EXHIBIT 3-12 Header/Footer 16 Lesson 3 Computer Tutorial 2

54 EXHIBIT 3-13 Sheet EXERCISE 3-7 Previewing and printing Display the workbook you completed in Exercise Select Sheet1 by clicking its tab. 2. Choose Print after clicking the Office button to display the Print dialog box. 3. Make sure the Active sheet(s) is set and the default printer is highlighted (see Exhibit 3-9). If this printer is not the printer connected to your computer, click the drop-down list and select the printer name that matches your printer. 4. Click Preview. At the Print Preview window, move the mouse pointer over the expense statement and click to zoom in. 5. Click Print. 6. After printing, Excel returns you to the worksheet. To print Sheet2, click its tab and repeat steps 2 to 5. Sheet2 is automatically zoomed because Excel remembers the zoom action from step Leave this workbook open for the next exercise. Computer Tutorial 2 Lesson 3 17

55 Displaying and printing formulas It is often helpful to print formulas in a worksheet. The printout should also include the column and row headings so it is easier to determine the logic of the cell references in the formulas. To print the formulas on a sheet, you must first set the sheet to display the formulas instead of the computed results. Exercise 3-8 shows how. EXERCISE 3-8 Displaying formulas Display the workbook you completed in Exercise Select Sheet1 by clicking its tab. 2. Choose the Formulas ribbon and click on Show Formulas. The expense statement in Sheet1 now displays the values and formulas you entered. 3. Choose Print after clicking the Office button to display the Print dialog box. Click Preview and click Page Setup. Click the Sheet tab to display the Sheet page (see Exhibit 3-13). 4. Click Row and column headings in the Print box to include the row and column headings in the printout. Click Gridlines if it is unchecked to include the gridlines in the printout. Click OK. 5. Zoom in if necessary and notice the printout now includes the row and column headings, and the formulas are printed. Click Print. Your printout should be similar to Exhibit EXHIBIT 3-14 Formula printout from Sheet1 6. Select Sheet2 and notice that the formulas for this worksheet are not displayed. This is because the Show Formulas command works with the selected sheet. To turn the formula display on for all sheets, you must either select all the sheets before choosing the Show Formulas command, or turn on the formula display one sheet at a time. 7. Repeat steps 2 to 5 for Sheet2. Your printout should be similar to Exhibit Lesson 3 Computer Tutorial 2

56 EXHIBIT 3-15 Formula printout from Sheet2 8. Select Sheet1 and Sheet2 by clicking the tab for Sheet1, then hold down SHIFT and click the tab for Sheet2. Click Show Formulas to turn off the formula display for both Sheet1 and Sheet2. 9. Close this workbook. There is no need to save the changes. TOPIC 3.6 Using Excel Help Excel Help enables you to review some of the techniques learned in this lesson. Help Use the following steps to display the appropriate Help windows: 1. Click on the Help icon. 2. Type Select a range and click Search. 3. Click Select cells and their contents on a worksheet. 4. After reading the Help information, search other Help topics. 5. If you had difficulty with any of the following, display the corresponding Help information to review: Enter a formula to calculate a value Edit cell contents Format cells and lists quickly with styles or built-in table formats Display formulas or formula results on a worksheet What to do before you print TOPIC 3.7 Self-testing questions 1. Describe how to select the range B2:F9 using the mouse, the keyboard, and a combination of mouse and keyboard. 2. Describe how to select Sheet1 to Sheet3. 3. Cell C5 displays #####. What does this mean? 4. What is the fix for the problem described in Question 3? Computer Tutorial 2 Lesson 3 19

57 5. You want to change the contents of cell G9. Briefly describe one method to accomplish this. 6. Cell A5 has the date of January 15, Describe how you can display this value as 1/15/00 using the right mouse button. 7. Briefly describe how to display the formulas in a worksheet. 20 Lesson 3 Computer Tutorial 2

58 LESSON 4 Editing cells and ranges Topic outline Overview Learning objectives 4.1 Copying cells and ranges 4.2 Moving cells and ranges 4.3 Inserting and deleting rows and columns 4.4 Inserting and deleting cells 4.5 Finding and replacing cells 4.6 Spell checking 4.7 Naming ranges 4.8 Deleting names 4.9 Printing ranges 4.10 Using Excel Help 4.11 Self-testing questions Editing tasks within Excel are surprisingly easy. Not only can you copy the contents of cells to another range, you can also copy the formats in the cells. You can locate text in cells, and spell check your entire workbook. A particularly useful feature is the ability to assign names to ranges, thus making the ranges easier to work with. In this lesson, you learn how to edit cells and ranges, work with named ranges, and continue your use of Excel Help. Copy cell contents to other cells. Move cell contents to other cells. Insert and delete rows, columns, and cells. Find cells with specific characteristics. Find and replace text in cells. Spell check a workbook. Create and define names. Use names in formulas. Delete a name from a sheet. Print a named range. Obtain Excel Help on cells, ranges, and names. TOPIC 4.1 Copying cells and ranges When building workbooks, you may want to copy blocks of data from one place to another. For example, an income statement or a budget with several months of information can be easily built if you create the structure for one month, then duplicate that structure for the remaining months. In Excel, you do this by copying ranges. Computer Tutorial 2 Lesson 4 1

59 Copying methods Copy You can copy the contents of a cell or range using any of three methods: Ribbon commands Shortcut keys Shortcut menu Ribbon commands The Copy icon in the Home ribbon makes a duplicate copy of the selected cell or range to the Windows clipboard. Then you select the new location to receive the copy and choose the Paste command to transfer the copy from the clipboard to the new location. The Paste command also reproduces the original cell format. If you want to copy only the contents or only the format, use the Paste Special command (click the down arrow of the Paste command to see this option). Shortcut keys Instead of using the ribbon commands, use the corresponding shortcut keys: CTRL+C for Copy and CTRL+V for Paste. There is no shortcut key for Paste Special. Shortcut menu Right-click the cell or range to be copied. From the shortcut menu, click Copy. Right-click the new location, then click Paste or Paste Special. EXERCISE 4-1 Copying cells and ranges using shortcut keys and the shortcut menu This exercise demonstrates how to copy a cell and range using shortcut keys and the shortcut menu. 1. Start Excel and open a new workbook. 2. Type a value of 1000 in cell A1 and press ENTER. Select cell A1. Press CTRL+C. 3. Select cell A2. Press CTRL+V. You have just copied the contents in cell A1 to A2. Now type 2000 in cell A2 to make it different from cell A1. Press ENTER. 4. Select A1:A2. Press CTRL+C. Select cell B1. Press CTRL+V. Although you only selected cell B1, the contents of cells A1 and A2 are copied into cells B1 and B2. The copy operation in Excel always retains the structure of the range to be copied. 5. Select A1:A2 and with the mouse pointer placed over this selection, right-click to display a shortcut menu. Choose Format Cells. Click the Number tab and format these cells to Currency with no decimal place. 6. With A1:A2 still selected, bring up the shortcut menu again, and click Copy. 7. Right-click cell C1 and click Paste. Notice that cells C1 and C2 contain an exact copy of A1:A2, including formats. 8. Now right-click cell C4 and choose Paste Special. The Paste Special dialog box appears (see Exhibit 4-1). Select Values and click OK. Notice that C4:C5 contain only values, not the format of A1:A2. 9. Choose Close after clicking the Office button to close this workbook without saving the changes. 2 Lesson 4 Computer Tutorial 2

60 EXHIBIT 4-1 The Paste Special dialog box EXERCISE 4-2 Copying using ribbon commands This exercise provides practice in copying by using ribbon commands. 1. Open the workbook CT2L3P2S.XLS. 2. Select Sheet1 by clicking its tab. Select cell C6. The formula in this cell is =SUM(C2:C5). 3. Select C2:C6. Click the Copy icon in the Home ribbon. 4. Select D2:E6. Click the Paste command. The contents of range C2:C6 are now copied to D2:D6 and E2:E6. Select cell D6 and notice that the formula, copied from cell C6, has been adjusted to =SUM(D2:D5). Similarly, the formula in cell E6 is =SUM(E2:E5). This adjustment is possible because the formula in cell C6 uses relative reference. You will learn more about relative reference and other forms of cell references in Lesson Close the file. Do not save the modified workbook. If you had difficulty with this exercise, compare your workbook with CT2L4P1S.XLS. Building models by copying and pasting Suppose you are building a budget model with several months of data. The quickest way to set up the workbook is to enter one month of data, and then copy the month as many times as required. Computer Tutorial 2 Lesson 4 3

61 EXERCISE 4-3 Building a budget model This exercise provides practice in building a budget model, using copying and pasting functions. 1. Open the workbook CT2L4P2.XLS. This workbook has one worksheet, Sheet1, containing the budget for the months of January and February for the Computers Division of Pacific Coast Limited. The worksheet is set up for six months. 2. Click Show Formulas in the Formulas ribbon to display the formulas. You find that range B6:B14 contains values, but range C6:C14 contains only formulas. With the exception of Rent and Utilities, all other items in the budget for February have a 1% increase over the previous month. You decide that this assumption also holds true for the months of March to June. 3. Reverse the effect of step 2 by clicking Show Formulas again to return the worksheet to its original form. 4. Select range C6:C16 (budget for February). Right-click this selection and choose Copy from the shortcut menu. 5. Select range D6:G16. Right-click this selection and choose Paste. Some cells show number signs (####), indicating that this column is not sufficiently wide. 6. Double-click the right border of the column heading that contains number signs (####) to adjust the column width. 7. Study the formulas in this completed budget by clicking Show Formulas. Exhibit 4-2 shows the formulas in column D. EXHIBIT 4-2 Copied formulas 8. Close but do not save the modified worksheet. If you had difficulty with this exercise, compare your workbook with CT2L4P2S.XLS. 4 Lesson 4 Computer Tutorial 2

62 TOPIC 4.2 Moving cells and ranges Instead of copying, you can move (that is, relocate) the contents of a cell or range. Moving methods Cut To move the contents of a cell or a range, you can use any of the following methods: Ribbon commands Shortcut keys Shortcut menu Ribbon commands The Paste command in the Home ribbon moves the contents of the selected cell or range to the new location after you use the Cut icon. Shortcut keys Instead of using the ribbon commands, you can use the corresponding shortcut keys: CTRL+X for Cut and CTRL+V for Paste. Shortcut menu Right-click the cell or range to be copied. From the shortcut menu, click Cut. Right-click the new location, then click Paste. EXERCISE 4-4 Moving cells This exercise demonstrates how to move a range using menu commands. Moving a cell or range using ribbon commands, shortcut keys, or the shortcut menu works basically the same way as copying a cell or range. (These steps will not be repeated here, although you may want to practise them on your own.) 1. Open a new workbook. 2. Enter a value of 999 in cell A1 and press ENTER. Select cell A1. Click the Cut icon. 3. Select cell A2. Click the Paste icon. This step moves the contents in cell A1 to A2. 4. Close the workbook without saving it. Computer Tutorial 2 Lesson 4 5

63 TOPIC 4.3 Inserting and deleting rows and columns Inserting and deleting methods When building worksheets, sometimes you may need to insert information on the worksheet. Excel provides facilities for you to insert rows and columns in a worksheet. You can insert or delete rows or columns using two methods: Ribbon commands Shortcut menu Ribbon commands The Insert icon in the Home ribbon is context-sensitive: if a row is selected, a row is inserted on top of it, and if a column if selected, a column is inserted to its left. The Delete icon deletes the current selection, whether a row, column, or range. Shortcut menu Select the row number below the row to be inserted, or the column letter to the right of the column to be inserted. Right-click to display the shortcut menu. Select Insert to insert a row or column. EXERCISE 4-5 Inserting rows and columns This exercise illustrates how to insert rows and columns in a worksheet. 1. Open the file CT2L4P2S.XLS. This file contains a six-month budget for the Computers Division of Pacific Coast Limited. 2. Suppose you need to add Automobile expenses to the original budget. You project that the monthly expense will be $450. This expense category should be added between Advertising (row 9) and Freight (row 10). Remembering that Excel always inserts a row on top of the current row, click the row heading for row 10. The entire row 10 is highlighted. 3. Click the Insert icon. A row is now inserted between Advertising and Freight. In cell A10, enter Automobile. In cell B10, enter Select cell C10. Type =B10 and press ENTER. 5. Select cell C10. Click the Copy icon. Next, select range D10:G10. Click the Paste icon and the amounts are copied into these cells (see row 10 in Exhibit 4-3). 6. Suppose you want to put a blank column between March and April to separate the first three months from the second three months. Remembering that Excel always inserts a column to the left, right-click the column heading for column E (April). 7. From the shortcut menu, choose Insert. To narrow this new column, drag the right border of the column heading to the left. (See column E in Exhibit 4-3, which shows the worksheet after you have completed this exercise.) 6 Lesson 4 Computer Tutorial 2

64 EXHIBIT 4-3 Modified budget worksheet 8. Do not save the modified worksheet. If you have difficulty with this exercise, compare your workbook with CT2L4P3S.XLS. EXERCISE 4-6 Deleting rows and columns In this exercise you learn how to delete rows and columns from a worksheet. You will also practise copying cells and use the Undo icon. 1. Open a new workbook. 2. You need to enter the values of 1 to 10 in range A1:A10. Here is a fast way: Auto Fill Options a. In cell A1, type 1 and press ENTER. b. Select cell A1 again, click on the fill handle (the black square in the bottom right corner of the selected cell, where the cursor becomes a cross), and drag it down to cell A10. c. The Auto Fill Options button appears. Click on it. d. From the menu that appears, click on Fill Series. 3. Repeat step 2 for range B1:B10, starting with the value of 11 in cell B1. 4. Repeat step 2 for range C1:C10, starting with the value of 21 in cell C1. 5. Now suppose you wish to delete row 5. Select row 5 by clicking its row heading. click the Delete icon. The original row 5 disappears. 6. Restore row 5 by clicking the Undo icon. 7. Now delete column B by right-clicking its column heading. Choose Delete. The original column B disappears. 8. Restore column B by clicking the Undo icon. Leave this workbook open for the next exercise. Computer Tutorial 2 Lesson 4 7

65 TOPIC 4.4 Inserting and deleting cells Inserting and deleting methods Now you know how to insert and delete rows and columns, you are ready to insert and delete cells. You can insert or delete cells, using any of these methods: Ribbon commands Shortcut menu Ribbon commands The Insert Cells command can be found under the down arrow below or next to the Insert icon (depending on the size of the Excel window). If you click it, the Insert dialog box appears, enabling you to shift cells right or down to make room for the new cell (see Exhibit 4-4). You can also insert an entire row or column from the Insert dialog box. To delete, use the Delete Cells command (below or next to the Delete icon). The Delete dialog box appears, enabling you to shift cells left or up to take up the void left by the deleted cell (see Exhibit 4-5). You can also delete an entire row or column from the Delete dialog box. EXHIBIT 4-4 Insert dialog box EXHIBIT 4-5 Delete dialog box Shortcut menu Right-click a cell to display the shortcut menu. The Insert and Delete command can be used from the shortcut menu. EXERCISE 4-7 Inserting and deleting cells This exercise describes how to insert and delete cells. If you had difficulty with Exercise 4-6, open the workbook CT2L4P4S.XLS to start this exercise. 1. Suppose you wish to add a cell between A4 and A5. Select cell A5. 2. Choose Insert Cells. Select Shift cells down and click OK. An empty cell now appears between cell A4 and A6. (Cell A6 holds the previous contents of cell A5.) 3. Suppose you wish to add a cell between A5 and B5. Right-click cell B5. 8 Lesson 4 Computer Tutorial 2

66 4. Choose Insert from the shortcut menu. Select Shift cells right and click OK. An empty cell now appears between cell A5 and cell C5. (Cell C5 now holds the previous contents of cell B5.) 5. Select cell A5. (It is empty.) Choose Delete Cells. Select Shift cells up and click OK. 6. Right-click cell B5. (It is empty.) Choose Delete. Select Shift cells left and click OK. The worksheet is back to its previous form. 7. Close the workbook and do not save changes. TOPIC 4.5 Finding and replacing cells Excel enables you to search your workbook for cells with specific types of content such as text, numbers, or formulas. This feature is useful for editing tasks when you want to search and replace information, or track down errors in a worksheet. Notice that this feature only works for the active worksheet and not the entire workbook. Finding formulas The Go To command (in the Find & Select menu) is used to locate cells with specific characteristics. You can pre-select a range for the Go To command to act on, or if you only select a single cell, the Go To command assumes that you wish to search through the entire worksheet from that point forward. Note: It is generally best to make cell A1 the active cell before using the Find or Replace command so that Excel performs a search of the entire worksheet. When you click Go To Special in the Find & Select menu, Excel provides several choices (see Exhibit 4-6). You can select cells containing several types of information. The following are the types most often used: Comments (comments can be attached to cells) Constants (text or numeric values) Formulas (containing Numbers, Text, Logicals, or Errors) Blanks Dependents (the value of one cell depends on the result of others) Excel highlights all cells that meet the characteristics specified, and you can move from cell to cell by pressing ENTER. Computer Tutorial 2 Lesson 4 9

67 EXHIBIT 4-6 Go To Special dialog box EXERCISE 4-8 Searching for formulas and constants In this exercise, you locate all the formulas and constants in a budget worksheet to check their accuracy. 1. Open the workbook CT2L4P3S.XLS. 2. Choose Go To Special in the Find & Select menu. In the Go To Special dialog box (see Exhibit 4-6), select Formulas and click OK. Cells containing formulas are all highlighted. 3. Press ENTER to move from cell to cell and study their contents displayed in the formula bar. After moving through a few formulas, click any cell to cancel the selection. 4. Repeat steps 2 to 4, but select Constants in the Go To Special dialog box and click OK. Press ENTER to move between the highlighted cells to confirm that these cells only contain constants (text or numeric values). 5. Click any cell to cancel the selection. Leave this workbook open for the next exercise. 10 Lesson 4 Computer Tutorial 2

68 Searching and replacing cell contents The Find command is used to locate characters (text, numbers, or formulas) in your workbook cells. EXERCISE 4-9 Finding cell values This exercise demonstrates how to use the Find command to locate specific values in cells. Make sure that the workbook CT2L4P3S.XLS is opened. 1. Suppose you want to find all the cells that contain 2000 in the six-month budget in Sheet1. Select cell A1 to start the search there. 2. Choose Find in the Find & Select menu to display the Find tab of the Find and Replace dialog box (see Exhibit 4-7). Drag the dialog box below row 8 for a better view of your budget worksheet. EXHIBIT 4-7 Find and Replace dialog box (Find tab) 3. In the Find what box, type 2000 and click Find Next. Cell B5 becomes active, indicating that this cell contains the specified text. Click Find Next again: cell C5 becomes active. 4. Click Close to return to the worksheet, but leave the workbook open for the next exercise. If you click on the Replace tab in the Find and Replace dialog box, Excel provides you with the option of locating and replacing text. This tab is described in the following section. Replacing cell contents The Replace command is used to replace characters (text, numbers, or formulas) in workbooks. In the Replace tab of the Find and Replace dialog box, you specify the text you wish to find and the text you wish to replace it with (see Exhibit 4-8). Computer Tutorial 2 Lesson 4 11

69 EXHIBIT 4-8 Find and Replace dialog box (Replace tab) EXERCISE 4-10 Replacing cell values This exercise demonstrates how to use the Replace command to replace specific values in cells. Make sure that the workbook CT2L4P3S.XLS is open. Suppose you want to replace all occurrences of 2000 with 2001 in the six-month budget. 1. Select cell A1 to indicate that you wish Excel to start the search there. 2. Choose Replace in the Find & Select menu to display the Replace tab of the Find and Replace dialog box (see Exhibit 4-8). Drag the dialog box below row 8 for a better view of your budget worksheet. 3. In the Find what box, type In the Replace with box, type Click Replace All. Cells B5 to H5 now all show 01 instead of 00. Click OK to confirm that Excel has made six replacements. 4. Click the Undo icon to reverse the effect. 5. Suppose monthly rent is no longer 2200, but has been increased to Choose Replace. Drag the Replace dialog box to the right of column B for a better view. 6. In the Find what box, type In the Replace with box, type However, be cautious. Instead of clicking Replace All, find the first occurrence by clicking Find Next. Cell B6 (containing $12,200.00) is highlighted because Excel found 2200 in this cell. You do not want to change this cell, so click Find Next again. 7. This time, cell B13 (rent for January) is highlighted. Click Replace and the active cell jumps back to cell B6, which is the only remaining occurrence of the value to be replaced. Click Close to indicate that you have finished and that no more replacements are desired. 8. Close the file. Do not save the changes. There are many applications of the techniques just described. For example, you could change the company name, financial statement labels, or parts of formulas. 12 Lesson 4 Computer Tutorial 2

70 TOPIC 4.6 Spell checking You can spell check a range, a worksheet, or the entire workbook. In general, you should spell check the entire workbook. Excel checks the current worksheet, unless a range has been selected. To spell check the entire workbook, you must first set Excel to select all sheets before using the spell checker. To select all sheets, right-click any of the sheet tabs to display the shortcut menu (Exhibit 4-9). Choose Select All Sheets. EXHIBIT 4-9 Shortcut menu Once you have selected a cell range, a worksheet, or all worksheets, choose the Spelling command in the Review ribbon. Excel always begins its spell checking operation at the active cell. Therefore, if you want to spell check an entire sheet, always place the active cell in cell A1 before starting spell checking. During spell checking, if a word cannot be located in its dictionary, a Spelling dialog box is displayed (see Exhibit 4-10). This dialog box provides you with the following options: Ignore Once: Leaves the word unchanged. Ignore All: Leaves all occurrences of the word unchanged. Add to Dictionary: Adds the word to the custom dictionary. Change: Changes the word to the word selected in the Suggestions box. Change All: Changes all occurrences of the word. AutoCorrect: Excel will change the word to the word selected in the Suggestions box. It will also add the word to the AutoCorrect list. The next time you type the word and press ENTER, Excel will automatically correct the spelling of the word. Undo Last: Reverses the effect of the last spelling change. Cancel/Close: Stops spell checking. If you change a misspelled word, Cancel changes to Close. Dictionary language: Excel comes with proofing tools for English, French, and Spanish. To use this feature, you must have installed the language you want to select. Computer Tutorial 2 Lesson 4 13

71 EXHIBIT 4-10 Spelling dialog box Excel suggests a default custom dictionary named CUSTOM.DIC. To specify another dictionary, click Options, then Custom Dictionaries. EXERCISE 4-11 Spell checking a workbook This exercise provides practice in spell checking a workbook. 1. Open the workbook CT2L4P5.XLS. As you can see, this workbook contains a single worksheet with a number of spelling errors. Place the active cell in cell A1. Click the Spelling icon. 2. The Spelling dialog box appears. Drag this dialog box to below row 6 for a better view. Click Options and ensure that the Ignore Words in UPPERCASE box is not checked. Excel finds the misspelled word Exchnge and suggests the word Exchange instead. Click Change to accept this suggestion and the misspelled word in cell A1 is corrected. 3. Excel does not recognize the word GIC which stands for Guaranteed Investment Certificate. Excel should accept all occurrences of this word as a correct spelling. Therefore, click Add to Dictionary to include GIC in the dictionary. 4. Continue with the word raate, for which Excel suggests the correct spelling of rate. Click AutoCorrect to accept this suggestion. The word is then corrected and added to the AutoCorrect list. 5. Excel reports that the word diate is misspelled, but suggests the word dilate as a correction. Browse through the Suggestions list and you will find the word date. Select it and click Change All. 6. Excel reports that the word Maturety is misspelled. Click Maturity in the Suggestions list and click Change. 7. Excel reports that the spell checking is completed. Click OK. Notice that it corrected the second misspelling of date in cell A5 and ignored the second occurrence of GIC in cell A6. 14 Lesson 4 Computer Tutorial 2

72 8. In cell A7, type Early redemption raate and press ENTER. Note Excel automatically changes raate to rate because you added the word to the AutoCorrect list in step Close the file without saving the modified workbook. TOPIC 4.7 Naming ranges In Excel, you can name a cell or range, and refer to that name in formulas or other operations such as printing. The following are the rules for defining a name: Names can be up to 255 characters in length. Names can be composed of letters and/or numbers. Excel is not case-sensitive; names can be UPPERCASE or lowercase. Names must begin with a letter. Names must not contain spaces, but may include underscores, backslashes, and periods. Names must not resemble a cell reference (such as C100, C$100, or R1C1). It is generally advisable to keep names short and meaningful. There are advantages to using names: Named formulas are easy to read and interpret. For example, the formula =REVENUE-EXPENSES is easier to understand than =C5-C18. Once a range is named, if you add or delete cells, rows, or columns to that range, Excel automatically adjusts the definition of the name. If you are working with more than one sheet in a workbook, names created in any sheet can be used anywhere in the workbook. The Define Name command in the Formulas ribbon is used to give a name to a cell or a range. EXERCISE 4-12 Defining names This exercise demonstrates how to define names using the Define Name and Create from Selection commands. 1. Open the workbook CT2L4P6.XLS. This workbook contains a simple income statement which you can use to practise working with names. 2. To name the value in cell B1 Revenue, first select cell B1. Click the Define Name icon. The New Name dialog box appears (see Exhibit 4-11). Excel suggests the name Revenue for cell B1 by entering Revenue in the Name text box, and the cell reference of =Sheet1!$B$1 in the Refers to text box. The name of Sheet1 and absolute cell reference of $B$1 is to ensure that the name Revenue can be referred to from any sheet in the workbook. You will learn more about absolute references in Lesson 6. Excel picks up the name from the text in cell A1, to the left of cell B1. Click OK to accept these suggestions. If you want a name other than that suggested by Excel, you can enter it in the text box. Computer Tutorial 2 Lesson 4 15

73 EXHIBIT 4-11 New Name dialog box 3. You can also name a range. To name the range B4:B7 as Expenses, first select this cell range. Click Define Name. Type Expenses in the Name text box, but do not press ENTER or click OK yet. Notice the entry in the Refers to text box and verify that the cell reference is =Sheet1!$B$4:$B$7. Click OK. Press any of the arrow keys to deselect the range B4:B7. 4. Click the drop-down arrow to the right of the name box (left of the formula bar) to display the names in the workbook. Click Expenses in the list of names to select it and the range B4:B7 is highlighted (see Exhibit 4-12). EXHIBIT 4-12 Displaying names 5. You can also give a name to a range using the Create from Selection command. Select range A8:B8. Click Create from Selection. The Create Names from Selection dialog box appears. You can choose to instruct Excel to use the name in the top row, in the left column, in the bottom row, or in the right column of the range. In this case, Excel suggests you use the name in the left column (see Exhibit 4-13). That is, use the name in cell A8 for cell B8. Click OK. 16 Lesson 4 Computer Tutorial 2

74 EXHIBIT 4-13 Create Names from Selection dialog box 6. Click the drop-down arrow to the right of the name box. The list of names shows three names: Expenses, Revenue, and Total_expenses. Excel adds an underscore to connect the two words that comprise the name of Total_expenses. 7. Save this workbook under your initials, and leave it open for the next exercise. If you had difficulty with this exercise, compare your workbook with CT2L4P6S.XLS. The main difference between the Define Name command and the Create from Selection command is that you can type a name for the Define Name command, but you can only use the text in one of the neighbouring cells for the Create from Selection command. EXERCISE 4-13 Using names in formulas This exercise provides practice in using names in formulas. You can either continue with the workbook from Exercise 4-12, or open the solution workbook CT2L4P6S.XLS. This workbook contains only one sheet. 1. Click the drop-down arrow to the right of the name box. Your workbook should have three names: Expenses, Revenue, and Total_expenses. 2. Examine the formulas on this worksheet. Click Show Formulas in the Formulas ribbon. Your worksheet should look like Exhibit After checking the formulas in column B, turn Show Formulas off. EXHIBIT 4-14 Formulas for CT2L4P6.XLS before using names 3. Check that the name Expenses has been assigned to the range B4:B7 by clicking the drop-down arrow to the right of the name box. Click Expenses and the range B4:B7 is highlighted (see Exhibit 4-12). Computer Tutorial 2 Lesson 4 17

75 4. Select cell B8. Its formula is currently =SUM(B4:B7). However, the range B4:B7 has been assigned the name of Expenses. You can apply this name in the formula. click the down arrow of the Define Name command, then choose Apply Names. The Apply Names dialog box appears. Click Expenses to select it, then click OK. The formula in cell B8 now reads =SUM(Expenses). 5. Apply the names of Revenue and Total_expenses in the formula in cell B9 using the procedure described in step 4, but in the Apply Names dialog box, select Revenue and Total_expenses. The formula in cell B9 now reads =Revenue-Total_expenses. (See Exhibit 4-15.) EXHIBIT 4-15 Formulas after using names 6. Instead of applying the name to an existing formula, you can enter the name directly in the formula. Select cell C9. Type =Revenue-Total_expenses and press ENTER. The formula is entered in cell C9, with the result being If your cell shows #NAME?, you must have mistyped one of the names. 7. Save the workbook under your initials and close it. If you have difficulty with this exercise, compare your workbook with CT2L4P7S.XLS. EXERCISE 4-14 Creating names Excel can automatically create names for cells based on row or column titles in your workbook. This exercise gives you some practice in using the Create from Selection command to compose multiple names in a range. 1. Open the workbook CT2L4P8.XLS. This workbook contains only one worksheet, which holds the expenses for the first three months. The formulas for the quarterly and monthly totals have not been entered. You will use names to complete these formulas. 2. Select the range A3:D9. Click Create from Selection. The Create Names from Selection dialog box shows that Top row and Left column have been checked. Because you want to create names using row 3 and column A, click OK to accept these suggestions. 3. Click the drop-down arrow to the right of the name box. The worksheet now has a list of names: Advertising, Feb, Freight, Jan, Mar, Miscellaneous, Rent, Salaries, and Utilities. Select Advertising and observe that this name has been given to the range B4:D4. Select Jan and notice that this name has been given to the range B4:B9. 18 Lesson 4 Computer Tutorial 2

76 4. Select cell E4. In this cell, you will construct the formula =SUM(Advertising). Start the formula by typing =SUM(, then click the Use in Formula command and select Advertising. and type ). Press ENTER. The result should be $3, For practice, repeat step 4 for two more of the expense categories for column E: E5: =SUM(Freight) E6: =SUM(Miscellaneous) Complete the formulas for cells E7 to E9 for additional practice. 6. Now select cell B10. Instead of selecting the name from the Use in Formula command list, enter the formula =SUM(Jan). The result should be $7, Repeat step 6 for the month of February: C10: =SUM(Feb) Complete the formula for cell D10 for practice. 8. In cell E10, enter the formula =SUM(E4:E9). The result should be $22, Save the completed workbook under your initials and close it. If you had difficulty with this exercise, compare your workbook with CT2L4P8S.XLS. TOPIC 4.8 Deleting names You can delete any name from a workbook. If the name is not used in any formula, there will be no effect on the workbook. However, if the name is used in the formulas on the workbook, when you delete the name, any references to the name in formulas are replaced by the #NAME! error value in the formula. To avoid this problem, before deleting the name from the workbook, you should use the Replace command to replace all occurrences of the name in formulas with the appropriate cell references. If you have already deleted the name, you can still use the Replace command to correct the formula errors. EXERCISE 4-15 Deleting a name This exercise provides practice in deleting a name from a workbook. 1. Open the workbook CT2L4P6S.XLS. The worksheet (Sheet1) contains three names. None of the names are used in any of the formulas. 2. Click any blank cell on the worksheet. 3. Click the Name Manager icon. The Name Manager dialog box appears. Select Revenue by clicking it (Exhibit 4-16). Click Delete to remove this name. Click OK. The list of names no longer includes Revenue. Computer Tutorial 2 Lesson 4 19

77 EXHIBIT 4-16 Name Manager dialog box with three names 4. Close this workbook and do not save the changes. EXERCISE 4-16 Deleting a name used in formulas In this exercise, you delete a name from a workbook where the name is used in a formula. You also learn to use the Replace command to fix the formulas after deleting a name from the workbook. 1. Open the workbook CT2L4P7S.XLS. The worksheet Sheet1 contains three names, all of which are used in formulas. 2. Click cell B9. The formula in this cell is =Revenue Total_expenses. The same is true for cell C9. 3. Click Name Manager. Select Revenue by clicking it, then click Delete to remove this name. Click OK and close the Name Manager dialog box. The formula in cells B9 and C9 now shows the error value of #NAME? because Excel could no longer complete the calculation for these formulas, which depends on the definition of the name Revenue. 4. To fix the formula error, you must replace the name Revenue in all formulas in the workbook. You can do so by editing manually each formula that references the name Revenue. A faster method, however, is to use the Replace feature. Click Replace under the Find & Select icon in the Home ribbon. The Find & Replace dialog box appears. If necessary, drag this dialog box below row 9 so as not to obscure the cell range A1:B9 in the workbook. 20 Lesson 4 Computer Tutorial 2

78 5. In the Find what box, enter Revenue and in the Replace with box, enter B1 (Exhibit 4-17). Click Find Next. Depending on where the active cell is, Excel may find cell A1, B9, or C9. If Excel finds cell A1, you do not want to replace the word Revenue in this cell because it is a label. In this case, click Find Next again. When Excel finds the word Revenue in cell B9, click Replace. Do the same for cell C9, then click Close. The error messages in cells B9 and C9 disappear, and instead are replaced with the result of $4,000. Click cell B9 and observe that the formula now shows =B1 Total_expenses. EXHIBIT 4-17 Replace dialog box 6. Leave this workbook open for the next exercise. EXERCISE 4-17 Replacing a name before deleting it This exercise shows you how to replace a name before deleting it so as to avoid formula errors. You will continue with the workbook you used in Exercise 4-16, CT2L4P7S.XLS. 1. Select cell B9 and notice that the formula references the name Total_expenses, but you want to delete this name from the workbook. However, before doing so, you should replace this name in any formulas in the workbook. Select cell A1. 2. Click Replace. In the Find what box, type Total_expenses and in the Replace with box, type B8. Click Replace All. The formulas in cells B9 and C9 no longer use the name Total_expenses. Instead, the cell reference B8 is used. Click OK to confirm the replacement and then click Close to close the dialog box. 3. Click the Name Manager icon. Click Total_expenses, then click Delete to remove this name. Click OK and then Close. No error message is displayed because before deleting the name, you replaced the name in all of the formulas. 4. Close the workbook and do not save the changes. TOPIC 4.9 Printing ranges Named ranges can simplify the printing of a worksheet. You can just select the name of the range you wish to print, click Print, and select Selection. You can then preview your print selection. Exercise 4-18 demonstrates these printing steps. Computer Tutorial 2 Lesson 4 21

79 EXERCISE 4-18 Printing ranges using named ranges 1. Open the workbook CT2L4P2S.XLS. This workbook has one worksheet which contains a six-month budget for Pacific Coast Computers Division. 2. The range A1:G16, which is the six-month budget, has been assigned the name Budget. The range A1:D16, which is the budget for the first quarter, has been assigned the name Q1budget. 3. Click the drop-down arrow at the left of the formula bar to display the two names, Budget and Q1budget. Click Budget to select it. 4. Click Print after clicking the Office button. In the Print what box, select Selection. 5. Click Preview, then click Page Setup. Click the Sheet tab. Make sure that the Row and column headings box is checked. Click OK to return to Preview. 6. Notice that range A1:G16 is included in the print range. Click Print to print the selected range. 7. Repeat steps 3 and 4 for the name Q1budget. Notice that the Print Preview shows range A1:D16. Click Print. 8. Close but do not save the modified workbook. TOPIC 4.10 Using Excel Help By using Excel Help, you can review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click the Help icon. 2. Type copying and click Search. 3. Select the topic Move or copy a formula. 4. After reading the Help information, search other topics. 5. If you had difficulty with any of the following, display the corresponding Help information to review: Move or copy cell data Clear or delete cells, rows, or columns Cut command Cells, inserting Inserting, columns Find or replace data Spell checking Name cells in a workbook Names, troubleshooting 22 Lesson 4 Computer Tutorial 2

80 TOPIC 4.11 Self-testing questions 1. Describe how to use ribbon commands to copy the contents of cell C6 to cell D6. 2. Describe how to use ribbon commands to copy the contents of cell C6 to the range D6:G6. 3. You need to insert a row between rows 5 and 6 in your workbook. Describe how to accomplish this using: a. ribbon commands b. shortcut menus 4. Describe how to replace all occurrences of the text Q1 with Quarter 1 in your budget workbook. 5. Briefly describe how to a. spell check a workbook b. instruct the spell checker to leave all occurrences of CGA unchanged for this and all subsequent spell checking 6. a. Describe how to give the name Interest to cell A4. b. Describe how to remove this name from cell A4. 7. State whether the following names are valid or invalid: a. Interest% b. (Discount) c. Future_amount d. 4th_quarter e. Really? f. SIN# When a name is not valid, explain why. Computer Tutorial 2 Lesson 4 23

81 LESSON 5 Workbooks and sheets Topic outline Overview Learning objectives 5.1 Creating and opening workbooks 5.2 Saving and closing workbooks 5.3 Inserting and deleting sheets 5.4 Naming sheets 5.5 Moving and copying between sheets 5.6 Printing multiple sheets and workbooks 5.7 Designing worksheets and workbooks in good style 5.8 Using Excel Help 5.9 Self-testing questions Each file created by Excel is called a workbook. Each workbook can contain a number of worksheets, commonly referred to as sheets. In the first four lessons, you used workbooks with more than one sheet. In Lesson 3, you learned how to select a sheet or multiple sheets. In this lesson, you learn more about managing workbooks and the sheets inside them: how to copy data and formulas between sheets, print multiple sheets, and design sheets and workbooks in good style. Describe the worksheet defaults and explain how to change them. Describe the type of sheets that a workbook may contain. Create a new workbook. Display multiple, tiled workbooks. Open, modify, save, and close workbooks. Insert and delete sheets in a workbook. Rename sheet tabs. Move and copy sheets within a workbook and between workbooks. Print multiple sheets in a workbook. State some features of good worksheet design. Obtain Excel Help on workbooks and sheets. TOPIC 5.1 Creating and opening workbooks An Excel file, by default, is a workbook containing three sheets. An Excel workbook can have worksheets and chart sheets. Most of your work in Excel will be done on worksheets. A worksheet comprises rows and columns with cells where you can enter data or formulas. A chart sheet, on the other hand, is a sheet that contains a chart and all of the items in the chart such as the plot area, axes, labels, and data markers. Lesson 7 provides a more detailed explanation of charts in Excel and how to create and manage them. To create a new workbook, choose New after clicking the Office button, then click Create at the bottom of the screen. Excel routinely opens a blank workbook with the name Book1. If other workbooks are opened, Excel names them consecutively Book2 and so on. Computer Tutorial 2 Lesson 5 1

82 Workbook defaults When a workbook has multiple sheets, the active sheet is the one in which the active cell or the cursor is currently located. It can be identified by looking at the sheet name in the sheet tab an active sheet has a sheet name in boldface. Excel assigns a set of default attributes to a new workbook. To view these, click Excel Options after clicking the Office button to display the Excel Options dialog box (Exhibit 5-1). Nine tabs are provided in the dialog box, and you use these tabs to move to the pages where you change the default settings. EXHIBIT 5-1 Excel Options dialog box Excel Options settings These are the tabs and option settings available from the Excel Options dialog box: Popular Changes the most popular options in Excel. Formulas Changes options related to formula calculation, performance, and error handling. Proofing Changes how Excel formats and corrects text. 2 Lesson 5 Computer Tutorial 2

83 Opening an existing workbook Save Customizes how workbooks are saved. Advanced Changes more advanced options for working with Excel. Customize Customizes the Quick Access toolbar. Add-Ins Manages Microsoft Office add-ins. Trust Centre Helps keep documents safe and your computer secure and healthy. Resources Bundles resources, including program updates, diagnostics, and Microsoft Office Online. All other defaults in a workbook are set by the Microsoft Windows Control Panel. For example, Excel uses the colour palettes, fonts, and international currency format set in Windows Control Panel. You can open any workbook by clicking the Open icon after clicking the Office button. In the Open dialog box, you select the drive, folder, file, and file type. However, you can also set the default working folder so that each time you start Excel and use the Open command, the files in the working folder are also displayed. The steps are described in Exercise 1-3. You may wish to refer to Exercise 1-3 for the steps to follow. (Windows XP users will find the screens and functions quite different from what is described below, based on Vista. Generally, Windows XP offers fewer options here.) The Open dialog box includes a Favourite Links area that shows nine shortcuts to common locations where you can store files or find shortcuts to files you have worked with previously. The following nine icons are designed to speed navigation through common file locations: Documents: Opens the personal data folder for the user currently logged on. Computer: Displays a list of the available drives on the computer. Recent Places: Opens the Recent Places folder that contains shortcuts to files and folders you have worked with previously. Recently changed: Displays a list of recently changed Office files. Music: Opens the Music folder for the user currently logged on. Pictures: Opens the Pictures folder for the user currently logged on. Desktop: Opens or saves files on the Windows desktop. Searches Public The Open button has a drop-down arrow that allows you to open a file, open it as read-only, open it as a copy, open it in a browser, or open and repair it. If you want to use the greyed-out options, first click to select the file, then click the drop-down arrow beside the Open button and select the command of your choice. If you want to change the working folder for the Excel session, click on any folder in the location bar at the top. Excel will display the contents of that folder. Alternatively, you can Computer Tutorial 2 Lesson 5 3

84 click on the drop-down arrow beside any folder in the location bar. Excel will display the available subfolders in a drop-down menu. When you click Open to open a file, Excel will remember this path as the working folder for the session. You can also browse the different drives and folders using the Folders area. Click on a drive or folder and Excel will display its contents. A clear arrow before a folder indicates that the folder contains subfolders. Click on it to display the subfolders within the Folders menu. Click on the arrow (now filled) again to hide the subfolders. You can also open a workbook you recently worked on by clicking its name in the Recent Documents list after clicking the Office button. Exhibit 5-2 shows an example of the Recent Documents list with a number of recently used workbooks. EXHIBIT 5-2 Recent Documents list Excel enables you to open more than one workbook concurrently. If you want to switch from one open workbook to another, click Switch Windows in the View ribbon, then click the workbook filename. Exhibit 5-3 shows an example of the Window menu with six open workbooks, one of which (Book1) has not yet been named. 4 Lesson 5 Computer Tutorial 2

85 EXHIBIT 5-3 Switch Windows drop-down menu If you have more than one workbook open, you can display them tiled, arranged horizontally or vertically, or in a cascade format. To do this, click on the Arrange All icon. The Arrange Windows dialog box (Exhibit 5-4) displays the choices you can make. EXHIBIT 5-4 Arrange Windows dialog box EXERCISE 5-1 Displaying four tiled workbooks This exercise provides practice in displaying four workbooks in tiled format. You also practise opening more than one workbook. 1. Start Excel if it is not already started. Close all workbooks. 2. Click Open after clicking the Office button. In the File name list, click CT2L4P1S.XLS. Click Open. 3. Repeat step 2 for the workbooks CT2L4P2S.XLS, CT2L4P3S.XLS, and CT2L4P4S.XLS. You should now have four workbooks open. 4. Click on the Arrange All icon. Select Tiled and click OK. Four workbook windows are now displayed. 5. To un-tile these workbooks, click any workbook and click the Maximize button. 6. Each of the other workbooks is also maximized by Excel. To check this procedure, click on the Switch Windows icon, then click any other workbook listed. Computer Tutorial 2 Lesson 5 5

86 7. Close each workbook without saving the changes. TOPIC 5.2 Saving and closing workbooks Excel provides two commands to save a workbook: Save and Save As. If you have just created a new workbook and have not saved it, choose Save. The Save As dialog box appears, so type a name in the File name box (Exhibit 5-5). If you do not supply a filename, Excel will save a workbook by its default name such as Book1 or Book2. EXHIBIT 5-5 Save As dialog box Excel allows you to set a file open password, a modify password (which requires that you provide a password to save changes to the workbook), or make a file read-only. Click the Tools button in the Save As dialog box and select General Options. The General Options dialog box appears (Exhibit 5-6). 6 Lesson 5 Computer Tutorial 2

87 EXHIBIT 5-6 General Options dialog box You can save a workbook with summary information. Click Prepare after clicking the Office button and choose Properties to enter summary information. The summary information includes the author, title, subject, keywords, category, status, and comments as shown in Exhibit 5-7. EXHIBIT 5-7 Document Properties Excel automatically saves AutoRecover information for all open workbooks at a specified time interval. You can turn the AutoRecover feature off, or change its time interval, if you click Excel Options after clicking the Office ribbon, and choose Save. EXERCISE 5-2 Adding summary information to a workbook This exercise provides practice in adding summary information to an existing workbook. 1. Open the workbook CT2L4P7S.XLS. 2. click on Prepare after clicking the Office button and choose Properties. 3. Add or change information in the following fields (press TAB to skip to the next field): Author Title Subject Keywords Category Status Comments Computer Tutorial 2 Lesson 5 7

88 4. Click the Close icon for the Document Properties area. This workbook now contains the summary information you just provided. Confirm by bringing up the Document Properties again. 5. Close the file and do not save any changes. TOPIC 5.3 Inserting and deleting sheets Inserting and deleting methods You can insert or delete sheets from a workbook. Excel always inserts a new sheet in front of the active sheet. To delete a sheet, you must first make that sheet active. You can insert or delete sheets from a workbook using one of these methods: Ribbon commands Shortcut keys Shortcut menu Ribbon commands The drop-down menu of the Insert icon in the Home ribbon contains the Insert Sheet command. The Delete Sheet command in the drop-down menu of the Delete icon deletes the selected sheet or sheets from the workbook. You cannot undo the Delete Sheet command. Before you delete a sheet from a workbook, you should always save the workbook first, in case you later change your mind. Shortcut keys The following are useful shortcut keys for inserting sheets: SHIFT+F11 Inserts a new worksheet before the active sheet. F11 Inserts a new chart sheet (see Lesson 7). Shortcut menu Right-click the active sheet tab to display a shortcut menu. Choose Insert and the Insert dialog box appears (Exhibit 5-8). Click the type of sheet to be inserted. Choosing Delete from the shortcut menu deletes the active sheet. Note that there is also an Insert Worksheet button next to the tab for the last worksheet in the workbook. It inserts a new worksheet at the end of the existing worksheets. 8 Lesson 5 Computer Tutorial 2

89 EXHIBIT 5-8 Insert dialog box EXERCISE 5-3 Inserting and deleting sheets This exercise provides practice in inserting and deleting sheets in a workbook. 1. Open a new workbook. 2. Select Sheet2 (make it the active sheet) by clicking its tab. 3. Choose Insert Sheet from the drop-down menu of the Insert icon in the Home ribbon. A new sheet (Sheet4) appears between Sheet1 and Sheet2. Sheet4 becomes the active sheet. 4. Press SHIFT+F11 and a new sheet (Sheet5) appears between Sheet1 and Sheet4. 5. Right-click the tab for Sheet3. Choose Insert and select Worksheet. Click OK to insert a new sheet (Sheet6) between Sheet2 and Sheet3. 6. Click the sheet tab for Sheet6 to select it. Choose Delete Sheet from the drop-down menu of the Delete icon in the Home ribbon. Sheet6 is deleted. 7. Click the tab for Sheet5. Hold down SHIFT and click the tab for Sheet4. Right-click the tab for Sheet5. Choose Delete to remove Sheet4 and Sheet5. Leave this workbook open for the next exercise. Computer Tutorial 2 Lesson 5 9

90 TOPIC 5.4 Naming sheets Renaming methods When you open a new workbook, Excel gives default names to each of the sheets as Sheet1, Sheet2, and so on. However, you can change any of these default names to a name of up to 31 characters, including spaces. Once you rename a sheet, the sheet tab shows the new name. You can rename sheets using a number of methods: Ribbon command Shortcut menu Double-clicking Ribbon command Select the sheet you want to rename, then click on the Format icon in the Home ribbon and choose Rename Sheet from the drop-down menu. Shortcut menu Right-click the tab of the sheet you want to rename. Choose Rename. Double-clicking Double-click the tab and type in the new name. EXERCISE 5-4 Renaming sheets This exercise provides practice in renaming sheets. You can either continue with the workbook from Exercise 5-3, or open a new one. 1. Select Sheet1 by clicking its tab. 2. Click on the Format icon in the Home ribbon and choose Rename Sheet from the drop-down menu. The text on the tab Sheet1 is highlighted. 3. Type Consolidated and press Enter. Sheet1 is now renamed. 4. Right-click the tab for Sheet2. Choose Rename. Type Computers and press ENTER. Sheet2 is now renamed. 5. Double-click the tab for Sheet3. Type Stereo and press ENTER. Sheet3 is now renamed. 6. Close the file without saving changes. 10 Lesson 5 Computer Tutorial 2

91 TOPIC 5.5 Moving and copying between sheets Moving and copying methods You can rearrange sheets in a workbook by moving them. You can also move sheets into another workbook. When you create a workbook with multiple sheets of the same layout, you can create the first sheet, then duplicate its information by copying it to other sheets. You can move or copy sheets using one of two methods: Drag and drop Shortcut menu Drag and drop The easiest way to rearrange sheets is to click the tab of any sheet to be moved, then drag it along the row of tabs. A small black inverted triangle indicates where the sheet is to be inserted. This method can only be used to move a sheet, not to copy it. Shortcut menu Right-click the tab of the sheet to be moved. Choose Move or Copy. The Move or Copy dialog box appears (see Exhibit 5-9). From the Before sheet list, select the point of insertion. If you want to make a copy, select Create a copy. To move or copy a sheet to another workbook, select the destination workbook in the To book box. EXHIBIT 5-9 Move or Copy dialog box EXERCISE 5-5 Moving sheets within a workbook This exercise demonstrates how to move sheets within the same workbook. It also shows how to avoid an error when moving sheets in workbooks where formulas reference a range of sheets. 1. Open the workbook CT2L5P1S.XLS. Computer Tutorial 2 Lesson 5 11

92 2. Select the Consolidated sheet by clicking its tab. Select cell B6 and study the formula: =SUM(Computers:Music!B6). This formula sums cell B6 from the sheets Computers, Stereo, TV, and Music. Click each sheet tab in turn and verify that this formula adds up the Jan-00 revenue amounts in the four divisions represented by the four sheets; the total is $42, Click the tab for Computers and drag it so the black inverted triangle is between TV and Music. Release the mouse button and the Computers sheet is moved between TV and Music. 4. Select Consolidated and click cell B6. The formula in this cell is unchanged, but the total now shows $21, By moving the Computers sheet to follow Stereo and TV, the formula in cell B6 in Consolidated no longer includes the January revenue from Stereo and TV. 5. To further illustrate, right-click Computers. Choose Move or Copy. In the Before sheet box, select (move to end) and click OK. The Computers sheet is now moved to behind Music. Select Consolidated and study the formula in cell B6. The result may surprise you. Because you moved the Computers sheet behind Music, Excel changed the formula in cell B6 to =SUM(Music!B6). The lesson to learn here is that before you move sheets around, you must check the workbook model carefully for potential pitfalls. In workbook models with formulas referencing a range of sheets, the sheets can only be moved correctly if you also remember to adjust the relevant formulas. You cannot undo sheet moves. 6. Now drag Computers to its original position (between Consolidated and Stereo). Select Consolidated and click cell B6. Notice that this move does not reverse the change to the formulas in the Consolidated sheet. 7. Close the file and do not save the changes. EXERCISE 5-6 Copying sheets This exercise demonstrates how to make duplicate copies of a sheet to build a multiple-sheet workbook. Suppose you want to construct a workbook that will contain the income statement for the first quarter for Pacific Coast Limited s four divisions. You want each division s income statement to be on a separate sheet; however, you know that each statement will have the same items (revenues and expenses). In fact, these sheets would be identical except for the actual revenue and expenses amounts. 1. Open the workbook CT2L5P2.XLS. This workbook contains the income statement for the Computers division. Your task is to duplicate this sheet to create the income statements for the other three divisions: Stereo, TV, and Music. 2. Right-click the Computers tab. Choose Move or Copy to display the Move or Copy dialog box. Drag this dialog box to the centre of the worksheet. Click Create a copy. 3. In the Before sheet box, click (move to end). Click OK. 4. A new sheet appears after Computers and its tab is labelled Computers (2). Double-click this tab. Type Stereo and press ENTER. 5. Repeat steps 2 to 4 to create sheets for TV and Music, each time clicking (move to end) in the Move or Copy dialog box. Remember to click Create a copy each time; otherwise, you will move the sheet instead of copying it. If you moved the sheet, use the procedure described in Exercise 5-5 to move the sheet back to its original 12 Lesson 5 Computer Tutorial 2

93 location. When this step is completed, the sheets should be in the order (from left to right) of Computers, Stereo, TV, and Music. 6. Study the four sheets. They are identical in every respect, including cell values, formats, and formulas. All you would need to do now is to input the appropriate revenue and expense amounts in the three new sheets and change the division name at the top of each sheet. 7. Use the Save As command to save this workbook under your own initials. A copy of the solution is in the workbook CT2L5P2S.XLS. Close the workbook after saving. The technique described in the preceding exercise is recommended for creating identically structured and formatted sheets. While you could copy the cells in the Computers sheet to subsequent sheets using the Copy and Paste commands (described in Lesson 4), these commands do not yield identically formatted sheets, and you will need to adjust the format of the results. EXERCISE 5-7 Moving and copying between workbooks This exercise demonstrates moving and copying sheets between two workbooks. 1. Open the workbook CT2L5P1S.XLS. 2. Choose Switch Windows from the View ribbon and make sure that two workbooks (CT2L5P1S.XLS and Book1) are currently open. If not, choose New under the Office button to open another blank workbook. (It may be named Book2, Book3, and so on.) 3. Click Arrange All in the View ribbon and select Tiled. Click OK. The two workbooks are displayed side-by-side. 4. Click anywhere on the workbook CT2L5P1S.XLS to make the workbook active. Right-click the Computers tab. Choose Move or Copy. 5. Click the drop-down arrow for the To book box. Select Book1 (or Book2). Select Sheet1 to insert the copy before Sheet1. Because you want to make a copy, select Create a copy by clicking it. Click OK. An identical copy of the Computers worksheet is inserted before Sheet1 in the workbook Book1 (or Book2). If you had not selected Create a copy, you would have moved the Computers sheet instead of copying it. 6. You can also move a sheet from one workbook to another by dragging and dropping. Click the tab for Stereo to select it. Drag it across to workbook Book1 (or Book2) between Computers and Sheet1. This move affects the results in the Consolidated worksheet because the CT2L5P1S.XLS workbook no longer contains the worksheet for Stereo. 7. Close both workbooks without saving the changes. Computer Tutorial 2 Lesson 5 13

94 TOPIC 5.6 Printing multiple sheets and workbooks When working with a workbook with multiple sheets, you can print a range, selected sheets, or the entire workbook. Exhibit 5-10 shows the Print dialog box from the Print command after clicking the Office button. EXHIBIT 5-10 Print dialog box There are three choices in the Print what box: Selection Prints the selected cells. If the selected cells comprise nonadjacent ranges, each range is printed on a separate page. Active sheet(s) Prints the selected sheets. Each sheet is printed on a separate page. Entire workbook Prints all the sheets in the workbook. If you print multiple sheets, you can specify the order of the sheets in the output. Click Preview, then Setup, and click the Sheet tab in the Page Setup dialog box (Exhibit 5-11). In the Page order area, you have two choices: Down, then over; or Over, then down. 14 Lesson 5 Computer Tutorial 2

95 EXHIBIT 5-11 Page Setup dialog box EXERCISE 5-8 Printing sheets This exercise gives you an opportunity to print multiple sheets. 1. Open the workbook CT2L5P1S.XLS. 2. Choose Print after clicking the Office button. In the Print what area, select Entire workbook. Click Preview. 3. In the status bar, Excel indicates there are five pages in the output and that the current page is Page 1. Click Zoom to display a closeup view. Click Next Page to view each page. After viewing the pages, click Close. 4. Suppose you wish to print only the sheets for Stereo and TV. Click the tab for Stereo. Hold down SHIFT and click TV to select these two sheets. 5. Choose Print and select Active sheet(s). Click Preview. In the status bar, Excel indicates there are two pages in the output: one for Stereo and one for TV. After viewing, click Close. 6. Close this workbook without saving the changes. Computer Tutorial 2 Lesson 5 15

96 TOPIC 5.7 Designing worksheets and workbooks in good style Although you can put together a spreadsheet model using Excel without planning, if you are going to build a model of some complexity (say, involving more than a few rows and columns, or requiring multiple sheets), do some planning before starting the actual task of building the model. The amount of planning required for a model depends on the purpose of the model, the complexity of the information, and the relationships between the data. Block layouts In this topic, we explain and recommend a block layout approach to worksheet design. A block of information in your worksheet is like a building block for a house or a construction project. The way you locate the blocks of information on your worksheet can directly affect the success of your worksheet in displaying and communicating information, just as an effective architectural design can promote the purpose of the building. Rows and columns The simplest block layout is to have one block of data in which all the data and calculations are carried out. The main layout question is: Which data should go in the rows and which data should go in the columns? The question is worth a few minutes of planning time, because once you have entered the data in a particular way, it can take considerable effort to change the layout. As a general guideline, worksheets tend to have more rows than columns. So a good rule of thumb is to use rows for the items in your worksheet that you are likely to add to in the future. For instance, if you are designing an inventory worksheet, you should place the inventory items in the rows and information about each inventory item in columns. This layout allows you to add more items. Another useful guideline is that separate financial items (such as expense accounts) are entered into rows, while the time periods (such as months or quarters) form the columns. Columns also tend to be used for department-by-department analysis. The income statements you worked with in previous lessons of this tutorial were designed with this guideline in mind. Multiple sheets As a model becomes more complicated or has distinct subcomponents, you should probably consider organizing the model into multiple sheets, with each sheet holding rows and columns of data that are intimately related. For example, CT2L1P1S.XLS uses one sheet to hold the consolidated income statement, another sheet to hold the income statement for the Computers division, and so on. Within each sheet, the line items (revenues and expenses) are arranged as rows, and the months arranged as columns. Because Excel workbooks can have three dimensions (rows, columns, and sheets), you should take full advantage of this possibility when designing your model. In Lesson 7, you will learn that charts in Excel can either be pasted on worksheets, or stored in separate chart sheets in the workbook. It is advisable to paste charts on worksheets for ease of management because chart sheets are less flexible. 16 Lesson 5 Computer Tutorial 2

97 Basic workbook design rules A workbook with a good design is more effective in conveying information than a formless mass of data and labels. Here are some basic rules for designing a workbook: 1. Provide a clear title. Each worksheet should have a clear, meaningful title so the user can determine, at first glance, the purpose and content of the worksheet. Charts should have appropriate titles and labels (see Lesson 7). 2. Use descriptive labels. Use clear and descriptive labels. Columns and rows must contain proper labels so that the user can determine the content of the column or row at a glance. Avoid abbreviations unless they are universally understood. Sheets should also have easily understood names. 3. Set up assumptions or variables. If the worksheet contains an assumption (or variable) used in more than one formula, but which may change periodically (such as an interest rate in a financial analysis model), place the assumption or variable in a separate input block in the worksheet. The formulas that use this value should then refer to a single cell address where the required input is located. When the assumption changes, you need only change one cell (the input variable) instead of having to modify all the formulas that used that value. If a model has a large number of variables, consider collecting them together and placing them into their own sheet. Changes to any of the assumptions can then be readily modified on the assumption sheet. 4. Use appropriate format. Format cell values to conform to standard conventions: for instance, dollar amounts with thousands commas, with or without cents. For a column of dollar amounts, show only the top and bottom values with dollar signs. Dollar amounts should be clearly distinguished from quantities, and percentages formatted to display the percent symbol. 5. Use underlines. To set off totals and subtotals, use single underlines (or hyphens). Enter double underlines under the final column total. Excel provides an easy way to underline. 6. Enter a date stamp. Knowing when a worksheet was created or last updated is just as important as knowing the date of your business correspondence. Adopt the habit of entering these dates in cells at the top or bottom of the worksheet. 7. Use a descriptive workbook name. To make it easy to manage your workbooks, especially the opening of workbooks, save the workbooks under a descriptive name. 8. Provide a file stamp. Enter the folder and filename in a cell at the top or bottom of each worksheet so it will appear on the printout; you will then be able to find the workbook file quickly on your hard disk. 9. Document using Document Properties. When creating a new workbook, always enter information in the Document Properties dialog box. After making significant changes to a workbook, always update the Document Properties. Computer Tutorial 2 Lesson 5 17

98 EXERCISE 5-9 Critique the design of a workbook This exercise enables you to critique the way rules of good design have been implemented for a workbook. 1. Open the workbook CT2L1P1S.XLS. This workbook contains an income statement model in multiple sheets. 2. Critique how well this model has implemented the following design considerations: You will note: Block layouts Rows and columns Multiple sheets Title Descriptive labels Assumptions or variables Format Underlines Date stamp File stamp Descriptive workbook name Document Properties Block layouts Each worksheet is clearly organized into blocks. For example, range A1:D3 forms the title block, and range A5:D16 forms the body of the income statement. Rows and columns The rows and columns are logically organized. Multiple sheets The use of multiple sheets is logical: each sheet is devoted to a single purpose or division. Title The title for each worksheet is clearly presented. Descriptive labels Rows and columns are clearly labelled. The sheet names are short but adequate for the purpose. The workbook would be easier to read if the labels for the individual expenses were indented. Assumptions or variables No assumptions are required for the model. If they were, they would be placed either on a separate sheet or at the top left corner of the worksheet. Format The cell formats are appropriate. The dollar signs are shown in rows 6 and 16; the other amounts do not require dollar signs. 18 Lesson 5 Computer Tutorial 2

99 Underlines The underlines are logically placed. Date stamp Although you can tell when the model was last updated (cell A19), there is no indication when the model was first created. File stamp Only the Consolidated sheet contains the file stamp (cell A18). Printouts of other sheets (Computers to Music) do not contain file stamps, and they may not be readily located on the hard disk. Descriptive workbook name The workbook name of CT2L1P1S.XLS does not give any indication of the content of the workbook. A more meaningful name should be used. (The workbook names used in this tutorial are designed for use in the exercises, rather than to indicate the contents of the workbooks.) Document Properties The Document Properties dialog box shows that this workbook does not contain any useful information in any of the boxes, with the exception of the Author field. This field only contains the name of the organization, rather than the individual who created this workbook. More meaningful information for Document Properties should be included with the workbook. TOPIC 5.8 Using Excel Help Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click the Help icon. 2. Type worksheets, inserting, and click Search. 3. Select the topic Insert or delete a worksheet. 4. After reading the Help information, search other topics of interest to you. 5. If you have difficulty with any of the following topics, display the corresponding Help information to review: Worksheets, renaming Worksheets, copying and moving Worksheets, page layout Print the active sheet, a selected range, or an entire workbook Computer Tutorial 2 Lesson 5 19

100 TOPIC 5.9 Self-testing questions 1. An Excel workbook can comprise different types of sheets. What are they? What are their contents? 2. You have opened two workbooks, and you wish to compare range A1 to B9 between Sheet1 of these two workbooks. Without printing the ranges, describe how you can effectively make the comparison. 3. Briefly describe how you would enter information into Document Properties for a workbook to document the contents of the workbook. 4. You have created a workbook with two sheets containing data: Sheet1 and Sheet2. Describe how to name Sheet1 as Main and Sheet2 as Subsidiary. 5. You have a workbook containing four worksheets. Describe how to print all the sheets in the workbook. 6. What is the purpose of including a date stamp and file stamp in a workbook? 20 Lesson 5 Computer Tutorial 2

101 LESSON 6 Formulas and functions Topic outline Overview 6.1 Excel formulas 6.2 Logical operators 6.3 Controlling calculations 6.4 Relative and absolute references 6.5 Circular references 6.6 Excel functions 6.7 Random number generation 6.8 Insert function 6.9 The IF function 6.10 Using Excel Help 6.11 Self-testing questions In designing Excel worksheets, you will find that formulas can help to perform calculations quickly and accurately. In a typical worksheet, formulas automatically perform calculations; and when you use formulas instead of typing manually calculated values in cells, any future changes to the data will routinely yield correct results. In addition to formulas, Excel also provides a large number of built-in functions. By using functions, you can often simplify worksheet formulas, make them easier to read, and reduce their complexity. In Lesson 3, you already worked with some basic formulas and the SUM function. In this lesson, you will learn more about constructing formulas and using functions. You will also learn to use the Insert Function, which provides step-by-step guidance for using any Excel function. Other techniques covered include the use of relative and absolute references, circular references, and calculation control. You will learn to use the IF function to construct basic financial models. This lesson is particularly important, as many of your tasks with financial worksheets will require a thorough understanding of formula construction and the use of functions. Learning objectives Construct formulas using mathematical operators. Construct formulas using logical operators. Control how Excel calculates the worksheets. Use Set precision as displayed for financial worksheets. Construct formulas using absolute and relative references. Use circular references correctly. Use functions in worksheet formulas. Specify functions in formulas using the Insert Function. Generate random numbers using the RAND and RANDBETWEEN functions. Use simple and nested IF functions in formulas. Obtain Excel Help on formulas and functions. Computer Tutorial 2 Lesson 6 1

102 TOPIC 6.1 Excel formulas One of the most useful features of a spreadsheet program is its ability to calculate a formula. Put simply, a formula is an expression in a cell used to perform a calculation. An Excel formula always starts with the equal (=) sign. An Excel formula can include one or more of the following: numbers (such as 100, 69, ; exponent numbers such as 6.02E+04) cell references (such as E7, AA15) range references (such as E7:G15, A4:J4) mathematical operators (such as +,, *, / ) logical operators (such as =, <, >, <= ) functions (built-in formulas with names such as SUM, AVG, and MAX) names (such as SALES and EXPENSES) Cell and range references are particularly useful in formulas because when you change data in a cell that is referenced by a formula, the formula is automatically updated to the new data. You can appreciate how valuable this feature is for accountants who must constantly update their financial planning worksheets during a period of changing interest rates. Here are some examples of different formulas, with brief explanations of what the formulas mean or do: Formula Explanation = Add 100 and 78. =E7 E13 From the value of cell E7, subtract the value of cell E13. = E13+E7 Same as =E7 E13. =E7 25 From the value of E7, subtract 25. =(A6 B9)*C2 =SUM(D9:D13) From the value of cell A6, subtract the value of cell B9, then multiply the result by the value of cell C2. Use the SUM function to add the values of cells D9 to D13 inclusive. Basic rules for entering formulas Here are the basic rules for entering a formula: 1. A formula must begin with the equal sign (=). 2. Letters in a formula can be typed in uppercase or lowercase. 3. Negative numbers start with a minus sign ( ); the same symbol is used for subtraction. 4. The mathematical operators you include in a formula are processed in a strict order of precedence. 2 Lesson 6 Computer Tutorial 2

103 As you type the characters in a formula, they appear in the formula bar. You can edit the formula as you type. When your formula is complete, you press ENTER or click the enter box ( ). Error values If you enter a formula that Excel cannot calculate, it displays an error value in the cell. Exhibit 6-1 shows the error values that Excel displays. EXHIBIT 6-1 Error values in formula Error value Error detected #DIV/0! #N/A #NAME? #NULL! #NUM! #REF! #VALUE! Divides by zero. Refers to a value that is not available. Uses a name that Excel does not recognize. Specifies an invalid intersection of two areas. Uses a number incorrectly. Includes an invalid cell reference. Uses an incorrect argument or operand. ##### Produces a value that the column is not wide enough to display. Mathematical operators Exhibit 6-2 shows the mathematical operators in Excel. EXHIBIT 6-2 Mathematical operators Operator Operation Example Result + Addition =2+3 5 Subtraction =5 4 1 * Multiplication =6*9 54 / Division =21/3 7 % Percent =25% 0.25 ^ Exponentiation =13^2 169 Notice that there is no division symbol on the computer keyboard. The / (slash) symbol is used for division. Also note that in word processing, it is common practice to use the letter x for multiplication. This is not permitted in Excel. Instead, you must use the * (asterisk) symbol because Excel would otherwise treat the x as an incorrect name. Also note that all Computer Tutorial 2 Lesson 6 3

104 Order of precedence formulas begin with the equal sign (=). The equal sign in front of 25% is optional because Excel recognizes the % symbol as a special case. When Excel calculates a formula, it does so in a left-to-right sequence. It also observes other conventions of normal arithmetic including the order of precedence (also known as the order of operations). The order of precedence of the mathematical operators is shown in Exhibit 6-3. Excel calculates the operators with the smaller precedence number first. EXHIBIT 6-3 Order of precedence Operator Operation Precedence Example Negation 1 = 2 % Percent 2 =15% ^ Exponentiation 3 =3^2 * or / Multiplication or division 4 =4*3 + or Addition or subtraction 5 =4+3 Multiplication and division are done in a left-to-right sequence, as are addition and subtraction. However, as in conventional arithmetic, any operations enclosed within parentheses are given first priority. Thus, when constructing formulas, you can use parentheses to dictate what calculations will be done first. Excel will always perform operations inside parentheses first. Within each set of parentheses, the order of precedence applies. You can also nest one set of parentheses inside another set; the nested calculations are given priority. The order of precedence works exactly the same way if cell addresses are used in formulas. 4 Lesson 6 Computer Tutorial 2

105 EXERCISE 6-1 Using Excel formulas This exercise provides practice in learning the order of precedence in Excel formulas. You also learn to build formulas using cell references and names. 1. Start Excel and display a blank workbook (Book1). 2. Enter the formulas in the cells indicated and check your result: Cell Formula Order of calculation Result A1 =20+80/4 Divide 80 by 4, then add A2 = 20+80/4 20 is negated first, then divide 80 by 4, then add to A3 =(20+80)/4 Add 20 and 80, then divide the result by A4 =7*5^2 A1 Square 5, then multiply by 7 and from the result subtract 40 (from cell A1). A5 =18*A3+((19*7 5)/4) Multiply 19 by 7 and subtract 5; then divide the result by 4, yielding 32; multiply 18 by the value in cell A3, yielding 450; finally adding the two results (450+32) Select cell A1. Choose Define Name in the Formulas ribbon. 4. In the Name box, type PRICE and press ENTER. You have just assigned cell A1 the name of PRICE. 5. Repeat step 4, assigning the name PRODUCT to cell A3. 6. Select cell A6. Type the formula =PRODUCT*PRICE. The result should be If you do not obtain the indicated result, carefully retrace all steps. 7. Leave this workbook open for the next exercise. TOPIC 6.2 Logical operators While the mathematical operators perform calculations that yield (and therefore display) numeric values, another kind of operator yields a logical answer. A logical answer in a worksheet cell is evaluated (and displayed) as either TRUE or FALSE. TRUE has a numeric value of 1 and FALSE has a numeric value of 0. The symbol that indicates the kind of logical operation to be performed is called a logical operator. Computer Tutorial 2 Lesson 6 5

106 Exhibit 6-4 shows the logical operators in Excel. EXHIBIT 6-4 Logical operators Operator Operation Example = Equal to =D1=D5 > Greater than =D1>D5 >= Greater than or equal to =D1>=D5 < Less than =D1<D5 <= Less than or equal to =D1<=D5 <> Not equal to =D1<>D5 All mathematical operators are calculated before logical operators are evaluated. EXERCISE 6-2 Logical operators This exercise demonstrates the use of logical operators and the way you use names in logical comparisons. 1. In cell D1, type $8.75 and press ENTER. In cell D5, type $6.25 and press ENTER. 2. Enter the formulas in the cells indicated and check your result: Cell Formula Evaluation Result C1 =D1=D5 Is D1 equal to D5? FALSE C2 =D1>D5 Is D1 greater than D5? TRUE C3 =D1>=D5 Is D1 greater than or equal to D5? TRUE C4 =D1<D5 Is D1 less than D5? FALSE C5 =D1<=D5 Is D1 less than or equal to D5? FALSE C6 =D1<>D5 Is D1 not equal to D5? TRUE C7 =PRICE=40 Is the value in cell A1 (named PRICE) equal to 40? TRUE 3. Formulas that include the use of logical operators such as these are particularly useful as part of the IF function. You will study more about this in Topic 6.9. Choose Close after clicking the Office button. There is no need to save this workbook. 6 Lesson 6 Computer Tutorial 2

107 TOPIC 6.3 Controlling calculations When you enter or edit a formula in a cell, Excel calculates all values in the workbook and displays the result of the formula automatically. There are, however, some circumstances under which it may be preferable to turn off automatic calculation. For instance, you may be working with a large worksheet containing many formulas for which calculation could take some time. You would be unable to make any changes to the worksheet until calculation is completed. In such cases, you may want to turn off calculation so that you can enter values into the worksheet without waiting for calculation after each change. Excel does not recalculate all formulas in a workbook just because you changed some values or formulas. Instead, Excel recalculates only those formulas affected by the changes you made. You can set how and when Excel calculates formulas in a workbook by choosing Excel Options after clicking the Office button, then clicking the Formulas category. The Calculation options area includes calculation and iteration settings. Precision settings can be found in the Advanced category. EXHIBIT 6-5 Excel Options Formulas dialog box Computer Tutorial 2 Lesson 6 7

108 Calculation The Workbook Calculation area specifies when calculations are done: When Automatic (the default) is selected, Excel immediately calculates affected formulas whenever you make a change to a value, formula, or name that affects the result of other formulas. When Automatic except tables is selected, Excel calculates all affected formulas except data tables (lists). (Lesson 8 describes lists.) When Manual is selected, Excel calculates formulas only when you press F9 (Calculate key). Excel indicates this manual setting by displaying the Calculate mode indicator in the status bar whenever you change any part of the worksheet. If Manual is selected, you should always select Recalculate workbook before Saving so that the saved workbook has the updated calculations. The calculation selection affects all Excel workbook calculations for the rest of the Excel session. Iteration Precision EXERCISE 6-3 An iteration is the repeated calculation of a worksheet until a specific numeric condition is met. Iteration settings are used for goal seeking or for resolving circular references (see Topic 6.5). The defaults of Maximum iterations of 100 and Maximum change of mean that Excel stops calculation after 100 iterations or when all values change by less than The iteration selection affects all Excel workbook calculations for the rest of the Excel session. For the purpose of this tutorial, you should be aware of Set precision as displayed. When Set precision as displayed is selected (in the Advanced category in the section When calculating this workbook), Excel changes stored values in cells from full precision (15 digits) to whatever format is displayed in the cells. The displayed value is then used for calculations. This option is particularly useful for financial worksheets to ensure that columns of values showing dollars and cents always add up to the last digit. Exercise 6-4 illustrates this. This setting is in effect only in the workbook selected in the section. Selecting Manual calculation This exercise demonstrates the effect of selecting Manual calculation. 1. Open the workbook CT2L4P2S.XLS. This workbook contains a six-month budget for the Computer Division of Pacific Coast Limited. Notice that the revenue amounts in row 6 are all under $13, Select cell B6 (Revenue for Jan-00) and change the value to $14,000. Instantly, Excel updates all the other revenue amounts in row 6: they all change to be more than $14,000. Net income amounts (row 16) are also updated. 3. Choose Excel Options under the Office button, then click Formulas. In the Workbook Calculation area, select Manual. Then click OK. 4. Change the value in cell B6 back to $12,000. Notice that Calculate is displayed in the status bar, and the other values in row 6 remain unchanged. Press F9. The results in row 6 and row 16 are updated immediately, and the Calculate indicator disappears. 5. Repeat step 3, but reset Workbook Calculation to Automatic. 8 Lesson 6 Computer Tutorial 2

109 6. Choose Close after clicking the Office button, but do not save the changes. EXERCISE 6-4 Selecting Set precision as displayed This exercise demonstrates the effect of selecting Set precision as displayed. 1. Open the workbook CT2L6P1.XLS, which documents foreign stock holdings, converted to Canadian dollars. 2. Study the amounts in column G. The total amount in cell G9 does not equal the sum of the values in cells G4 to G8. Careful study of these amounts shows that the sum should be $1,018,794.80, but the value in cell G9 shows a value of $1,018, The apparent error is caused by rounding differences when the values in cells G4 to G8 are calculated. 3. Choose Excel Options under the Office button and click Advanced. In the section When calculating this workbook, make sure that the correct file is selected and check the box Set precision as displayed. 4. Excel warns you that the data will permanently lose accuracy because Excel will now calculate and store values as they are displayed. Click OK. Make sure Workbook Calculation in the Formulas category is set to Automatic, and click OK. 5. The displayed value in cell G9 instantly changes to $1, Change the number of shares in column C and notice that the results in cell G9 always equal the sum of the individual values in G4:G8. 7. Choose Close after clicking the Office button, but do not save the changes. TOPIC 6.4 Relative and absolute references So far, you have used cell references in formulas that can be automatically adjusted as the formula is copied from cell to cell. In general, when you include cell references in formulas, Excel assumes that you wish the references to be adjusted relative to their new location in the worksheet. For example, in the formula =C4*(2+0.5*E4), the references to cells C4 and E4 will be automatically adjusted if the formula is copied to other cells. This type of reference is called a relative reference. However, you may not want this formula adjustment to be automatic. For instance, you might have a worksheet where the current interest rate is always placed in cell C5. Suppose many other cell formulas are referenced to use the interest rate in cell C5. As you extend the worksheet by copying formulas from one location to another, you will want to keep the reference to cell C5 the same in all formulas. In other words, you want it to be absolutely the same. This type of reference, then, is called an absolute reference. An absolute reference is a cell address that Excel retains in fixed and unchanged form as a result of changes made with copy operations. The convention used to indicate an absolute reference is the $ (dollar) symbol. This usage has nothing to do with currency; it is just a symbol meaning absolute. For example, $C$5 is an absolute reference to cell C5 on the current worksheet. Computer Tutorial 2 Lesson 6 9

110 If only part of the reference is absolute, it is called a mixed reference. Excel provides the following types of mixed references: Only the column reference is set to absolute by adding $ to the column reference. Example: $C5 fixes the column as absolute, but allows the sheet and row address to be adjusted. Only the row reference is set to absolute by adding $ to the row reference. Example: C$5 fixes the row as absolute, but allows the sheet and column address to be adjusted. Because Excel workbooks are three-dimensional, a cell reference also includes a sheet reference. If you are referencing a particular worksheet, Excel always routinely sets the name of the sheet to absolute reference. For example, the formula Sheet2!A4 Sheet1!D6 subtracts the contents of cell D6 on Sheet1 from that of cell A4 on Sheet2. To make a cell reference absolute (or mixed), you can type the $ symbol where needed as you type or edit a formula. Alternatively, you can press the F4 (Absolute) key immediately after you have typed the cell address in the entry line. Excel inserts the $ symbols into the cell address at the left of the cursor location. You will have an opportunity to practise this technique in Exercise 6-5. EXERCISE 6-5 Using absolute and mixed references In this exercise, you will enter a formula using absolute references and see their effect on copy operations. 1. Open a new worksheet. 2. Enter these values as listed: 3. In cell A3, enter the formula =A1+A2 resulting in the value of Copy the formula in cell A3 to cell B3. Notice that the formula in cell B3 reads =B1+B2 and displays the result of 300. This example shows the use of relative cell references in a simple formula. 5. In cell A4, enter the formula =$A$1+A2 by typing each of the characters directly from the keyboard. This formula includes an absolute reference to cell A1. The value displayed should be Copy the formula from cell A4 to B4. Move the cell pointer to B4 to read the formula in the Edit line. The formula in B4 now reads =$A$1+B2, showing that the absolute reference to A1 is unchanged but the original reference to cell A2 has been adjusted to B2 by the copy operation. The value displayed should be In cell A5, enter the formula =$A1+A2, which should display the value 30. $A1 is a mixed reference; it specifies that column A is absolute, but the row reference to row 1 is relative and may be adjusted. 10 Lesson 6 Computer Tutorial 2

111 8. Copy the formula from cell A5 to cell B6 (not B5). Click cell B6 and verify the result of =$A2+B3. This result indicates that Excel has adjusted the relative row reference of $A1 to $A2 (that is, one row down from row 1, which is what happened when you copied from row 5 to row 6). However, it left the absolute column reference to A unchanged. Both the column and row references of the relative cell reference to A2 were routinely adjusted to column B and row 3. The resulting value is In cell A6, enter the formula =A$1+A2 and copy this formula to cell B7, resulting in a value of 400. A$1 specifies a relative column reference to column A, but an absolute row reference to row 1. The formula in cell B7 should read =B$1+B3, indicating that the absolute row reference is unchanged. 10. In the Formulas ribbon, click on Show Formulas to display the worksheet formulas (Exhibit 6-6). Study the relative, absolute, and mixed references used in the worksheet. EXHIBIT 6-6 Absolute and relative references 11. Click on Show Formulas again to turn off formula display. Leave this worksheet open for the next exercise. EXERCISE 6-6 Using the F4 key In this exercise, you will learn to use the F4 key to create absolute cell references and simplify your typing tasks. You should start with the same worksheet as at the end of Exercise Double-click cell A3. You are now in Edit mode. Cell A3 displays the formula: =A1+A2 2. Press HOME to move the edit cursor to the beginning of the line. Press RIGHT ARROW to move the cursor to just before A1. 3. Press F4 once; by doing this you change the reference to cell A1 to absolute (notice the $ in front of the column and row): =$A$1+A2 4. Press F4 again; by doing this you change the cell reference to a mixed reference, with row fixed, but column set to relative: =A$1+A2 5. Press F4 again; the row is now set to be relative: =$A1+A2 Computer Tutorial 2 Lesson 6 11

112 6. Press F4; both column and row are now set to be relative: =A1+A2 7. Press ESC to abandon the changes to cell A3. 8. Close this worksheet without saving changes. TOPIC 6.5 Circular references A circular reference occurs when a formula refers to the value in its own cell, either directly or indirectly. Often this condition arises from an error in the formula, but sometimes, a circular reference is used intentionally to solve certain types of problems. Excel can resolve a circular reference by means of a process of iteration. The iteration setting is controlled from the Formulas category in the Excel Options dialog box. If you have selected Enable Iterative calculation, the default is to calculate the formulas 100 times, or if the values in the worksheet change by less than between each calculation. As explained in Topic 6.3, you can change these default values. If you have not enabled iterative calculation, and you enter a formula containing a circular reference, Excel displays a Circular Reference Warning. Some examples of circular references: Cell B5 has the formula =B2 B5. This formula references its own cell, and is probably a mistake. Cell C6 has the formula =SUM(C1:C6). This formula also references its own cell, and is probably a mistake. Cell D8 has the formula =D1 D7. The formula in D7 has the formula =SUM(D2:D5)+D8. Thus, the formula in D8 has an indirect circular reference through cell D7. Notice that the value in cell D8 cannot be calculated without first calculating the value in cell D7, which in turn depends on the values in D2:D5 and D8. EXERCISE 6-7 Using circular reference This exercise demonstrates an intentional use of circular reference. The Jansa Corporation pays its managers year-end bonuses based on a percentage of net income. Therefore, the net income amount accounts for the bonus expense. 1. Open the workbook CT2L6P2.XLS. The income statement worksheet has all the revenue and expenses amounts pre-entered. 2. Click the Office button, choose Excel Options and click the Formulas category. Make sure that the Enable iterative calculation box is not checked. If it is, click the Enable iterative calculation box to remove the check. Click OK to return to the worksheet. 3. Select cell C12 to display the formula and observe that the bonus expense is the sum of individual bonuses for the managers, using the formula =SUM(C16:C19). 4. Select cell C13. Type the formula =C5 SUM(C8:C12) and press ENTER. 12 Lesson 6 Computer Tutorial 2

113 5. Select cell C16. Type the formula =$C$13*B16. The use of an absolute cell reference to cell C13 makes it possible for this formula to be copied to the next three cells. This formula contains a circular reference via cell C13: the value in cell C13 depends on the value in cell C12, which includes a reference to cell C16. Press ENTER and Excel displays a warning message, informing you that a circular reference was created. Click Cancel to leave the formula as it is. The status bar shows the cell with a circular reference: C Copy the formula in cell C16 to cells C17 to C19. Here is a fast way: select the range C16:C19. Click the Fill icon in the Home ribbon and choose Down. Range C16:C19 shows zeros. 7. To resolve the circular reference, check the Enable iterative calculation box. Make sure Maximum Iterations is set to 100 and Maximum Change set to Click OK. 8. Excel resolves the circular reference automatically using iteration. To confirm that no further iterations are required, press F9. If the displayed values do not change, no further iterations are needed. If the displayed values change, press F9 again until there are no further changes. 9. If you did not obtain the amounts displayed in Exhibit 6-7 (ignore the arrows in this exhibit for now), open the solution workbook CT2L6P2S.XLS and study the formulas. Otherwise, leave your completed worksheet open for the next exercise. EXHIBIT 6-7 Tracing circular references EXERCISE 6-8 Locating a circular reference This exercise demonstrates how to locate circular references in a worksheet. Open either your own completed workbook from Exercise 6-7 or the solution workbook CT2L6P2S.XLS. 1. Select cell C12. Click on the Trace Dependents command in the Formulas ribbon. An arrow shows that the value in cell C12 is dependent on the value in cell C Select cell C13 and repeat step 1. A series of arrows indicates the value in cell C13 depends on values in cells C16 to C19 (see Exhibit 6-7). Computer Tutorial 2 Lesson 6 13

114 3. Clear the arrows by choosing the Remove Arrows command. 4. Select cell C16 and repeat step 1. Again, an arrow shows that the value in cell C16 depends on the value in cell C Repeat step 1 for cells C17 to C19, one cell at a time. (It is not possible to do this for a range of cells.) 6. Repeat step 3 to clear all arrows. 7. Close the workbook without saving the changes. TOPIC 6.6 Excel functions Excel provides a comprehensive set of mathematical, statistical, financial, and other functions. A function is a ready-made calculation formula. Each function has a name to indicate the task it will perform. For example, in the formula SUM(D8:D13), SUM is the name of the function, and D8:D13 is the range that is to be computed. The part of the function in parentheses is referred to as the argument, that is, the information specified for the function SUM to act on. The use of the SUM function with the range D8:D13 means that you avoid having to type the formula =D8+D9+D10+D11+D12+D13. This diagram indicates the function name and argument: SUM function name (D8:D13) argument Rules for entering functions You can use a function by itself, or as part of a longer formula, such as this one: =A9/SUM(D8:D13)*0.5 which means Divide the value of cell A9 by the sum of the range D8:D13, then multiply the result by 0.5. When functions are used, the standard mathematical order of precedence is followed. So, in the preceding example, the function in parentheses is calculated first, next the division task is performed, finally the multiplication task is performed. The rules for entering functions are: 1. Begin a function with the correct function name. 2. Enclose arguments within parentheses. 3. Functions may be standalone or have one or more arguments. 4. Use commas to separate arguments if there is more than one. 5. Do not use spaces in functions, formulas, or arguments. 14 Lesson 6 Computer Tutorial 2

115 Using arguments with functions Types of arguments 6. Type functions and cell addresses using uppercase or lowercase. 7. If a function appears at the very beginning of a formula, the function must be preceded by the equal (=) sign. A function usually requires one or more arguments, although a few functions require no argument: Functions with one argument: SUM is an example of a function that requires one argument. In the case of SUM, the argument is a range for SUM to compute. Functions with more than one argument: ROUND is an example of a function that requires two arguments: the value to be rounded and the rounding factor. Thus, ROUND(C5,2) rounds the value in cell C5 to two decimal places. IF is another example of a function that requires more than one argument, as in IF(A5>1000,C5*50,C5*100). This formula means If A5 is greater than 1000, display the result of C5 multiplied by 50; otherwise, display C5 multiplied by 100. Functions with no argument: RAND is an example of a function that does not require any argument. You must provide the left and right parentheses when specifying a function with no argument: RAND() generates a random number between 0 and 1. When you use any function in Excel, it is important to know how many arguments the function requires, in exactly what form, and how the function uses each piece of information. If you enter the arguments incorrectly, the function may still produce a result but an erroneous one because of your entry errors. Depending on the particular function, an argument can consist of one or more of the following: A value. For example, 144 in SQRT(144) means the square root of 144 or 2 in ROUND(C5,2) means round C5 to two decimal places. A value is a number, the address or name of a cell that contains a number, formula, or function that produces a number. Text. For example, higher and lower in IF(A5>100, higher, lower ), means If A5 is greater than 100, display the word higher ; otherwise, display the word lower. Text is any sequence of letters, numbers, and symbols enclosed in quotation marks; the address or name of a cell that contains text, a formula, or a function that produces text. A location. For example, C5 in ROUND(C5,2) or D8:D13 in SUM(D8:D13), or NETINCOME in SUM(NETINCOME). A location is the address or name of a range, or a formula or a function that produces the address or name of a range. A formula. For example, C5*100 in ROUND(C5*100,2). A condition. For example, A5>100 in IF(A5>100, higher, lower ). A condition is an expression that uses a logical operator such as = (equal to), < (less than), or > (greater than). A condition may also be the address or name of a cell containing such an expression. The function evaluates the condition argument and proceeds according to whether it is true or false. Another function. For example, SUM(D8:D13) in INT(SUM(D8:D13)), means take the integer value resulting from the sum of range D8:D13. Computer Tutorial 2 Lesson 6 15

116 Categories of functions Excel groups its functions into categories to make it easier to locate the function. Exhibit 6-8 outlines the various categories of functions. EXHIBIT 6-8 Categories of functions Type Description Example Financial Date & Time Math & Trig Statistical Lookup & Reference Database Text Logical Information Engineering Calculates loans, annuities, cash flows, and amortization. Calculates values that represent dates and times. Performs mathematical and trigonometric calculations and tasks such as SIN, COS, factorial, log, and generation of random numbers. Performs statistical calculations such as average, covariance, binomial, Poisson, and percentile. Performs table lookup to find the contents of a cell. Performs calculations and queries in database tables. Provides information about text in cells; also performs other operations on text such as converting text to uppercase or lowercase. Calculates formulas based on conditions that are either true or false. Provides information about the worksheet, such as information about cells, rows, columns, and sheets. Calculates engineering functions, such as Bessel function, roots and logarithm of complex numbers; converts binary numbers to octal or hexadecimal numbers. NPV calculates net present value of a series of cash flows. TODAY calculates a number corresponding to the current date. It displays the date when formatted with Format Cells and Date or Time category is chosen under the Number tab. RAND generates a random value between 0 and 1. FREQUENCY returns a frequency distribution of values in a range. VLOOKUP finds the contents of a cell in a specified column of a vertical lookup table. DMAX finds the greatest value in a field in a database table, given specific criteria. FIND locates the occurrence of a given text. IF takes one action if the condition stated is true, another action if it is false. CELL returns information about the format, location, or contents of a cell. BIN2HEX converts a binary number to a hexadecimal number. 16 Lesson 6 Computer Tutorial 2

117 TOPIC 6.7 Random number generation TOPIC 6.8 Insert Function Insert Function Excel provides two functions that can generate random numbers: RAND and RANDBETWEEN. The RAND function has the form RAND() and yields a random number between 0 and 1. Notice this function takes no argument. To generate a random number between 1 and 10, you will need to adjust the RAND() function as: =RAND()*9+1 The RAND function in this formula yields a value between 0 and 1, and when multiplied by 9, returns a value between 0 and 9. Adding 1 to the result then yields a random number between 1 and 10. In general, to generate a random number between a range of numbers (bottom,top), the formula is: =RAND()*(top bottom)+bottom Excel provides an easier means of generating these random numbers. The RANDBETWEEN function has the form RANDBETWEEN(bottom,top) where bottom and top identify the range (inclusively) within which Excel will generate random numbers. Insert Function helps you select a function, specify its arguments, and insert the function into a formula. It is advisable to use the Insert Function whenever you are unsure of the exact function name, or the right function to use, or how to specify the arguments. When entering a formula, you can click the Insert Function icon at the place in the formula where you need to enter a function, then follow instructions in a series of dialog boxes. Even if you know which function to use and the exact function name, but you are unsure of how to specify the arguments, you can still use the Insert Function. In this case, after typing the function name in the formula, press CTRL+A and follow the instructions. EXERCISE 6-10 Using Insert Function to insert a function This exercise demonstrates how to use Insert Function to insert a function into a formula. You will complete a worksheet designed to generate random numbers to play a lottery game. The lottery game requires you to pay a dollar and select six unique whole numbers between 1 and 49, inclusive. If the six numbers you selected match those produced by the lottery foundation, you stand to win millions of dollars. If you pick the wrong numbers, you forfeit your wager. Because the lottery foundation picks the six winning numbers using a random process, there is really no logical system you can use to pick the numbers. In fact, randomly generated numbers are just as good as any numbers you may select. To select random numbers in this exercise you will use the two functions: RAND and RANDBETWEEN. 1. Open the workbook CT2L6P3.XLS. This workbook has an incomplete worksheet that is designed to generate six lottery numbers. Computer Tutorial 2 Lesson 6 17

118 2. Select cell B5. You want to enter a formula to generate a random number between 1 and 49. Type = to start the formula and click Insert Function. In the Select a category list, click All. Scroll the Select a function list until you find RAND (see Exhibit 6-9). Select this function. EXHIBIT 6-9 Insert Function for RAND 3. Click OK. The Function Arguments dialog box comes up and reports that RAND takes no arguments. Click OK to remove the dialog box. Click the formula bar and type *48+1. The formula should then read: =RAND()* Press ENTER and a number between 1 and 49 is displayed. However, the result has will need to use the ROUND function to round the value to the nearest integer. 5. Select cell B5 again. Start a new formula by entering =. Click Insert Function. In the Select a category list, click All. Scroll the Select a function list until you find ROUND. Select this function. Click OK. 6. The Function Arguments dialog box appears (Exhibit 6-10). The ROUND function takes two arguments: number and num_digits. When you click the text boxes of each of the parameters, the dialog box displays the type of input expected. In this case, it informs you that number is the number you want to round and num_digits is the number of digits to which you want to round the number. Here, number should be the formula that calculates the random number between 1 and 49, and num_digit should be 0 to round to the nearest integer. 18 Lesson 6 Computer Tutorial 2

119 EXHIBIT 6-10 Function Arguments dialog box for ROUND Cell selector 7. In the number box, type RAND()*48+1 and in the num_digit box, type 0 (see Exhibit 6-11). Click OK. The formula in cell B5 should now be =ROUND(RAND()*48+1,0). Press ENTER and the random number in cell B5 is an integer between 1 and 49. If you want to put in a cell reference as an argument, you can click the cell selector, select the cell you want and press ENTER to put the cell reference in the Function Arguments dialog box. EXHIBIT 6-11 Function Arguments dialog box for ROUND, with arguments entered 8. Select the range B5 to B10. Click the Fill icon, then choose Down to copy the formula in cell B5 to cells B6 to B10. If any of the numbers is repeated, press F9 to generate a new set of random numbers. 9. If you had difficulty with this exercise, compare your workbook with CT2L6P3S.XLS. Leave the workbook open for the next exercise. Computer Tutorial 2 Lesson 6 19

120 EXERCISE 6-11 Using the RANDBETWEEN function This exercise shows how to use the Function Arguments to enter arguments into a known function. You need the completed workbook from Exercise 6-10, or the solution in CT2L6P3S.XLS for this exercise. 1. In cell C3, enter Using RANDBETWEEN. Widen column C to fit this entire label in the column. 2. Select cell C5. Click the Insert Function icon and select RANDBETWEEN. 3. The Function Arguments dialog box informs you that the RANDBETWEEN function needs two arguments: bottom and top. (If RANDBETWEEN is not on the function list, you have not yet installed or enabled the Analysis ToolPak.) 4. Type 1 in the Bottom box, and 49 in the Top box. Click OK or press ENTER. Cell C5 contains a random integer between 1 and 49. Notice that the RANDBETWEEN function does not require the use of the ROUND function. 5. Select the range C5:C10. Click the Fill icon, then choose Down to copy the formula in cell C5 to cells C6 to C10. If any of the numbers is repeated, press F9 to generate a new set of random numbers. 6. Save the completed workbook under your initials. If you had difficulty with this exercise, compare your workbook with CT2L6P4S.XLS. TOPIC 6.9 The IF function In Topic 6.6, you reviewed the categories of functions provided in Excel. One category of functions, called logical functions, calculates the results of conditional (or logical) formulas. The most frequently used of these is IF. You will often be called on to apply this function to perform tasks with financial worksheets in the CGA program of professional studies. IF is an effective calculation tool, enabling you to build decisions and choices directly into your worksheets. IF is always written in the form: IF(condition,x,y) where condition states a test that is to be made using one or more of the logical operators such as =, >, or <, while x and y may be values, cell references, labels, or other formulas. If the condition is true, then the value of x is displayed. If the condition is false, the value of y is displayed. Here is an example of an IF function: IF(A1>2500,7,14) The condition is A1>2500; x is the value 7; and y is the value 14. In this example, IF tests the worksheet for the condition A1>2500; that is, the program inspects the value in cell A1 and tests whether it is greater than If A1 is greater than 2500, then the condition is true, and the x value 7 will be displayed in the cell where IF is entered. The x value takes effect only when the condition is true. 20 Lesson 6 Computer Tutorial 2

121 If A1 is not greater than 2500 (it can be equal), then the condition is false, and the y value 14 will be displayed in the cell where IF is entered. The y value takes effect only when the condition is false. Therefore, if you have entered the IF function in cell A2, and the value in cell A1 is 2588, the result is that cell A2 will display the value 7. If, however, the value of A1 is any number up to and including 2500, cell A2 will display 14. If cell A1 in this example is blank, zero, or contains a label such as text, Excel interprets its value as zero, evaluates the condition as false, and displays 14 in cell A2. To see how this works, do Exercise EXERCISE 6-12 Specifying an IF function This exercise illustrates how to specify the arguments for the IF function. Read each example and explanation, then try it out in your Excel practice worksheet. Proceed as follows: 1. Click New after clicking the Office button to open a new blank workbook. 2. In the workbook, enter the values of 2, 3, and 4 in cells A1, B1, and C1, respectively. 3. Enter each of the following sample functions one at a time into cells A2 to A5. Verify the logic of your results by calculating them mentally or on paper. You do not need to save this worksheet. If you had difficulty with this exercise, compare your workbook with CT2L6P5S.XLS. Cell Formula Explanation Result A2 =IF(A1=2,2.5,2) If the contents of cell A1 is equal to the value 2, then display a value of 2.5; otherwise, display a value of 2. A3 =IF(A1>2,B1,C1) If the contents of cell A1 is greater than 2, then display the value contained in cell B1; otherwise, display the value contained in cell C1. A4 =IF(A1<=B1,C1*10,C1/4) If the contents of cell A1 is less than or equal to the contents of cell B1, display the result of multiplying the contents of cell C1 by 10; otherwise, display the result of dividing the contents of cell C1 by 4. A5 =IF(A1=1,5,SUM(A1:C1)) If the contents of cell A1 is equal to 1, display the number 5; otherwise, display the total of the range A1 through C Computer Tutorial 2 Lesson 6 21

122 EXERCISE 6-13 Using IF in an inventory worksheet In this exercise, you build formulas that use IF to determine retail prices. The scenario involves three stores owned by XYZ Sales Limited, located in three different cities. Pricing for each store must be adapted to local market conditions. For store 1, the manager has determined that the markup can be 14% to be competitive. For stores 2 and 3, the markup can be up to 18%. In this case, the IF function includes a simple formula. 1. Open the workbook CT2L6P6.XLS. Notice that the cells in column G, Retail price, are still blank. 2. Select cell G3. In this cell, you will use IF to determine the retail price. Enter this formula: =IF(E3=1,D3*1.14,D3*1.18) The formula means: If cell E3 equals 1, then display the result of cell D3 multiplied by 1.14; otherwise, display the result of cell D3 multiplied by Because cell E3 contains a value of 3, the result in cell G3 is 4,176.29, or 3, (cell D3) multiplied by Be sure you have entered this formula correctly and it displays this result before you proceed to the next step. 3. Select the range G3:G Click the Fill icon, then choose Down to copy the formula in cell G3 to G4:G16. The result in cell G16 (last cell) should be 3, (that is, 3, multiplied by 1.18). 5. Select cell G16. Notice that the Fill command removed the underline in this cell. In the drop-down menu for the Borders icon in the Home ribbon, click on Bottom Border to redraw the underline. 6. Save this worksheet under your initials. If you do not obtain the results indicated, open CT2L6P6S.XLS and study the formulas in column G. IF with nested conditions Remember that the general format of IF is IF(condition,x,y) In Exercises 6-12 and 6-13 you worked with IF with only one condition: if the condition were true, then the value of x was displayed in the cell; otherwise, y was displayed. In business applications, many decisions require more than one condition. Choices must be made between several alternatives. You can deal with such situations by using a programming concept called nesting. The idea of nesting is that you place one IF inside another so as to create a two-step test; the principle can be extended to make multiple-nested conditions. One way to nest IF is to enter an additional IF as argument y. This practice is considered good worksheet style because it makes the logic of the complete formula easier to read. 22 Lesson 6 Computer Tutorial 2

123 Suppose that instead of using the same markup for store 2 and store 3, management decided that the markup should be 18% for store 2 and 16% for store 3. The solution is to build a nested IF for cell G3. Before you use it in the next exercise, study the following formula: IF(E3=1,D3*1.14,IF(E3=2,D3*1.18,D3*1.16)) This complete IF function means: If E3 equals 1, then display the value D3 multiplied by 1.14; otherwise, if E3 equals 2, then display the value D3 multiplied by 1.18; otherwise, display the value D3 multiplied by Notice the built-in assumption that if the store number is not 1 or 2, then it must be 3. Clearly, you would have to modify the formula again if XYZ Sales Limited added a fourth store. Note: When using nested formulas with a large number of parentheses, always verify that the parentheses have been entered correctly, that is, in pairs. For example, in the formula just described, the number of left (opening) parentheses must equal the number of right (closing) parentheses. When you type any Excel function that includes parentheses, verify that this balance is correct before you press ENTER and place the formula in the cell. If the balance is incorrect, Excel will try to balance the closing parentheses by adding one to the end. If this does not work, Excel will place you in EDIT mode and wait for you to correct the error before placing the completed formula in the cell. You can have up to 64 nested IF functions within an IF function. EXERCISE 6-14 Using IF with multiple conditions In this exercise, you will construct formulas using the nested IF function to take into account the different markups for stores 1, 2, and Begin the exercise using the same workbook as Exercise 6-13 (or open the workbook CT2L6P6S.XLS). 2. Click cell G3. Edit the formula in cell G3 to read: =IF(E3=1,D3*1.14,IF(E3=2,D3*1.18,D3*1.16)) After entering this formula, the value in cell G3 should change to 4, (that is, 3, multiplied by 1.16). 3. Similar to the procedure in Exercise 6-13, use Fill and choose Down to copy the formula in cell G3 to G4:G16. The result in cell G16 should be 3, Remember to redraw the underline for cell G If you want to review or use this workbook in the future, save it under your own initials, then close the file. If you do not obtain the results indicated, you can open the workbook CT2L6P7S.XLS and study the formulas in column G. Computer Tutorial 2 Lesson 6 23

124 TOPIC 6.10 Using Excel Help TOPIC 6.11 Self-testing questions Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click on the Help icon. 2. Type formulas, entering and click Search. 3. Select Create or delete a formula. 4. After reading the Help information, search other topics of interest to you. 5. If you had difficulty with any of the following topics, display the corresponding Help information to review: Cell references Circular references Change the way Microsoft Excel calculates formulas How formulas calculate values About using functions to calculate values About logical functions 1. State the Excel formula to add 149 to 34 and multiply the result by Without using Excel, calculate the results of each of the following, given the contents of the cells. Then enter the values and formulas in an Excel worksheet. Compare the results to your manual calculations. Cells Contents Cells Contents B3 1,200 C5 5 B4 200 C6 4 B5 10 C7 2 a. =B3 B4/C5 b. =(B3 B4)/C5 c. =B3/B5 C5*C6 d. =B3/(B5 C5)*C6 e. =(B3/B4)^C7 3. Without using Excel, calculate the results of each of the following, given the contents of the cells. Then enter the values and formulas in an Excel worksheet. Compare the results to your manual calculations. 24 Lesson 6 Computer Tutorial 2

125 Cells Contents Cells Contents B6 100 D6 150 B7 200 D7 210 B8 10 D8 15 B9 60 D9 60 a. =(B6+50)=D6 b. =B7>D7 c. =B8>=D8 d. =B9<D9 4. You are building a worksheet to keep track of the inventory costs for 1,000 inventory items in five warehouses. Row 3 is the first row of the inventory list. In cell A3, enter the inventory name of the first item, and in cell B3, the item s unit cost. Cell C3 contains the inventory count of the items in warehouse 1. Cells D3, E3, F3, and G3 contain counts of the item in warehouses 2 to 5. You wish to enter the formulas in the range H3:L3 to compute the costs of the inventory in each warehouse, starting with H3 for warehouse 1. a. What should be the formula in cell H3 so that you can copy the cell formula to the range I3:L3? Hint: You may need to use an absolute or mixed cell reference. b. Can the formulas in the range H3:L3 be copied to rows 4 to 1003 to complete the inventory worksheet for the entire 1,000 items without any change from you? If so, why? If not, explain. 5. You have created an Excel worksheet that included a column of calculated values. However, the column total does not match the sum of the individual numbers in the column. Briefly describe two methods to make the sum of the individual numbers match that of the column total. 6. a. Are circular references always errors? b. If you suspect a formula contains a circular reference, how do you go about finding which cells are involved in the circular reference? 7. a. Explain the meaning of a nested IF function. How many levels of nesting is allowed by Excel? b. Which of the following formulas contain(s) a nested IF function: Formula A: =IF(C8=D8,SUM(C4:C7),AVG(C4:C7)*G9+1000) Formula B: =IF(F9=12,500,IF(G9>100,1000,1500)) Formula C: =IF(H21<G21,IF(H21=G21,G21,0),0) Computer Tutorial 2 Lesson 6 25

126 LESSON 7 Charts Topic outline Overview 7.1 Basic concepts 7.2 Creating and modifying a chart 7.3 Two- and three-dimensional charts 7.4 Formatting a chart 7.5 Creating a chart sheet 7.6 Printing charts 7.7 Types of charts 7.8 Designing charts in good style 7.9 Using Excel Help 7.10 Self-testing questions A chart is a graphic representation of information. Excel provides two easy methods to create charts from worksheet data: as an object embedded on a worksheet, or as a separate chart sheet, which can be useful if you want to show the chart on its own. In this lesson, you will create charts by each method. You will study the various types of charts that you can create in Excel. You will also learn to design charts in good style and to print charts, and obtain Excel Help on creating charts. Learning objectives Describe the use of charts in Excel. Create charts. Add and modify chart items. Format chart items. Create chart sheets. Print charts. Describe chart types available in Excel. Use guidelines for designing charts in good style. Obtain Excel Help on charts. Computer Tutorial 2 Lesson 7 1

127 TOPIC 7.1 Basic concepts An Excel chart is a visual representation of worksheet data. Excel charts are dynamic; when you change the data on which a chart is based, Excel updates the chart. A chart is initially created from a selected range of data in the cells of a worksheet. When you create the chart, Excel plots each row or column in the selected range as a data series, that is, a group of bars, lines, areas, or pie slices. A chart can be embedded on a worksheet (see Exhibit 7-1 for an example), or it can be placed on its own chart sheet. EXHIBIT 7-1 A column chart (active) embedded on a worksheet Embedding a chart on a worksheet allows for viewing both the chart and the underlying data, and when you print the worksheet, the embedded chart is printed with the worksheet. When you change the data on a worksheet, the chart is updated automatically. More than one chart can be embedded on the same worksheet, which can ease comparisons between charts. If a chart is placed on a chart sheet, the chart sheet is a separate sheet that is part of the workbook. However, a chart sheet can only hold a single chart and cannot hold any worksheet data. The worksheet from which the chart derives its data is part of the same workbook. The chart data are linked to the worksheet, and any changes in the worksheet are automatically reflected on the chart. You can print the chart sheet on its own, or print both the worksheet and the chart sheet on separate pages. A chart can contain as many data series as there are columns or rows on the worksheet. You can specify whether the data series are to be drawn from the rows or the columns. Most charts plot data against a horizontal x-axis and a vertical y-axis. The x-axis is used for categories such as years, geographic areas, or age ranges. The y-axis is used to specify the values for each of the x-axis categories. In Exhibit 7-1, an embedded chart in columns D to H uses cells B2:B5 as the data range for the x-axis (types of expenses) while cells C2:C5 form the data range for the y-axis (actual expenses). 2 Lesson 7 Computer Tutorial 2

128 Excel provides a variety of chart types, including column charts, bar charts, pie charts, and line charts, in both two-dimensional (2-D) and three-dimensional (3-D) formats. These will be explained in more detail in Topic 7.7. Chart toolbar Excel provides three ribbons specifically for working with charts: Design, Layout, and Format, which are referred to as the Chart Tools (Exhibit 7-2). The Chart Tools are automatically displayed if you are working with a chart. Just click anywhere on a chart to display the Chart Tools. Place the mouse pointer over each of the icons in the ribbons to see their descriptions. EXHIBIT 7-2 Chart Tools TOPIC 7.2 Creating a chart Creating a chart in Excel requires only a few simple steps. To create a new chart, first select the data from the worksheet, then click the icon representing the type of chart you would like to create (Column, Line, Pie, Bar, Area, Scatter, or Other Charts) in the Insert ribbon. From the menu that appears for the type of chart you selected, click the subtype of your choice. Excel creates a chart embedded on the worksheet Selecting a chart To select a chart, click once anywhere on the chart. When a chart is selected, a set of handles are placed on its border (see Exhibit 7-7). Also, the Chart Tools are displayed (see Exhibit 7-2). When a chart is selected, you can size it, copy it, change it (as you will see in Exercise 7-2), or delete it. For example, if a chart is selected, pressing DELETE will remove it from the worksheet. You can also change the chart type, and turn gridlines and legends on or off. To cancel the selection, press ESC. An embedded chart can only be moved, sized, or deleted after it has been selected. Activating a chart To make changes to the contents or format of a chart, you must first make it the active chart (just as you must make a worksheet active to make changes to it). Two things happen when you make a chart active: the chart has a border around it and the Chart Tools are displayed. Computer Tutorial 2 Lesson 7 3

129 EXERCISE 7-1 Creating and customizing a column chart This exercise gives you practice creating a chart embedded on a worksheet and customizing it. 1. Open the workbook CT2L7P1.XLS. Sheet1 of this workbook contains the revenue and advertising amounts for four quarters. Select the range A1:E2. 2. Click Column in the Insert ribbon and select Clustered Column (the first icon in the Column menu; Exhibit 7-3). Excel creates a chart embedded on the worksheet. EXHIBIT 7-3 The Column menu 3. Make sure the chart is selected by clicking on it, then click Select Data in the Design ribbon. The Select Data Source dialog box appears (Exhibit 7-4). Change the range to A1:E3, either by selecting the new range with the mouse, or by typing the change in the Chart data range box, and click OK. Excel modifies the chart based on the new range. 4 Lesson 7 Computer Tutorial 2

130 EXHIBIT 7-4 The Select Data Source dialog box 4. Make sure the chart is selected and click the Chart Title icon in the Layout ribbon. Choose Above Chart. Click the title box in the chart and change the title to Revenue vs. Advertising. Click the Axis Titles icon in the Layout ribbon, choose Primary Horizontal Axis Title and then Title Below Axis. Click on the Axis Title box in the chart and change it to Quarters. Click the Axis Titles icon in the Layout ribbon, choose Primary Vertical Axis Title and then Rotated Title. Click on the Axis Title box in the chart and change it to Dollars. 5. With the chart selected, drag it so that the top left corner of the chart sits at cell A4. Resize the chart by dragging its lower right corner so that the chart fits in the range A4:F16. The resulting worksheet should resemble Exhibit 7-5. EXHIBIT 7-5 Column chart Computer Tutorial 2 Lesson 7 5

131 8. Leave this workbook open for the next exercise. If you had any difficulty with this exercise, compare your workbook with CT2L7P1S.XLS. EXERCISE 7-2 Copying and modifying a chart This exercise demonstrates how to copy and modify a chart. The exercise requires that you have completed the steps in Exercise 7-1 or have opened the workbook CT2L7P1S.XLS. Suppose you want to create a line chart. A quick way to accomplish this task is to copy the bar chart on Sheet1 and change it to a line chart. 1. Display the column chart created in Exercise Place the mouse pointer on any blank area inside the column chart and click once to select the chart. Handles indicate that the chart is selected. 3. Click the Copy icon in the Home ribbon. 4. Select Sheet2 by clicking its sheet tab. Click cell A1. Click the Paste icon in the Home ribbon. Sheet2 now has a copy of the column chart from Sheet1. 5. Click the Change Chart Type icon in the Design ribbon. In the Change Chart Type dialog box (Exhibit 7-6), click Line to select the chart. Click OK. A line chart is displayed (Exhibit 7-7). EXHIBIT 7-6 Change Chart Type dialog box 6 Lesson 7 Computer Tutorial 2

132 EXHIBIT 7-7 Line chart 6. Save this workbook under your initials. Leave this workbook open for the next exercise. If you had any difficulty with this exercise, compare your workbook with the solution in CT2L7P2S.XLS and study the two charts. EXERCISE 7-3 Switching rows and columns in an existing chart In this exercise, you will switch the rows and columns in an existing chart. You can either continue with the workbook you completed in Exercise 7-2, or open the solution workbook CT2L7P2S.XLS. 1. Click the sheet tab for Sheet1 to display the column chart. 2. Click and select the column chart. 3. Click the Switch Row/Column icon in the Design ribbon. Instead of displaying two data series for four quarters, the column chart now displays four quarters for two types (Revenue and Advertising). (Exhibit 7-8). EXHIBIT 7-8 Modified column chart Computer Tutorial 2 Lesson 7 7

133 4. Save this workbook under a new filename but leave the workbook open for the next exercise. If you had difficulty with this exercise, compare your workbook with CT2L7P3S.XLS and study the modified chart in Sheet1. TOPIC 7.3 Two- and three-dimensional charts Excel charts can be two-dimensional (2-D) or three-dimensional (3-D). Exhibit 7-9 shows a sample 2-D chart and Exhibit 7-10 shows a sample 3-D chart. The 2-D chart in Exhibit 7-9 includes these parts: The chart title is the text at the top of a chart that describes the entire chart. The x-axis is the horizontal line at the bottom of a chart. The x-axis can have category names or a numerical scale. The tick mark is a mark on an axis. The x-axis title is the text that describes the x-axis. The y-axis is the vertical line, usually at the left of a chart. The y-axis labels are a numeric scale. The y-axis title is the text that describes the y-axis. The data label is the text or numeric value that describes chart data. The legend is a visual key that identifies each data range in a chart. EXHIBIT 7-9 Parts of a 2-D chart Chart title y-axis Data labels y-axis title y-axis labels x-axis tick mark x-axis labels x-axis title legend The 3-D chart (Exhibit 7-10) has these extra parts: The z-axis shows the third dimension of a three-dimensional chart. The floor is the surface formed by the x-axis and the z-axis. The wall is the surface formed by the x-axis and the y-axis. 8 Lesson 7 Computer Tutorial 2

134 EXHIBIT 7-10 Parts of a 3-D chart y-axisg wall floor z-axis EXERCISE 7-4 Selecting and activating a chart This exercise provides practice in selecting a chart and making a chart active. You can either continue with the workbook you completed in Exercise 7-3, or open the solution workbook CT2L7P3S.XLS. 1. Display Sheet2 of the workbook which contains an embedded line chart. 2. Click the chart to select and activate it. 3. Notice that the Chart Tools become available (Exhibit 7-2). 4. Leave the chart active for the next exercise. Selecting items To make changes to any item on an active chart, you must first select the item by clicking it. When you select an item, the item is shown inside a box with a set of handles, and you can make changes to it. For example, if you select the chart title, you can replace or edit the text, or you can delete it. If you click on an item and then click the Format Selection command in the Layout ribbon, you can make format changes to that item. Formatting the various items in a chart will be explained in more detail in Topic 7.4. To cancel the selection of any chart or chart item, press ESC. Exercises 7-5 and 7-6 illustrate the techniques for making changes to items on a chart. Computer Tutorial 2 Lesson 7 9

135 EXERCISE 7-5 Selecting and modifying items in a chart This exercise demonstrates how to select and modify items in a line chart. The techniques described work with any type of chart. You must start this exercise with an active line chart as a result of the steps in Exercise Click the chart title. This item is selected, as indicated by the handles around it (Exhibit 7-11). In the Chart Elements box (the upper left box in the Layout ribbon, above the Format Selection command), the name of the item (Chart Title) is displayed. EXHIBIT 7-11 Selected chart title 2. Type New Title and observe that this text appears in the formula bar. Press ENTER and the chart title is changed to New Title. Click the Undo icon in the Quick Access toolbar to undo this change. 3. Click each of the following items in turn, observing the item name in the Chart Elements box and the contextual box that appears next to the cursor once the cursor is still (shown in parentheses below). If you change any of the items, always cancel the change immediately so that the line chart remains unchanged. White area (for example, above the legend) (Chart Area) Line representing Revenue (Series Revenue ) Dot representing Q1 revenue (Series Revenue Point Q1 and the value) Line representing Advertising (Series Advertising ) Dot representing Q4 Advertising (Series Advertising Point Q4 and the value) Horizontal gridlines (Vertical (Value) Axis Major Gridlines) Area containing lines and gridlines (Plot Area) y-axis (Vertical (Value) Axis) y-axis title (Vertical (Value) Axis Title) x-axis (Horizontal (Category) Axis) x-axis title (Horizontal (Category) Axis Title) Legend (Legend) Revenue in the legend (Series Revenue Legend Entry) Advertising in the legend (Series Advertising Legend Entry) If you click the symbol instead of the text in the legend, the item name displayed will be Revenue Legend Key when clicked on the Revenue legend symbol. 10 Lesson 7 Computer Tutorial 2

136 4. Leave this workbook open for the next exercise. EXERCISE 7-6 Inserting and changing items on a chart This exercise provides practice in inserting and changing several items on a chart. Make sure the line chart in CT2L7P3S.XLS is active. (See Exercise 7-4 for instructions on making a chart active.) 1. Click the tab for Sheet1 to display the worksheet containing the revenue and advertising amounts. Select the range A1:E2 (only the first two rows, not including Advertising). In the Insert ribbon, click Column and choose Clustered Column from the menu. 2. Click the Move Chart icon in the Design ribbon. The Move Chart dialog box appears. From the Object in box, select Sheet3 and click OK. Move and resize the chart so that it covers the range A1:F16 (Exhibit 7-12). EXHIBIT 7-12 Unlabelled column chart 3. Make sure the chart is selected and click the Chart Title icon in the Layout ribbon. Choose Above Chart. Click the title box in the chart and change the title to Revenue for Click the Axis Titles icon in the Layout ribbon, choose Primary Horizontal Axis Title and then Title Below Axis. Click on the Axis Title box in the chart and change it to Quarters. Click the Axis Titles icon in the Layout ribbon again, choose Primary Vertical Axis Title and then Rotated Title. Click on the Axis Title box in the chart and change it to Dollar amounts. 4. Click the Legend icon in the Layout ribbon to display or hide the legend. Make sure that Show Legend at Right is selected before continuing to the next step. 5. When completed, your chart should look like Exhibit If you had difficulty with this exercise, compare your workbook with the solution in CT2L7P4S.XLS. Leave this chart active for the next exercise. Computer Tutorial 2 Lesson 7 11

137 EXHIBIT 7-13 Completed chart TOPIC 7.4 Formatting a chart The Format Selection command You can change colours, patterns, borders, text, and numbers in a chart. You can modify the font and alignment of any of the chart text, and the number format for the chart values. You can also alter the chart type, the size of any of the items, the location of the legend, or gridlines. In this tutorial, you will do some of the format changes, but you can similarly make other format changes. This command is specific to the item on the chart that is currently selected. Choosing the Format Selection command displays a Format dialog box for the selected item. Use this dialog box to change, for example, fill settings, border colour and style, and shadow and 3-D settings. The tabs available in the dialog box are dependent on the chart item selected. You can also right-click any item on the active chart and choose Format [Item] to display the dialog box for changing formats. Note: All text items on charts, including legends, data labels, titles, and so on, can be formatted using the icons in the Home ribbon. Font, font size, colour, bold, italics, underline, and so on, may all be used to change the appearance of text in a chart. 12 Lesson 7 Computer Tutorial 2

138 EXERCISE 7-7 Changing chart formats This exercise provides practice in changing some of the chart formats. You must start with the simple bar chart you created in Exercise 7-6 activated. If you did not complete Exercise 7-6, you can start by opening the workbook CT2L7P4S.XLS and displaying the bar chart on Sheet3. 1. Select the chart so that it becomes the active chart. 2. Click Format Selection in the Layout ribbon. The Format Chart Area dialog box appears (Exhibit 7-14). Use this dialog box to set colours and fonts for the active chart. EXHIBIT 7-14 Format Chart Area dialog box 3. Click the Fill tab. Choose Solid Fill, click on the Color box, and click any of the colours (other than black or white). The result is displayed immediately. Click Close and click on the Undo icon in the Quick Access toolbar. Computer Tutorial 2 Lesson 7 13

139 4. Click the legend, right-click, and select Format Legend. In the Format Legend dialog box, click the Legend Options tab, and change the position from Right to Bottom. Click Close. 5. Click Change Chart Type in the Design ribbon. In the Change Chart Type dialog box, click Pie to change the bar chart to a pie chart. Leave it as a 2-D chart. Click OK. 6. Click any of the pie slices, right-click, and choose Add Data Labels. Each pie slice now shows its data value. 7. Experiment with other format changes. Close this workbook, but do not save the changes made in this exercise. TOPIC 7.5 Creating a chart sheet So far in this lesson, you have created charts that are embedded on a worksheet. It is also possible to create a chart on its own chart sheet, rather than embedding the chart on one of the worksheets. The size of chart depends on the size of the Excel window. If the size of the Excel window is decreased, the chart size will decrease proportionately. Using the handles, you can also change the size of the chart on the chart sheet manually. Only one chart can exist on a chart sheet. There are two ways to create a chart on a chart sheet. You can change the location of an existing chart using the Move Chart command in the Design ribbon, or you can select the range for the chart, and press F11 to create a chart on a chart sheet based on the default chart type. EXERCISE 7-8 Creating a chart on a chart sheet This exercise demonstrates how to create a chart on a separate chart sheet. 1. Open the workbook CT2L7P4S.XLS. Select the range A1:E3 in Sheet1. 2. Click Column in the Insert ribbon and select 3-D Clustered Column. Excel creates a chart embedded on the worksheet. 3. Click Move Chart in the Design ribbon. 4. In the Move Chart dialog box, select New sheet and click OK. The chart will be placed in a sheet Chart1 (Exhibit 7-15). 5. Click the Chart Title icon in the Layout ribbon. Choose Above Chart. Click the title box in the chart and change the title to Comparing Revenue and Advertising. Click the Axis Titles icon in the Layout ribbon, choose Primary Horizontal Axis Title and then Title Below Axis. Click on the Axis Title box in the chart and change it to Quarters. 14 Lesson 7 Computer Tutorial 2

140 EXHIBIT D column chart in its own chart sheet 6. Click 3-D Rotation in the Layout ribbon. The Format Chart Area dialog box appears with the 3-D Rotation tab selected (Exhibit 7-16), enabling you to rotate the 3-D chart to improve the 3-D perspective. Computer Tutorial 2 Lesson 7 15

141 EXHIBIT 7-16 Format Chart Area dialog box 7. Change the X rotation from 20 to 40, and the Y rotation from 15 to 40, to give the chart a more pronounced 3-D perspective. Click Close. 8. Save this workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2L7P5S.XLS. TOPIC 7.6 Printing charts Printing a chart is as simple as printing a range in a worksheet. Four steps are required: 1. Select the chart you wish to print. 2. Click on the Office button and choose Print. 3. Change the page setup if necessary. 4. Click OK. 16 Lesson 7 Computer Tutorial 2

142 There are some differences between printing an embedded chart and a chart sheet. To print a chart on a chart sheet, simply click the sheet tab to select the chart sheet. To print an embedded chart, you have two choices: Select the entire worksheet to print the worksheet, including the chart. Activate the chart to print only the embedded chart. EXERCISE 7-9 Printing charts This exercise provides practice in printing an embedded chart and a chart sheet. 1. Open the workbook CT2L7P5S.XLS. Click each tab and confirm that this workbook contains the following: Chart1: 3-D column chart Sheet1: Data series and column chart (two groups of columns) Sheet2: Line chart Sheet3: Column chart (four columns) 2. Click the tab for Chart1 to select the chart sheet. Click on the Office button and choose Print. The Print what box shows Active sheet(s) as being selected. Click Preview. The 3-D column chart occupies the entire page. Click Close Print Preview. 3. Click the tab for Sheet1. Click on the Office button and choose Print. The Print what box shows all three choices, with Active sheet(s) as the default. Click Preview. The data series and the column chart are displayed in the preview page. Click Close Print Preview. 4. Click the column chart in Sheet1 to activate the chart. Click on the Office button and choose Print. The Print what box shows only one choice: Selected Chart. Click Preview. Only the column chart is displayed in the preview page. Click Close Print Preview. TOPIC 7.7 Types of charts The following types of charts can be created in Excel: Area Bar Column Line Pie Doughnut Radar XY (Scatter) Surface Stock Bubble A column chart is basically a bar chart shown in columns instead of horizontal bars. Cylinder, Cone, and Pyramid are three variations of column chart. The columns in these charts are in cylindrical, conical, and pyramidal shapes respectively instead of the usual rectangle shape. Computer Tutorial 2 Lesson 7 17

143 A line chart plots changes in data over time. A line is formed by connecting data points on the chart belonging to the same data range. Each point on a line consists of two data values, one for the x-axis (usually a time-related category), and one for the y-axis (usually the value of the data range corresponding to the x-axis category). The lines depict the underlying trend in each data range. An example of a line chart is a plot of stock prices, interest rates, and gold prices over time. A pie chart plots the relationship of each value in a data range to all the values in the entire data range. Each value is depicted as a slice of a circular pie, with the pie representing the total of all the data values in the data range. An example is a pie chart that shows the components of expenses or sources of revenue of a company. A bar chart plots one or more data ranges, and compares the individual values of each data range with the corresponding values of other data ranges with side-by-side bars. Each bar is made up of two data values, one for the x-axis, and one for the y-axis. An example of a bar chart is one that compares the components of expenses or sources of revenue of more than one product over a number of years or for a number of divisions. An area chart shows trends in data over time by emphasizing the area under the curve created by each data series. Each series is stacked or layered on top of the others. Like line charts, area charts downplay individual values. An example is a sales chart plotting sales revenue for four different markets. The sales for each market would be layered on top of the others. The line defining the topmost area would indicate total sales for the four regions, and you could see the trend of sales in each region by looking at each of the market components. An XY chart shows relationships between two types of numeric data. The chart looks like a scattering of points on the chart. (For this reason, it may also be called a scatter chart, a scatter plot, or a point chart.) Each point is determined by two data values, one for the x-axis and one for the y-axis. Unlike a line chart, the points are not joined together and the axes are scaled. An example of an XY chart is a plot of incomes against ages to investigate a possible relationship between the two variables. Bubble charts and stock charts are variations of an XY chart. A surface chart can show a three-dimensional relationship of two data series. A doughnut chart is similar to the pie chart, except that a pie chart can only show one data series, whereas a doughnut chart can show more than one data series. Each data series forms one ring of the doughnut. The slices within each data series form the segments of the doughnut ring. An example of a doughnut chart is one that shows the components of several divisions of a company, each division shown as a ring on the doughnut chart. A radar chart is a line or area chart wrapped around a central point. Each axis represents a set of data points. Because they plot data as a function of distance from a central point, radar charts are useful for showing the symmetry or uniformity of data. An example of a radar chart is a sales chart that shows months as lines radiating from a central point, and the sales amounts for each of three offices as points along those lines, using the same scale. The column, line, pie, bar, and area charts have three-dimensional equivalents. For example, a 3-D column chart shows each column as a vertical 3-D block. 18 Lesson 7 Computer Tutorial 2

144 EXERCISE 7-10 Changing chart type This exercise provides practice in changing the chart type. Ensure the workbook CT2L7P5S.XLS is open. 1. Click the tab for Sheet3. 2. Click the column chart to activate the chart. 3. Click Change Chart Type in the Design ribbon. For chart type, click Area. You can choose from six types of area chart. Click any one. 4. Repeat step 3 for different chart types. 5. Close this workbook but do not save the changes. TOPIC 7.8 Designing charts in good style When you create charts, it is most important to choose the appropriate chart type for your intended purpose. Some guidelines Must haves Here are some guidelines for designing charts: To show trends in the data, use a line chart. To show relative contributions to the trends, use an area chart. To compare individual components, use a bar, column, or pie chart; remember you can only use a pie chart when there is only one data series. To compare individual components where there are more than one data series, use a bar, column, or doughnut chart. To show frequency distributions, use a bar chart or column chart. To show parts of the whole, use a pie or area chart. To show relationships between variables, use a bar, column, or XY chart. To show symmetry of data, use a radar chart. Use 3-D charts sparingly; be aware of possible distortions of relationships because of the 3-D perspective, and ensure that the readability of your chart is not adversely affected by the 3-D image. If necessary, rotate the 3-D chart to improve the presentation. Always include as much information on the chart as possible. All charts should contain the following information: chart title legend (unless only one data series is used) y-axis title (unless it is self-evident) x-axis title (unless it is self-evident) Computer Tutorial 2 Lesson 7 19

145 Options Always consider the following format options to improve the chart s appearance: Size the chart to make the content clear and readable. Use colour (background and individual parts) sparingly. A chart that contains too many colours may be too distracting. Use fonts, font type, and size sparingly. A chart that contains many different fonts and font types can also be very distracting. TOPIC 7.9 Using Excel Help TOPIC 7.10 Self-testing questions Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click on the Help icon. 2. Type creating charts and click Search. 3. Select Create a chart. 4. After viewing the Help information, search other Help topics. 5. If you had difficulty with any of the following topics, display the corresponding Help information to review: Ways to select chart items Formatting charts Printing charts Types of charts Customize a chart 1. Is it always necessary to have at least two data ranges to create an Excel chart? 2. What is an XY chart? What is it used for? 3. Suppose you want to plot the price of gold over a 12-month period. Range B4:B15 contains the average monthly prices. All other cells are empty. a. Briefly describe the steps you would use to construct a simple column chart. b. Is a column chart the best way to represent this information? Why or why not? What other chart type would you consider? 4. Suppose you have a worksheet with range B6:B12 containing the labels for five sources of income, and range C6:C12 showing the actual income for the five sources for the month of January. Describe the steps you would use to present this information in a pie chart that shows percentages for each source of income. 5. Describe how to change a line chart to a 3-D column chart. 20 Lesson 7 Computer Tutorial 2

146 6. What are the differences between a chart on a chart sheet and an embedded chart on a worksheet? 7. Describe how you would: a. Print an embedded chart. b. Print an embedded chart with the data on the worksheet. c. Print a chart sheet. Computer Tutorial 2 Lesson 7 21

147 LESSON 8 Lists Topic outline Overview Learning objectives 8.1 Basic concepts 8.2 Using a data form 8.3 Locating a record 8.4 Sorting a list 8.5 Using lookup functions 8.6 Filtering a list 8.7 Using Advanced Filter 8.8 Extracting filtered records 8.9 Using Excel Help 8.10 Self-testing questions A list in Excel is a labelled series of columns and rows containing related data. You can create lists to manage and analyze organized sets of data such as inventory records, transactions, client names and addresses, or any related data that can be set up in columns and rows. In this lesson, you will create and modify a list, look up records, sort them, and use filters to search and report data that meet specified criteria. Create a list in Excel. Add and modify records in a list using a data form. Browse records in a list using a data form. Set criteria in a data form to look up records. Sort a list in different ways. Use VLOOKUP to look up values in a list. Use HLOOKUP to look up values. Filter records in a list. Use the Advanced Filter to filter a list. Extract filtered records from a list. Obtain Excel Help on how to use lists. TOPIC 8.1 Basic concepts A list in Excel is a worksheet range containing related data organized as columns and rows. You can consider a list as a simple database in which the columns are the fields and the rows are the records. A field is a column that contains a single category of data such as names. A record is a row containing data for each field such as an individual s name, ID number, department, and telephone number. The top cell in each column in the list must contain a unique column label (field name), which is text that identifies the data in the column. You set up a list with column labels, fields, and records so you can manage large amounts of data to obtain precisely the information you need. Once you set up an Excel list, you can look up information and you can find, add, and delete records. Computer Tutorial 2 Lesson 8 1

148 Exhibit 8-1 shows the first 14 records of a list. The list starts in row 4. The column labels are Invoice, Date, Sales amount, Commission, Salesperson, and Store. Notice each column label is unique. Each record contains data for each of the five fields for an actual sale. For example, the first record (row 5) lists the invoice number, date, sales amount, and commission of the sale transacted by M. Aguila at the Main Street store. EXHIBIT 8-1 A list as a simple database Although a worksheet can contain as many lists as you want, it is advisable to use only one list for each worksheet. Some list management tasks, such as filtering, can work with only one list at a time on a worksheet. A list can be as large as the worksheet: up to 1,048,576 rows by 16,384 columns. When working with lists, you can create a name for the list and then use that name, or you can work directly with the range reference. Most users prefer to name the list (using the Define Name command in the Formulas ribbon) and work with that name. Once a list is created (and usually named), you can add, edit, and delete records. You can also find records, sort them, and add subtotals. A list must be separated from any other data on the worksheet by at least one blank row and one blank column. TOPIC 8.2 Using a data form One way to create a list is by typing the records, making sure the first row in the list contains unique column labels. You enter each field into the list in the same way you enter any data into worksheet cells. You can enter formulas, and you can format these cells. 2 Lesson 8 Computer Tutorial 2

149 Adding new records Alternatively, you can use the Excel data form. To use the data form, you must first enter the column labels into the first row of the list and enter at least one complete record. The fields in a row can contain formulas, and if they do, Excel will use these formulas as you enter new records using the data form. The best way to learn to add records using the Excel data form is to work through an example, as in Exercise 8-1. EXERCISE 8-1 Using a data form to enter records This exercise provides practice in entering new records into a list using a data form. The Data Form command is not part of any Ribbon (in previous versions ofexcel it is located in the Data menu) and must manually added to the Quick Access toolbar. 1. Click on Excel Options after clicking the Office button. Choose the Customize category, and in the Choose commands from box, select Commands Not in the Ribbon. Scroll down to Form, click on it and click Add. Click OK to close the dialog box. The Data Form icon has been added to the Quick Access toolbar. 2. Open the workbook CT2L8P1.XLS. Sheet1 of this workbook contains Quarter 1 Sales for Pacific Coast Limited. Row 4 contains the column labels for the list, and row 5 contains the first record. 3. Select cells A5 to F5, one at a time, to study the contents. Cell A5 contains the invoice number, B5 contains the date of the sale record, C5 contains the sales amount, cell D5 contains a formula, which shows that the commission amount is calculated as 5% of the sales amount. Cells E5 and F5 contain the name of the salesperson and store, respectively. 4. Select cell A4 (you can select any of the column labels in row 4, or any cell within the list). Click the Data Form icon. The Data Form dialog box appears (Exhibit 8-3). The column labels from your list appear in the dialog box. Notice that you can enter information for Date, Sales amount, Salesperson, and Store, but not Commission. The Commission field contains a formula that Excel will use automatically. The right corner of the dialog box indicates which record is displayed and the total number of records in the list. Drag this dialog box to the bottom of the screen below row 8 so as not to block your view of the list, making sure you can see all the fields you need to type in. Computer Tutorial 2 Lesson 8 3

150 EXHIBIT 8-3 Data Form dialog box 4. Click New to insert a new record into the list. The fields are cleared, and you can type data into each field. Press TAB or SHIFT-TAB or use the mouse to move from field to field. Be sure not to press ENTER until you have completed typing all fields. If you press ENTER by mistake, click Find Prev to redisplay the record to fix it. The following is the information for the new record: Invoice: Date: 3-Jan-00 Sales amount: 1, Salesperson: Amin, K. Store: Broadway After typing these fields, press ENTER. Excel adds the new record to row 6 of the list and clears the fields for the next new record. 5. Enter two more records for practice: Invoice: Date: 5-Jan-00 Sales amount: Salesperson: Amin, K. Store: Broadway Invoice: Date: 5-Jan-00 Sales amount: 2, Salesperson: Derre, F. Store: Main Street 6. Click Close. Your list should look like Exhibit 8-4. If you made an error when entering the data, do not be concerned; you will learn to edit lists in the next exercise. 4 Lesson 8 Computer Tutorial 2

151 EXHIBIT 8-4 A list containing four records 7. Leave this worksheet open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P1S.XLS. Editing a list EXERCISE 8-2 You can change any field in a list by typing over the field. Alternatively, you can use the Excel data form to do the work: you can modify any part of a record, and you can delete records. Changing records This exercise provides practice in using the data form to modify fields in records. You will also delete one of the records. You can either continue with the worksheet you completed in Exercise 8-1, or start by opening the workbook CT2L8P1S.XLS. 1. Select cell A4. Click the Data Form icon to display the Data Form dialog box. The data for the first record is displayed. 2. Select the Date field by clicking it. Change it to 3-Jan-00. Remember do not press ENTER until you have made all the desired changes for this record. 3. Press TAB to select the Sales amount field. Change it to 1, Press ENTER to save the changes and display the second record. 4. There are no changes for the second record. Click Find Next to display the third record. 5. Change the date to 4-Jan-00 and the Salesperson to Fisher, G. Press ENTER to display the fourth record. 6. Click Delete to delete the fourth record. Click OK to confirm. 7. Click Close to close the data form and return to the worksheet. Your updated list should look like Exhibit 8-5. Save your workbook under a new filename and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P2S.XLS. Computer Tutorial 2 Lesson 8 5

152 EXHIBIT 8-5 Modified list Naming a list EXERCISE 8-3 Names can be assigned to lists to make it easier to reference in formulas. Using names in lists This exercise demonstrates how to create a name for a list. You will use this name in a later exercise. 1. Open the workbook CT2L8P3.XLS. Sheet1 contains a list of 38 sales records for the first quarter of Pacific Coast Limited. 2. Select the entire list, including column labels (range A4:F42). 3. Choose Define Name in the Formulas ribbon. 4. In the Name box, type Q1sales, and confirm that this name refers to range A4:F42. Notice that there must not be any blank spaces in the name Q1sales. 5. Click OK. Save this workbook under your initials and close it. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P3S.XLS. TOPIC 8.3 Locating a record Using the Excel data form, you can look up a record or a set of records using one of three methods: Browse through the records by clicking Find Prev (find previous) and Find Next. Click the scroll arrows to scroll through the records. Click Criteria and specify criteria to locate a subset of records. Click Find Prev or Find Next. You can specify values for the criteria such as Main Street for Store, or S. Buck for Salesperson. You can also specify comparison criteria such as >3,500 for sales amounts greater than $3,500, or >15-Jan-00 for dates later than January 15, Lesson 8 Computer Tutorial 2

153 EXERCISE 8-4 Finding records This exercise provides practice in finding records using the Excel data form. You will also specify criteria to search for certain records. 1. Open the workbook CT2L8P3S.XLS. Sheet1 of this workbook contains 38 sales records for Pacific Coast Limited for the first quarter of Select cell A4. Choose Data Form. In the Data Form, click Find Next to browse through several records. Suppose you want to find all the sales records for Main Street. This method of browsing requires you to look through each record in the list. If the list has a large number of records, this method is not ideal. 3. Try browsing by clicking the scroll arrow. This method is quicker than clicking the Find Prev and Find Next button, and you can jump through records. However, the method is unreliable because you may skip over some records. Click the scroll arrow to reset to the first record in the list. 4. Click Criteria. In the Store box, type Main Street. Click Find Next. The fourth record is displayed (see the record indicator in the top right corner of the dialog box), showing that F. Derre of the Main Street store handled a sale of $2, on January 5, 2000, and earned a commission of $ Click Find Next displays the next sale for Main Street (record 6). Keep clicking Find Next until you reach record 38. Each record displayed belongs to the Main Street store. 6. Click the scroll arrow to reset to the first record. Click Criteria and Clear and enter each of the following sets of criteria (be sure to clear the previous criteria and reset to the first record before specifying each set of criteria): Set 1: Sales amount: >3,500 You should find records 9, 19, 22, 27, 35, and 37. Set 2: Date: >15-Jan-00 and Sales amount: >3,500 You should find records 19, 22, 27, 35, and 37. Set 3: Sales amount: >1,500 and Store: Riverside You should find records 9, 13, 17, 19, 21, 26, and Click Close. There is no need to save the changes. Leave this workbook open for the next exercise. Computer Tutorial 2 Lesson 8 7

154 TOPIC 8.4 Sorting a list Often, the best way to sort a list depends on your purpose at the time. For example, the list in CT2L8P3S.XLS is sorted by the Date field, in ascending (chronological) order. If you want to analyze the performance of the salespersons, it is more convenient to sort by the Salesperson field. Likewise, if your purpose is to analyze the performance of the stores, it would be better to sort by the Store field. If you only need to sort by a single column in a list, use the sort icons in the Data ribbon instead of the Sort command or the Sort & Filter command in the Home Ribbon. Click any of the cells in the column you want to sort, then click one of the sort icons: The Sort A to Z icon sorts all the records in the list in ascending order by the contents of the selected column. The Sort Z to A icon sorts all the records in the list in descending order by the contents of the selected column. You can also use the Sort command in the data ribbon to sort a list. Unlike the sort icons, the Sort command enables you to sort using multiple columns. The secondary columns are used as tie breakers for records with the same value in the primary field. For example, suppose you specify Salesperson as the primary column. All records will be sorted by this column; thus, all records belonging to the same salesperson will be placed adjacent to each other. If you specified Date as the secondary column, then the records belonging to the same salesperson will be sorted by date order. EXERCISE 8-5 Sorting a list This exercise gives you some practice in sorting lists. You will need to open the workbook CT2L8P3S.XLS, if it is not yet opened. 1. You want to sort the list so that all the records belonging to the same salesperson are placed adjacent to each other. Select any cell in the Salesperson column (column E), within the list. For example, select cell E5. 2. Click the Sort A to Z icon. The list is now sorted by salesperson names, in alphabetical order. 3. Select any of the sales amounts (say, cell C6). Click the Sort Z to A icon. The list is now sorted by sales amounts, starting with the largest amounts. 4. Click the Sort icon. The Sort dialog box appears (Exhibit 8-6), showing that the primary field is Sales amount, sorted on values from largest to smallest, with no secondary fields. Click the drop-down arrow in the Sort by box and select Salesperson. Note that in the Order box, Largest to Smallest has become Z to A. Change the order to A to Z, then click OK. The list is now sorted by salesperson names, organized alphabetically. 8 Lesson 8 Computer Tutorial 2

155 EXHIBIT 8-6 Sort dialog box 5. Suppose you want to see the sales records of each salesperson also organized in descending order by amounts. Click the Sort icon. Click the Add Level button. Click the drop-down arrow in the Then by box, and select Sales amount. Select Largest to Smallest (Exhibit 8-7). Click OK. The records are now sorted by salesperson. For each salesperson, the records are sorted in descending order by sales amount. EXHIBIT 8-7 Specifying a secondary field 6. Sort the list using, in turn, each of these three sets of sort fields: Set 1: Primary field: Store, A to Z Secondary field: none Set 2: Primary field: Store, A to Z Secondary field: Sales amount, Smallest to Largest Set 3: Primary field: Store, descending Z to A Secondary field: Salesperson, Largest to Smallest 7. Close this workbook and do not save the changes. Computer Tutorial 2 Lesson 8 9

156 TOPIC 8.5 Using lookup functions The VLOOKUP function Excel provides two lookup functions to search for values in a list. The VLOOKUP function searches a list vertically. The HLOOKUP function searches a list horizontally. You can use a list as a lookup table with the aid of the VLOOKUP function. The VLOOKUP function searches the leftmost column of a list for a particular value, and returns the value in the cell indicated in the VLOOKUP formula. The VLOOKUP formula has the following format: VLOOKUP(lookup_value,table-array,column_index_number,range_lookup) where: lookup_value specifies the value you want to compare with the first column in the list. table-array specifies the range containing the entire list. You can specify cell references, or if the list has a name, specify the name. column_index_number specifies the column number from which you want the VLOOKUP function to return a value; the first column in the list has a column index number of 1, the second column has a column index number of 2, and so on. range_lookup is an optional argument that specifies a logical value to direct VLOOKUP how to perform a lookup. If the logical value is specified as TRUE or if the logical value is not specified, VLOOKUP returns the matched value if a match is found; otherwise, it will return the next largest value that is less than the lookup_value. If the logical value is specified as FALSE, VLOOKUP will only return an exact match. For the VLOOKUP function to work properly, the lookup column must be the first column of the list and must be sorted in ascending order. EXERCISE 8-6 Using VLOOKUP This exercise demonstrates the use of the VLOOKUP function to look up values in a list. 1. Open the workbook CT2L8P3S.XLS. A lookup area has been preset in range H4:I10. Column G is a blank column that separates the list from the lookup area. Notice that the first column of the list (invoice numbers) is already sorted in ascending order, a condition required to use the VLOOKUP function. If it is not, select cell A4 and click the Sort A to Z icon. 2. In cell I5, the invoice number has already been entered. You will look up information about this invoice from the list. 3. In cell I6, enter the formula to look up the invoice date: =VLOOKUP(I5,A4:F42,2,FALSE) This formula looks up the value in cell I5 (invoice 95179) in the list in the range A4:F42 and returns the corresponding value from the second column in the list (indicated by 2 in the third argument). The last argument, FALSE, is needed in the VLOOKUP function to ensure that the function looks up the exact match. The result should be 8-Jan Lesson 8 Computer Tutorial 2

157 4. In cell I7, enter the formula to look up the sales amount: =VLOOKUP(I5,Q1sales,3,FALSE) This formula looks up the value in cell I5 in the list named Q1sales. Q1sales is the name of the range A4:F42 (which you set in Exercise 8-3). The formula returns the corresponding value from the third column in the list. The result should be $1, Enter the formulas in the following cells: I8: =VLOOKUP(I5,Q1sales,4,FALSE) yielding $58.29 I9: =VLOOKUP(I5,Q1sales,5,FALSE) yielding Aguila, M. I10: =VLOOKUP(I5,Q1sales,6,FALSE) yielding Main Street 6. Save this workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P4S.XLS. The HLOOKUP function Closely related to VLOOKUP is the HLOOKUP function. HLOOKUP performs similarly to VLOOKUP except that instead of looking up a value in the first column in a list, it looks up the value in the first row and returns the value in the row specified by the row index number. The HLOOKUP formula has the following format: HLOOKUP(lookup_value,table-array,row_index_number,range_lookup) where: lookup_value specifies the value you want to compare with the first row in the list. table-array specifies the range containing the entire list. You can specify the cell references, or if the list has a name, you can specify the name. row_index_number specifies the row number from which you want the HLOOKUP function to return a value; the first row in the list has a row index number of 1, the second row has a row index number of 2, and so on. range_lookup is an optional argument that specifies a logical value which directs HLOOKUP how to perform a lookup. If the logical value is specified as TRUE or if the logical value is not specified, HLOOKUP returns the matched value if a match is found; otherwise, it will return the next largest value that is less than the lookup_value. If the logical value is specified as FALSE, HLOOKUP will only return an exact match. EXERCISE 8-7 Using HLOOKUP This exercise demonstrates the use of the HLOOKUP function to look up values in a list. 1. Open the workbook CT2L8P5.XLS. The range A1:F6 is an exchange rate cross-reference table usually found in financial newspapers. This table enables you to look up the exchange rate for any currency in the table. For example, looking down column C for Canadian dollar, cell C4 gives the Hong Kong dollar amount for one Canadian dollar, cell C5 gives the Japanese yen amount for one Canadian dollar, and cell C6 gives the U.S. dollar amount for one Canadian dollar. The ISO codes are three-character international codes for identifying currencies. 2. Click the drop-down arrow for the Name box and select Table. Confirm that the range C1:F6 has been named Table. Computer Tutorial 2 Lesson 8 11

158 3. In cell C10, the ISO code of JPY has already been entered. You will look up information about this ISO code from the list. 4. In cell C11, enter the formula to look up the currency name: =HLOOKUP(C10,Table,2,FALSE) This formula looks up the value in cell C10 (JPY) in the list in the named range Table and returns the corresponding value from the second row in the list. The result should be Japanese Yen (from cell E2). The last argument, FALSE, is needed in the HLOOKUP function to ensure that the function looks up the exact match. 5. In cells C12 to C15, enter the following formulas, using Insert Function: C12: =HLOOKUP(C10,Table,3,FALSE) yielding C13: =HLOOKUP(C10,Table,4,FALSE) yielding C14: =HLOOKUP(C10,Table,5,FALSE) yielding 1 C15: =HLOOKUP(C10,Table,6,FALSE) yielding Save this workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P5S.XLS. TOPIC 8.6 Filtering a list Apart from the lookup features available in the data form and the VLOOKUP and HLOOKUP functions, Excel also provides filters for working with lists. Filtering is a quick and easy way to locate a subset of records in a list. When you filter a list, you enter specific values (called criteria) to select a subset of records. Excel displays only those records that meet the criteria. Filtering does not rearrange the list it only suppresses the display of records that do not meet the criteria. The suppressed records are not moved or deleted from the list. To filter a list, use the command Filter in the Data ribbon. After a filtered list is displayed, you can print it by choosing Print after clicking the Office button. This command prints only what is displayed. EXERCISE 8-8 Using Filter This exercise demonstrates how to use Filter to filter records in a list. You will also print the filtered list. The workbook CT2L8P3.XLS must be open for this exercise. 1. Click any cell in the list (say, cell B4), then click Filter. Each of the column labels in row 4 now shows a drop-down arrow. 2. Click the drop-down arrow for Store (Exhibit 8-8). Click on Broadway and on Riverside to uncheck their boxes. Only Main Street should remain checked. Click OK. The list now shows only sales made by the salespersons in the Main Street store (Exhibit 8-9). 12 Lesson 8 Computer Tutorial 2

159 EXHIBIT 8-8 Drop-down list for Store EXHIBIT 8-9 Filtered list for Main Store 3. Click the drop-down arrow for Salesperson. Uncheck all the names except Aguila, M. and click OK. The filtered list now shows only those sales handled by M. Aguila in the Main Street store. Computer Tutorial 2 Lesson 8 13

160 4. With the filtered list displayed, choose Print after clicking the Office button. Click OK to print the filtered list. 5. Remove the filters by clicking the Clear command. The entire list is again displayed. Leave this workbook open for the next exercise. EXERCISE 8-9 Using Filter with custom criteria This exercise demonstrates how to specify custom criteria for use with Filter. The workbook CT2L8P3.XLS must be open for this exercise. 1. If you do not see the drop-down arrows in row 4, select a cell in the list. Turn on Filter by choosing Filter in the Data ribbon. 2. Click the drop-down arrow for Store. Uncheck Broadway and Riverside to filter out all store records other than those from Main Street. Click OK. 3. Click the drop-down arrow for Salesperson. Click Text Filters and choose Equals. The Custom AutoFilter dialog box appears (Exhibit 8-10). Four boxes with dropdown arrows are available in this dialog box for you to specify the filter criteria. Click the first drop-down arrow (top left). A drop-down list enables you to select one of the comparison arguments as shown in Exhibit Click equals to indicate you want an exact match. EXHIBIT 8-10 Custom AutoFilter dialog box 14 Lesson 8 Computer Tutorial 2

161 EXHIBIT 8-11 Comparison arguments 4. Click the second drop-down arrow (top right). A drop-down list enables you to choose from the data items for the Salesperson column (Exhibit 8-12). Click Quayle, B. to select this salesperson. In other words, this filter is equals Quayle, B. EXHIBIT 8-12 Choosing Salesperson 5. Repeat steps 2 and 3 for the third and fourth box, specifying the filter equals Wolftail, J. Click Or to select records that meet either of the two criteria. Notice that if you had chosen And, the result would be no records because a sale can be made by only one salesperson. See Exhibit 8-13 for the completed criteria. Computer Tutorial 2 Lesson 8 15

162 EXHIBIT 8-13 Completed criteria 6. Click OK. Four records will be displayed as a result of filtering using your custom criteria (Exhibit 8-14). EXHIBIT 8-14 Filtered list 7. Close this workbook. Do not save any changes. TOPIC 8.7 Using Advanced Filter If you want to filter a list using more complex criteria than is possible with Filter, you can use the Advanced command on the Data ribbon. The Advanced Filter does not use drop-down lists for the column labels. Instead, you specify criteria in a Criteria range located outside the list and choose Advanced to display a dialog box where you specify the locations of the list and criteria. You can filter the list in place, just as with Filter, or you can copy the result of the filter to another location on the worksheet. Set up your Criteria range above or below your list so it will not be hidden when the list is filtered. Each criterion must begin with a column label from the list (for example, Invoice). In the cell immediately below the column label, you specify one or more filter criteria. 16 Lesson 8 Computer Tutorial 2

163 Comparison formulas can be used in the Criteria range. The comparison operators in the comparison formula allowed in a Criteria range are: = (equal) > (greater than) < (less than) >= (greater or equal to) <= (less or equal to) <> (not equal to) Filter criteria can be specified in one of three ways: a specific item in the column (for example, in the Invoice column) a comparison operator and a value (for example, >3000 in the Sales amount column) a comparison formula (for example, =C5>AVERAGE($C$5:$C$42), which looks for sales amounts in column C that are greater than the average sale in column C) You can have more than one cell immediately below the column label to specify multiple criteria for the same column label. If more than one column label is used to specify the criteria, the column labels must be placed in adjacent columns. It is very important that the values in the Criteria range precisely match those in the list. One simple but useful technique to accomplish this match is to copy the column label from the list to the Criteria range rather than retype it. If the criteria contain specific items from the list, it is also advisable to copy the item from the list to the Criteria range. Setting the criteria Here are some examples of criteria ranges: a. Simple criteria with one condition. Example: Store Main Street b. Criteria with two conditions (placed side-by-side in the same rows). A record must meet both conditions to be selected. Example: Store Salesperson Main Street Derre, F. c. Criteria with two conditions (placed offset in a different row). A record must meet either of the conditions to be selected. Notice the difference from the preceding example. Example: Store Main Street Sales amount >1,500 Computer Tutorial 2 Lesson 8 17

164 d. Criteria with multiple conditions. A record must meet all of the conditions to be selected. Example: Store Sales amount Date Salesperson Main Street >3,000 >1/15/2000 Wolftail, J. e. Criteria containing formulas. Example: New value =C7>AVERAGE($C$7:$C$44) EXERCISE 8-10 Using a criteria range with only one column label This exercise demonstrates how to use one column label for the criteria range with the Advanced Filter command. 1. Open the workbook CT2L8P6.XLS. This workbook contains the same records as CT2L8P3.XLS, except that extra rows have been added at the top of the worksheet and the title of the list has been removed. 2. Enter the following labels in cells A1 and A2: A1: Store A2: Main Street This criterion specifies that you want to select only those sales records from the Main Street store. 3. Click any cell in the list (for example, cell A10). Choose Advanced. The Advanced Filter dialog box appears. The Action is set to Filter the list, in-place. Do not change this setting. The List range is pre-specified as $A$6:$F$44. If you did not click one of the cells in the list, you must now type the range or name for the list in the List range box. 4. In the Criteria range box, type A1:A2 (see Exhibit 8-15). Click OK, and the list now shows only the records from the Main Street store. 18 Lesson 8 Computer Tutorial 2

165 EXHIBIT 8-15 Advanced Filter dialog box 5. In cell A3, type Broadway. The criteria in cells A1:A3 specify that records from both the Main Street store and the Broadway store will be selected. 6. Click cell A6. Choose Advanced. Notice that Excel changed the Criteria range you specified from A1:A2 to $A$1:$A$2. (You should always specify absolute references in your criteria range, but if you don t, Excel sets it to absolute reference.) Change the Criteria range to $A$1:$A$3. Click OK. 7. The filtered list now includes records from both the Main Street and Broadway stores. Leave the workbook open for the next exercise. EXERCISE 8-11 Using a criteria range with more than one condition This exercise demonstrates how to specify more than one condition in the criteria range. 1. Remove the entry for Broadway in cell A3 (select the cell and press DELETE). 2. Copy the text (Sales amount) in cell C6 to cell B1. In cell B2, type the criterion of >3,000. The criteria in range A1:B2 specify that you want to select only those sales records from the Main Street store that have sales amounts of more than $3, Click a cell in the table. Choose Advanced. Change the Criteria range to $A$1:$B$2. Click OK. The filtered list now shows only six records that meet both of these conditions. 4. Move the value in cell B2 to cell B3. In other words, after the move, cell B2 is blank. The new Criteria range is now A1:B3. By specifying the second criterion in a separate row from the first criterion, you specify that you want to select those records that are from the Main Street store or are more than $3, Click a cell in the table. Choose Advanced. Change the Criteria range to $A$1:$B$3. Click OK. The filtered list now shows 19 records: sales records that meet either of the two conditions. After viewing the results, move the contents of cell B3 back to cell B2. Computer Tutorial 2 Lesson 8 19

166 6. Enter the following criteria into these cells (it is good practice to copy the text of Date from cell B6 to the range C1:D1): C1: Date C2: >15-Feb-00 D1: Date D2: <22-Feb-00 These two criteria select only those records that are dated between 16-Feb-2000 and 21-Feb-2000, inclusive. 7. Click a cell in the table. Choose Advanced. Change the Criteria range to $A$1:$D$2. Click OK. The filtered list now shows only two records that meet these criteria. In other words, you specified that you want to display only those sales records that are from the Main Street store, of amounts greater than $3,000, and dated between 16- Feb-00 and 21-Feb-00, inclusive. 8. Change the comparison in cell C2 to >1-Feb-00. Notice that the filtered list remains unchanged. When you change criteria, you must refresh the filtered list: Choose Advanced. Click OK in the Advanced Filter dialog box, and the filtered list is updated, showing three records. 9. Save this workbook under your initials and close it. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P6S.XLS. EXERCISE 8-12 Using a formula in a criteria range This exercise demonstrates how to specify a formula in a criteria range. 1. Open the workbook CT2L8P7.XLS. 2. In cells A1 and A2, enter the following: A1: Average sale A2: =AVERAGE(C7:C44) Cell A2 displays 2,317.68, being the average of the sales amounts. 3. In cells B1 and B2, enter the following: B1: Above average B2: =C7>$A$2 Notice that cell B1 must not contain one of the column labels in the list because of the formula. Cell B2 shows a value of FALSE, indicating that the first comparison (C7>$A$2) resulted in a value of 0 (FALSE). This criterion instructs Excel to compare the value in cell C7 with the value in cell A2 for the first record in the list. As Excel processes each record, it will change the cell reference to C8, C9, and so on, without changing the reference to $A$2 (which is fixed by an absolute cell reference). 4. Click any cell in the list (cell A7 will do). Choose Advanced. The Advanced Filter dialog box shows the List range of $A$6:$F$44. Set the Criteria range to $B$1:$B$2. Click OK. The filtered list now shows only those records that have sales amounts greater than $2, Lesson 8 Computer Tutorial 2

167 5. Change the formula in cell B2 to =C7>A2. Repeat step 4, and the filtered list shows no records because the Criteria range was entered incorrectly. Without using absolute cell reference for cell A2, Excel will perform the comparisons of C8>A3, C9>A4, and so on. 6. Change the formula in cell B2 to =C7>AVERAGE($C$7:$C$44). This change has the same effect as the formula =C7>$A$2, except it no longer relies on the computed result in another cell. 7. Repeat step 4, and the filtered list shows the same result as in step Save the completed workbook under your initials. Leave this workbook open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P7S.XLS. TOPIC 8.8 Extracting filtered records Using Advanced Filter, you can extract the filtered records and place them elsewhere in the workbook on the same worksheet. To extract filtered records, select Copy to Another Location in the Advanced Filter dialog box, then specify the top left cell of the output range. EXERCISE 8-13 Extracting filtered records to an output range This exercise demonstrates how to extract filtered records to an output range instead of displaying the filtered records in-place on the list. You can either use the workbook you completed in the preceding exercise, or open the workbook CT2L8P7S.XLS. 1. Copy cell F6 to cell C1, and copy cell F21 to cell C2. When completed, cells C1 and C2 should have: C1: Store C2: Broadway 2. Click anywhere in the list. (Cell A6 will do.) Choose Advanced. Set the Criteria range to $B$1:$C$2. Click the Copy to Another Location button. Type $A$49 in the Copy to box as the output range. Click OK. 3. Browse rows 49 to 56 and observe that these rows contain the filtered records copied from the list. The filtered records meet the criteria set in the Criteria range in cells B1:C2 (that is, the sales amount is greater than the average sale amount of $2, and the Store is Broadway). 4. Save the completed workbook under a new filename. If you had difficulty with this exercise, compare your workbook with the solution in CT2L8P8S.XLS. Computer Tutorial 2 Lesson 8 21

168 TOPIC 8.9 Using Excel Help TOPIC 8.10 Self-testing questions Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click on the Help icon. 2. Type data form and click Search. 3. Click Add, edit, find, and delete rows by using a data form. 4. After viewing the help information, search other related Help topics. 5. If you had difficulty with any of the following topics, display the corresponding Help information to review: Add a record to a list by using a data form Delete a record in a list by using a data form Find a record in a list by using a data form Lists, sorting VLOOKUP worksheet function HLOOKUP worksheet function Ways to find values in a list by using filters Display a subset of rows in a list by using filters Filter a list by using advanced criteria Examples of advanced filter criteria Remove filters from a list 1. What is a list in Excel? How is it different from rows and columns of data? 2. Describe how to add new records to a list using the Excel data form. 3. Describe how to edit records in a list using the Excel data form. 4. You have a client list containing hundreds of names and addresses, with city, province, phone numbers, and other useful information. Column A for this list contains unique client ID numbers, column B the last names, column C first names, column D street addresses, column E city names, column F province names, column G phone numbers, column H last year s total billings, and so on. The list occupies the range A1:M510. a. Describe how you would sort this list by province, city, and phone number, using province as the primary column for sorting and city and phone number as secondary columns for sorting, in ascending order. b. Can you use the Sort A to Z icon to accomplish this task? Why or why not? 5. For the list of names and addresses for clients described in Question 4, describe how you would quickly locate all the clients in a certain city. 22 Lesson 8 Computer Tutorial 2

169 6. For the list of names and addresses described in Question 4, describe the formula using the VLOOKUP function to look up the city for a particular client, given the client ID number in cell B For the client list described in Question 4, describe the Criteria range you would set up to select only those records for Vancouver with last year s billings over $5,000, using the Advanced Filter. Assume that the column labels for the city column and the billing column are City and Billing, respectively. Computer Tutorial 2 Lesson 8 23

170 LESSON 9 Financial functions Topic outline Overview 9.1 Basic concepts 9.2 Future value and present value 9.3 Net present value 9.4 Ordinary annuities and annuities due 9.5 Principal and interest 9.6 Compounding periods 9.7 Interest rates 9.8 Internal rate of return 9.9 Amortization functions 9.10 Using Excel Help 9.11 Self-testing questions This lesson covers the most useful financial functions for accountants engaged in financial planning and reporting. It requires some understanding of the concepts of the time value of money (present and future value, interest, compounding, and discounting). It focuses on how these concepts are used in Excel, but not on the mathematics of the formulas. The CGA courses in financial accounting and finance provide a more thorough grounding in the financial logic of these concepts. This lesson provides you with some basic hands-on experience with financial functions and an overview of their application. Later, when you are doing course work with financial functions, you can return to this lesson for reference. Therefore, in this lesson, your main aim should be to develop a general understanding of how financial functions work in Excel. Learning objectives Explain the basic purposes of financial functions. Calculate the future value of a present amount. Calculate net present value. Determine the future value of an ordinary annuity and annuity due. Compute the present value of a future amount. Determine the present value of an ordinary annuity and annuity due. Compute ordinary annuity payments and annuity due payments. Calculate the principal and interest portions of an annuity and annuity due payment. Determine the number of compounding periods. Compute the interest rate required for an annuity. Calculate the internal rate of return. Use Excel amortization functions. Obtain Excel Help on how to use financial functions. Computer Tutorial 2 Lesson 9 1

171 TOPIC 9.1 Basic concepts A financial function is a ready-made formula that performs a financial computation. Each function has a name to indicate the task it will perform. Here are some of the Excel financial functions for present value, future value, and annuity calculations: Excel financial function FV PV NPV NPER IRR MIRR PMT PPMT IPMT RATE Meaning Future value of a present amount or annuity Present value of a future amount or annuity Net present value for a series of cash flows Number of periods for an investment Internal rate of return for a series of cash flows Internal rate of return for two different interest rates Annuity payment Principal portion of an annuity payment for a given period Interest portion of an annuity payment for a given period Interest rate per period of an annuity Calculations of present value, future value, and annuities are built on the concept of the time value of money: Basically, a sum of money at the present will accumulate to larger amounts in the future because of interest the money can earn over time. In such calculations, the rate at which money can earn interest is sometimes referred to as the discount rate, or in common usage, the interest rate. Throughout this lesson, we will use the term interest rate. There are, in general, two types of present value and future value calculations: those to do with present or future amounts, and those to do with fixed periodic amounts over a number of periods. For example, the maturity value of a compound interest guaranteed investment certificate is basically the future value of a present amount. Mortgages and car lease payments, on the other hand, are examples of fixed periodic amounts, commonly referred to as annuity amounts. Each annuity amount contains a principal component and an interest component, and the amount is the same for all periods. There are two types of annuities: an ordinary annuity is one in which the payments occur at the end of each period, whereas an annuity due is one in which the payments occur at the beginning of each period. You will learn more about ordinary annuities and annuities due in Topic Lesson 9 Computer Tutorial 2

172 Arguments in Excel financial functions Excel financial functions for present value, future value, and annuity calculations use a number of standard arguments in a consistent manner. The value the argument holds is consistent from function to function: Excel argument Meaning rate nper per pmt pv fv type values guess interest rate per period total number of periods particular period in an annuity or annuity due annuity payment per period present amount future amount number used to indicate the type of annuity where 0 = ordinary annuity and 1 = annuity due (type = 0 is the default, and may be left unspecified) array of cells that contains cash flow values for the function IRR (see Topic 9.8 for more details) initial guess for the IRR function (see Topic 9.8 for more details) Some of the arguments may be optional. If an optional argument is left unspecified because the argument is not needed, it is necessary to insert a place holder in the form of two consecutive commas. However, if one or more arguments are left unspecified at the end of an argument list, the place holders can be skipped. Here are some examples. As you work through these and other examples in this lesson, try to understand the way each function uses the arguments. Examples The future value function FV uses the following arguments: FV(rate,nper,pmt,pv,type) The following are all valid formulas: FV(10%,9,16500) Future value at an annual interest rate of 10%, for nine years, with an annuity payment of $16,500. FV(12%,10,,10000) FV(8%,12,5000,,1) Future value at an annual interest rate of 12%, for 10 years, of a present amount of $10,000. Notice that the pmt argument is skipped (indicated by two consecutive commas), and the type argument is also skipped (no placeholder needed). Future value at an annual interest rate of 8%, for 12 years, with an annuity due payment of $5,000. Notice that the PV argument is skipped, indicated by the two consecutive commas (place holder). Computer Tutorial 2 Lesson 9 3

173 Insert Function Insert Function (Lesson 6, Topic 6.8) provides help in selecting a function, setting up the arguments, and inserting the function in a formula. It works like this: 1. Select any empty cell in the workbook. 2. Click the Insert Function icon. 3. In the Select a category list, click Financial, and in the Select a function list, choose FV (Exhibit 9-1). The form of the function and a brief description can be found near the bottom of the dialog box. 4. Browse each of the financial functions listed at the beginning of this topic. 5. Click Cancel to close the Insert Function dialog box. EXHIBIT 9-1 Insert Function Function form Description Defining the units of calculation When working with Excel functions, be particularly careful about the way time periods and interest rates are defined. For instance, if you are required to enter an interest rate and a term (number of periods), both must be defined in the same unit (such as annually or monthly). Thus, do not mix an annual interest rate with a number of monthly payments; instead, convert the annual rate to a monthly rate, so both rate and term are in the same unit. The following material is a brief summary of the concepts of future value and present value calculations. A basic understanding of these concepts is required to work with the Excel present value, future value, and annuity functions. 4 Lesson 9 Computer Tutorial 2

174 Future value calculations Future value calculations are based on the concept of interest compounding. To illustrate, suppose you invested $1,000 today in a term deposit at an annual interest rate of 10% for three years; the interest is reinvested in the term deposit automatically. That is, the interest is compounding interest earning interest. What is the total amount of principal and interest (called future amount) you will receive at the end of three years? To calculate the future amount, you must use the compound interest method: at the end of year 1: 1,000 (1 + 10%) = 1,100 at the end of year 2: 1,100 (1 + 10%) = 1,210 at the end of year 3: 1,210 (1 + 10%) = 1,331 or (at the end of year 3): 1,000 (1 + 10%) (1 + 10%) (1 + 10%) = 1,331 or: 1,000 (1 + 10%) 3 = 1,331 Present value calculations In Excel, the future value formula as shown on the previous line would be entered as: 1,000*( )^3 Remember that in Excel the * (asterisk) signifies multiplication, and the ^ (caret) represents a power or exponent. In Topic 9.2, you will learn that Excel provides a function to calculate the future value of a present amount. The present value of a future amount is calculated using the concept of discounting, which is the reverse of compounding. To illustrate, suppose you were promised a payment of $1,331 three years from now. The expected annual rate of interest is 10% over the three-year period. What is the amount worth to you right now? In other words, what is the present amount of money that would yield $1,331 at the end of three years, if invested at 10% compound interest for three years? To calculate the present value, you must use the discounting method: at the beginning of year 3: 1,331 (1 + 10%) = 1,210 at the beginning of year 2: 1,210 (1 + 10%) = 1,100 at the beginning of year 1: 1,100 (1 + 10%) = 1,000 or (at the beginning of year 1): or: 1,331 (1 + 10%) (1 + 10%) (1 + 10%) = 1,000 1,331 (1 + 10%) 3 = 1,000 In Excel, the present value formula as shown on the previous line would be entered as: 1,331/( )^3 Remember that in Excel, the / (slash) signifies division, and the ^ (caret) represents a power or exponent. In Topic 9.2, you will learn that Excel provides a function to calculate the present value of a future amount. Computer Tutorial 2 Lesson 9 5

175 TOPIC 9.2 Future value and present value In Topic 9.1, you studied the basic concepts of calculating future and present values. To make these calculations easier, Excel provides two financial functions: FV and PV. FV is used to calculate the future value of a present amount, as well as the future value of an annuity. PV is used to calculate the present value of a future amount, as well as the present value of an annuity. In this topic, you will focus on the calculation of present and future amounts. In Topic 9.4, you will learn to calculate present and future values of annuities. The FV function The FV function can be used to calculate the future value of a present amount. The FV function has the following form: FV(rate,nper,pmt,pv,type) The FV function always returns a negative value if pmt or pv is specified as a positive value, whereas the FV function returns a positive value if pmt or pv is specified as a negative value. The FV function can be used to calculate the future value of an annuity, in which case the pv argument should not be specified: FV(rate,nper,pmt,,type) To use the FV function to calculate the future value of a present amount instead of an annuity, the following form should be used: FV(rate,nper,,pv) Notice that the third argument, pmt (used for annuity calculations), is not required, and is indicated by the place holder indicated by two consecutive commas with nothing in between. The last argument, type, does not apply in this case. An example of the use of FV is to determine the maturity value of a term deposit or investment certificate, at a certain interest rate and over a certain period. In Topic 9.4, you will learn how to use the pmt argument in the FV function. EXERCISE 9-1 Calculating the future value of a present amount This exercise demonstrates how to use the FV function to calculate the future value of a present amount. Suppose you want to invest $1,000 (present value) in an investment certificate that matures in five years with an annual interest rate of 10%. What is the maturity value (combined principal and interest) of this investment certificate at the end of five years? 1. Open the workbook CT2L9P1.XLS. The range A1:B3 contains the information outlined in the problem. 2. In cell B4, enter the formula: = B1*(1+B2)^B3 This formula calculates the future value of the present amount in cell B1, compounding the annual interest rate in cell B2 by the number of years in cell B3. The result should be $1, Lesson 9 Computer Tutorial 2

176 3. Select cell B5, then click the Insert Function icon. In the Search for a function box, type FV and click Go. Choose FV from the Select a function list. Click OK. Enter the required information as in Exhibit Click OK. The amount should be the same as in B4 except B5 is negative because PV was entered as a positive number. Prove this by clicking on the formula bar and add a negative sign in front of B1. Press Enter and B5 should be positive. EXHIBIT 9-2 Function Arguments dialog box for FV The PV function The PV function can be used to calculate the present value of a future amount, and is the mirror image of the FV function. The PV function has the following form: PV(rate,nper,pmt,fv,type) The PV function always returns a negative value if pmt or fv is specified as a positive amount. The PV function can be used to calculate the present value of an annuity, in which case the fv argument should not be specified: PV(rate,nper,pmt,,type) To use the PV function to calculate the present value of a future amount instead of an annuity, the following form should be used: PV(rate,nper,,fv) Computer Tutorial 2 Lesson 9 7

177 EXERCISE 9-2 Calculating the present value of a future amount This exercise demonstrates how to calculate the present value of a future amount. Suppose that you need to spend $1,000 five years from now to take a cruise. You can get an interest rate of 10% in an investment certificate. How much money do you need to invest now so that the amount at maturity will be $1,000? Make sure the workbook CT2L9P1.XLS is open. The range A7:B9 contains the information outlined in the problem. 1. In cell B10, enter the formula: = B7/(1+B8)^B9 This formula calculates the present value of the future amount in cell B7, discounting the annual interest rate in cell B8 by the number of years in cell B9. The result should be $ Select cell B Click the Insert Function icon. Select Financial in the Select a category box. Select PV in the Select a function box and press ENTER. The Function Arguments dialog box appears. This looks similar to Exhibit 9-2. You may need to drag the dialog box to the right so as not to block columns A and B. 4. Select the Rate box by clicking it, then select cell B8 to post this cell reference into the rate box. 5. Select the Nper box and select cell B9. 6. Select the Fv box, type (minus), then select cell B7 and press ENTER. The formula in cell B11 is = PV(B8,B9,, B7) and the result should be $620.92, the same as that in cell B10. Notice that the formula in cell B11 could also be = PV(B8,B9,,B7) by adding a minus sign in front of the PV function instead of a minus sign in front of the fv amount to yield the same result. 7. In cell B7, enter the future amount of $1, (This is the future amount of $1,000 calculated in the preceding exercise.) The results in cells B10 and B11 should be $1,000, which confirm the calculations performed in these two exercises. 8. Your completed workbook for Exercises 9-1 and 9-2 should be similar to Exhibit 9-3. Save the completed workbook under a new filename and close this file. If you had difficulty with this exercise, compare your workbook with the solution in CT2L9P1S.XLS. 8 Lesson 9 Computer Tutorial 2

178 EXHIBIT 9-3 FV and PV calculations TOPIC 9.3 Net present value The net present value is the amount of the present value of a series of future cash flows. The Excel function NPV computes the net present value of a series of future cash flows, discounted at a fixed periodic interest rate. The cash flow amounts must be for equal time periods, but the cash amount may vary from period to period. The first cash flow amount is discounted once, the second cash amount is discounted for two periods, and so on. The NPV function takes on the following two forms: NPV(rate,value1,value2,...) or NPV(rate,range) If the cash flow amounts are not stored in consecutive cells, you must specify the individual values in the cells for the NPV function. In this case, you can specify up to 254 values in the arguments. For example, suppose the interest rate is stored in cell B1, and the cash flow amounts are found in cells A3, A5, A7, and A9. The formula to calculate the net present value of this stream of cash flow is: NPV(B1,A3,A5,A7,A9) In the above example, the interest rate is in cell B1, the first cash flow amount is found in cell A3. This cash flow occurs at the end of the first period, the second cash flow is in cell A5, and this cash flow occurs at the end of the second period, and so on. If the cash flow amounts are stored in consecutive cells forming a cell range, you can specify the range instead of individual values. For example, suppose the interest rate is stored in cell B1, and the cash flow amounts are found in cells A3 to A6, then the formula to calculate the net present value of this stream of cash flow is: NPV(B1,A3:A6) NPV is ideally suited for analyzing capital investment projects that have an initial cost factor, but which promise future benefits from the investment. Computer Tutorial 2 Lesson 9 9

179 EXERCISE 9-3 Using the NPV function In this exercise, you will use NPV to calculate: a. the net present value of a series of future unequal cash flows. b. the net present value of an initial investment and a series of future cash inflows from the investment. The future cash flows will occur at the end of each period. c. the net present value of an initial investment and a series of future cash inflows and outflows from the investment. The future cash flows will occur at the end of each period. a. Calculate the net present value of a series of future unequal cash flows. beginning of year 1 end of year 1 end of year 2 end of year 3 $500 $400 $300 The first set of calculations is based on three cash payments: the first payment is $500, and is to be paid at the end of the first year; the second payment is $400, to be paid at the end of the second year; the third payment is $300, to be paid at the end of the third year. You are to use NPV in Excel to calculate the present value of these three annual payments at an annual interest rate of 12%. 1. Open the workbook CT2L9P2.XLS. Row 1 shows the years of cash flows. Row 2 shows the three cash flow amounts $500.00, $400.00, and $ Cell B3 contains the interest rate of 12%. 2. In cell B4, enter the formula (use the Insert Function or type the formula): = NPV(B3,B2,C2,D2) In this formula, B3 is the cell with the interest rate, and B2, C2, and D2 contain the three payment amounts. The value displayed in B4 should be $ Notice that although the total of the cash flows is $1,200, the net present value is much smaller, accounting for time value of money. 3. Change the formula in cell B4 to = NPV(B3,B2:D2) and the result should still be $ Thus, you can use either form of the NPV function. 4. Save the completed workbook under your initials but leave it open for the next exercise. If you do not obtain the result described, open the solution file CT2L9P2S.XLS and study rows 1 to 4 (Exhibit 9-4). If you have a calculator that computes present values, compare the result generated by Excel with the result obtained on your calculator. You may find that the result from Excel is slightly different because of the larger number of decimals used by Excel for the calculations, resulting in more accurate values. 10 Lesson 9 Computer Tutorial 2

180 b. Calculate the net present value of an initial investment and a series of future cash inflows from the investment. Beginning of year 1 end of year 1 end of year 2 end of year 3 end of year 4 $8,000 $2,200 $2,350 $2,750 $2,950 The second set of calculations is based on an initial cash outlay of $8,000 and four subsequent cash inflows: $2,200 at the end of the first year, $2,350 at the end of the second year, $2,750 at the end of the third year, and $2,950 at the end of the fourth year. Using an annual interest rate of 10%, calculate the net present value of this series of cash flows. 1. Open the workbook CT2L9P2.XLS if it is not already open. In this exercise, focus on rows 6 to 8. Row 6 contains the amounts $8,000.00, $2,200.00, $2,350.00, $2,750.00, and $2, Notice the significance of entering the initial investment as a negative value (because it is a cash outflow) and the subsequent cash receipts or benefits as positive numbers (as they are inflows). The annual interest rate of 10% is found in cell B7. 2. In cell B8, enter the formula: = B6+NPV(B7,C6:F6) Notice that the value in cell B6 is negative to indicate an initial cash outflow, and should not be part of NPV. The result should be $ Save this worksheet under your initials, then close it. If you do not obtain the results described, open the solution file CT2L9P2S.XLS and study rows 6 to 8 (Exhibit 9-4). c. Calculate the net present value of an initial investment and a series of future cash inflows and outflow from the investment. Beginning of year 1 end of year 1 end of year 2 end of year 3 end of year 4 $10,000 $3,500 $3,500 $1,500 $4,500 The third set of calculations is based on an initial cash outlay and future cash inflows (positive numbers) and a cash outflow (negative number). Using an annual interest rate of 8%, you are to calculate the net present value of this series of cash flows. 1. Open the workbook CT2L9P2.XLS if it is not already open. Focus on rows 10 to 12. Row 10 contains the cash flow described. Cell B11 contains the interest rate of 8%. 2. In cell B12, enter the formula: = B10+NPV(B11,C10:F10) Computer Tutorial 2 Lesson 9 11

181 3. Notice that the numeric sum of all cash flows is zero, yet the net present value is $1, Save this worksheet under your initials and close it. If you do not obtain the results described, open the solution file CT2L9P2S.XLS and study rows 10 to 12 (Exhibit 9-4). EXHIBIT 9-4 Net present value calculations TOPIC 9.4 Ordinary annuities and annuities due Periodic payments for an annuity An annuity is a series of equal payments made at regular intervals over a specified period of time. There are two types of annuities: ordinary annuities and annuities due. In an ordinary annuity, the payments are made at the end of each payment period. A different formula must be used for an annuity due, where payments are made at the beginning of each period. To illustrate an ordinary annuity, suppose you win $100,000 in a lottery and want to receive the money over the next 10 years. A life insurance company can sell you an annuity which will pay you a fixed dollar amount annually for 10 years, with payments made at the end of each year. Suppose the expected annual interest rate over the next 10 years is 10%. To calculate the periodic payment of an annuity, you can look up a table named Present value of an annuity of $1 per period (the name of the table may change depending on which text you are using) in a finance or financial accounting textbook. Select the factor for 10 periods and 10% annual interest. You will find that the amount is In other words, for every dollar of periodic payment for 10 years at an annual interest rate of 10%, the initial investment must be $ (Alternatively, you could use a calculator to solve this problem manually.) Since you have an initial investment of $100,000, the periodic payment must be $100,000 divided by 6.145, yielding $16, In Excel, the periodic payment of an annuity can be calculated using PMT, which takes the form: PMT(rate,nper,pv,fv,type) 12 Lesson 9 Computer Tutorial 2

182 Thus, the formula you would enter in Excel for this example is: = PMT(10%,10,100000) Notice the negative sign is needed in front of the PMT function to convert the result into a positive number. The result calculated by Excel is $16, That is, the life insurance company will promise to pay you $16, for 10 years, payment being made at the end of each year, if you will turn over the $100,000 lottery winning now. Notice the minor difference in the result determined using an annuity table or hand calculator. The difference is caused by the more accurate Excel computation because Excel carries more decimal places in its calculations. If the periodic payments are made at the beginning of each year instead of at the end of each year, the formula would be: = PMT(10%,10,100000,,1) Present and future value of an annuity Notice that the fourth argument (fv) is not required, and is indicated by the place holder (two separating commas with nothing in between). The payment per year by the life insurance company, in this case, is $14, In Topic 9.2, you used the PV function to calculate the present value of a future amount and the FV function to calculate the future value of a present amount. You learned that these functions can also calculate the present and future value of an annuity, respectively. Recall that the form of PV and FV functions is: PV(rate,nper,pmt,fv,type) FV(rate,nper,pmt,pv,type) To use these functions for annuity calculations, you must specify the periodic payment (pmt) amount. If you do not specify the type of annuity (type), an ordinary annuity is assumed. If you want to perform an annuity due calculation, type 1 must be specified. EXERCISE 9-4 Annuity calculations This exercise demonstrates how to calculate the periodic payment and the present and future values of an annuity and an annuity due. A workbook has been designed to solve the problem of investing the lottery winnings of $100,000 in an annuity as described at the beginning of this topic. Annuity calculations 1. Open the workbook CT2L9P3.XLS. You are to enter formulas in cells B5, B7, B9, and B10 to solve the problem if the periodic payments are made at the end of each period, and to enter formulas in cells E5, E7, and E10 if the payments are made at the beginning of each period. 2. Select cell B5 and enter the following formula (by entering the formula or use the Insert Function): = PMT(B2,B3,B1) The result should be $16, Computer Tutorial 2 Lesson 9 13

183 3. In cell B7, enter the formula that calculates the present value of the periodic payment in cell B5. That is, if you want to receive $16, per year (at the end of each year) for 10 years, at the interest rate of 10%, how much money do you need to give to the life insurance company now? The formula should be: = PV(B2,B3,B5) The result should be $100,000, which was the present value amount that resulted in the periodic payment of $16, In cell B9, enter the formula to calculate the future value of the present amount in cell B1: = FV(B2,B3,,B7) The result should be $259, Notice the third argument pmt is not used in this formula. Instead, the fourth argument, pv, is used. 5. In cell B10, enter the formula to calculate the future value of the periodic payment in cell B5: = FV(B2,B3,B5) The result should be $259, Notice that the third argument pmt is used in this formula to calculate the future value of the periodic payments. There is no surprise here. The future value of the periodic payments should be the same as the future value of the present amount that resulted in the periodic payment amounts. Annuity due calculations 6. In cell E5, enter the formula to calculate the periodic payment if you want to receive the payment at the beginning of each year (annuity due): = PMT(B2,B3,B1,,1) The result should be $14, In cell E7, enter the formula that calculates the present value of the annuity due payments in cell E5. In other words, if you want to receive $14, per year (at the beginning of each year) for 10 years, at the interest rate of 10%, how much money do you need to give to the life insurance company now? The formula should be: = PV(B2,B3,E5,,1) The result should be $100,000.00, which was the present value amount that resulted in the annuity due payment of $14, In cell E10, enter the formula that calculates the future value of the annuity due payments in cell E5: = FV(B2,B3,E5,,1) The result should be $259, (same as in cell B10). Again, this is not surprising. The future value of the annuity due payments should be the same as the future value of the annuity payments. Your completed worksheet should look like Exhibit Lesson 9 Computer Tutorial 2

184 EXHIBIT 9-5 Future values of an ordinary annuity and an annuity due 9. Save the workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2L9P3S.XLS and study the formulas. TOPIC 9.5 Principal and interest In annuities, each payment amount comprises a principal component and an interest component. These amounts differ from period to period, as the principal is paid down. Excel provides the PPMT function to calculate the principal amount for any period within an annuity. That is, using PPMT, you can determine the principal component of an annuity payment at any period. PPMT has the following form: PPMT(rate,per,nper,pv,fv,type) Excel also provides the IPMT function to calculate the interest component for any period. IPMT has a form similar to PPMT: IPMT(rate,per,nper,pv,fv,type) EXERCISE 9-5 Calculating principal This exercise demonstrates how to use PPMT to calculate the principal component for any payment period of an annuity. 1. Open the workbook CT2L9P4.XLS. This worksheet is similar to CT2L9P3S.XLS, except that labels have been added to rows 12 to 17 to determine the principal amount for period 1 and period In cell B12, enter the formula to calculate the interest component of the annuity payment for the first year: = IPMT(B2,1,B3,B1) The result should be $10,000.00, which is the interest on $100,000 for one year at 10% per year. Of the annuity payment of $16, for the first year, $10,000 is the interest component. Computer Tutorial 2 Lesson 9 15

185 3. In cell B13, enter the formula to calculate the principal for period 1, using the result in cell B12: = B5 B12 The result should be $6, That is, of the first year annuity payment of $16,274.54, $10,000 is interest and $6, is principal. 4. In cell B14, enter the formula to calculate the principal for period 1, using the PPMT function: = PPMT(B2,1,B3,B1) The result should be the same as that in cell B13. The PPMT function provides a quick means of calculating the principal amount of an annuity payment. Because Excel yields the principal amount as a negative value, you must add a negative sign in the formula so that the result displays as a positive value. Indeed, the method used for cell B13 would become increasingly complicated as you move further into the payment periods, when all you need to do is specify the payment period (per) in the PPMT function for any period. 5. In cell B15, enter the formula to calculate the principal for period 10, using the PPMT function: = PPMT(B2,10,B3,B1) The result should be $14,795.04, which means that $14, of the tenth annuity payment of $16, goes toward paying down the principal. 6. To verify that the result in cell B15 is indeed correct, enter the following formulas in cell B16 to calculate the interest component for the annuity payment for this period: = IPMT(B2,10,B3,B1) The result should be $1, In cell B17, construct a formula to add the principal component (from cell B14) and the interest component (from cell B15) so as to calculate the annuity payment amount for the tenth period. The formula should be: = B15+B16 The result in cell B17 should be $16,274.54, the annuity payment for period Save your completed workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2L9P4S.XLS (see Exhibit 9-6). 16 Lesson 9 Computer Tutorial 2

186 EXHIBIT 9-6 Interest and principal components TOPIC 9.6 Compounding periods Excel provides the NPER function to calculate the number of periods required for a series of annuity payments to compound (accumulate) to a future amount or discount to a present amount, at a certain interest rate. NPER has the following form: NPER(rate,pmt,pv,fv,type) EXERCISE 9-6 Calculating the compounding period This exercise demonstrates the use of NPER to calculate the number of periods required for an annuity or annuity due to accumulate to a future amount. 1. Open the workbook CT2L9P5.XLS. The worksheet is similar to CT2L9P3S.XLS, except that rows 12 and 13 contain labels for determining the compounding periods. 2. Suppose you want to invest $100,000 with a life insurance company in an annuity. You want to receive $16, per year, payment to be made at the end of each year (ordinary annuity), and the interest rate per year is 10%. How many annuity payments will you be able to receive? In cell B12, enter the formula: = NPER(B2, B5,B1) Excel expects the pmt amount to be a negative value; therefore, you must add a negative sign in front of cell B5. This formula uses the present amount in cell B1 to calculate the compounding term. The result should be 10. That is, an investment of $100,000 in an annuity at 10% with yearly payment of $16, will last 10 years. 3. Now use the future value to calculate the compounding term. In cell B13, enter the formula: = NPER(B2, B5,,B9) As expected, the result is also 10. Computer Tutorial 2 Lesson 9 17

187 4. What if you want to receive a yearly payment of $14, to be paid at the beginning of each year (annuity due)? In cell E12, enter the formula: = NPER(B2, E5,E7,,1) Notice that it is necessary to specify the type of 1 to indicate that the payments are annuity due. Also, notice the consecutive commas used to skip the fv argument. 5. In cell E13, enter the formula that uses the future amount instead of the present amount: = NPER(B2, E5,,E10,1) The result is also 10 (Exhibit 9-7). EXHIBIT 9-7 Compounding periods 6. Save this workbook under your initials and close it. If you had difficulty with this exercise, compare your workbook with the solution in CT2L9P5S.XLS and study the formulas. TOPIC 9.7 Interest rates EXERCISE 9-7 Excel provides the RATE function to calculate the per period interest rate required for a series of annuity payments to discount to a present amount or accumulate to a future amount. RATE has the form: RATE(nper,pmt,pv,fv,type, guess) Calculating interest rate 1. Open the workbook CT2L9P6.XLS. The worksheet is similar to CT2L9P3S.XLS, except that rows 12 and 13 contain labels for determining the interest rate. 2. Suppose you want to invest $100,000 with a life insurance company in an annuity. You want to receive $16, per year for 10 years, payment to be made at the end of each year (ordinary annuity). What should the interest rate be in order to accomplish this? In cell B12, enter the formula: 18 Lesson 9 Computer Tutorial 2

188 = RATE(B3, B5,B1) Excel expects the pmt amount to be a negative value; therefore, you must add a negative sign in front of cell B5. This formula uses the present amount in cell B1 to calculate the interest rate. The result should be 10%. That is, after investing $100,000 in an annuity of 10 years, to receive annual payments (at the end of each year) of $16,274.54, the interest rate must be 10%. 3. Now use the future value to calculate the interest rate. In cell B13, enter the formula: = RATE(B3, B5,,B9) As expected, the result is also 10%. 4. What if you want to receive a yearly payment of $14, (annuity due), to be paid at the beginning of each year? In cell E12, enter the formula: = RATE(B3, E5,E7,,1) Notice that it is necessary to specify the type of 1 to indicate that the payments are annuity due. 5. In cell E13, enter the formula that uses the future amount instead of the present amount: = RATE(B3, E5,,E10,1) The result is also 10% (Exhibit 9-8). Notice that the Guess argument is not used in any of the above examples. If this argument is omitted, Excel sets it to 0.1 as the initial guess for the interest rate. EXHIBIT 9-8 Interest rate for annuity and annuity due 6. Save the completed workbook under your initials and close it. If you had difficulty with this exercise, compare your workbook with the solution in CT2L9P6S.XLS and study the formulas. Computer Tutorial 2 Lesson 9 19

189 TOPIC 9.8 Internal rate of return IRR performs a type of computation different from those previously studied in this lesson. It calculates the interest rate so that the net present value of a series of cash flows is zero. The cash flow must be for equal periods. The resulting interest rate is called the internal rate of return. If the internal rate of return of an investment is less than the yield of other alternatives, the investment is probably unattractive. IRR requires you to provide a guess at the interest rate that would produce this effect (of the NPV being zero). You provide this guess as one of the arguments for IRR. IRR thus consists of two arguments: the cash flow amounts and the initial guess at the interest rate. The form of IRR is: IRR(values,guess) The first cash flow amount must be a negative amount; this value represents the initial investment. This initial investment (cash outflow) is followed by the cash benefits (cash inflow) arising from the investment. Usually, if an initial guess of the internal rate of return of between 0.0 and 1.0 is picked, IRR will yield a result. A workable starting guess is often 10% or 0.1. Two different interest rates may be applicable: one for cash outflow (financing rate) and one for cash inflow (reinvesting rate). In this case, Excel provides the MIRR function to calculate the internal rate of return. MIRR has the following form: MIRR(values,finance_rate,reinvest_rate) The finance_rate is the interest rate you pay on the money used in the cash outflows, while the reinvest_rate is the interest rate you receive on the cash inflows as you reinvest them. EXERCISE 9-8 Calculate internal rate of return This exercise demonstrates how to use IRR and MIRR to calculate the internal rate of return for a series of cash flows. Use 10% as the initial guess. 1. Open the workbook CT2L9P7.XLS. In row 1, the years are indicated. In row 2, a series of cash flows has already been entered. The initial investment is $8,000, with $2,200 cash inflow at the end of year 1, $2,350 at the end of year 2, $2,750 at the end of year 3, and $2,000 at the end of year 4. Notice that the first cash flow amount is negative, to indicate cash outflow. 2. In cell B3, enter the formula to calculate the internal rate of return for the given stream of cash flow in cells B2:F2, with an initial guess of 10%: = IRR(B2:F2,10%) The result should be 6%. This means that if the interest rate is 6%, the net present value for the stream of cash inflows and cash outflows is zero. 20 Lesson 9 Computer Tutorial 2

190 3. In row 5, a series of cash flows has already been entered. The initial investment is $10,000, with $4,000, $4,500, $3,500, and $2,500 cash inflow for years 1, 3, 4, and 5, and a cash outflow in year 2 of $2,500. The finance rate for the cash outflow is 10%, and the reinvest rate for the cash inflow is 8%. In cell B8, enter the formula to calculate the internal rate of return for the given stream of cash flow in cells B5:G5 with an initial guess of 10%: = MIRR(B5:G5,B6,B7) The result should be 7% (Exhibit 9-9). This means that if the interest rate is 7%, the net present value for the cash inflows and cash outflows is zero, taking into account the different interest rates for cash inflows and outflows. EXHIBIT 9-9 Internal rate of returns 4. Save the completed workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2L9P7S.XLS and study the formulas. TOPIC 9.9 Amortization functions In accounting for assets, it is common to amortize the initial cost of the asset over its expected life. Excel provides a number of functions to facilitate the amortization calculations. In this topic, you will learn to use the following four functions: SLN (straight-line amortization) DB (declining balance amortization) DDB (double-declining balance amortization) VDB (variable-declining balance amortization) Note that Excel uses the term depreciation to describe amortization. Amortization is the term used in Canada, as recommended in the CICA Handbook. In this topic, we will conform to the Excel terminology and use the term depreciation. Computer Tutorial 2 Lesson 9 21

191 Arguments in Excel depreciation functions Excel depreciation functions use arguments in a consistent manner. The following table lists the meaning of each argument, which is the same for any function. Argument Meaning cost salvage life period month factor start_period end_period no-switch initial cost of the asset cash that the asset can be expected to be sold for at the end of its useful life expected life span of the asset time period for calculating the depreciation amount number of months for the first year if the asset is acquired sometime during the year and not at the beginning of the year rate at which the balance declines, used in double-declining balance and variable-declining balance calculations (or double-declining balance, the factor is 2) starting period for which you want to calculate the depreciation ending period for which you want to calculate the depreciation logical value specifying whether to switch to a straight-line depreciation when using VDB (This argument will be explained in more detail when VDB is described.) Straight-line depreciation The SLN function is used to calculate the straight-line depreciation of an asset for one period. Because the depreciation is straight-line, the depreciation amount is the same for each period. The SLN function takes the following form: SLN(cost,salvage,life) EXERCISE 9-9 Straight-line depreciation This exercise provides practice in using the SLN function. 1. Open the workbook CT2L9P8.XLS. Range A1:B7 contains data for the calculations using the various depreciation methods. The cost of the asset is $125,000 (cell B1). The salvage value is $15,000 (cell B2) at the end of 10 years of useful life (cell B3). 2. In cell B10, use the Insert Function to enter the following formula: = SLN(B1,B2,B3) This function calculates the straight-line depreciation for an asset with a cost of $125,000, a salvage value of $15,000, and useful life of 10 years. The result you obtain should be $11,000 (see cell B10 in Exhibit 9-10). 22 Lesson 9 Computer Tutorial 2

192 EXHIBIT 9-10 Depreciation functions 3. Leave this workbook open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution file CT2L9P8S.XLS and study the formula in cell B10. Declining balance depreciation The DB function is used to calculate the depreciation using the fixed-declining balance method. The depreciation amount differs from period to period, with larger amounts in the early periods. The DB function takes the following form: DB(cost,salvage,life,period,month) The month argument is optional and specifies the number of months in the first year of operation of the asset. If this argument is omitted, Excel assumes the number is 12 (full year). EXERCISE 9-10 Declining balance depreciation This exercise demonstrates how to use the DB function. 1. Continue with the workbook used in Exercise 9-9, or open the workbook CT2L9P8.XLS. 2. Select cell B11. Click the Insert Function icon. In the Select a category list, select Financial. In the Select a function list, select DB, then click Help on this function to display the help information about the DB function. Study the description of the arguments for this function. After studying the Excel Help information, close the Excel Help screen to return to the Insert Function. 3. Assuming that the asset was acquired at the beginning of the first year, use Insert Function to specify the following formula: = DB(B1,B2,B3,B5) Your result should be $23, Computer Tutorial 2 Lesson 9 23

193 4. Select cell B12. Using the Insert Function, enter the formula: = DB(B1,B2,B3,B5,B6) This formula calculates the declining balance depreciation amount where the asset is acquired mid-year in the first year. The result you obtained should be $11, Leave this workbook open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution file CT2L9P8S.XLS and study the formula in cells B11 and B12. (See these cells in Exhibit 9-10.) Double-declining balance depreciation The DDB function is used to calculate the double-declining depreciation of an asset for a particular period. Double-declining balance depreciation is an accelerated form of depreciation that provides higher depreciation amounts in the early years of the useful life of an asset. The depreciation amount diminishes from period to period. It is therefore necessary to specify the period for which the depreciation amount is to be determined. The DDB function has the form: DDB(cost,salvage,life,period,factor) The factor argument is optional and is defaulted to 2 for double-declining balance. If the declining balance is tripled, specify the factor as 3. Depreciation stops when the book value of the asset cost of the asset less its total depreciation over all prior periods reaches the salvage value. EXERCISE 9-11 Double-declining balance depreciation This exercise demonstrates how to calculate the double-declining balance using Excel s DDB function. 1. Continue with the workbook used in Exercise 9-10, or open the workbook CT2L9P8.XLS. 2. Select cell B13. Click the Insert Function icon. In the Select a category list, select Financial. In the Select a function list, select DDB, then click Help on this function to display the Excel Help information about the DDB function. Study the description of the arguments for this function. After studying this information, close the Excel Help window to return to the Insert Function. 3. Use Insert Function to specify the following formula: = DDB(B1,B2,B3,B5) This formula calculates the depreciation for the first period using the doubledeclining balance method. The result you obtain should be $25, Select cell B14. Using the Insert Function, enter the formula: = DDB(B1,B2,B3,B3) This formula calculates the double-declining balance depreciation amount for the tenth period. The result should be $1, Notice that the depreciation amount is limited by the salvage value. To confirm, change the salvage value in cell B2 to $14,000 from $15,000. The result should be $2,777.22, indicating that a $1, Lesson 9 Computer Tutorial 2

194 decrease in salvage value results in a corresponding increase in the depreciation amount. Change the value in cell B2 back to $15, Leave this workbook open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution file CT2L9P8S.XLS and study the formula in cells B13 and B14. (See these cells in Exhibit 9-10.) Variable-declining balance depreciation The VDB function is used to calculate the variable-declining depreciation of an asset for a particular period. VDB, like DDB, can calculate depreciation amounts using the doubledeclining balance method, but unlike DDB, VDB permits you to specify a partial period. The VDB function takes the following form: VDB(cost,salvage,life,start_period,end_period,factor,no_switch) You specify the start_ and end_period to indicate the time period for the calculation of the depreciation amount. The first period is specified with a start_period of 0 (zero) and end_period of 1. You may specify partial periods in decimals. For example, to calculate the depreciation for the second half of the third year, specify a start_period of 2.5 to an end_period of 3.0. You can also specify several periods. For example, to calculate the depreciation for the second and third year, specify the start_period of 1 and end_period of 3. The factor argument is optional and is defaulted to 2 for double-declining balance. The no_switch argument is optional and takes the logical value of TRUE or FALSE. The default is FALSE, which results in Excel switching to straight-line depreciation when depreciation is greater than the declining balance calculation. EXERCISE 9-12 Variable-declining balance depreciation This exercise demonstrates how to calculate the variable-declining balance using the VDB function. 1. Continue with the workbook used in Exercise 9-11, or open the workbook CT2L9P8.XLS. 2. Select cell B15. Click the Insert Function icon. In the Select a category list, select Financial. In the Select a function list, select VDB, then click Help on this function to display information about the VDB function. Study the description of the arguments for this function. After studying this information, close the Excel Help window to return to the Insert Function. 3. Use the Insert Function to specify the formula: = VDB(B1,B2,B3,B4,B5,B7) You need to scroll down the argument list to display the last two arguments. This formula calculates the depreciation for the first period using the double-declining balance method. The result you obtain should be $25,000.00, which is the same as the result obtained by using the DDB function. Computer Tutorial 2 Lesson 9 25

195 4. Select cell B16. Use the Insert Function to enter the formula: = VDB(B1,B2,B3,B4,0.5) Remember to scroll down the argument list for the last two arguments. This formula calculates the depreciation amount for the first half year. The result should be $12, Save this completed workbook under a new filename and close the file. If you had difficulty with this exercise, compare your workbook with the solution file in CT2L9P8S.XLS and study the formula in cells B15 and B16. (See these cells in Exhibit 9-10.) TOPIC 9.10 Using Excel Help TOPIC 9.11 Self-testing questions Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click on the Help icon. 2. Type future value and click Search. 3. Select FV function. 4. If you had difficulty with any of the following, display the corresponding Help information and briefly review: Present value / PV Net Present value / NPV Annuities / PMT PPMT worksheet function IPMT worksheet function NPER worksheet function Internal rate of return / IRR Modified internal rate of return / MIRR 1. You think you can use the FV function to calculate the future value for an annuity, but you cannot recall how to specify the arguments. Describe two methods to find out how to specify the arguments. Which method is superior? 2. The PV function has the form: PV(rate,nper,pmt,fv,type) Briefly explain each of the arguments. 3. Specify the form of the PV function when used to: a. Calculate the present value of a future amount. b. Calculate the present value of an annuity. c. Calculate the present value of an annuity due. 26 Lesson 9 Computer Tutorial 2

196 4. You have estimated the cash flows from a project over 10 years. These values are stored in range B3:B12. The value for the initial cost of the project is stored in cell B1 and the interest rate stored in cell B2. What is the formula for determining the net present value of the project? 5. a. What is the formula to calculate the annuity payment of a present value of $100,000, at an interest rate of 9%, over 12 years when the payments are made at the end of each year? b. What is the formula if the payments are made at the beginning of each year? 6. a. What is the difference between the IRR function and the MIRR function? b. What is the formula for the IRR function if the value for the initial investment is stored in cell F1, and each subsequent cash flow that occurs at the end of each year is in range F2:F a. What is the formula that calculates straight-line depreciation for an asset with a cost of $80,000, a salvage value of $10,000, an expected life of nine years? b. What is the formula that calculates double-declining balance for the fourth year for the asset described in part (a)? c. What is the difference between the DDB and VDB functions? Computer Tutorial 2 Lesson 9 27

197 LESSON 10 Statistical functions Topic outline Overview Learning objectives 10.1 Basic concepts 10.2 Descriptive statistics using Excel functions 10.3 Descriptive statistics using data analysis tools 10.4 Using the FREQUENCY function 10.5 Creating a histogram 10.6 Studying correlations 10.7 Performing a regression analysis 10.8 Using Excel Help 10.9 Self-testing questions This lesson covers the most common forms of statistical analysis that can be performed using Excel functions, and will require some understanding of the concepts of basic statistics. It focuses on the use of Excel to calculate the statistics, but not on the mathematics of the formulas. The CGA course in quantitative analysis (or its equivalent that you may have taken elsewhere) provides a thorough grounding in statistical analysis. This lesson is also designed to serve as a reference in Excel statistical functions for your subsequent CGA course work. Do not be concerned if you experience difficulties with the concepts or techniques covered in this lesson. Calculate descriptive statistics using Excel statistical functions. Use the Descriptive Statistics tool. Use the FREQUENCY function. Create histograms using column charts. Use the Histogram tool. Calculate a correlation coefficient using the CORREL function. Use the Correlation tool. Use the Regression tool for simple and multiple linear regression analysis. Obtain Excel Help on statistical functions. TOPIC 10.1 Basic concepts Throughout the CGA program of professional studies, you will be called upon to analyze and interpret sets of business data such as financial statements and budgets. Statistical analysis techniques (called tools in Excel) enable you to analyze these data to produce meaningful information, typically to support a management decision. In this lesson, you will learn to use two types of statistical techniques common to the business setting: Descriptive statistical techniques. These enable you to summarize, organize, and present information that describes the data. Examples include the calculation of means and standard deviations. Inferential statistical techniques. These enable you to draw conclusions about a large set of data (called a population) by studying only a subset of the data (called a sample). Computer Tutorial 2 Lesson 10 1

198 Statistical functions It is important at the outset to know the basic terms used in statistics. In any description or analysis, the set of all values under consideration is referred to as a population. Before conducting any statistical analysis, it is necessary to define the population of interest. For example, suppose you are interested in all the invoices for a company for a given year. All the invoices constitute the population. However, there are just too many invoices to study, so you typically select only those with amounts greater than $1,000. This smaller subset of invoices constitutes a sample. Thus, a sample is a subset of the population. Statistics associated with the population (called population statistics) are calculated using formulas, and these formulas are different from those used to calculate statistics for the sample (called sample statistics). As population data are difficult to obtain, most statistical calculations are performed on sample data. Excel provides two methods of doing statistical analysis: the first method is to use one or more statistical functions, and the second is to use Data Analysis tools. To find out more about the statistical functions, click the Insert Function icon (Exhibit 10-1). In the category list, select Statistical to display the names of available functions. Then, to see an explanation of a function and how its arguments are set up, click the function under the Select a function list. The explanation appears at the bottom of the dialog box. EXHIBIT 10-1 Statistical functions 2 Lesson 10 Computer Tutorial 2

199 Data analysis tools Data analysis tools are included in the Analysis ToolPak. After Analysis ToolPak has been installed and activated, the Data ribbon will contain a Data Analysis command. EXERCISE 10-1 Checking for Analysis ToolPak This exercise shows how to determine whether Analysis ToolPak has been installed, and if it is not, how to install it. 1. In Excel, click on the Office button, choose Excel Options, and click Add-Ins. At the bottom of the window, next to Manage, make sure Excel Add-ins is selected and click Go. The Add-Ins dialog box appears (Exhibit 10-2). Look for an entry for Analysis ToolPak. If this entry has been checked, the Analysis ToolPak has been installed and the Data Analysis command is available in the Data ribbon. In this case, click OK and skip the remainder of this exercise. Otherwise, proceed to step 2. EXHIBIT 10-2 Add-Ins dialog box 2. If Analysis ToolPak appears without a check mark and you have not installed it yet, click the checkbox and click OK. Excel may prompt you to insert the Microsoft Office 2007 CD. Analysis ToolPak will then be installed and the Data Analysis command will be added to the Data ribbon. 3. If Analysis ToolPak appears without a check mark and you have already installed it, click the checkbox and click OK. Analysis ToolPak and the Data Analysis command will then be activated. Click the Data Analysis icon in the Data ribbon to display the Data Analysis dialog box (Exhibit 10-3). In this lesson, you will learn to use three data analysis tools: the Descriptive Computer Tutorial 2 Lesson 10 3

200 Statistics and Histogram tools for descriptive tasks, and the Correlation and Regression tools for inferential tasks. EXHIBIT 10-3 Data analysis dialog box TOPIC 10.2 Descriptive statistics using Excel functions Descriptive statistics are values that convey the characteristics of a set of numbers. You probably already have some familiarity with terms such as: Excel function Descriptive statistic Meaning SUM sum total AVERAGE mean average MEDIAN median middle value in a sorted set of numbers MODE mode value that occurs most often in a set of numbers MAX maximum highest value MIN minimum lowest value STDEV standard deviation variability of the set of numbers VAR variance square of the standard deviation GEOMEAN geometric mean nth root of a product of n numbers In this topic, focus on how to use the Excel functions to calculate the descriptive statistics. You will have other opportunities in your CGA course work to explore the mathematics involved in statistics. Excel functions that calculate these types of statistics all have the following generic form: FUNCTION(range) where FUNCTION is the name of the Excel function and range is the range containing the values to be analyzed. For example, the formula =SUM(B1:B50) calculates the total of the range B1:B50. Notice that if the range is on another sheet, you must include the sheet name in the first part of the 4 Lesson 10 Computer Tutorial 2

201 range. For example, suppose that the range B1:B50 is on a sheet named SAMPLE, but the formula resides on another sheet. The formula should read =SUM(SAMPLE!B1:B50). EXERCISE 10-2 Descriptive statistical functions This exercise provides practice in the use of Excel statistical functions to calculate descriptive statistics. 1. Open the workbook CT2LXP1.XLS. This workbook contains two sheets: Data and Descriptive Statistics. 2. Click the sheet tab for the Data sheet to display its contents. The data sheet contains the values for the number of video rentals for 20 months, the amount of money spent on promotion each month, and the number of days of rain for each month. 3. Click the sheet tab for the Descriptive Statistics sheet. Select cells C2, C3, and C4 in turn and study the formulas: C2: =SUM(Data!C7:C26) C3: =COUNT(Data!C7:C26) C4: =C2/C3 The formula in cell C2 uses the SUM function to calculate the total amount spent in promotions in range C7:C26 in the Data sheet. The formula in cell C3 uses the COUNT function to calculate the number of values in the range C7:C26. The formula in cell C4 calculates the mean (or average) monthly cost of promotion. 4. Select cell C5. Click the Insert Function icon. From the category list, select Statistical. From the function list, select AVERAGE and press ENTER. 5. In the number1 box, enter data!c7:c26 and press ENTER. (Exhibit 10-4). The result in cell C5 should be , the same as that in cell C4. These results are expected because calculating the mean value by using a formula or by using the AVERAGE function should yield the same results. EXHIBIT 10-4 Function Arguments dialog box Computer Tutorial 2 Lesson 10 5

202 6. Enter the appropriate formula for each of the cells C6 to C13. The formula in cell C10 is =C8 C9. 7. Save this workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP1S.XLS. The best way to study the formulas in the solution workbook is to open this workbook and click the Show Formulas command in the Formulas ribbon. TOPIC 10.3 Descriptive statistics using data analysis tools Using an Excel data analysis tool can save you time constructing formulas and functions. For descriptive statistics, you use the Descriptive Statistics tool in the Analysis ToolPak. If you followed the instructions in Exercise 10-1 to install the Analysis ToolPak, the Data ribbon should include the Data Analysis command. Choose this command to display the list of analysis tools (refer again to Exhibit 10-3). Double-click Descriptive Statistics to display the Descriptive Statistics dialog box. This dialog box enables you to specify the input range, output range, and other options (Exhibit 10-5). EXHIBIT 10-5 Descriptive Statistics dialog box 6 Lesson 10 Computer Tutorial 2

203 For the purpose of this tutorial, you only need to know the following about the Descriptive Statistics dialog box: Input Range. Specifies the range containing the data you want to analyze. Labels in First Row. If selected, the first row of the Input Range is used as labels. Output Range. Specifies the upper-left cell of the output area. New Worksheet Ply. If selected, inserts a new worksheet and pastes the results into cell A1 of the new worksheet. This option is the default. New Workbook. If selected, creates a new workbook and pastes the results into cell A1 in a new worksheet (usually named Sheet1) of the new workbook. Summary statistics. Must be selected to produce descriptive statistics. EXERCISE 10-3 Generating descriptive statistics This exercise provides practice in using the Descriptive Statistics tool to generate descriptive statistics for a range of numbers. 1. Open the workbook CT2LXP2.XLS. This workbook contains only one sheet (Data) that holds the video rental data used in Exercise Click the Data Analysis command. Select Descriptive Statistics and click OK (Exhibit 10-5). 3. In the Input Range box, type C7:C26. Select the Summary statistics and Confidence Level for Mean check boxes if they are not already selected. 4. Click OK. A new sheet (Sheet1) is created and the descriptive statistics are generated on this sheet. Double-click the right border of the column heading for columns A and B to size the two columns. Select each of the cells in the range B3 to B17 in turn and notice that these cells contain only values generated by the Descriptive Statistics tool without any formulas. 5. Save this workbook under a new filename and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP2S.XLS. TOPIC 10.4 Using the FREQUENCY function When working with a set of numbers, it is useful to organize the values into groups and count the number of occurrences in each group. This is called a frequency distribution. For example, suppose you have recorded the number of rainy days each month for 20 months. You can group the months as follows: Interval Frequency count 0 to 3 days of rain 3 months 4 to 5 days of rain 4 months 6 to 9 days of rain 8 months more than 9 days of rain 5 months Computer Tutorial 2 Lesson 10 7

204 The FREQUENCY function in Excel counts the number of occurrences of values in each interval. In this example, Excel counts the number of months that had 0 to 3 days of rain, 4 to 5 days of rain, and so on. FREQUENCY is a function that is used in an array formula, that is, a series of formulas entered into consecutive cells to calculate a number of related values. To enter an array formula: 1. Select the range of cells. 2. Type the formula in the first of the selected cells, but do not press ENTER. 3. Press CTRL+SHIFT+ENTER. The formula appears in each selected cell, enclosed in a pair of braces ({}). The FREQUENCY function takes the following form: FREQUENCY(data_array,bins_array) where: data_array contains the data values bins_array contains the intervals EXERCISE 10-4 Counting frequencies This exercise provides practice in counting frequencies. 1. Open the workbook CT2LXP3.XLS. This workbook has only one worksheet, which contains the video rental data used in Exercises 10-1 and In the video rental worksheet, column D contains the number of rainy days for each month. Suppose you want to arrange the months into the four groups described at the beginning of this topic. 2. Cells E7 to E10 contain the intervals (0-3, 4-5, 6-9, and greater than 9). Notice that you need to specify only the end points of each interval. For example, specify 3 for the interval 0-3, 5 for the interval 4-5, and so on. Excel assumes that the intervals are contiguous. 3. Select the range F7:F10. In cell F7, type the formula (do not press ENTER): =FREQUENCY(D7:D26,E7:E10) The range D7:D26 is the data_array, and E7:E10 is the bins_array. 4. Press CTRL+SHIFT+ENTER. Formulas appear in the range F7:F10, with the values: F7: 3 F8: 4 F9: 8 F10: 5 As expected, the total of these frequencies is 20. This total means that during the 20 months, three months had 0 to 3 days of rain, four months had 4 to 5 days of rain, eight months had 6 to 9 days of rain, and five months had more than 9 days of rain. 5. Select cell E8. Type 6 and press ENTER to change the second interval from 4-5 to 4-6. Instantly, the corresponding frequency count in cell F8 changes to a count of 6. This change also affects the third interval, which changes from 6-9 to 7-9. The corresponding frequency count in cell F9 is also changed. 8 Lesson 10 Computer Tutorial 2

205 6. Change the content of cell E8 back to Save this workbook under your initials. Leave the workbook open for the next exercise. Compare your completed workbook with the solution in CT2LXP3S.XLS. TOPIC 10.5 Creating a histogram A histogram is a column chart that shows a frequency distribution. There are two ways you can create histograms in Excel: by creating a histogram chart or by using the Histogram tool. In Topic 10.4, you learned how to use the FREQUENCY function. You can use the frequencies generated by the FREQUENCY function to create a histogram chart. EXERCISE 10-5 Creating a histogram chart This exercise demonstrates how to create a histogram chart, using frequencies calculated using the FREQUENCY function. You can either continue with the workbook you completed in Exercise 10-4, or open the solution CT2LXP3S.XLS. 1. Select the range E6:F10. On the Insert ribbon, click the Column icon. From the menu that appears, choose Clustered Column under 2-D Column. (The name of the type of column appears if the cursor hovers over an icon for a few seconds.) 3. Click on the chart and select the Chart Title box (containing the word Frequency). Change the chart title to Histogram. 4. In the Layout ribbon, click on the Axis Titles command, choose Primary Horizontal Axis Title, and then Title Below Axis. In the Horizontal Axis Title box that appears, change the horizontal axis title to Rainy days per month. 5. Drag and resize the graph so that it occupies cells E11:I Save the completed workbook under a new filename. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP4S.XLS. Using the Histogram tool With the Histogram tool, you can create a histogram directly from the data. Using this method, you do not need to create the intermediate frequencies as you did in Exercise Click on the Data Analysis icon in the Data ribbon. Select Histogram and click OK. The Histogram dialog box appears (Exhibit 10-6). Computer Tutorial 2 Lesson 10 9

206 EXHIBIT 10-6 Histogram dialog box You should know the following about the Histogram dialog box: Input Range. Specifies the range containing the data you want to analyze. Bin Range. Specifies the cells that contain the intervals (same as the bins array for the FREQUENCY function). Labels. If the first row or column of the input range contains labels, you must select the Labels check box. If the input range does not include labels, uncheck this box. Output Range. Specifies the upper-left cell of the output table from the Histogram tool. New Worksheet Ply. If selected, inserts a new worksheet and pastes the results into cell A1 of the new worksheet. New Workbook. If selected, creates a new workbook and pastes the results into cell A1 in a new worksheet of the new workbook. Pareto (sorted histogram). If selected, sorts the output data in descending frequency order. Cumulative Percentage. If selected, the histogram includes information on cumulative percentages. Chart Output. If selected, the histogram will be displayed in a column chart. The chart will be embedded in the same sheet as the output range. 10 Lesson 10 Computer Tutorial 2

207 EXERCISE 10-6 Creating a histogram with the Histogram tool This exercise demonstrates how to use the Histogram tool in the Analysis ToolPak. 1. Open the workbook CT2LXP3.XLS. This workbook has only one worksheet that contains the video rental data. Cells E7:E10 contain the interval values. Erase the contents of cell E10 (select the cell and press DELETE) because the Histogram tool will not accept non-numeric values for the bin range. 2. Click on the Data Analysis icon in the Data ribbon. Select Histogram and click OK. 3. In the Histogram dialog box, specify D6:D26 as the input range and E6:E10 as the bin range. Select Labels, then select New Worksheet Ply and Chart Output. Click OK. 4. Excel creates a frequency table and a histogram on a new worksheet. 5. Click the Histogram chart to select it, then drag the bottom right corner so that the chart covers the range D1:I14. This histogram is essentially the same as the one you created in Exercise Click the x-axis label and put Days of rain per month as the label. Press Enter. 6. Save this workbook under your initials. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP5S.XLS. TOPIC 10.6 Studying correlations Correlation is an inferential statistic that measures the strength of the linear relationship between two series of values (called variables). For example, suppose you study the dollar amounts for video rentals and promotion expenses for 20 months the values for video rentals and promotion expenses form two variables. You might expect there would be a linear relationship between these two variables. In other words, you would expect that the more you spend on promotion, the higher the number of rentals. The correlation coefficient measures how well two variables relate to each other and has a value that ranges from 1 to 1. A positive correlation coefficient means that the two variables vary in the same direction an increase in one variable corresponds to an increase in the other variable. A negative correlation coefficient implies there is an inverse relationship an increase in one variable is associated with a decrease in the other variable. For example, you may expect that promotion and the number of rentals have a positive correlation coefficient, but that the price charged for each rental and the number of rentals may have a negative correlation coefficient. The larger the absolute value of the correlation coefficient, the stronger the relationship. Excel provides a statistical function, CORREL, to calculate correlation coefficient. CORREL takes the following form: CORREL(array1,array2) where: array1 is the range that holds the values for the first variable array2 is the range that holds the values for the second variable A scatter chart can be used to view the relationship between two variables, which would be helpful when trying to interpret the results from CORREL. Computer Tutorial 2 Lesson 10 11

208 EXERCISE 10-7 Using a scatter chart and correlation coefficient This exercise demonstrates how to use a scatter chart and CORREL to study the relationship between two variables. 1. Open the workbook CT2LXP1.XLS. Click the Data sheet tab. The range B7:B26 contains the number of video rentals per month. The range C7:C26 contains the monthly amounts spent on promotion. You want to study the relationship between the number of rentals and the amount of money spent on promotion. 2. Select the range B6:C26. Click on the Scatter icon in the Insert ribbon, and choose the chart type Scatter with only Markers. A scatter chart appears. 3. Change the chart title to Scatter plot. In the Layout ribbon, click Axis Titles, choose Primary Horizontal Axis Title, and then Title Below Axis. Change the x-axis label to Number of video rentals. Click Axis Titles once again, choose Primary Vertical Axis Title, and then Rotated Title. Change the y-axis label to Promotion $. 4. Drag and resize the chart so that it covers the range E2:I16. The scatter chart shows that the two variables have a linear relationship the points almost form a straight line on the chart (Exhibit 10-7). Calculation of the correlation coefficient will indicate the strength of the relationship. Notice that the x-axis and the y-axis use different scales with different intervals. EXHIBIT 10-7 Scatter chart and correlation coefficient 5. In cell E1, enter Correlation and press ENTER. 6. In cell F1, enter the formula: =CORREL(B7:B26,C7:C26) The result is This correlation coefficient indicates that there is a strong positive relationship between the two variables. 12 Lesson 10 Computer Tutorial 2

209 7. Save this workbook under your initials. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP6S.XLS. Analyzing correlation using the Correlation tool Excel provides the Correlation tool to calculate the correlation coefficient. This tool is useful if you want to calculate the correlation coefficients for many sets of variables. Click Data Analysis in the Data ribbon, then select Correlation, and click OK. The Correlation dialog box appears (Exhibit 10-8). EXHIBIT 10-8 Correlation dialog box You should know the following about the Correlation dialog box: Input Range. Specifies the range containing the data you want to analyze. Grouped By. Columns sets the variables as columns; Rows sets the variables as rows. Output Range. Specifies the upper-left cell of the output table from the Correlation tool. New Worksheet Ply. If selected, inserts a new worksheet (usually Sheet1) and pastes the results into cell A1 of the new worksheet. New Workbook. If selected, creates a new workbook and pastes the results into cell A1 in a new worksheet of the new workbook. EXERCISE 10-8 Using the Correlation tool This exercise demonstrates how to use the Correlation tool. You can either continue with the workbook you completed in Exercise 10-7, or open CT2LXP6S.XLS. 1. Click Data Analysis in the Data ribbon. Select Correlation and click OK. 2. In the Correlation dialog box, specify B6:D26 as the input range, click Labels in First Row, and choose New Worksheet Ply as the Output option. Click OK. 3. Excel creates a correlation table on a new worksheet. Double-click the right border for the column headings for columns A to D to display the full labels. The correlation between Column 1 (video rentals) and Column 2 (promotion) is (rounded). Computer Tutorial 2 Lesson 10 13

210 The correlation between video rentals and days of rain is (rounded). The correlation between days of rain and promotion is (rounded). Notice that cells B1, C3, and D4 have the value of 1, which is to be expected: each variable is perfectly correlated with itself. What does this mean? It means there is a strong positive relationship between the number of video rentals and the amount of money spent in promotion. There is a weak negative relationship (correlation coefficient close to zero) between the number of video rentals and days of rain (maybe when it rains, people tend not to venture out to the video store). Notice there is probably no relationship between days of rain and amount of money spent in promotion, though Excel reports a negative correlation. It appears unlikely that the expenditure of promotional dollars is related to the number of days of rain in a month a fine example of why you must understand your data rather than be deluded by a meaningless statistic generated blindly by a computer. 4. Save this workbook under your initials and close the file. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP7S.XLS. TOPIC 10.7 Performing a regression analysis Regression analysis is the study of the relationship between two or more variables. The most common regression analysis assumes a linear relationship between the variables, and is therefore known as linear regression. Where only two variables are involved, the regression analysis is a simple linear regression. Where more than two variables are involved, it is a multiple linear regression. In regression analysis, you study how one variable changes as a function of one or more other variables. For example, you may want to describe how the number of video rentals varies as a function of promotion expenses. A mathematical model (called a regression model) is used to represent the relationship between the variables. A simple linear regression model takes the form: Y = a + bx where Y is called the dependent variable (the variable whose variation you want to explain), and X the independent variable (the variable used to explain the variation in Y). This model represents a line. The letter a is referred to as the intercept (or constant term), and the letter b is referred to as the regression coefficient (the slope of the regression line). In the video rental example, Y could be the number of video rentals, and X could be the promotion expenses if you want to determine whether the number of video rentals is affected by the amount of money spent for promotion. A multiple linear regression model involving three or more variables takes the form: Y = a + b 1 X 1 + b 2 X b m X m where Y is the dependent variable, X 1, X 2,..., and X m are the independent variables, a is the intercept, and b 1, b 2,... and b m are the regression coefficients. Using the video rental example, a multiple linear regression model could be: Y = a + b 1 X 1 + b 2 X 2 where Y is the number of video rentals per month, X 1 is the monthly promotion expense, and X 2 is the number of days of rain per month. 14 Lesson 10 Computer Tutorial 2

211 To start the Regression tool, click Data Analysis in the Data ribbon. Select Regression and click OK. The Regression dialog box appears (Exhibit 10-9). EXHIBIT 10-9 Regression dialog box You should know the following about the Regression dialog box: Input Y Range. Specifies the range containing the dependent variable Y. Input X Range. Specifies the range containing the independent variable X. If there is more than one independent variable, specifies the range that contains all the independent variables. Labels. If the first row or column of the input range contains labels, you must select the Labels check box. If the input range does not include labels, uncheck this box. Constant is Zero. If checked, the constant term is set to zero (or the intercept is set to the origin). Confidence Level. You set the confidence level for statistical testing, usually 95%. Output Range. Specifies the upper-left cell of the output table. New Worksheet Ply. If selected, inserts a new worksheet and pastes the results into cell A1 of the new worksheet. New Workbook. If selected, creates a new workbook and pastes the results into cell A1 in a new worksheet of the new workbook. Residuals. Provides the following output if checked: Residuals, Standardized Residuals, Residual Plots, and Line Fit Plots. Computer Tutorial 2 Lesson 10 15

212 Normal Probability. Provides normal probability plots if checked. EXERCISE 10-9 Simple linear regression using the Regression tool This exercise demonstrates how to use the Regression tool. 1. Open the workbook CT2LXP1.XLS. Click the sheet tab for the Data sheet, which contains the video rental data. 2. Click Data Analysis in the Data ribbon. Scroll down the list, select Regression, and click OK. 3. In the Regression dialog box, press TAB to move from field to field, specify B6:B26 as the Input Y Range and C6:C26 as the Input X Range. 4. Select Labels but leave Constant is Zero and Confidence Level of 95% unchecked. Select New Worksheet Ply. 5. For the Residuals, click Line Fit Plots, but leave all other boxes unchecked. Click OK. 6. Excel creates the regression output on a new worksheet. Double-click the right border of each column heading to widen the columns and display all the contents. Click to select Line Fit Plot chart and size the chart so that it occupies the range J1:O Save this workbook under a new filename and leave the workbook open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP8S.XLS. Interpretation of regression output The regression output in cells B17 and B18 indicates that the regression line is (intercept and coefficient rounded): Y = X 1 This output can be interpreted as: for every dollar increase in promotion expense, you can expect an increase of 11 video rentals, on average. The intercept is The interpretation of the intercept is beyond the scope of this tutorial. You will learn more about intercepts in your quantitative analysis course. The R Square is (rounded). This result means that the regression model is a good model which explains most (about 81%) of the variability of the dependent variable, Y (number of video rentals). If the R Square is small (say less than 50%), then the regression model is not a good model because the model explains less than 50% of the variability of the dependent variable. The line fit plot plots the actual values of Y (number of video rentals) against the computed values from the regression model. As you can see from the plot, the computed values closely track those of the actual values, and the regression model is a good fit to the data. 16 Lesson 10 Computer Tutorial 2

213 EXERCISE Multiple linear regression using the Regression tool This exercise demonstrates how to use the Regression tool for multiple regression analysis. You can either continue with the workbook you completed in Exercise 10-9, or open the solution workbook CT2LXP8S.XLS. You want to see if the number of video rentals is related to the amount of money spent on promotion and the number of days of rain in each month. 1. Click the tab for the Data sheet. Click Data Analysis in the Data ribbon. Select Regression and click OK. 2. In the Regression dialog box, specify B6:B26 as the Input Y Range and C6:D26 as the Input X Range, indicating that there are two independent variables (C6:C26 and D6:D26). 3. Select Labels but leave Constant as Zero and Confidence Level of 95% unchecked. Select New Worksheet Ply. 4. For Residuals, click Line Fit Plots, but leave the others unchecked. Click OK. 5. Excel creates the regression output on a new worksheet. Double-click the right border of each column heading to widen the columns and display all the contents. Click the Days of rain Line Fit Plot and drag it so that its top left corner is at cell J16. Resize both plots so that the Promotion Line Fit Plot covers the range J1:O14, and the Days of rain Line Fit Plot covers the range J16:O Save this workbook under your initials and close this file. If you had difficulty with this exercise, compare your workbook with the solution in CT2LXP9S.XLS. Interpretation of regression output The regression output in cells B17 to B19 indicates that the regression line is (intercept and coefficient rounded): Y = X X 2 This regression result can be interpreted as: for every dollar increase in promotion expense (X 1 ), video rentals (Y) will increase by about 11, everything else being held constant. An additional day of rain (X 2 ) will increase video rentals by 12 on average, all else being held constant. The R Square is (rounded). This result means that the regression model explains about 82% of the variability of the dependent variable, Y (number of video rentals). The two line plots confirm that the regression model provides a good fit to the actual data. Computer Tutorial 2 Lesson 10 17

214 TOPIC 10.8 Using Excel Help TOPIC 10.9 Self-testing questions Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click on the Help icon. 2. Type Average and click Search. Select AVERAGE function to display Help information on this feature. After viewing the Help information, search other related topics. 3. If you had difficulty with any of the following topics, display the corresponding Help information to review: AVERAGE (average or mean) COUNT (number of items) CORREL (correlation coefficient) MEDIAN (median value) MODE (mode value) MAX (maximum value) MIN (minimum value) STDEV (standard deviation of a sample) VAR (variance of a sample) GEOMEAN (geometric mean) FREQUENCY (frequency) 1. Range C4:C120 contains the sale prices of single-family houses in Ottawa in February. What are the formulas for computing the mean and median prices of these sales, assuming that these formulas are on the same sheet as the data range? 2. You want to calculate the following descriptive statistics for the data described in Question 1: mean, median, mode, maximum, minimum, and standard deviation. Describe two different methods in Excel to accomplish these calculations. Which method is preferred? 3. For the data described in Question 1, you want to categorize the sales into low-priced houses (below $100,000), medium-priced houses (between $100,000 and $200,000), high-priced houses (between $200,000 and $500,000), and expensive houses (over $500,000). Describe how you would accomplish this categorization using the FREQUENCY function. 4. Suppose the range E3:E6 contains the frequencies for the price categories of house sales from Question 3. You can create a column chart to depict the histogram for these frequencies. Does Excel provide another method to create this histogram? 5. Suppose you have 60 months of data on the prime bank rate in the range B1:B60 and the TSE 300 indices in the range C1:C60. You want to analyze the relationship between these two variables. What is the Excel formula for this task? 18 Lesson 10 Computer Tutorial 2

215 6. For the two variables described in Question 5, describe the steps you need to take to use Excel to perform a regression analysis, using TSE 300 indices as the dependent variable (Y). 7. The regression output from Question 6 reports an intercept of , and the coefficient for X 1 is The R Square is reported at What is the regression model? Is it a good model to explain the TSE 300 indices? Computer Tutorial 2 Lesson 10 19

216 LESSON 11 Pivot tables Topic outline Overview Learning objectives 11.1 Basic concepts 11.2 Creating a simple pivot table 11.3 Refreshing a pivot table 11.4 Creating a pivot table with a page field 11.5 Changing pivot table fields 11.6 Formatting pivot table values 11.7 Creating a pivot chart 11.8 Using Excel Help 11.9 Self-testing questions A pivot table is a worksheet table that enables you to view data in different ways by rotating row and column headings. You can use Excel pivot tables to display and analyze summary information from Excel workbooks or other applications (such as databases created using Microsoft Access or FoxPro). In this lesson, you will learn to use pivot tables to analyze lists created in Excel workbooks. In addition, you will set up pivot tables; specify row, column, and page fields; rotate the fields; and create charts from pivot tables. Explain the basic concepts of an Excel pivot table. Create a simple pivot table with row, column, and data fields. Create a pivot table with a page field. Display the various pages of a pivot table with a page field. Change the fields in a pivot table. Format values and update a pivot table. Create a pivot chart. Create a chart from a pivot table. Obtain Excel Help to use pivot tables. TOPIC 11.1 Basic concepts Suppose you have a workbook containing sales records with information such as invoice numbers, invoice dates, type of goods sold, type of sales (cash or on account), sales amount, salesperson, and the store in which the sale happened. You want to summarize and view this sales information in several different ways. For example, you want to summarize the sales amounts in a table with store as rows and type of goods sold as columns. Then you can, at a glance, determine which store sold the most goods of a particular type. You may also want to summarize the sales amounts to find out which salesperson sold how much of each type of goods. You can accomplish each of these tasks by painstakingly building two separate tables using formulas. However, Excel provides a much faster method pivot tables. A pivot table displays summary information about data. The simplest pivot table uses a row field and a column field, with one data value in the body of the pivot table. For example, the Computer Tutorial 2 Lesson 11 1

217 row field could be stores and the column field could be type of goods, with the sales amount as the data value. Exhibit 11-1 demonstrates a partial list of sales records. Exhibit 11-2 shows a simple pivot table created from the list of sales records. The pivot table in Exhibit 11-2 enables you to analyze at a glance the breakdown of total sales by each type of merchandise (Computer, Printer, or Software) by store. This summary information cannot be easily obtained by viewing the worksheet in Exhibit Exhibit 11-3 shows another view of the same information. Here, the sales information is organized by store, then organized by type of merchandise. As you will see later, changing the pivot table between Exhibit 11-2 and 11-3 only requires moving the headings. The pivot table in Exhibit 11-3 presents a different view of the same data found in Exhibit EXHIBIT 11-1 Partial sales list EXHIBIT 11-2 Simple pivot table with row and column fields 2 Lesson 11 Computer Tutorial 2

218 EXHIBIT 11-3 Another view of a simple pivot table How a pivot table works A good use of pivot tables is to analyze Excel lists, such as the one shown in Exhibit This list contains source data. From the list, you select the field to be analyzed. This field (called the data field) is usually numeric, although you can also analyze text fields. If you select a numeric field, the values in the field will be summed unless you specify otherwise. If a text field is selected for analysis, the field will be counted. You must also select fields you want to use to organize the summary information, and specify some as row fields and some as column fields. For example, to create the pivot table shown in Exhibit 11-2, Store was specified as the row field, Type as the column field, and Sales amount as the data field (presented as summary information). You can also specify a page field which adds a third dimension to the pivot table. The page field enables you to analyze the row and column fields organized into pages by the page field. The row field, column field, and page field should contain a limited set of items, each item representing a category. For example, in Exhibit 11-2, the column field of Type contains three items (Computer, Printer, and Software), while the row field of Store contains three items (Broadway, Main Street, and Riverside). Excel creates a hidden copy of the source data on which the pivot table is based. Because of this feature, if you change the source data after a pivot table is built, you must refresh the pivot table. You will learn about this in Topic Computer Tutorial 2 Lesson 11 3

219 TOPIC 11.2 Creating a simple pivot table To create a pivot table, click on the PivotTable icon in the Insert ribbon. Exercise 11-1 demonstrates how to create a pivot table. EXERCISE 11-1 Creating a pivot table This exercise provides practice in creating a simple pivot table, using one row field, one column field, and one data field. 1. Start Excel and open the workbook CT2LYP1.XLS. Sheet1 of this workbook contains the sales records for the first quarter for Pacific Coast Limited. Range A4:H42 has been assigned the range name of Q1sales, and has the following fields: Invoice invoice number Date date of transaction Type type of merchandise (computer, printer, or software) Transaction type of transaction (cash or on account) Sales amount invoice amount Commission commission amount Salesperson name of the person who made the sale Store the store in which the sale took place 2. Click the drop-down arrow next to the Name box (just above column B). Click Q1sales to select the range A4:H Click the PivotTable icon. The Create PivotTable dialog box appears (Exhibit 11-4). EXHIBIT 11-4 Create PivotTable dialog box 4. You may specify a starting cell to place the PivotTable on the existing worksheet. In this case, just click OK to accept the defaults. Excel displays in a new sheet (Sheet2) a layout to create a pivot table on-the-fly (Exhibit 11-5). Notice that a PivotTable 4 Lesson 11 Computer Tutorial 2

220 Field List is a displayed to the right of the new sheet, and that two new ribbons (Options and Design) have become available. EXHIBIT 11-5 Layout to create pivot table 5. Click and drag Store from the Pivot Table Field List to anywhere between cells A4 to A16 (area labelled Drop Row Fields Here) to specify that Store is the row field (Exhibit 11-6). EXHIBIT 11-6 Specifying Row and Column fields 6. Click and drag Type from the Pivot Table Field List to anywhere between cells B3 to G4 (area labelled Drop Column Fields Here) to specify that Type is the column field (Exhibit 11-6). 7. Click and drag Sales Amount from the Pivot Table Field List to anywhere between cells B5 to G17 (area labelled Drop Data Items Here). Excel creates a pivot table similar to Exhibit Notice that grand totals are automatically calculated in the pivot table. 8. Format the range B5:E8 on Sheet2 to show commas and two decimal places. Where necessary, widen the columns. Computer Tutorial 2 Lesson 11 5

221 9. Save this workbook under your initials, but leave it open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution in CT2LYP1S.XLS. Then proceed to Exercise EXERCISE 11-2 Moving fields in a pivot table This exercise provides practice in moving the row and column fields of a pivot table. Open the workbook CT2LYP1S.XLS. 1. Suppose you want to view the type of merchandise by store. Click Type and drag it to the area below Store to the right of Broadway in column A. The pointer changes, indicating that it is ready to change the shape of the pivot table with Type as a subset of Store. Release the mouse and the pivot table changes to that shown in Exhibit EXHIBIT 11-7 Changing fields in a pivot table 2. Drag Store to cell B1. The pivot table changes to that shown in Exhibit This pivot table has Type as the row field and Store as the column field. EXHIBIT 11-8 Changed pivot table 3. Close the workbook, but do not save the changes. 6 Lesson 11 Computer Tutorial 2

222 TOPIC 11.3 Refreshing a pivot table If you change the values in the data range, the changes are not automatically reflected in the pivot table. You must refresh the pivot table using the Refresh icon in the Options ribbon. Exercise 11-3 shows you how. EXERCISE 11-3 Refreshing values in a pivot table This exercise demonstrates how to refresh the values in a pivot table after making changes to the data range. 1. Open the solution file CT2LYP1S.XLS. Click the tab for Sheet2 to display the pivot table. Click cell D5 and notice that it contains the sale of software by the Riverside store, 4, Click the tab for Sheet1 to display the data range. Cell E12 currently shows a value of , which is the sale of software made by J. Zebedee of the Riverside store. Change this value to 10, This change increases the sales of software by the Riverside store by $10, Click the tab for Sheet2 and check cell D5 in the pivot table. In spite of the change made to the data range, the value in cell D5 has not been changed. 4. Click on the Refresh icon in the Options ribbon. Instantly, the value in cell D5 changes from 4, to 14,329.86, reflecting the changed value in the data range. 5. Close this workbook, but do not save the changes. TOPIC 11.4 Creating a pivot table with a page field In Topic 11.2, you created a pivot table with a row field and a column field. You can create a pivot table with a page field as well. A page field organizes the pivot table into separate pages, organized by the items in the page field, so you can view the pivot table one item at a time. Exhibit 11-9 is an example of a pivot table organized by the following fields: Store (page field), Salesperson (row field), and Type (column field), with Sales amounts as the data field. In Exhibit 11-9, the pivot table shows the summary sales information from all the stores (All). The pivot table shows a drop-down arrow for each field (Store, Salesperson, Type). You can click each of the drop-down arrows to select. Computer Tutorial 2 Lesson 11 7

223 EXHIBIT 11-9 Pivot table for all stores Exhibit shows the drop-down list displayed for the page field with Main Street selected. Exhibit shows the pivot table after you have selected Main Street from the page field. That is, the information in the pivot table only pertains to the sales records for the Main Street store. EXHIBIT Selecting a page value 8 Lesson 11 Computer Tutorial 2

224 EXHIBIT Pivot table for Main Street store EXERCISE 11-4 Using a page field This exercise provides practice in assigning a page field to a pivot table and setting the pivot table to display the choices of the page field. 1. Open a fresh copy of the workbook CT2LYP1.XLS. Click the drop-down arrow for the Name box (just above Column B) and select the name Q1sales. This procedure selects the range A4:H42 on Sheet1. 2. Click the PivotTable icon in the Insert ribbon.click OK in the Create PivotTable dialog box. 3. Excel displays in Sheet2 a layout to create a pivot table on-the-fly. Drag Store inside the Drop Page Fields Here area. Drag Salesperson inside the Drop Row Fields Here area, and drag Type inside the Drop Column Fields Here area. When completed, the layout of the pivot table looks like Exhibit EXHIBIT Specifying page, row, and column fields 4. Drag Sales Amount inside the Drop Data Items Here area. Excel creates a pivot table similar to Exhibit Click the drop-down arrow in cell B1 for the Store page field. Select Main Street and click OK (Exhibit 11-10). The pivot table now shows only the information for the Main Street store (Exhibit 11-11). Computer Tutorial 2 Lesson 11 9

225 5. Click the drop-down arrow in cell B3 (for Type) and uncheck the boxes for Printer and Software to show only the amount of sales in Computers for the Main Street store. Click OK and the pivot table now shows only computer sales (Exhibit 11-13). EXHIBIT Pivot table for the amount of sales in computers for the Main Street store 6. Save this workbook under your initials, then close it. If you had difficulty with this exercise, compare your workbook with the solutions in CT2LYP2aS.XLS. Proceed to Topic TOPIC 11.5 Changing pivot table fields Up to this point, the pivot tables you created always show the summed values for the data field. You can also display pivot tables that show other types of summary information, including average, maximum, minimum, standard deviation, or variances. You can set the summary function using the Field Settings icon in the Options ribbon. The Value Field Settings dialog box (Exhibit 11-14) appears and you can change how the data field is summarized. EXHIBIT The Value Field Settings dialog box 10 Lesson 11 Computer Tutorial 2

226 EXERCISE 11-5 Changing the summary information This exercise demonstrates how to change the summary information of a pivot table. 1. Open the workbook CT2LYP1S.XLS. Select Sheet2 by clicking the sheet tab. 2. Click cell A1 (Sum of Sales amount) to select the data field heading or any cell in the data range. Click the Field Settings icon in the Options ribbon. The Value Field Settings dialog box appears. Alternatively, double-click cell A1 to open the Value Field Settings dialog box. 3. In the Summarize value field by list, click Average, then click OK. The data field heading changes to Average of Sales amount, and the values displayed in the pivot table show averages instead of sums. Notice that the Grand Total line does not show totals. Instead, it shows the average of all sales records. 4. Repeat steps 2 and 3, but select Count instead. The resulting pivot table shows the number of sales instead of dollar amounts. 5. Repeat steps 2 and 3, but select Max. The resulting pivot table shows the highest sales amounts. Notice again that the Grand Total now shows the maximum of all sales records. 6. Close this workbook, but do not save the changes. TOPIC 11.6 Formatting pivot table values In Exercise 11-1, you formatted the pivot table using the Format Cells command. A more permanent way of formatting cells in a pivot table is to use the Number Format option in the Value Field Settings dialog box. Once you set the display format using this method, the pivot table values will always use this display format, regardless of how many times you change the pivot table. EXERCISE 11-6 Changing the display format for the data field This exercise describes how to set the display format for the pivot table. 1. Open a fresh copy of the workbook CT2LYP1S.XLS. Select Sheet2 and click any cell in the pivot table. Click the Refresh icon to refresh the pivot table. 2. Click cell A1 to select the data field heading. Click the Field Settings icon. 3. Click the Number Format button to display the Format Cells dialog box (Exhibit 11-15). Select Number under Category, use 2 Decimal places and the 1000 Separator. Click to select any of the formats for Negative numbers. Computer Tutorial 2 Lesson 11 11

227 EXHIBIT Format Cells dialog box 4. Click OK and then OK again. The values in the pivot table are now displayed with commas separating thousands. This step permanently formats the pivot table. 5. Save the workbook under a new filename. TOPIC 11.7 Creating a pivot chart A pivot chart is a chart based on data in a pivot table. Like pivot tables, pivot charts can be rearranged by dragging field labels on a chart sheet. When you change the layout of a pivot chart, Excel automatically rearranges the corresponding data in your pivot table, and vice versa. There are two ways to create a pivot chart: 1. You can instantly create a pivot chart from an existing pivot table. 2. You can use the PivotChart command in the Insert ribbon to create a pivot chart. Creating a pivot chart from an existing pivot table To create a pivot chart from an existing pivot table, first click anywhere in the pivot table and then click the PivotChart icon in the Options ribbon. In the Insert Chart dialog box, click on the type of chart of your choice and click OK. Excel automatically displays a pivot chart. 12 Lesson 11 Computer Tutorial 2

228 Creating a pivot chart using the PivotChart command Pivot charts can be created directly from a list of data. First, select the source data in the Excel worksheet, then click the arrow on the PivotTable icon in the Insert ribbon and choose PivotChart. The Create PivotTable with PivotChart dialog box (Exhibit 11-16) appears. EXHIBIT The Create PivotTable with PivotChart dialog box To create a pivot chart, simply drag fields from the PivotTable Field List and drop them in one of the three areas on the pivot table: Row Fields, Column Fields, and Data Items. Excel will display a chart based on the data in your pivot table. The default chart type is clustered column. You can select any other type except X Y (scatter), bubble, and stock charts. Exercise 11-7 demonstrates how to use the PivotChart command to create charts. EXERCISE 11-7 Creating a pivot chart This exercise provides practice in creating a pivot chart. 1. Open a fresh copy of the workbook CT2LYP1.XLS. Sheet1 contains the sales records for Pacific Coast Limited you worked with in Exercise Click the drop-down arrow next to the Name box (just above column B). Click Q1sales to select the range A4:H Click the arrow on the PivotTable icon in the Insert ribbon and choose PivotChart. The Create PivotChart with PivotTable dialog box appears. 4. Accept the default range of A4:H42 as well as the default to place the pivot table and the pivot chart each in a new worksheet. Click OK. Excel creates Sheet2, containing a blank pivot table and a blank pivot chart. 5. Drag and drop the blank pivot chart underneath the pivot table. 6. Drag Type from the PivotTable Field List and drop it into the Row Fields area. Drag and drop Store inside the Column Fields area, and Sales Amount inside the Data Computer Tutorial 2 Lesson 11 13

229 EXHIBIT PivotChart Items area. Excel displays a stacked column chart, with Type as the row field, Store as the column field, and Sales amount as the data items. 7. Save this workbook under your initials. If you had difficulty with this exercise, compare your workbook with the solution in CT2LYP3S.XLS. The pivot chart is on a separate sheet called Chart1. Proceed to Topic TOPIC 11.8 Using Excel Help Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click the Help icon 2. Type pivot table and click Search. 3. Select Create or delete a PivotTable or PivotChart report. 4. Read the Excel Help information. 5. Search other related Help topics. 14 Lesson 11 Computer Tutorial 2

230 6. If you had difficulty with any of the following topics, display the corresponding Excel Help information to review: About creating a PivotTable or PivotChart report from a Microsoft Excel list or database About creating a PivotTable or PivotChart report from another PivotTable report. Summarize and calculate data in a PivotTable report Format a Pivot Table Guidelines for creating a PivotChart report Create a PivotChart report TOPIC 11.9 Self-testing questions 1. Why is it necessary to use pivot tables in Excel at all? You can create the formulas necessary to summarize the data any way you like. 2. Briefly describe the steps necessary to create a pivot table from an Excel list with the following columns: Cheque number, Cheque type, Cheque amount, Department. The pivot table is to use the Cheque type as the row field, Department as the column field, and Cheque amount as the data field. 3. In Question 2, you created the pivot table; however, you discovered several mistakes in the cheque amounts. You corrected the mistakes in the Excel list. What should you do now to make sure the pivot table reflects these corrections? 4. For the pivot table created in Question 2, how do you make the Department appear as a subset of the Cheque type field? 5. What is a page field in a pivot table? How is it used? 6. Describe the steps required to display maximum values instead of sums in a pivot table. Computer Tutorial 2 Lesson 11 15

231 LESSON 12 Scenario Manager Topic outline Overview 12.1 Basic concepts 12.2 Creating multiple scenarios: One changing cell 12.3 Displaying scenarios 12.4 Editing and deleting scenarios 12.5 Creating multiple scenarios: Several changing cells 12.6 Creating a summary report 12.7 Using Excel Help 12.8 Self-testing questions There are times when you may need to work with more than one version of a financial model. For example, in a financial planning workbook (such as a budget), you may want to change the assumptions made for the revenues and expenses and base them on different scenarios, yet the structure and formulas used in the workbook is the same for each scenario. You could save multiple copies of the workbook, one for each scenario. However, if you need to modify the structure or formulas in the budget model, you will be obliged to change each workbook that represents a scenario. With the Excel Scenario Manager, you can create and manage multiple scenarios of a financial model without needing to save multiple copies of the workbook. In this lesson, you will learn to create and edit scenarios, as well as to generate reports from the scenarios. Learning objectives Explain how to use Scenario Manager to create scenarios. Create scenarios using one changing cell. Display the scenarios in a worksheet. Edit and delete scenarios. Create scenarios with several changing cells. Generate scenario summary reports. Generate scenario pivot tables. Obtain Excel Help on how to use Scenario Manager. TOPIC 12.1 Basic concepts In Excel, a scenario is a set of values stored in a worksheet that can be substituted automatically, depending on the input value in one or more cells (changing cells). You give this set of changing cells and input values a scenario name. Each scenario name represents a set of what-if assumptions. For example, suppose you created a five-year budget for a division of a company. In this budget, you made some assumptions about the rate of growth for revenue and the rate of inflation for expenses. You want to analyze several different scenarios with respect to the rate of growth and the inflation rate. You want to know what would happen to the bottom line if the growth rate is 3%, 5%, 8%, or 10%. Furthermore, you may also want to know the impact Computer Tutorial 2 Lesson 12 1

232 to the bottom line if the corresponding inflation rates are 3%, 3%, 5%, and 6%. In this case, you will need to create four different scenarios, each representing a set of growth rates and inflation rates. The Excel Scenario Manager enables you to create each of these scenarios on the same workbook, without saving multiple copies of the workbook. To access Scenario Manager, click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. The Scenario Manager dialog box appears (Exhibit 12-1). EXHIBIT 12-1 The Scenario Manager dialog box You should know the following about the Scenario Manager dialog box: Scenarios. Lists the scenarios on the current sheet. Exhibit 12-1 shows four scenarios, ranging from Fantastic growth to Slow growth. Changing cells. Displays the cells containing the data that must change in each scenario. Exhibit 12-1 shows that only one changing cell, named Growth, is used for all the scenarios. Comment. Displays the name of the user who created the scenario and the date. You can also type text into this box for comments. Add. Adds new scenarios. Delete. Deletes any of the existing scenarios. Edit. Makes changes to a scenario. Merge. Merges two or more scenarios from the same worksheet, from different sheets, or from different workbooks. Summary. Creates summary reports or pivot tables for the scenarios. 2 Lesson 12 Computer Tutorial 2

233 Show. Displays the results of the selected scenario. Close. Closes the dialog box. TOPIC 12.2 Creating multiple scenarios: One changing cell The simplest scenario involves only one changing cell. Suppose you want to find out what the net income would be if revenue grows at 15%, 10%, 8%, 5%, 3%, or 3%, assuming that the rate of inflation stays at 3% for each of these scenarios. EXERCISE 12-1 Creating scenarios with one changing cell This exercise provides practice in creating and displaying several scenarios that involve only one changing cell. 1. Open the workbook CT2LZP1.XLS. This workbook contains a single worksheet with a five-year budget for the Computers Division of Pacific Coast Limited. 2. Click the Show Formulas command in the Formulas ribbon to display the formulas in the worksheet. The revenue formulas in row 9 depend on the amount in cell B1 (Revenue growth). For example, the 2001 revenue amount is calculated as =B9*(1+$B$1) or 144,000*1.05, or a 5% increase over the 2000 revenue amount. After reviewing the formulas, click Show Formulas again. 3. Click any blank cell (say, cell A3). Click the Name Manager icon in the Formulas ribbon. The name list shows one name, Growth. Notice that it refers to Budget!$B$1. It is much easier to work with names than cell references for the changing cell in the scenarios. Click Close. 4. Click cell B1. Click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. The Scenario Manager dialog box appears. If necessary, drag this dialog box to the right so that it does not obscure the view for columns A to C of the worksheet. 5. Click Add to display the Add Scenario dialog box (Exhibit 12-2). Type Fantastic growth in the Scenario name box. Type Growth in the Changing cells box. Notice that the Comment box automatically shows the person and date of creation of this scenario. This information is useful in finding out who created the scenario and when. Click OK. Computer Tutorial 2 Lesson 12 3

234 EXHIBIT 12-2 Add Scenario dialog box 6. The Scenario Values dialog box appears (Exhibit 12-3). Enter 15% and click OK. The Scenario Manager dialog box is again displayed. Click Show to display the effect of this scenario on the worksheet. Notice that the values in cells B1 and C9 are changed to reflect the projected 15% growth in revenue. EXHIBIT 12-3 Scenario Values dialog box 7. Click Add and repeat steps 5 and 6 for each of the following scenarios: Scenario Value for cell B1 (Growth) Solid growth 10% Steady growth 8% Slow growth 5% 8. After creating and displaying the last scenario, click Close to return to the worksheet. 9. Save the workbook under your initials and leave it open for the next exercise. If you had difficulty with this exercise, compare your workbook with the solution in CT2LZP1S.XLS. 4 Lesson 12 Computer Tutorial 2

235 TOPIC 12.3 Displaying scenarios You can display the scenarios on a worksheet using the Scenario Manager dialog box. To display a particular scenario: 1. Click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. 2. In the Scenarios list, select the scenario you wish to display. Click Show. The worksheet displays the result using the values in the changing cells in the scenario. 3. Click Close. The Scenario Manager displays not only the results of the various scenarios, but also the changing cells used to create the scenarios. As you will learn in Topic 12.4, you can also use the Scenario Manager to change any of the scenarios. EXERCISE 12-2 Displaying scenarios This exercise provides practice in displaying the scenarios on a worksheet. You can either continue with the workbook you completed in Exercise 12-1, or open the solution CT2LZP1S.XLS. 1. Click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. If necessary, drag the Scenario Manager dialog box to a corner of the worksheet so that it does not block the view of the numbers on the worksheet. 2. In the Scenarios list, select Solid growth. Click Show. The worksheet displays the budget results based on a 10% revenue growth. 3. Repeat step 2 for each of the other scenarios. After viewing the scenarios, click Close to close the Scenario Manager dialog box. 4. Leave this workbook open for the next exercise. Computer Tutorial 2 Lesson 12 5

236 TOPIC 12.4 Editing and deleting scenarios To change a scenario, click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. Select the scenario you wish to change, then click Edit. The Edit Scenario dialog box appears (see Exhibit 12-4). You can change the name of the scenario, the changing cells, as well as the values associated with the scenario. EXHIBIT 12-4 Edit Scenario dialog box EXERCISE 12-3 Editing and deleting a scenario This exercise demonstrates how to use the Scenario Manager to edit or delete a scenario. You can either continue with the workbook you used in Exercise 12-2, or open the workbook CT2LZP1S.XLS. 1. Click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. 2. Select the scenario Steady growth. Click Edit. The Edit Scenario dialog box appears. 3. In the Scenario name box, type Lousy growth (Exhibit 12-4). Do not change the contents of the Changing cells. Click OK. 4. The Scenario Values dialog box appears. Type 5% for the changing cell, Growth, and click OK. 5. Click Show to display the modified scenario. 6. Select the scenario Slow growth. 7. Click Delete. The scenario named Slow growth is deleted immediately. Click Close. 8. Choose File Close. You do not need to save this workbook. 6 Lesson 12 Computer Tutorial 2

237 TOPIC 12.5 Creating multiple scenarios: Several changing cells It is possible to create a scenario with more than one changing cell. In fact, you can use up to 32 changing cells for a scenario. In specifying multiple changing cells, separate the reference of each cell by a comma. EXERCISE 12-4 Creating scenarios with two changing cells This exercise provides practice in creating scenarios with two changing cells. The same technique can be applied to create scenarios with as many as 32 changing cells. 1. Open the workbook CT2LZP1.XLS. Select cell B2 and click Define Name in the Formulas ribbon. In the Name box, type Inflation. Click OK. 2. Click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. In the Scenario Manager dialog box, click Add. 3. In the Scenario name box, type Best case. Do not click OK yet. 4. In the Changing Cells box, type Growth,Inflation to indicate that this scenario requires two changing cells. Click OK. The Scenario Values dialog box appears, showing two changing cells. 5. Enter 15% for Growth and 3% for Inflation. Click OK. 6. Repeat steps 2 to 5 for the following scenarios: Scenario Name Cell B1 (Growth) Cell B2 (Inflation) Probable case 10% 5% Worst case 3% 6% 7. If necessary, drag the Scenario Manager dialog box to the right corner of the screen so that it does not block the worksheet area containing the numbers. 8. Select each scenario and click Show to display the results of that scenario. After viewing, click Close to return to the worksheet and save this workbook under a new filename. Close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2LZP2S.XLS. Computer Tutorial 2 Lesson 12 7

238 TOPIC 12.6 Creating a summary report You can create two types of summary reports for the scenarios: Scenario summary report that lists the scenarios you created with their input values and the corresponding values in the result cells. A result cell is any cell on the worksheet which has a formula that depends on the changing cells in the scenario. The scenario summary report is created on a separate sheet. Scenario PivotTable report that uses the changing cells as the row and column fields. You must specify the result cells for the pivot table. You can rotate the row and column headings to view the information in different ways. (See Lesson 11 for a more detailed explanation of pivot tables.) To create any of these two types of summary reports, click the What-If Analysis icon in the Data ribbon, choose Scenario Manager, and click Summary. The Scenario Summary dialog box appears (Exhibit 12-5). EXHIBIT 12-5 Scenario Summary dialog box EXERCISE 12-5 Creating a scenario summary report This exercise demonstrates how to create a scenario summary report. 1. Open the workbook CT2LZP2S.XLS. Click the What-If Analysis icon in the Data ribbon and choose Scenario Manager. 2. Click Summary. In the Report type box, select Scenario summary. In the Result cells box, enter B19:F19. Click OK. 3. Excel creates a new sheet named Scenario Summary that displays the scenarios, the changing cells, and the net income amounts for each scenario in range B19:F19 (Exhibit 12-6). 8 Lesson 12 Computer Tutorial 2

239 EXHIBIT 12-6 Scenario Summary report 4. Save this workbook under your initials and close the workbook. If you had difficulty with this exercise, compare your workbook with the solution in CT2LZP3S.XLS. EXERCISE 12-6 Creating a pivot table This exercise provides practice in creating a pivot table from a set of scenarios. 1. Open the solution CT2LZP3S.XLS. Click the Budget sheet tab to display the budget. 2. Click the What-If Analysis icon in the Data ribbon, choose Scenario Manager, and click Summary. 3. In the Report type box, select Scenario PivotTable report. In the Results cells box, enter B19:F19. Click OK. 4. Excel creates a new sheet named Scenario PivotTable (see Exhibit 12-7) that displays the pivot table created from the scenarios. The scenarios form the row field, and the result cells in B19 to F19 form the column field. EXHIBIT 12-7 Scenario PivotTable report 5. Select cell B4. Click the Field Settings command in the Option ribbon. Click Number Format. Choose the Number category, no decimal place and use the 1000 separator. Click OK twice to format the cells in column B of the Pivot table. 6. Repeat step 5 for cells C4, D4, E4, and F4, one column at a time. Computer Tutorial 2 Lesson 12 9

240 7. You can analyze this pivot table in a number of ways. For example, drag the heading Result Cells in cell B3 to column A, under cell A4, to the right. The pivot table now shows the result of each scenario in a column format (Exhibit 12-8). EXHIBIT 12-8 Rotated PivotTable 8. If you had difficulty with this exercise, the solution can be found in CT2LZP4S.XLS. Notice that if you open the solution file, you will not be able to perform step 7 in the exercise because the pivot table created by the Scenario Manager does not include the underlying data. TOPIC 12.7 Using Excel Help Excel Help enables you to review some of the techniques learned in this lesson. Use the following steps to display the appropriate Help windows: 1. Click the Help icon. 2. Type Scenarios and click Search. 3. Select Switch between various sets of values by using scenarios. 4. Read the Excel Help information. 4. After viewing the Excel Help information, search other related Help topics. 10 Lesson 12 Computer Tutorial 2

241 5. If you had difficulty with any of the following topics, display the corresponding Help information to review: Create a scenario scenarios, removing scenarios, displaying scenarios, editing scenarios, summary reports TOPIC 12.8 Self-testing questions 1. What is a scenario in an Excel worksheet? What input is required, and what output is produced? 2. You have created a project cashflow worksheet. The cashflow is sensitive to assumptions about the bank rate and expected union contract settlements for salaries and benefits. Describe how you would organize the information about bank rate and union contract settlements, taking advantage of Scenario Manager. 3. For the project cashflow worksheet described in Question 2, suppose that cell C1 contains the bank rate, cell C2 contains the salary adjustment rate, and cell C3 contains the benefit adjustment rate. Describe the steps required to use the Scenario Manager to set up the following three scenarios: Best case C1: 6% C2: 3% C3: 5% Likely case C1: 8% C2: 5% C3: 8% Worst case C1: 10% C2: 7% C3: 10% 4. If your worksheet has several scenarios, how do you display the result of each scenario? 5. Describe the steps required to change the value of one of the changing cells in a scenario. 6. How do you create a scenario summary report and what does it contain? 7. How do you create a scenario pivot table report and what does it contain? Computer Tutorial 2 Lesson 12 11

242 APPENDIX A Solutions to self-testing questions Lesson 1 1. Although it is quite easy to modify a computer worksheet, it is advisable to prepare a plan before building a worksheet. By planning the layout and the formulas that will do the calculations, you can avoid costly and time-consuming mistakes in the worksheet model. Planning is particularly important for new users. 2. To set the working folder: a. Start Excel. b. Click on the Office button. c. Click Excel Options. d. Click on Save. e. In the Default file location box, type C:\CT2DATA f. Click OK. 3. The title bar identifies Microsoft Excel and the name of the workbook currently in use. The command tabs contain commands that you use with Excel. As you click each command tab, a ribbon is displayed, giving you access to the various commands in that tab. 4. The commands in the ribbons can be used as shortcuts to Excel operations. To find out what action a particular command can perform, place the mouse pointer over the command for a few seconds. The title of the command and a brief description appear just below the command. 5. A workbook in Excel represents a three-dimensional model comprising multiple worksheets. 6. At the bottom of each worksheet is a sheet tab. The sheet tab is used to identify the worksheet. To change the name of a tab, double-click the tab and type the new name. To move from one sheet to another, click the corresponding sheet tab. Lesson 2 7. The status bar is located at the bottom of the Excel window. It displays current operations in progress, such as Ready or Edit. Also shown is the status of special keys such as CAPS LOCK and NUM LOCK. 1. Click the Help icon. Type print a worksheet in the Search box and click Search. Select the topic Print a worksheet or workbook. 2. Using the table of contents: a. Click on the Help icon. b. Click the Show Table of Contents icon. c. Select Charts. d. Select Creating charts. e. Click Create a chart. Computer Tutorial 2 Appendix A 1

243 Using the search function: a. Press F1. b. Type insert chart in the search box. c. Click Search. d. Click Create a chart. Lesson 3 Using context-sensitive Help: a. Click the Dialog Box Launcher for the Charts group in the Insert ribbon. b. Click the Help icon in the Insert Chart dialog box. c. Click Create a chart. 1. Using the mouse: a. Click cell B2 to select it. b. Hold down the mouse button, drag to cell F9. Using the keyboard: a. Move the active cell to cell B2 using the arrow keys. b. Hold down shift and move the active cell to cell F9. Using mouse and keyboard: a. Click cell B2 to select it. b. Hold down shift. c. Click cell F9. 2. The steps are: a. Click the sheet tab for Sheet1. b. Hold down shift. c. Click the sheet tab for Sheet3. 3. It means that column C is not wide enough to display the number you have entered. 4. Place the mouse pointer at the right border of the column C heading and doubleclick. 5. You can use any of the following methods: a. Select the cell and replace the contents by typing the new contents in the cell. b. Double-click the cell and make the desired change. c. Select the cell, then press F2. 6. The steps to display 1/15/00 are: a. Select cell A5. b. Right-click to display the shortcut menu. c. Choose Format Cells. d. Click the Number tab. e. In the Category list, select Date. f. In the Type list, click 3/14/01.Click OK. 2 Appendix A Computer Tutorial 2

244 Lesson 4 7. The steps are: a. Select the worksheet. b. Click on the Formulas command tab. c. Click on the Show Formulas command. 1. The steps are: a. Select cell C6. b. Click the Copy icon in the Home ribbon. c. Select cell D6. d. Click the Paste icon in the Home ribbon. 2. The steps are: a. Select cell C6. b. Click the Copy icon in the Home ribbon. c. Select the range D6:G6. d. Click the Paste icon in the Home ribbon. 3. a. Using menu commands: i) Select any cell in row 6. ii) Click the arrow of the Insert command in the Home ribbon. iii) Choose Insert Sheet Rows. b. Using shortcut menus: i) Select any cell in row 6. ii) Right-click to display the shortcut menu. iii) Select Insert. iv) Select Entire Row. v) Click OK. 4. The steps are: a. Select cell A1 to start the Replace task. b. Click Find & Select in the Home ribbon. c. Choose Replace. d. In the Find What box, type Q1. e. In the Replace with box, type Quarter 1. f. Click Replace All. 5. a. To spell check a workbook, the steps are: i) Select the workbook by clicking its sheet tab. ii) Click Spelling in the Review ribbon. b. When the text CGA is spotted by the spell checker as a spelling error, click Add to Dictionary to add this name to the custom dictionary. 6. a. To give the name of Interest to cell A4, the steps are: i) Select cell A4. ii) Click Define Name in the Formulas ribbon. iii) Type Interest in the Name box. iv) Click OK. b. To remove the name, the steps are: i) Click Name Manager in the Formulas ribbon. ii) Select Interest from the list of names and click Delete. iii) Click Close. Computer Tutorial 2 Appendix A 3

245 7. Valid names are: a, c, and e. Lesson 5 Invalid names are: b. Cannot have parentheses. d. A name cannot start with a number. f. The # sign is not allowed. 1. An Excel workbook can contain worksheets and chart sheets. A worksheet contains rows and columns with cells, which contain data or formulas. A chart sheet is used to hold charts. 2. The steps are: a. Open both workbooks. b. Click Arrange All in the View ribbon. c. Select Tiled. d. Click OK. The two workbooks are displayed side-by-side. e. Select Sheet1 on each workbook. f. Compare cells A1 to B9 of the two worksheets. 3. Open the workbook and click on the Office button. Choose Prepare and click on Properties. Document the workbook by entering appropriate information in each of the fields: Author, Title, Subject, Keywords, Category, Status, and Comments. 4. Double-click the sheet tab for Sheet1, type Main, and click OK. Repeat the procedure for the sheet tab for Sheet2 and type Subsidiary. 5. The steps are: a. Clickon the Office button and choose Print. b. In the Print what box, select Entire workbook. c. Click OK. Lesson 6 6. A date stamp documents when the workbook was created or last modified. If the workbook has gone through multiple changes, all the change dates can be included to give the file a history. The file stamp that includes the name and location of the workbook makes it easy to locate the original file from a printout. 1. There are two equally valid formulas: =(149+34)*165 =165*(149+34) 2. The computed values are: a. 1,160 b. 200 c. 100 d. 960 e The answers are: a. TRUE b. FALSE c. FALSE d. FALSE 4 Appendix A Computer Tutorial 2

246 4. a. The formula in cell H3 should be =$B3*C3. By making the column reference absolute, you can copy the formula in H3 to I3:L3 without changing the reference to the unit cost in column B. b. Yes, the formula in the range H3:L3 can be copied directly to the remainder of the worksheet as proposed. The absolute reference to column B ensures that Excel copies the formulas as intended for this task. 5. The two methods are: You can use the ROUND function in each cell in the column so that each number is rounded to precisely the same number of digits. You can use the Set precision as displayed option and set the entire worksheet to be calculated using the same precision as displayed. 6. a. Circular references may be errors, but may not be. There are legitimate reasons for using circular references. Circular references can be used intentionally for an iterative approach to a solution. b. The easiest way to identify the related cells is to select the cell in question, then click Trace Dependents in the Formulas ribbon 7. a. A nested IF function is an IF function that includes other IF functions in its arguments. Excel permits up to 64 levels of nesting in a nested IF function. Lesson 7 b. Formulas B and C are nested IF functions. 1. You must have at least two data ranges to create most charts because you must have one data range to plot the x-axis and another data range for the y-axis. However, you can create a file chart with only a single data range. 2. An XY chart is a chart of points. An XY chart is used to show relationships between two types of numeric data. Each pair of values is represented as a point on the chart. 3. a. The steps are: i) Enter the month labels (Jan to Dec) in cells A4:A15. ii) Select range A4:B15. Click Column in the Insert tab. iii) Select Clustered Column from the menu. b. A column chart could be used to represent the price of gold over time. The column chart would show the trend reasonably well, although a line chart would be more effective in indicating the trend. 4. The steps for creating a pie chart are: a. Select the range B6:C12. b. Click Pie in the Insert tab. c. Select Pie from the menu. d. In the Design ribbon, click Layout 6 in the icon group Chart Layouts. 5. The steps for changing a line chart to a 3-D column chart are: a. Click the line chart to select it. b. Click Change Chart Type in the Design ribbon. c. Click the icon representing the 3-D column chart. d. Click OK. Computer Tutorial 2 Appendix A 5

247 6. An embedded chart is part of the worksheet. It can be sized and moved anywhere on the worksheet. More than one chart can be embedded on a worksheet. A chart sheet contains only one chart, which can be sized and moved anywhere on the chart sheet. Lesson 8 7. a. To print an embedded chart, select the chart to activate it, click the Office button, and choose Print. b. To print the embedded chart with the data on the worksheet, click anywhere on the worksheet outside the chart, click the Office button, and choose Print. c. To print a chart sheet, click the tab for the chart sheet, click the Office button, and choose Print. 1. A list in Excel is made up of rows and columns of data. However, the top row of a list must contain unique column labels to identify the contents of each column. 2. The steps are: a. Click any cell in the list. b. Click the Data Form icon in the Quick Access toolbar. c. Click New. d. Type the data for each field, using TAB or the mouse to move from field to field. e. Click Close. 3. The steps are: a. Click any cell in the list. b. Click the Data Form icon in the Quick Access toolbar. c. Click Find Next until the record you want to edit appears in the data form. d. Click the field you want to change and replace its contents. e. Click Close. 4. a. To sort the list as described, the steps are: i) Click any cell in the list. ii) Click Sort in the Data ribbon. iii) In the Sort by box, type the field name for the province field. iv) Click Add Level twice. v) In the first Then by box, type the field name for the city field. vi) In the second Then by box, type the field name for the phone field. vii) Click OK. b. The Sort A to Z icon cannot be used because it can only be used to sort records by a single column not by multiple columns. 5. The fastest way is to use AutoFilter. The steps are: a. Click any cell in the list. b. Click on Filter in the data ribbon. c. Click the drop-down arrow for the city column label. d. Uncheck the (Select All) box. e. Check the box for the name of the city and the records for that city will appear. 6. The formula should be: VLOOKUP(B550,A1:M510,5,FALSE) 6 Appendix A Computer Tutorial 2

248 7. The criteria range could look like: Lesson 9 City 1. The two methods are: Billing Vancouver >5,000 Click the Help icon, type FV in the Search box, click Search, and choose FV function. Click the Insert Function icon. In the Select a category list, click Financial. In the Select a function list, click FV, then click OK and fill in the arguments. The first method provides more information on how to use the FV function, while the second method provides a simple means of creating the formula using the FV function. The use of Insert Function is superior because if you need additional help, you can click the link Help on this function. 2. RATE is the interest rate per period. NPER is the total number of payment periods in an annuity. PMT is the payment made each period in an annuity. FV is the future value. TYPE is the number 0 (annuity) or 1 (annuity due). 3. a. PV(rate,nper,,fv) b. PV(rate,nper,pmt,,0) or PV (rate,nper,pmt) c. PV(rate,nper,pmt,,1) 4. The formula is: = NPV(B2,B3:B12)+B1 5. a. The formula is: = PMT(9%,12,100000) or = PMT(9%,12,$100,000,,0) b. The formula is: = PMT(9%,12,100000,,1) 6. a. The IRR function calculates the internal rate of return for a series of cash flows, all at the same interest rate. The MIRR function also calculates the internal rate of return, but using different interest rates for cash outflows and cash inflows. b. The formula should be: = IRR(F1:F10,10%) where 10% is the initial guess for the IRR. 7. a. The formula is: = SLN(80000,10000,9) b. The formula is: = DDB(80000,10000,9,4) c. The DDB function can only calculate double-declining balance for a specific period, while the VDB function can calculate double-declining balance for a partial year as well as a number of periods. Computer Tutorial 2 Appendix A 7

249 Lesson The formulas are: Mean: =AVERAGE(C4:C120) Median: =MEDIAN(C4:C120) 2. You can use individual Excel functions to calculate each of these descriptive statistics: MEAN, MEDIAN, MODE, MAX, MIN, and STDEV. Alternatively, you can use Data Analysis to calculate these descriptive statistics, provided you have installed the Analysis ToolPak tool in your copy of Excel. The data analysis tool is preferred because it is much quicker than creating each of the formulas. 3. On the worksheet, set up the intervals by entering in the high-end of each price bracket ($100,000, $200,000, $500,000, respectively) into a contiguous range, for example, cells D3:D5. The formula would then be: =FREQUENCY(C4:C120,D3:D5) 4. Yes, you can use the Histogram tool in the Analysis ToolPak to create the histogram. 5. The Excel formula should be: =CORREL(B1:B60,C1:C60) 6. The steps are: a. Click Data Analysis in the Data ribbon, and select Regression. b. Specify C1:C60 as the Input Y Range. c. Specify B1:B60 as the Input X Range. d. Leave Constant is Zero unchecked. e. Click OK. 7. The regression model is: Y = X1 Lesson 11 The R Square is very small. It explains only 12.5% of the variability of the TSE 300 indices and is not a good model. 1. While it is not essential to use pivot tables, they can provide summaries of information significantly faster than building the formulas yourself. Also, the fields in a pivot table can be moved by dragging and dropping and the entire table structure changes accordingly. Formulas you build are not as dynamic. 2. The steps are: a. Click PivotTable in the Insert ribbon. b. In the Create PivotTable dialog box, specify the range for the list. d. Make sure New Worksheet is selected and click OK. e. Drag the Cheque type field to the Row Fields area, drag the Department field to the Column Fields area, and the Cheque amount to the Data Items area. 3. Click Refresh in the Options ribbon to refresh the pivot table. 8 Appendix A Computer Tutorial 2

250 4. Drag the Department field label on the pivot table under the Cheque type field label. 5. A page field is used to organize the pivot table into separate pages, one page for each item in the page field. The page field is used to analyze the information in three dimensions by row, column, and page. Lesson The steps are: a. Click any cell in the data area of the pivot table. b. Click the Field Settings command in the Options ribbon. c. In the Summarize value field by list, click Max. d. Click OK. 1. A scenario in Excel is a group of input values assigned to one or more cells, called changing cells. Some formulas in the worksheet refer to these cells, with the results affected by these changing cells. As you change the values of the changing cells, the worksheet results change correspondingly. 2. The assumptions about the bank rate and expected union salary and benefit settlements should be set up in separate cells as changing cells for use by Scenario Manager. 3. The steps are: a. Select cells C1:C3. b. Click What-If Analysis in the Data ribbon and choose Scenario Manager. c. Click Add, then in the Scenario name box, type Best case. d. Make sure that the Changing cells are set to $C$1:$C$3. Click OK. e. Enter the values of 6%, 3%, and 5% for C1, C2, and C3, respectively. f. Repeat steps c and e for each of the other two cases. 4. The steps are: a. Click What-If Analysis in the Data ribbon and choose Scenario Manager. b. From the list of scenarios, click the scenario you wish to display. c. Click Show. 5. The steps are: a. Click What-If Analysis in the Data ribbon and choose Scenario Manager. b. Select the scenario you wish to change. c. Click Edit. Click OK to display the scenario values. d. Make the desired changes and click OK. 6. A scenario summary report can be easily created by: a. What-If Analysis in the Data ribbon. Choose Scenario Manager, then click Summary. b. For Report type, select Scenario summary. c. In the Results cells box, type the output cell reference. d. Click OK. Excel creates a new sheet named Scenario summary. The scenario summary displays all the values of the changing cells and the corresponding values in the result cells. Computer Tutorial 2 Appendix A 9

251 7. A scenario pivot table report can be created using these steps: a. Click What-If Analysis in the Data ribbon and choose Scenario Manager, then click Summary. b. For Report type, select Scenario PivotTable report. c. In the Results cells box, type the output cell reference. d. Click OK. Excel creates a new sheet named Scenario PivotTable. The scenario pivot table displays the values of the changing cells and the corresponding values in the result cells in a two-way table. You can rotate the row and column headings of the pivot table and click the drop-down arrows of the column headings to view the information in different ways. 10 Appendix A Computer Tutorial 2