In Business Series © Prentice Hall 2007 Microsoft Office Excel 2007 In Business Core Chapter 3 Calculating Data Formulas and Functions

In Business Series © Prentice Hall 2007 Chapter Introduction  Why Do I Need This  What’s Wrong with This Spreadsheet  Review & Challenge Questions  Skills Exam  Excel Skill Sets  Formulas  Basic Functions  Financial Functions  Common Mistakes  Quick References  Video Workshops

In Business Series © Prentice Hall 2007 Formulas  Basic Formulas  Copying and Pasting Formulas  Complex Formulas  Auditing Formulas

In Business Series © Prentice Hall 2007 Basic Formulas  Most basic method of performing calculations  Figure 3.1 shows Mathematical operator symbols used in Excel SymbolOperation +Addition -Subtraction /Division *Multiplication ^Power/ Exponent

In Business Series © Prentice Hall 2007 Net Sales Formula  Must begin with equal (=) sign  If = sign is omitted, B3 – B4 will be displayed in B5  By using cell references  Any value typed into cell B4 will be subtracted from any value typed in cell B3

In Business Series © Prentice Hall 2007 Copying & Pasting Formulas Relative Reference  Relative referencing will adjust cell references.  Without relative referencing, you would have to retype every formula in a worksheet even though it may be performing the same mathematical function.  Notice changes in row numbers for the cell references.

In Business Series © Prentice Hall 2007 Paste Options  Contains a few commonly used commands from the Paste Special dialog box  To open the Paste Options list, click the down arrow on the Paste icon in the Clipboard group

In Business Series © Prentice Hall 2007 Paste Special  Key Options  Formats  All except borders  Formulas  Transpose

In Business Series © Prentice Hall 2007 Complex Formulas  Any equations that consist of more than two variables and requires two or more mathematical operators are complex.  Order of mathematical operations will impact calculations.  The complexity of formulas is limitless.

In Business Series © Prentice Hall 2007 Auditing Formulas  Most helpful when proofing formulas for accuracy  Show Formulas  Trace Precedents  Trace Dependents

In Business Series © Prentice Hall 2007 Formula Summary  Video Workshop  Startup Costs for a New Business  Department Store Planning Meeting

In Business Series © Prentice Hall 2007 Basic Functions  Use of functions may be more efficient than similar formulas  Basic Statistical Functions  AutoSum  Absolute References

In Business Series © Prentice Hall 2007 Basic Statistical Functions  Sum Function  Can be used to add a range of cells

In Business Series © Prentice Hall 2007 Relative Cell Referencing  Introduced in the Formulas section  Cell references will change when the function is copied

In Business Series © Prentice Hall 2007 AutoSum  Provides quick access to a few basic statistical functions  Available options

In Business Series © Prentice Hall 2007 Absolute References  When pasting to a new cell location, you may not want Excel to adjust cell references.  Absolute—neither the column (C) nor the row (10) will change  First Mixed—only the column (C) will change  Second Mixed—only the row (10) will change ReferenceDetails $C$10Absolute C$10Mixed $C10Mixed

In Business Series © Prentice Hall 2007 Absolute References (cont.)  Adding an Absolute Cell Reference

In Business Series © Prentice Hall 2007 Basic Functions Summary  Video Workshops  Statistical Functions  Absolute References  Evaluating a Transportation Business  Industry Analysis Project

In Business Series © Prentice Hall 2007 Financial Functions  May require the use of arguments  Future Value  Payment  Both example functions are related to the financial aspects of business with regards to evaluating investments and loans

In Business Series © Prentice Hall 2007 Future Value Function  Used to calculate the value of investments over a specific period of time  The FV function can be used to calculate the End Balance value.  FV function uses five arguments.

In Business Series © Prentice Hall 2007 Lump Sum Investment  FV Function can be used to evaluate an investment made in one lump sum.  This would require the [pv] argument to be defined.

In Business Series © Prentice Hall 2007 Evaluating Investments  Use of cell references to define arguments in the Future Value function  Allows you to conduct what-if scenarios

In Business Series © Prentice Hall 2007 Payment Function  Helpful when calculating payments of a loan  At least three of five arguments must be defined:  rate  nper  pv (Present Value  [fv] Future Value  [type]

In Business Series © Prentice Hall 2007 Payment Function (cont.)  Cell references are used to define each of the arguments  New Output when Data is Changed  Annual interest rate is changed to 6.0%  Monthly payment is reduced

In Business Series © Prentice Hall 2007 Function Library  Used to research detailed information regarding the purpose and arguments for all Excel functions  Can also serve as an alternate way of building functions

In Business Series © Prentice Hall 2007 Financial Functions Summary  Video Workshops  Future Value Function  Payment Function  Function Library  Financial Planning for Retirement  Real Estate Investment

In Business Series © Prentice Hall 2007 Chapter Summary  Excel in Practice Anecdote  Review Questions  Skills Exam  Challenge Questions