1. Understanding Spreadsheets Used in Business
Review of Prior Spreadsheet Knowledge

2. How many workbooks are shown above?
The file which contains one or more spreadsheets
How many workbooks are shown above?

3. Spreadsheet (aka worksheet)
An arrangement of cells in columns and rows used to organize, analyze, calculate, and report information usually in numerical form.
How many spreadsheets are
shown to the right?

4. Spreadsheets Perform Mathematical Calculations
Do you or your family use spreadsheets?
Daily Uses of Spreadsheets:
Balancing a checkbook
Calculating car loans
Calculating student grades (helping students keep up with their grades)
Household budgets
Why would a business use spreadsheets?
Payroll
Financial statements for a business (profit/loss)

5. Cell
Individual locations on a spreadsheet. Created when a column and a row intersect
CELL ADDRESS: refers to one specific location. Ex: G12
CELL RANGE: refers to a group of adjacent cells. Ex: B5:G6

6. Column
Vertical lines of data that are labeled with letters of the alphabet Ex: Column B

7. Rows
Horizontal lines of data in a spreadsheet that are labeled with numbers Ex: Row 5

8. Name (Address) Box
You can type in a cell name, cell range, or choose data on a different spreadsheet (worksheet) by typing in the name (address) box
Here we typed ’ ’!B6:E6 to get to the second worksheet for that cell range

9. Labels
Used for cells that contain text or for numbers that will not be used in calculations
What cells have labels? 1.

10. Values
Used for cells that contain data that has potential to be used in calculations
What cells have values? 2.

11. Formulas Instructs the software to perform a calculation.
What symbol always begins a formula?
What symbol tells the spreadsheet software NOT to treat a cell data as a value?
What symbol is used for addition?
What symbol is used for subtraction?
What symbol is used for multiplication?
What symbol is used for division?
Calculations performed according to the Order of Operations:
Parenthesis
Exponents
Multiplication and Division (left to right)
Addition and Subtraction (left to right)
3-10

12. Formulas Instructs the software to perform a calculation.
What symbol always begins a formula? EQUALS
What symbol tells the spreadsheet software NOT to treat a cell data as a value? PARENTHESIS
What symbol is used for addition? PLUS
What symbol is used for subtraction? HYPHEN
What symbol is used for multiplication? ASTERISK
What symbol is used for division? FORWARD SLASH
Calculations performed according to the Order of Operations:
Parenthesis
Exponents
Multiplication and Division (left to right)
Addition and Subtraction (left to right)
3-10

13. Formulas
Formulas are arithmetic equations with symbols (+ - * / ) used for mathematical operations: A3+B3-C3*4
B9 will contain a formula. It will represent how many students road buses on Monday at Wolf Creek School.
Just imagine that your math teacher told you to add the number of people that road the buses on Monday and your answer should go in cell B9
You would click in B9
Then instead of writing you would type the following: =B4+B5+B6+B7+B8
Once you press enter, your formula will show the answer inside that cell!

14. Functions A function is a shortcut for a formula
What does the function SUM do?
What does the function AVERAGE do?
What does the function MAX do?
What does the function MIN do?
The parts of a function
Equals always comes first
The name of the function in All Caps
The range of cells within parenthesis
=SUM(A1:C6)
11, 16-23

15. Functions A function is a shortcut for a formula
What does the function SUM do? ADD A RANGE OF CELLS
What does the function AVERAGE do? ADDS A RANGE OF CELLS AND THEN DIVIDES IT BY THE NUMBER OF CELLS IN THE RANGE
What does the function MAX do? TELLS THE SOFTWARE TO LOOK FOR THE HIGHEST VALUE IN THE RANGE OF CELLS
What does the function MIN do? TELLS THE SOFTWARE TO LOOK FOR THE LOWEST VALUE IN THE RANGE OF CELLS
The parts of a function
Equals always comes first
The name of the function in All Caps
The range of cells within parenthesis
=SUM(A1:C6)
11, 16-23

16. Function A Function creates shortcut formulas for the user.
A function can be used for addition (SUM), averaging (AVERAGE), getting the highest number (MAX), and getting the lowest number (MIN).
B9 can contain a function instead of a formula. If you have to add up several numbers, instead of having to type a long formula you can create a short function.
Instead of typing the formula =B4+B5+B6+B7+B8 in cell B9 you could create a function as a shortcut
You would click in B9
Then type the following: =SUM(B4:B8)
Once you press enter, your function will show the answer inside that cell!

17. Cell References
Cell Reference: indicates a cell’s location and provides instructions for HOW cell data is copied or used in calculations
RELATIVE CELL REFERENCE: the cell changes “relative to the cell in which it is copied
ex: if C3 contains =A3+B3 and you copy the formula of C3 to C4 the formula in C4 will change to =A4+B4
ABSOLUTE CELL REFERENCE: the cell value remains constant when copied to another cell or used in a formula
Ex: If C3 contains =$A$3+B3 and you copy the formula of C3 to C4 the formula in C4 will change to =A$3$+B4
MIXED CELL REFERNCE: a fixed row combined with a relative column or the other way around
Ex: If C3 contains =A$3+B3 and you copy the formula of C3 to C4 the formula in C4 will change to =B$3+B4
12-15

18. Directions: Use cell addresses from the Invoice spreadsheet above to identify examples of each component
Component
Description
Cell
Cell address
Cell range
Column
Row