1. Introduction to Spreadsheets
Chapter 2
Let the students know that at least 75% of all my work as an analyst is done in Excel. I can be a real-life example for students. – Thomas Wang, quant student
Introduction to Spreadsheets
with Excel

2. Initial Excel Spreadsheet

3. The Fill Handle and the Formula Bar
The Formula Bar shows what is entered in a cell
The Fill Handle is used for highlighting, copying and deleting.

4. Spreadsheet Arithmetic
Addition: =A1+A2
=SUM(A1:A2)
Subtraction: =A1-A2
Multiplication: =A1*A2
Division: =A1/A2
Exponents: =A1^A2

5. Relative Versus Absoloute References
When copied to cell C3, the relative references refer to the 2 cells above cell C3.
The relative references A1:A2 in cell A3 refer to the 2 cells above cell A3.
The absolute references $A$1;$A$2 in cell A3 always refer to cell $A$1:$A$2.
When copied to cell C3, the absolute references refer to $A$1:$A$2

6. Tool Bar Icons for Font , Size, Bold, Italics, and Underline
Clicking on one of the icons gives the characteristic to a cell or group of cells.
Underline
Bold
Font
Font size
Italics

7. The Format Cells, Drop Down Menu, and the Font Tab of the Formal Cells Dialog Box
Click on Format and Cells to get the Format Cells dialog box. Then select the Font tab.
The Font tab of the Format Cells dialog box is another way to change the format of a cell or a group of cells.

8. Tool Bar Icons for Formatting Numbers
Clicking on one of the icons gives the characteristic to the numbers in a cell or group of cells:
Changes numbers to dollars
Changes numbers to percent
Inserts comma separators in numbers
Increases the number of decimal showing
Decreases the number of decimal showing

9. The Number Tab of the Format CellsDialog Box
Click on Format and then Cells to get the Format Cells dialog box. Then select the Number tab.
The Number tab of the Format Cells dialog box is another way to change the format of a number in a cell or a group of cells.

10. Tool Bar Icons for Aligning Cell Contents
Clicking on one of the first 3 icons will left, center, or right adjust a cell’s contents.
Highlighting several cells and clicking on the last icon will merge the cells and center a cell’s contents.

11. Special Symbols Greek Letters Equal to or less (greater) than signs
Use Symbol font: l becomes l
Equal to or less (greater) than signs
Use inequality key and then underline
Equal to signs as text
Type apostrophe and then =

12. Displaying Subscripts with the Format Cells Dialog Box
Click on Format and then Cells to get the Format Cells dialog box. Then select the Font tab and click on the Subscript box.

13. Displaying Gridline and Row and Column Headings with the Page Setup Dialog Box
Click on File and the Page Setup to get the Page Setup dialog box. Then select the Gridlines and Row and column headings boxes.

14. Swatville Sluggers Example
Question: Will Swatville Sluggers make any money fulfilling making eighty 30-inch bats?
Data:
Sale price, p = $22 per bat
Fixed cost, k = $1,000
Variable cost, c = $4.95 per bat
Number sold = S
Cost = k + cS Revenue = pS

15. The Breakeven Quantity
Cost = Revenue
k + cS = pS
Solving for S gives the
Breakeven Quantity
S = k/(p – c)

16. Breakeven Chart

17. Breakeven Analysis Swatville Sluggers
1. Enter data in cells D6:D8 and A13:A25.
2. If more rows are needed insert the appropriate number at any intermediate row. It is easiest not to add the new rows at the end of the table.

18. Charts Charts are easy to do using
Excel’s Chart Wizard. Highlight your data and click on the chart icon.
Step 1 - Chart Type
Step 2 - Chart Source Data
Step 3 - Chart Options
Step 4 - Chart Location

19. Chart Wizard Step 1 - Chart Type
Step 1 - Chart Type is where you select the type of chart: bar, pie, scatter, etc.

20. Chart Wizard Step 2 - Chart Source Data, Range Tab
Step 2 - Chart Source Data, Data Range tab, is where you verify the range of the data you selected and indicate whether the data is in columns or rows.

21. Chart Wizard Step 2 - Chart Source Data, Series Tab
Step 2 Chart Data Source, Series tab can be used to make changes to the x-axis if it is not correct

22. Chart Wizard Step 3 - Chart Options
Step 3 Chart Options is used to enter the chart and axes titles. The tab give other options that can be adjusted.

23. Chart Wizard Step 4 - Chart Location
Step 4 - Chart Location lets you pick where the chart will be displayed.

24. The Initial Breakeven Chart
Changing Chart Formats: Highlight the characteristic, right click, then select the option desired from the dropdown menu.

25. Changing the X-Axis Font
1. Highlight the Number of Bats on the x-axis.
2. Select Format Axis Title on the drop down menu.
3. Make any changes on the Font tab of the Format Axis Title dialog box.

26. Using Excel with this Text
The Guide to Excel on the CD-ROM accompanying this contains more information about Excel:
Formatting
Displaying results
Printing
Special Excel Functions
Excel Add-Ins (Solver & Analysis ToolPak)