1. McGraw-Hill/Irwin The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Microsoft Excel 2002 Exploring Formulas and Functions Lesson 6

2. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-2 McGraw-Hill/Irwin Skills Creating Formulas with Range Names Applying a Function to Multiple Ranges Using Dates in Formulas Using Conditional Formulas Using Statistical Functions Using the PMT Function Calculate Payments Using the FV Function Displaying and Printing Formulas Creating a Workbook Using a Template Creating and Editing Formulas Using the Formula Bar

3. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-3 McGraw-Hill/Irwin Creating Formulas with Range Names Basic way to build a formula is with specific, individual cell references –Possible to use a Range name Range names are more descriptive –Make purpose of formula clearer to users –Easier to remember and type

4. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-4 McGraw-Hill/Irwin Creating Formulas with Range Names Worksheet with cells selected –Click in first cell –Drag down to end cell –Note first cell shows in Name box Click in Name box, –Enter name –Press Enter Q1_Expenses

5. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-5 McGraw-Hill/Irwin Creating Formulas with Range Names Click in cell where formula will be used Click the f x button on the Formula bar Specify the function For the range minimize arguments box Select range Range name appears

6. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-6 McGraw-Hill/Irwin Creating Formulas with Range Names Formula with Range name

7. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-7 McGraw-Hill/Irwin Using the Spell Checker Click in A1 to begin the spell check Click the Spelling Button to open the Spelling dialog box  abc Word not found shows in window Suggestions given Options for dealing with the misspelling

8. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-8 McGraw-Hill/Irwin Using the Spell Checker When Spelling Checker is done with all words, the user is notified

9. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-9 McGraw-Hill/Irwin Applying a Function to Multiple Range Allows performing simple and complex calculations quickly, easily Use Insert Function dialog box to enter function –Apply function to named ranges –Use named ranges for the arguments

10. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-10 McGraw-Hill/Irwin Creating Formulas with Range Names Click the Insert Function button, dialog box appears Choose function

11. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-11 McGraw-Hill/Irwin Creating Formulas with Range Names In Function Arguments dialog box –Use named ranges Note dialog box shows results of function with specified named range values

12. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-12 McGraw-Hill/Irwin Creating Formulas with Range Names Note results of formula with multiple named ranges

13. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-13 McGraw-Hill/Irwin Using Dates in Formulas Dates are stored as serial values –Can be added, subtracted –Dates can be compared Dates must be entered in a format which Excel recognizes –Format then automatically changed from General number to a date format To use a date in a formula, format must be changed back to General number

14. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-14 McGraw-Hill/Irwin Using Dates in Formulas Enter formula =B9 + 30 in F9 Note result is date 30 days later

15. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-15 McGraw-Hill/Irwin Using Dates in Formulas Formula copied down the column adjusts –Each cell has 30 days beyond the one in column B –Note it adjusts for length of different months

16. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-16 McGraw-Hill/Irwin Using Dates in Formulas To "age" the invoices –Subtract invoice due date –From Current date

17. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-17 McGraw-Hill/Irwin Using Dates in Formulas Format the cells as General numeric Number of days between dates displayed

18. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-18 McGraw-Hill/Irwin Using Dates in Formulas Value for current date/time available for use in a cell or formula Use Insert Function button f x Choose the Now function –Note function requires no arguments

19. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-19 McGraw-Hill/Irwin Using Conditional Formulas The IF function –Checks a condition –Returns one value if condition is true, another if it is false Could be used in a business context to determine whether or not an invoice is overdue –Also calculate how many days it is overdue

20. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-20 McGraw-Hill/Irwin Using Conditional Formulas The IF function is found in the Logical category of the Insert Function dialog box Note the arguments required Usually this is a comparison These will be numeric or string (character) expressions Exact values Formulas

21. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-21 McGraw-Hill/Irwin Using Conditional Formulas Note the results of entering the arguments for the IF statement Logical test Formulas used based on results of the logical test Results of expressions displayed

22. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-22 McGraw-Hill/Irwin Using Statistical Functions Available statistical functions include –AVERAGE, COUNT, MIN, MAX These functions are easily understood with minimal knowledge of the field of statistics COUNT –Gives the number of cells in a range with numeric values MIN, MAX –Gives minimum (or maximum) value in a range of cells

23. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-23 McGraw-Hill/Irwin Using Statistical Functions Consider the functions needed to determine the values indicated by the labels below CountMIN MAX

24. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-24 McGraw-Hill/Irwin Using Statistical Functions Worksheet with statistical functions

25. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-25 McGraw-Hill/Irwin Using the PMT Function to Calculate Payments Excel provides several predefined financial functions –No extensive accounting knowledge required –Example, PMT function for determining monthly payment on a loan PMT requirements –Amount of money borrowed (Present Value) –Number of payment periods –Interest rate

26. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-26 McGraw-Hill/Irwin Using the PMT Function to Calculate Payments Credit Cards worksheet with required input data Input values Cells for PMT function call Click in first cell Click Insert Function button

27. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-27 McGraw-Hill/Irwin Using the PMT Function to Calculate Payments Use the Insert Function dialog box –Choose the Financial category –Click on PMT

28. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-28 McGraw-Hill/Irwin Using the PMT Function to Calculate Payments Function Arguments dialog box for the PMT function Only the first three arguments are required – the last two are optional

29. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-29 McGraw-Hill/Irwin Using the PMT Function to Calculate Payments Arguments for the PMT function The annual interest rate is divided by 12 since it is to be a monthly payment Remember that this dialog box may be collapsed to click on the cell whose cell reference goes in the argument line

30. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-30 McGraw-Hill/Irwin Using the PMT Function to Calculate Payments Monthly payments for credit card customers Note formula bar contains call to the PMT function

31. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-31 McGraw-Hill/Irwin Using the FV Function The FV function calculates the future value of an investment based on … –Periodic constant payments –Constant compounded interest rate Arguments required –Interest rate –Number of periods investment occurs –Periodic investment amount

32. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-32 McGraw-Hill/Irwin Using the FV Function As before, position the cell pointer in the correct cell –Use the Insert Function command –When the Function dialog box appears, choose the FV function from the Financial category Enter the arguments Note the rate is divided by 12 since it is applied monthly for an annual rate

33. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-33 McGraw-Hill/Irwin Using the FV Function Completed worksheet Note call to FV function with proper arguments

34. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-34 McGraw-Hill/Irwin Displaying and Printing Formulas When formulas are entered –Results show in cells –Formulas show only one at a time in the Formula bar Often helpful to print formulas for all cells, in the cells –Check cell references in function arguments –Check accuracy of arithmetic expressions

35. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-35 McGraw-Hill/Irwin Displaying and Printing Formulas Click Tools, then Options to display Options dialog box Choose the View tab if necessary Controls display on screen Activate this option to display formulas (instead of results) in the cells

36. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-36 McGraw-Hill/Irwin Displaying and Printing Formulas Worksheet with formulas displayed Note that column width is altered in this view

37. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-37 McGraw-Hill/Irwin Creating a Workbook Using a Template Standard tasks often needed in business –Creating invoices for different customers –Preparing expense statements Excel provides templates for such tasks –Contains fields to enter in for business name, dates, invoice number, items ordered, prices, etc. –Formulas also present to do calculations

38. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-38 McGraw-Hill/Irwin Creating a Workbook Using a Template Click File and New to display New Workbook Task Pane –Choose General Templates –Templates dialog box appears Choose Spread- sheet Solutions tab –Then desired template

39. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-39 McGraw-Hill/Irwin Creating a Workbook Using a Template Chosen template appears Template may be personalized Specific information for this invoice is entered in prepared fields

40. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-40 McGraw-Hill/Irwin Creating a Workbook Using a Template Templates may be placed on and retrieved from a web site

41. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-41 McGraw-Hill/Irwin Creating a Workbook Using a Template A variety of templates may be found at the Microsoft Office Template Gallery

42. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-42 McGraw-Hill/Irwin Creating and Editing Formulas Using the Formula Bar Simple arithmetic formulas are often required Enter these formulas on the Formula bar Existing formulas and function calls may also be edited on the Formula bar

43. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-43 McGraw-Hill/Irwin Creating and Editing Formulas Using the Formula Bar Click on the cell where the formula is to be edited Enter formula – must begin with equal sign = Press [Enter], resulting value appears – formula shows on formula bar.

44. The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. 6-44 McGraw-Hill/Irwin Creating and Editing Formulas Using the Formula Bar When spreadsheet designer realizes incorrect formula has been entered –Click on cell again –Edit formula Formula changed from average(D3:D7) to sum(D3:d7)