Excel Final UPES

7/31/2019 Excel Final UPES

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1

Welcome to 2 days

Workshopon

Financial Modelingby using Spreadsheets

Shivaraj Bhor BE, PG (NITIE), CWADeputy Manager (Mgmt Acct Cell)GAIL (India) Limited


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Exploring Office 2003 - Grauer and Barber 2

Objective of the Workshop

Enabling Business Managers:

Actively learn : To Design, Develop / Implementspreadsheet real-world models

Put theory into Practice: By understandingModel Formulation

Increase Analytical Skills: By Exploiting

Mathematical techniques


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3

Introduction to

Excel


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Introduction to Spreadsheets

Workbook contains one or more worksheets

Spreadsheet a computerized ledger

Rows and Columns

Columns identified with alphabetic headings Rows identified with numeric headings

Intersection of row and column forms a cell.


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Definitions

General formatit is the default format for numericentries and displays a number according to the way it wasoriginally entered.

Number formatdisplays a number with or without the1000 separator and with any number of decimal places.

Negative numbers can be displayed with parentheses and/or can be shown in red.

Scientific format which displays a number as a decimalfraction followed by a whole number exponent of 10; for

example the number 12345 would appear as 1.2345E+04.The exponent, +04 in the example, is the number of placesthe decimal point is moved to the left. Very small numbershave negative exponents.

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An Excel Workbook

Title bar shows name

of workbook

Standard toolbar

Menu bar gives lists ofcommands

Formatting toolbar


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Rows, Columns, and Cells

Cell referenced bycolumn, then number

Active cell surroundedby heavy border

Column headings aboveeach column. Columnsdesignated with letters

Row headings to the leftof each row. Rowsdesignated with numbers


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Types of Cell EntriesConstants & Functions

Constant an entry that does not change

Can be a numeric value or descriptive text

Functions a predefined computational task Users cannot change them

=AVERAGE(B3:B7)

=SUM(A1:B2)

Student Adam 100


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Formulas and Constants

Formulas and Constants

Constantis entries that does not change. It may be anumber, such as a grade on an exam, or it may bedescriptive text (name).

Formula is combination of numeric constants, cellreferences, arithmetic operators, and/or functions.

Always begins with an equal sign

=(B3+B4+B5/5)

=AVERAGE(B3:B7)


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Toolbars

Appear beneath the menu bar

Contain buttons that perform commonly-used commands

Standard toolbar buttons correspond to most basiccommands in Excel

Examples include opening, closing, and saving aworkbook

Formatting toolbar buttons correspond to commonformatting operations

Examples include boldface and cell alignment


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WorksheetBasics

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Worksheets

Excels mainscreen is called aworksheet.

Each worksheet iscomprised ofmany boxes,

called cells.

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15

Organize Information

You can organizeinformation bytyping a singlepiece of data intoeach cell.


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16

How to Enter Information

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Selecting a Cell

Select a cellby clicking on itonce (dont

double click).

You can movefrom cell to cellwith the arrowkeys or bypressing the

Enter key.

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Entering Information / The Formula Bar

To enter information ina cell, just start typing.

When you are doneeither

Press the Enter Key

Press an arrow key Click on the check

button (only visiblewhen entering datainto a cell)

The information in theselected cell is alsodisplayed in theformula bar abovethe worksheet.

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Double Click to Modify a Cell

To modify thecontents of a celldouble click on thecell.

Then use the right,left arrow keys andthe Insert and Deletekeys to modify the

data. When you are done:

Press the Enter keyor

Click on the check box.

Double click to

change hi there to

hello there


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Names of Rows, Columns and

Cells

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Column Names (letters) & Row Names(numbers)

The columnsof theworksheet are

named withletters

The rows are

named withnumbers

Selected

Cell

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Cell Names (ex. B4)

The name of a cell is a combinationof the Letter Of The Column thatthe cell is in followed by theNumber Of The Row that the cellis in.

Example: the selected cell in thepicture is named B4 (NOT 4B)

Excel automatically shows the thename of the currently selectedcell in the name box (locatedabove the worksheet).

The letter mustcome first (i.e. B4,

NOT 4B) and there may NOT beany spaces between the letter andthe number.

We will learn later why it isimportant to understand how toname cells.

Name

Box

Selected

Cell

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Information that is too wide for a cell The word Name is in cell

A5 The words Hours Worked

are in cell B5 (NOT in cellC5). However, since theinformation is too wide for

cell B5, it looks like itextends into cell C5.

You can determine that theinformation is really onlyINcell B5 by selecting cellB5 and looking at theformula bar and thenselecting cell C5 andlooking at the formula bar.

Hours

Worked is

in cell B5

(look at

formula bar)

Hours

Worked is

NOT in cell

C5 (formula

bar is empty)

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Information that is Chopped Off If there is

information in thecell to the right, thenthe original cell stillcontains all of thedata, but the dataappears to be

chopped off.

You can see the

complete data byselecting the cell and

looking in the formula

bar.


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25

Change the Width of a Column or

the Height of a Row

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Make a column wider

To make Column B wider,point the cursor to thecolumn separatorbetween columns B andcolumn C.

The cursor changes to aDouble headed arrow.

Now, click the left mousebutton and without

letting go of the button,drag the separator to theright to make the columnwider (or to the left to make thecolumn narrower).

Column is now wider

Drag column

separator to the

right

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Getting the Exact Width

To get the exact width,double click on theseparator instead ofdragging it.

Column is now EXACTLYthe correct width

Double click here

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Resizing a Row

Make arow talleror shorterbydragging

theseparatorbetweenthe rows.

Click anddrag hereto resize

row 5.

Row is nowtaller

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d ll


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Putting an Enter inside a cell To add a new line

inside a cell Double click insidethe cell where youwant the new line.

Press Ctrl-Enter (i.e.

hold down the Alt keyand press Enter whilestill holding downCtrl).

When you are done

editing, press Enter(without holdingdown Alt) to acceptthe changes.

Step 1: Originally

Hours Worked

is on one line.

Step 2: Double click

to edit cell and thenpress Alt-Enter

Step 3: Press Enter

(without Alt) to

accept the changes.


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Basic Formatting

(e.g. bold, colors, fonts, etc)

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Formatting Cells

Selectone or more cells and then click on any of the formatting buttons

(see below) to change the formatting of the selected cells. Formatting buttons:

fontname

fontsize

bold

italics

underline

center & merge cells(will explain later)

center

right justifyleft justify

These change the waynumbers are displayedin cells. (these dont

affect words).

show as currency(ex. 1000.507 becomes $1000.50)

show with commas (e.g.12345 becomes 12,345)

show as percent (ex.0.5 becomes 50%)

remove indent

show fewer decimal points (ex.10.507 is displayedas 10.51)

show more decimal points (ex.10.507 is displayedas 10.5070)

indent within cell

put border around cell(s)color of cell

color oftext in cell

click ondownward

pointing arrowsfor other colors

and borderstyles

click ondownward

pointing arrowsfor other font

names andsizes

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Example unformatted worksheet

Unformatted worksheet see next slide for formatting.

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Example making cells bold Click on cell A1 and drag to cell A3.

Then press the Bold button to make cells A1,A2,A3 bold. You could also press the font or background color buttons to change thecolor or apply any other formatting you like (this is not shown below).

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Oth W f S l ti M Th


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Other Ways of Selecting More ThanOne Cell

To select a large range of cells, click on theupper left cell in the range. Then hold the shiftkey and click on the lower right cell in the

range. You can select different non-contiguous areas

of cells by holding down the Ctrl key while

clicking and dragging.

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Selecting Non-Contiguous Ranges

Click anddrag toselect thefirstrange.

Ctrl-click

and dragto selectadditional ranges

(This cell is also selected

even though it appears

white).

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Selecting entire Ro s entire Columns


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Selecting entire Rows, entire Columnsor all cells on the worksheet.

To select an entire column, click on the letter for thecolumn header. To select several columns, click on theheader for the first column and drag to the right.

To select an entire row, click on the number for therow header. To select several rows, click on the headerfor the first row and drag down.

To select all of the cells on the spreadsheet, click on

the upper left hand corner of the spreadsheet (wherethe column headers meet the row headers)

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S l E i C l /R /W k h


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Select Entire Columns/Rows/WorksheetTo selectENTIRE COLUMN B

click on B column header

To selectCOLUMNS B,C,Dclick on B column header and drag to right

To selectCOLUMNS B,C and F,G,H click on B column header, drag to right, then Ctrl-Click on F column header and drag right

To selectENTIRE ROW 2click on 2 row header

To selectROWS 2,3 and 5,6,7 click on 2 row header, drag down,

then Ctrl-Click on 5 row header and drag down

To selectENTIRE WORKSHEETclick on select worksheet button

(in corner between 1 and A buttons)

ClickClick

dragClick

drag

Click and drag down

then Ctrl-Click

and drag down

Clickdrag

Ctrl-

ClickClick

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Example - continued

Step 1: Clickon row headerfor row 5

Step 2:Ctrl-click onrow-header forrow 11

Step 3: PressBold button ortype ctrl-b

Note: Afterbeing bolded,

the wordEmployee isnow too widefor the column,so make thecolumn widerif necessary(this step is notshown).

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Format Cells Using the formatting buttons only

give you a limited amount of

formatting ability. For more formatting ability, select

one or more cells and right clickon the selection. Then chooseformat cells from the popup

menu. Choose options from the Number,

Alignment, Font, Border andPatterns tabs and press OK tochange the way your informationlooks on the screen.

The Protection tab is used to lockcells so that their contents cant bemodified.

We will not go into the details ofusing the format cells dialog box at

this time but you should be able tofigure out most of it by yourself.

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Formatting changes how things LOOK


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Formatting changes how things LOOK,not how they WORK.

When you change the format of a cell, Excel stillremembers the original value.

Excel will use the un-formatted value when

calculating formula values. Example: if you change numbers to appear with

fewer decimal points the original number with

all of its decimal points are used in calculations.


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Formulas

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Excel Formulas

You must have an equals sign ( = ) as the firstcharacter in a cell that contains a formula.

The = sign tells excel that the contents of the

cell is a formula Without the = sign, the formula will not

calculate anything. It will simply display the

text of the formula.

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Formulas - correct

formula with = sign After pressing ENTER

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Missing = sign

Missing = sign!

Before pressing enter

After pressing ENTER

(no change - not a function)

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Types of operations

You can use any of the following operations in aformula:operation symbol example

addition: + =a1+3subtraction: - =100-b3

multiplication: * =a1*b1

division: / =d1/100exponentiation ^ =a2^2

negation - =-a2+3(same symbol as subraction)

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Explicit (literal) values and cell


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Explicit (literal) values and cellreferences

You can use both explicit values and cellreferences in a formula

An explicit value is also called a literal value

Formula with only cell references: =a1*b1

Formula with only literal values:

=100/27

Formula with both cell references and literal values:

=a1/100


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Errors in Formulas

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Common Errors

The following are some errors that may appear in a spreadsheet (there are otherstoo).

####### Cell is too narrow to display the results of the formula. To fix this simply make the column wider

and the real value will be displayed instead of the ###### signs. Note that even when the###### signs are being displayed, Excel still uses the real value to calculate formulas thatreference this cell.

#NAME? You used a cell reference in the formula that is not formed correctly (e.g. =BB+10 instead of

=B3+10)

#VALUE! Usually the result of trying to do math with a textual value. Example: =A1*3 where A1 contains the

word hello

#DIV/0! Trying to divide by zero. Example: =3/A1 where A1 contains 0 (zero)

Circular Reference Using a formula that contains a reference to the cell that the formula lives in. Example: putting

the formula =A1+1 in cell A1 or putting the formula =SUM(A1:B2) in any of the cells A1, B1, A2, B2


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Order of Operations

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Complex formulas

You can use several operations in one function You can group those operations with parentheses

Examples

=3*2+1

=c1*(a1+b1)

=(100*a2-10)+(200*b3-20)+30

=(3+2*(50/b3+3)/7)*(3+b7)

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Order of operations

When using several operations in one formula,Excel follows the order of operations for math.

first: all parentheses - innermost first

second: exponents (^) third: all multiplication (*) and division (/).

Dothese starting with the leftmost * or /and work to the right.

fourth: all addition (+) and subtraction (-). Dothese starting with the leftmost + or -

and work to the right.

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Order of operations

The value of

3 + 2 * 5

is

13

NOT 25!

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O d f ti


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Order of operations3 + (100 - 20) / 10 - 6 * 2 / 4 + 9

3 + 80 / 10 - 6 * 2 / 4 + 9

3 + 8 - 6 * 2 / 4 + 9

3 + 8 - 12 / 4 + 9

3 + 8 - 3 + 9

11 - 3 + 9

8 + 9

answer: 17

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Functions

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h f


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What is a function?

A function is a "named operation" Functions have

a name

parentheses

parameters/arguments inside the parentheses

The words parameter and argument mean the same thing

you can have many parameters for one functionseparated with commas (,)

The number of parameters is one more than the numberof commas.

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h S f i


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The SUM function

Examples

Function Result

=SUM(1,2,3,4,5) 15

=SUM(a1,b1,c1) a1+b1+c1

=SUM(9,a1,b2,5,c1) 9+a1+b2+5+c1

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T i l


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TerminologySUM(1,2,3,4,5)

The name of the function is "SUM"

The parameters or argumentsto this function are

1,2,3,4 and 5

The entire thing, i.e. SUM(1,2,3,4,5), is a functioncall

The value of this function call is 15.Another way to say this is that this function callreturns15.


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Ranges (e.g. a1:c3)

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Ranges59


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Ranges A rectangular box of cells is called a range.

The name of a range is

the name of the upper left cell of the range

Followed by a colon :

Followed by the lower right cell of the range

Example: A1:B2 is shorthand for A1,A2,B1,B2

See next slide for more examples

A1:B2

Examples of Range Names60


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Examples of Range Names Examples

C3:E10

B2:B5

B3:E3

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Using a range as a parameter

Ranges can be specified as a parameters to a functioncall.

Both of the following function calls produce the sameresult as =a1+b1+c1+a2+b2+c2+a3+b3+c3+a4+b4+c4however the 2nd version uses a range and is muchshorter.

without a range=SUM(a1,b1,c1,a2,b2,c2,a3,b3,c3,a4,b4,c4)

with a range

=SUM(a1:c4)

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Function calls with multiple


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Function calls with multipleparameters

You can include multiple ranges and cells asparameters

Example: the following function call has 3 parameters.There are two ranges (a1:b2 and c4:c7), one number(100) and one cell reference (d3)

=SUM(a1:b2,100,c4:c7,d3)

Is the same as:

=SUM(a1,a2,b1,b2,100,c4,c5,c6,c7,d3)


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Other Functions

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Other functions

Click the function button to see the availablefunctions:

Function buton

brings up the

function dialog box

(see next slide)

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Example

AVERAGE

formula that contains a function value

=AVERAGE(2,4,10,4) 5

=AVERAGE(a1,f32) (a1+f32) / 2

=AVERAGE(a1:c1) (a1+b1+c1) / 3

=AVERAGE(a1:c1,10) (a1+b1+c1+10) / 4

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Combining Functions and other

values in a single formula

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F ti d th l


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Functions and other values

You can combine functions, cell references andliteral values to make a complex Excel formula

Examples

=3 + b23 * SUM(d20:g20)=SUM(a1,100) * AVERAGE(d10:j10)

=100 / ( AVERAGE(b2,c2,d30) + AVERAGE(f1:f20) )

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Other Types of Cell References

References to entire ROWsReferences to entire COLUMNs

References to cells or ranges on other worksheets (i.e. tabs)

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E ti R ( )


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Entire Rows (e.g. 2:2 or 2:4)

A cell reference of the form : refers tothe range of all the cells for those rows.

Example: The reference, 2:2, refers to all of the cells on the 2ndrow.

The following formula adds up all of the values on the 2nd and 4throws ofthe spreadsheet:

=sum(2:2,4:4)

Another Example: The reference, 2:4, refers to all of the cells on the 2nd , 3rd and 4throws,.

The following formula adds up all of the values on the 2nd, 3rd, 4th , 10th,11th , 12th, 13th, 14th and 15throws of the spreadsheet:

=sum(2:4,10:15)

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E ti C l ( B B B D)


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Entire Columns (e.g. B:B or B:D)

A cell reference of the form : refers to therange of all the cells for those columns.

Example: The reference, B:B, refers to all of the cells in the 2ndcolumn.

The following formula adds up all of the values in the 2nd and 4thcolumns of the spreadsheet:

=sum(B:B,D:D)

Another Example: The reference, B:D, refers to all of the cells in the 2nd, 3rd and 4thcolumns.

The following formula adds up all of the values in the 2nd, 3rd, 4th, 6th and7thcolumns of the spreadsheet:

=sum(B:D,F:G)

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References to cells on other


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worksheets

Cell on another sheet: sheetName!cellReference Range on another sheet: sheetName!range Row on another sheet: sheetName!row:row Column on another sheet: sheetName!column:column

If a sheet name has a space in it, you mustsurround the sheet name with apostrophes (i.e.single quotes)

Examplessheet2!a1sheet2!b4:c8'2002 Forecasts'!f3:f10=sum('2002 Forecasts'!f3:f10)

=sum('2202 Forecasts'!f:f)

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More examples


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More examples

Add up values from 2 different sheets=sum ( 'great stocks'!b2:c4, 'so so stocks'!b2:c4)

This next one is a little confusing

=sum (a1,a!a1,b1:b4,b1!b4,c!c:c)

Explanationa1 this is a cell reference on the current sheet

a!a1 "a" is the name of sheet. "a1" is a cell on the "a" sheetb1:b4 this is a range on the current sheetb1!b4 "b1" is the name of a sheet. "b4" is a cell on the "b1"

sheetc!c:c c" is the name of a sheet. c:c" is all of the cells in the ccolumn

on the c sheet

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Absolute and Relative

Cell References

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Absolute and Relative Cell


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References

By default, when you copy a formula thatcontains a cell reference, excel willautomatically adjust the cell reference.

You can stop Excel from automatically adjustingthe cell reference by using one or more dollarsigns ($) in the cell reference. These are called

absolute cell references.

A cell reference without a dollar sign is a

relative cell reference.

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Examples


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Examples

The following all refer to the same celld9

$d$9

$d9

d$9

The only difference between these cellreferences relates to what happens when you

copy a formula that contains the cell reference.

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Relative Cell Reference


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Relative Cell Reference

d9 This is a "relative cell reference". Changing the column: If I copy this cell reference to another

cell:

the "d" will increment one letter for every cell that I

move over to the right. The "d" will decrement one letter for every cell that I

move over to the left

Changing the row: If I copy this cell reference to another cell:

the "9" will increment by one for every cell that I movedown.

The "9" will decrement by one for every cell that I moveup

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Absolute cell reference


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Absolute cell reference

$d$9 This is an absolute cell reference. If I copy a formula with this cell reference, the cell

reference will NOT change AT ALL.

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Mixed References


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Mixed References

$d9 and d$9 These are "Mixed" cellreferences:

$d9 The "d" will stay the same when you copy the cell,

but the "9" will change.

d$9

The "d" will change when you copy the cell, but the"9" will stay the same.

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Data Types

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Data Types


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Data Types Numeric

values: any number

operators: + - * / ^ % sample functions: sum( ), average( ), max( ), min( ) etc.

Text (AKA Character or String)

values: Any group of letters or numbers or special characters.Prefix value in cell with an apostrophe ( ' ) to force a text value

operators: & (concatenation) sample functions: right( ), left(), mid(), lower(), upper(), len(), etc

Dates

values: dates and timesoperators: N/A

sample functions: now( ), today( ), hour(), minute(), etc.

Logical (AKA boolean)

values: true false

Operators: < > = =

sample functions: if( ), and( ), or( ), not( ), isblank()

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Data Types for Values in Cells


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Data Types for Values in Cells

By default: a cell that contains a number is treated as numeric

data

a cell that contains a date is treated as date data(we'll see more about this later)

a cell that contains data which isnot numeric and not a date is treated as "text"


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Text Data

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Text / String / Character


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Text / String / Character

The following three terms all used to refer to"text" data. All three terms mean the samething.

text data

string data

character data

This presentation will generally use the term"text data" but you should be familiar with the

terms "string data" and "character data" 84

Text data


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Text data

Text data is used to store general purpose text(e.g. names, places, descriptions, etc)

You can't do "math" with text values(obviously)

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Text isn't part of numerical calculations


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(obviously)Formula to

add up all

numbers in

column C

(Same

Spreadsheet)

Text data inC1 is not

included in

the Sum

formula view (press Cntrl-`)

values view (press Cntrl-`)


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Text Functions

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Text Functions


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Text Functions

Many functions are used to manipulate textvalues.

The following are only some of them

right( )left( )mid( )concatenate( )

lower( )upper( )len( )


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RIGHT, LEFT and MID functions

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RIGHT function


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RIGHT function

The RIGHT function is used to isolate a specificnumber of characters from the right hand sideof a text value.

(example on next slide)

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RIGHT ( )


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RIGHT ( , )

Formula View

Values View

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RIGHT numCharacters is optional


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RIGHT numCharacters is optional

The parameter in the RIGHTfunction is optional. If you dont specify it thedefault is 1 (one).

Formula View

Values View

These produce thesame results.

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LEFT


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LEFT

The LEFT function is the same as the RIGHTfunction, but it returns characters from theLEFT side of the value.

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MID ( , ,Ch )


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)

MID is used to get values from the middle ofsome text.

MID takes 3 parameters: The original text

The position to start taking the new value from

The number of characters to take for the new value

Example on next slide

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Example: MID ( , ,Ch )


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)

This example extracts the second through thefourth characters from the original text value:

Formula View

Values View


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Concatenation( & ) and

CONCATENATE function

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Concatenation (&)


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Concatenation (&)

Use & to combine (or concatenate) two different text values

Formula View

Values View

Notice that there is no

space between the two

values

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Concatenate many values


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Concatenate many values

You may concatenate many values togetherFormula View

Values View

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Concatenation with "literal" values


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Concatenation with literal values

You can also concatenate "literal" values. You must include the literal values inside quotes

For example to display spaces in the "full name" in theprevious example you could use the following formula.Each space that you want to display must be includedin quotes.

=A2&" "&B2&" "&C2(Don't forget any of the &'s )

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Concatenating spaces - Example


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Concatenating spaces Example

You can concatenate spaces into a formulaFormula View

Values View valuescontainspaces

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LEFT( ) with & in same formula


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LEFT( ) with & in same formula You can combine the results of different

function calls with concatenation.Formula View

Values View

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Putting it all together


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g g In this example we concatenate periods into the

initials.Formula View

Values View

The initials now contain

periods

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Separate first name & Last NameU f S h & L ft f ti


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- Use of Search & Left function

Formula View

Values View

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CONCATENATE Function


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You can use the CONCATENATE functioninstead of the ampersand (&).

The following formulas are equivalent:

=A1&B1&C1

=CONCATENATE(A1,B1,C1)

The CONCATENATE function can take as many

parameters as you like


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More Text Functions:PROPERLOWER

UPPERLEN

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LOWER ( )UPPER ( t tV l )


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UPPER ( )

LOWER converts text to lower case. UPPER converts text to upper case.

PROPER Coverts first letter in upper Case

Example:Formula View

Values View

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LEN ( )


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( )

LEN returns a numeric value equal to thenumber of character in a text value (i.e. thelength of the text value).

Spaces ARE included in the length. Example

Formula View

Values View

107

TRIM ( )


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( )

Formula View

Values View

108

REPT ( |,Cell Ref )


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( | , )

Formula View

Values View


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109

Dates and Times

110

How Excel Stores Dates


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Dates are stored in Excel as the number of days since Dec 31,1899 for that date. (ex. Jan 1, 1900 is stored as the number 1).

To see this, type a date in a cell and then press Ctrl-` to see theformulas view.

Example Values View

Formulas View

Dates become

numbers in

formulas

view

111

Times and Dates in the same Cell


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A cell can contain both a date and a time.

The value of both the date and the time is stored internally as a single decimalnumber.

The whole number portion represents the DATE and is the number of days since Dec.31, 1899

The decimal part represents the TIME and is the fraction of the day that has elapsed.

Examples:

Jan 1, 1900 at 12AM is 1.0 (i.e. 1 day since Dec 31, 1899 and 0 percent of the day elapsed sofar)

Jan 1, 1900 at 12PM is 1.5 (i.e. 0.5 of the day elapsed)

Jan 2, 1900 at 12PM is 2.5 (i.e. 2 days since Dec. 31, 1899)

Feb 1, 1900 at 1:05 PM is 32.5451388888889 (i.e. 32 days since Dec 31, 1899 and0.5451388888889 of the day elapsed by 1:05 PM. This makes sense as it is a little pastnoon so a little more than half of the day elapsed.

112

Times and Dates - Example


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p

Values View

Formulas View

113

Date Arithmetic


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You can do arithmetic with dates. Add and subtract days by adding and subtracting whole

numbers. Add and subtract times by adding and subtracting fractional

values.

Examples=A1+7 (one week after the date in A1)

=A1-5*7 (5 weeks before the date in A1)

=A1- (1/24) (one hour before the time specified in A1)

=A1+ (3/24) (three hours after the time specified in A1)

=A1+2.5 (two and a half days after the time specified in A1)

=A1-A2+1 (the # of days between the date in A1 and the date in A2)

114

Formatting cells with Dates andTimes


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Times

Right click on the cell andchoose Format Cells

From the Category list inthe Number tab either

Choose Date, Time orCustom and choose anappropriate looking format

OR

If you choose General orNumber, the internal numberfor the Date/Time will bedisplayed in the spreadsheeteven in the values view.

115

Date & Time Functions


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Current Date - TODAY( ) Current Time Now ( )

Year ( )

Month ( )

Day ( )

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Add months to start dates by : EDATE (startdate, months)

Extract age of person by DATEDIF (Start

date, end date, format) Format :

Y for difference in years

M for difference in months

D for difference in Days

YM for difference in Months ignoring years

YD for difference in Days ignoring years

MD for difference in Days ignoring Month & years

117



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Formula View

Values View


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118

Logical values

119

Logical operators


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In Excel the following "operators" are usedOperator Meaning

> greater than< less than>= greater than or equal to 2 true

3 < 2 false

120

Logical Formulas


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Formula View Values View

121

Same formulas, different values


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122

IF function


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123

IF with a numerical result


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124


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AND

OR

NOT

125

AND


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The following is TRUE

Fish live in water AND deer live on land.

The following are all FALSE

Fish live in water AND deer live in water.

Fish live on land AND deer live on land.Fish live on land AND deer live in water.

126

AND function


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127

AND


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128

IF with AND - nested function calls


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You can use an AND inside of an IF. This is called a NESTED FUNCTION CALL

Example

=IF( AND (A2>A3,B2B3) , 500, 1000)

AND is "nested" inside of the IF

These parentheses "belong to" the if

129

IF with AND - parameters


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Parameters for IF function:

130

IF with AND - spreadsheet views


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131

AND function


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Takes any number of parameters Returns TRUE if ALL of the parameters evaluate

to TRUE otherwise returns FALSE.

132

OR and NOT functions


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133

OR


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Takes any number of parameters Returns TRUE if ANY of the parameters

evaluate to TRUE otherwise returns FALSE

134

NOT


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Takes ONLY ONE parameter Returns the "opposite" of the value of the

parameter

returns FALSE if the parameter value is TRUE returns TRUE if the parameter value is FALSE

135

Examples of Complex Nested Function Calls


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=IF(AND(A2>A3, OR(B2=B3,C2A3, OR(B2=B3,C2A3, NOT(OR(B2=B3,C2


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136

Other Logical Functions:ISBLANK

137

ISBLANK( ) ISBLANK returns TRUE if the value is blank and


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false otherwise. (see example below)

Formula View

Values Viewblank value

Total will be

wrong if

quantity is

blank (since

a blank is

normally

treated as

zero)

Total will be correct even if quantity

is blank (quantity is assumed to be 1

in that case)


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138

FORMATTING A CELL AS TEXT

139

Numbers with leading zeros Sometimes you desire to have to have zeroes displayed at the beginning of a number


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Sometimes you desire to have to have zeroes displayed at the beginning of a number.

For example, US social security numbers are made up of 9 digits. The first few digitsmay be zeroes.

This causes in a problem in Excel. When you type in a number with leading zeroesinto a cell, Excel removes the leading zeroes when you press Enter.

EXAMPLE:If you type the following into a cell (before you press Enter)

When you press Enter you get this:

See next slides for how to fix this

Leadingzeroes aremissing

140

Formatting a cell to display as text


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To fix this problem you can format the cell todisplay as text instead of as a number.

The value will still be able to be used incalculations but it will be displayed on the

screen using the rules for text values instead ofthe rules to display numbers

One of the rules Excel uses to displaying

numbers is to remove leading zeroes. However, if a number displayed as "text" data

then Excel WILL display leading zeros.

See next slide for instructions on how to do this 141

Opening the "Format cells" dialogbox


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Select the cell or cells that you want to format as text. Right click on the selected cell(s) and choose the

following from the popup menuformat cells

or click on a cell and choose the following menu choice

format | cells

Then you will see the "Format Cells" dialog box.(See the next slide ...)

142

"Format Cells" dialog box


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Choose"Text"fromthe"Number" taband

pressthe OKbutton.

143

Not a Perfect Solution


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When you format the cell as text it willdisplay the leading zeroes (you must type themin again).

However, Excel will warn you that a number isformatted as text.

144

Result of Formatting a Number asText


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Excel indicates this issue

with agreen triangle in the upperleft hand corner of the cell:

If you select the cell you

can see the error message.

You can have Excel toignore this type of errorby choosing the Tools |

Options menu choice andunchecking the Numberstored as text option fromthe Error Checking tab.(this solution is not shownon this slide)

Create validation rules for data entry


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You will want to prevent errors in your workbooks asmuch as possible. You can specify the type of data that is allowed and/or a

range of acceptable values If a value is entered that does not meet the requirements,

an error message is displayed Setting a rule like this is a preventative measure thatallows you to validate data upon entry

There are several different options in the DataValidation dialog box allowing you to provide various

rules related to data entry. You can also provide an input message that will aid the

user in entering the data.

The Data Validation dialog boxM B D \ D V lid i


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Menu Bar: Data \ Data Validation

The Allow list box options


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The Input Message tab of the DataValidation dialog box


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g

A worksheet with aninput message displayed


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p g p y

The Error Alert tab of the DataValidation dialog box


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g

Functions within functions


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You can use functions within functions.Consider the expression=ROUND(AVERAGE(A1:A100),1).

This expression would first compute the average ofall the values from cell A1 through A100 and thenround that result to 1 digit to the right of thedecimal point

Circular referenceSituation when some parameter in the formula refers


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Situation when some parameter in the formula refersto the formula itself

For example, in cell C5 the following formula is entered:

VLOOKUP(C5, F2:G15, 2, TRUE)

The address C5 refers to the formula itself.In this case it is a wrong way of writing the formula.

In some cases circular references may be usedfor creating recursive (recurrent) functions.


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Tables, Graphs and

ExcelSolving Problems Using

Graphical Analysis

Tables


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Tables should always have: Title

Column headings with brief descriptive name, symbol andappropriate units.

Numerical data in the table should be written to theproper number of significant digits. The decimal points in a column should be aligned.

Tables should always be referenced and discussed (atleast briefly) in the body of the text of the documentcontaining the table.

Graphs


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Proper graphing of data involves several steps: Select appropriate graph type

Select scale and gradation of axes, and completelylabel axes

Plot data points, then plot or fit curves

Add titles, notes, and or legend


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Graphs - Types


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4. Line Graph

0

2

4

6

8

10

12

14

16

0 500 1000 1500Height (m)

Temperature(C)

0

20

40

60

80

100

120

140

160

Pressure(kPa)

Temp

Pressure

12

3

4

5

6

7

0123456

78

0246

8101214

Object 1Object 2

3. 3-D Graph

Graphs


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Each graph must include: A descriptive title which provides a clear and concise

statement of the information being presented

A legend defining point symbols or line types used forcurves needs to be included

Labeled axes

Graphs should always be referenced/discussed in thebody of the text of the document containing the table.

Titles and Legends


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Each graph must be identified with adescriptive title

The title should include clear and concisestatement of the information being presented

A legend defining point symbols or line typesused for curves needs to be included

Axis Labels


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Each axis must be labeled The axis label should contain the name of the

variable and its units.

The units can be enclosed in parentheses, orseparated from the label by a comma.

Length (km)

Gradation


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Scale gradations should be selected so that thesmallest division of the axis is an integer powerof 10 times 1, 2, or 5.

Exception is units of time.

0 10 20 30

Scale Graduations,Smallest Division=1

Acceptable

0 10 20 30

Scale Graduations,Smallest Division=3.33

Not Acceptable

Data Points and Curves


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Data Points are plotted using symbols The symbol size must be large enough to easily

distinguish them

A different symbol is used for each data set

Data Points are often connected with lines

A different line style is often used for each data set

Example


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Distance (Km)

0 1 2 3 4 5

Velocity(m/s)

0

1

2

3

4

5

6

7

8

9

10

Runner #1

Runner # 2

Runner # 3

Velocity of Three RunnersDuring a 5 km Race

Building a Graph In Excel


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Select the data that you want to include in the chart bydragging through it with the mouse.

Then click the Chart Wizard

Building the Graph


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Choose XY(Scatter), with

data connectedby lines ifdesired.

Click Next

Building the Graph


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Make sure that theseries is listed incolumns, since your

data is presented incolumns.

Click the Series tab to

enter a name for thedata set, if desired.

Choose Next

Building the Graph


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Fill in Title and Axis information

Next

Building a Chart


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Select As new sheet to create the chart on itsown sheet in your Excel file, or As object in tocreate the chart on an existing sheet

Finish

Creating a Secondary Axis


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This is useful when the data sets cover very differentranges.

Right click on the line (dataseries) on the chart that you

want to associate with asecondary axis.

Select format data series

Select the Axis tab, then

Plot series on secondaryaxis as shown.

OK

Editing/Adding Labels


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Now you can go back to the chart options to add labels

Click the chart in a blank area, then either right click andselect chart options or choose chart options from the

Chart menu

Fill in or edit theaxes labels, title,etc.

Click OK

Result


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Goal Seek


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Goal Seekis an analytical function that allows a valuein a formula to be adjusted to reach a desired result oranswer.

Goal Seek can eliminate unnecessary calculations thatcan be used to determine a single variable value in aformula.

For example, a salesperson might participate in abonus program that pays 3 percent of all sales dollars.The salesperson wants to receive a bonus of at least$2,500 and needs to know the target sales dollaramount needed.


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Create a worksheet with the following information

When the Goal Seek command starts to run, it repeatedly tries new values inthe variable cell to find a solution to the problem.

This process is called iteration, and it continues until Excel has run theproblem 100 times or has found an answer within .001 of the target valuespecified.

The iteration settings can be adjusted by choosing Tools, Options, andadjusting the Iteration options in the Calculations tab.

It calculates so fast, the Goal Seek command can save significant time andeffort over the brute force method of trying one number after another in aformula.


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Goal Seek

USING THE GOAL SEEKCOMMAND


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The Goal Seek feature is used to fill in the target value of the cell containing theSales Dollaramount.

The Goal Seek values read Set cell = B3, To value = 2500, By changing cell = $B$1.

To use the Goal Seek command:1. SelectTools from the main menu, then selectGoal Seek.2. Specify the cell that contains the desired value in the Set cell text box. Type in or

selectB3.3. Enter the desired value or answer in the To value text box. Type in 2500.4. Enter the cell whose value will be changed in the By changing cell text box. Type in

or select$B$1.5. The Goal Seek dialog box should look like Figure next slide6. Choose OK.

a. If a solution is found, the Goal Seek Status dialog box appears.b. The results are shown in Figure T4.6.

7. Select OK.

Goal Seek is used to adjust a single variable in a formula. Use the Solver featureto adjust multiple variables in a formula, as described in the next section.

Goal Seek Worksheet


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Goal Seek Results


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Solver

Solver Solver is part of a suite of functions sometimes called what-if analysis tools used

for optimizing problems that contain more than one variable


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for optimizing problems thatcontain more than one variable.

The Solver add-in utility is needed to analyze the scenarios in decision-makingsituations that involve consideration of values and constraints for several

variables simultaneously.

This powerful function uses multiple changing variables and constraints to find

the optimal solution to solve a problem.

For example, consider a coffee shop that currently sells three beverages: (1)

regular fresh-brewed coffee, (2) premium caffe latte, and (3) premium caffe

mocha.

The current price for regular coffee is set at $1.25, caffe latte at $2.00, and caffe

mocha at $2.25, but the revenue potential is uncertain. What special emphasis(or marketing) should be given to each of the beverages to maximize revenue?

Although the premium coffees bring in more money, their ingredients are more

expensive and they take more time to make than regular coffee. Making some

basic calculations by hand is easy, but there needs to be some structure to the

sales data in a worksheet so that periodic changes can be made and analyzed

Coffee Sales DataSheet for Solver T4.7


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Solver The first step in using the Solver command is to build a

Solver friendly worksheet This involves creating a target


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Solver-friendly worksheet. This involves creating a target

cell to be the goal of your problem For example, a formula that calculates total revenueand assigning one or

more variable cells that the Solver can change to reach the goal.

To use Solver, complete the following:1. Set up a worksheet similar to Figure T4.7.

2. The three variable cells in the worksheet are cells D5, D9, and D13. These arethe cells whose values the Solver needs to determine to maximize the weeklyrevenue.

3. In the bottom-right corner of the table is a list of constraints to use for

forecasting.

4. The worksheet must contain cells (G6 through G8) that include the formulasused as constraints. The limiting values for the constraints are listed in cellsG11 through G13.

No more than 500 total cups of coffee (both regular and premium).

No more than 350 cups of premium coffee (both caffe latte and caffe mocha).

No more than 125 caffe mochas.

Solver


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5. The subtotals for cells D6, D10, D14 need to be calculated, as well as the Total Revenue (sum of

D6, D10, and D14) in G4.6. The value for cell G6 should equal the value that will be calculated for D5 and the value for cell

G7 will be the sum of the values from D9 and D13. The calculation of G8 = SUM of D5, D9, andD13.

7. Click the target cell G4the one containing the formula that is based on the

8. variable cells you want the Solver to determine.

9. Select Tools from the main menu, then select Solver. The Solver Parameters dialog box opens, asshown in Figure T4.8.

a. Select the Set Target Cell text box (unless it already contains the correct reference), and then click cellG4 to insert $G$4 as the target cell.

b. The Equal To option button (Max) is already selected. Do not change this since the problem requeststhe maximum value for the target cell.

10. Select the By Changing Cells text box. Click the button in the text box to collapse the dialog box.

Select each of the variable cells by holding down the Ctrl key and clicking D5, D9, and D13. Thisplaces commas between the three cell entries in the text box: $D$5, $D$9, $D$13 (refer toFigure T4.9).

Solver


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11.Click Solve to calculate the result.

12.Solver displays a dialog box describing the results ofthe analysis. If the Solver runs into a problem, an errormessage will be displayed. If the Solver finds a

solution, a Solver Results dialog box like Figure T4.11will appear.

13.To display the new solution in the worksheet, clickthe Keep Solver Solution option button, and then click

OK. The Solver places an optimum value in the targetcell and fills the variable cells with the solutions thatsatisfy the constraints specified and provide theoptimal result, as shown in Figure T4.12.

Solver T4.8-T4.11


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Optimum Revenue forSolver Results T4.12


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Pivot Tables

PIVOT TABLES


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A powerful built-in data-analysis feature inExcel is the PivotTable

A PivotTable analyzes, summarizes, andmanipulates data in large lists, databases,worksheets, or other collections

It is called a PivotTable because fields can bemoved within the table to create different typesof summary lists, providing a pivot

What is an Excel Pivot Table?

A i i k h bl


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An interactive worksheet table

Provides a powerful tool for summarizing largeamounts of tabular data

Similar to a cross-tabulation table

A pivot table classifies numeric data in a list based onother fields in the list

General purpose:

Quickly summarize data from a worksheet or from anexternal source

Calculate totals, averages, counts, etc. based on anynumeric fields in your table

Generate charts from your pivot tables

Pivot Table Advantages

l h b


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Interactive: easily rearrange them bymoving, adding, or deleting fields

Dynamic: results are automaticallyrecalculated whenever fields are added ordropped, or whenever categories are hiddenor displayed

Easy to update: refreshable if the originalworksheet data changes

Appropriate Data

D t d i li t


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Data arranged in a list:

Columns represent fields

Rows represent a record of related data

First row = column label

Columns contain one sort of data For example, text in one column and numeric

values in a separate column

Remove subtotals

You CAN work with subtotals, but use caution

De-normalized database extracts are great forpivoting!

Appropriate Data Example


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Incomplete records:First Last Gender Semester Major Credit Hours

Sandra Archer F Fall 1999 Statistics 15

Fall 2005 Industrial Engineering 6

Hamilton Paws M Spring 2003 Philosophy 12

Summer 2005 Chemistry 12

First Last Gender Semester Major Credit Hours

Sandra Archer F Fall 1999 Statistics 15

Sandra Archer F Fall 2005 Industrial Engineering 6

Hamilton Paws M Spring 2003 Philosophy 12Hamilton Paws M Summer 2005 Chemistry 12

Spelledthe same


Mi d l


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Mixed use columns :

College Department FacultyCreditHours

Science Statistics Ima Faculty 16

YTD Expenses: $4,000

Humanities History Hesa Prof 12


Humanities Art Salvador Dali 24


College Department Faculty

Credit

Hours

YTD

ExpensesScience Statistics Ima Faculty 16 $4,000

Humanities History Hesa Prof 12 $3,500

Humanities Art Salvador Dali 24 $2,000

ColumnLabel


C l l b l i


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Column label issues:

College Department Faculty 2004 2005 2006 2004 2005 2006

Science Statistics Ima Faculty $4,000 $5,000 $6,000 16 19 22

Humanities History Hesa Prof $3,500 $4,500 $5,500 12 15 18

Humanities Art Salvador Dali $2,000 $3,000 $0 24 21 0

YTD Expenses Student Credit Hours

College Department Faculty

YTD

Expense

2004

YTD

Expense

2005

YTD

Expense

2006

Student

Credit

Hours

2004

Student

Credit

Hours

2005

Student

Credit

Hours

2006

Science Statistics Ima Faculty $4,000 $5,000 $6,000 16 19 22

Humanities History Hesa Prof $3,500 $4,500 $5,500 12 15 18Humanities Art Salvador Dali $2,000 $3,000 24 21

Zero orBlank?

PivotTable Terminology

S t bl Pi tT bl t


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Some notable PivotTable terms are:

Row field - Row fields have a row orientation in aPivotTable report and are displayed as row labels

Column field - Column fields have a column orientation in aPivotTable report and are displayed as column labels

Data field - Data fields from a list or table contain summarydata in a PivotTable, such as numeric data (e.g., statistics,sales amounts)

Page field - Page fields filter out the data for other items anddisplay one page at a time in a PivotTable report

PivotTable Terminology


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Using the PivotTable Feature


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1. Select the worksheetPivotTableData2. Click any cell in the list

3. Select Data on the menu bar, then choose

Pivot-Table and PivotChart Report


4 In the Where is the data that you want to


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4. In the Where is the data that you want to

analyze? area, choose Microsoft Excel listordatabase if it is not already selected

5. In the What kind of report do you want to

create? area, choose PivotTable6. Click the Nextbutton

In the Range box, the range should be$A$1:$D$352

7. Click the Nextbutton

8. Click Finish

9. Select New Worksheet



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Drag the Business Segmentbutton to the PageField area

Drag the Unitbutton to the COLUMN area

Drag the Particulars button to the ROW area Drag theAmountbutton to the DATA area

Modifying A PivotTable View


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PivotTable Tools

PivotTable - Contains commands for working


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PivotTable- Contains commands for workingwith a PivotTable

Format Report - Enables the user to format thePivotTable report

Chart Wizard - Enables the user to create achart using the data in the PivotTable

Hide Detail - Hides the detail information in a

PivotTable and shows only the totals Show Detail - Shows the detail information in a

PivotTable

PivotTable Tools

Refresh External Data - Allows the user to refresh


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Refresh External Data Allows the user to refresh

the data in the PivotTable after changes to data aremade in the data source Include Hidden Items in Totals - Lets the user show

the hidden items in the totals

Always Display Items - Always shows the field itembuttons with drop-down arrows in the PivotTable Field Settings - Displays the PivotTable Field dialog

box so that the user can change computations andtheir number format

Hide Field List - Hides and shows the PivotTable FieldList window

Building A PivotChart

A PivotChart is a column chart (by default) that


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A PivotChart is a column chart (by default) thatis based on the data in a PivotTable

To build a PivotChart:1. Click the Chart Wizard on the PivotTable toolbar

Excel will automatically create a new worksheet,labeled Chart 1, and display the current PivotTableinformation in chart form

2. Modifications to the PivotChart can be done by

selecting the drop-down lists to the right of thefield names

Building A PivotChart


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Protect Sheet/ Workbook

Protect the contents of worksheetsand workbooks

Once you have a worksheet that you know is correct


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Once you have a worksheet that you know is correct,

you may want to protect the worksheet so that userscannot make changes. Setting the locked property will disallow any changes to a

particular cell

The worksheet will have to be protected in order for thelocked property to have any affect

You can also specify a password that must be enteredin order to remove worksheet protection.

Finally, you can protect an entire workbook, whichwould disallow changes to the workbook, such asadding or deleting worksheets.

Unlocking Selected Cells


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The Protect Sheet dialog box


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The Protect Workbook dialog box


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Financial Functions

Financial Function descriptions

This chart shows some commonly used financial

functions and a description of what they do


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functions and a description of what they do.

Excel's financial functions

Financial functions are very useful to calculate


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Financial functions are very useful to calculate

information about loans.

Common functions are FV, IPMT, PMT, PPMT and PV.

All these financial functions will use similar argumentsthat differ based upon which function you are using.

Think of the arguments as members of an equation

The arguments represent the values of the equation that areknown and the function provides the solution for a singlevariable, or unknown, value

Use the financial functions The FV function calculates the future value of an investment

based on periodic, constant payments and a constant interest


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rate per period.

The IPMT function provides the interest payment portion of theoverall periodic loan payment.

The PMT function calculates the entire periodic payment of theloan.

The PPMT function calculates just the principal paymentportion of the overall periodic payment.

The PV function calculates the present value of an investment.

Use the financial functions (contd)

NPER Determines the number of payments


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needed for an Investment to grow or pay back aloan

RATE Determines the effective interest rate

Standard arguments

rate: Interest rate (in decimal) per period


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rate: Interest rate (in decimal) per period

nper: Number of periods

pmt: Regular payment

More standard arguments

pv: Present value: The amount the


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pv: Present value: The amount theseries of future payments is worthnow. The beginning value.

fv: Future value: The amount theseries of future payments will beworth in the future. The final value.

type 0 = payment at end of period (default)1 = payment at beginning

PMT() Payments

Returns the periodic payment for an annuity or loan


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p p y y

PMT(rate, nper, pv, fv, type)

The first 3 (red) arguments are required

PMT() Example


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Ms Just Retired has $200,000 to invest at 10%annual interest. Her goal is to have $100,000left after 5 years. If she makes equal

withdrawals each year for 5 years, how muchcan she withdraw each year?

PMT(rate, nper, pv, fv, type)= PMT(0.10, 5, -200000, +100000)= $36,380

PMT() Example


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PV() Present Value

Returns the present value of an investment.


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Returns the present value of an investment.The present value is the total amount that aseries of future payments is worth now. That is,it is the beginning value of the investment or

loan.

PV(rate, nper, pmt, fv, type)

PV() Example

A person promises to pay you $200 per month


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A person promises to pay you $200 per monthfor 3 years. If you assume 12% interestcompounded monthly, what is this annuityworth today?

How much can you borrow at 12% annualinterest compounded monthly and repay in 3years paying $200 per month?

= -PV(0.12/12, 3*12, 200) = 6021.50

PV() Example


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FV() Future Value


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Returns the future (final) value of an investment. Thefuture value is the total amount including interest thatseries of payments will be worth.

How much money will there be in your account if youmake regular payments for a period of time?

FV(rate, nper, pmt, pv, type)

FV() Examples

You will make $200 a month payments into a 12% annual


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interest payable monthly account. How much will you haveafter 3 years?

= -FV(0.12/12, 3*12, 200) = 8615.38

You will put $1000 in your account that pays 5% annuallycompounded monthly. You will add $100 to the account everymonth. How much will you have after 10 years?

= -FV(0.05/12, 10*12, 100, 1000) = 17175.24

FV() Examples


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IRR() Examples


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IRR() Examples


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NPV() Examples


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SYD() / SLN () Examples


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Formula View

Value View


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Statistical Functions

Computing the Mean

Sum xi divide by n (or N for population mean)


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i y ( p p )

Excel

=AVERAGE(cellrange)

Computing the Mode

Value that occurs most often in discretized data


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Excel

=MODE(cellrange)

Reports first value seen if tie

Computing the Median

The middle value in sorted data


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Excel

=MEDIAN(cellrange)

Computing the Range


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Range is min to max values Excel

=MIN(cellrange)

=MAX(cellrange)

Computing the Standard Deviation

Std. Dev. is Square-Root of Variance


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Excel

=STDEV(cellrange) - sample

=STDEVP(cellrange) - population

=VAR(cellrange) - sample

=VARP(cellrange) - population

Others Statistical Functions

Countif ( )


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Countblank ( )

Subtotal ( )

Rank ( )


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Mathematical Functions

Mathematical Functions

SUMIF ( )


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SUMPRODUCT ( )

ROUND ( )

Roundup ( )

Rounddown ( )

MROUND ( )

FLOOR ( )

POWER ( )


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Correlations

Correlations

A quick review:


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Every correlation has a direction (positive ornegative):

+ correlation: high scores on one variable areassociated with high scores on another variable.

- correlation: high scores on one variable areassociated with lowscores on the other variable.

Every correlation has magnitude or strength:

The closer the correlation coefficient is to +1.00 or-1.00, the stronger it is.

The closer the correlation coefficient is to 0.00, theweaker it is.

Correlation Practice


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Put the following r values in order fromweakestto strongest:

-.96 +.05 +.68 -.14 +.70 -.33

What did you get?

+.05 -.14 -.33 +.68 +.70 -.96

* Remember to use absolute values (ignore + or signs)when comparing the strengths of one or more correlationcoefficients. Negative correlation does not mean less thanpositive correlation.

Correlation Example


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Correlation Example


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Lookup Functions

Lookup / Reference Functions

VLOOKUP ( )


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HLOOKUP ( )

MATCH ( )

INDEX ( )

Lookup / Reference Functions


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Conditional Formatting

Highlight Debt Equity Lower than 0.25 by usingConditional Formatting


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Case Study I

Prioritization of Projects

This is a real life case

Y d h


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You need to prioritize the investment inprojects by working out composite scores

Parameters for evaluation of Scores for each

project are: Project IRR

Debt Equity

Gestation Period

Strategic Importance

Work out the Composite Score for the givenprojects


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Case Study II

Preparation of Financial Model

This is the Most Important Case Study for the

d h d h i i


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students who want to do their career in: Finance

Business Analyst

Business Development Dept.

Project Evaluation

Risk Estimation


Prepare following Financial Statement from given case

d


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study: Project Cash Flow and IRR

Equity Cash Flow and IRR

Payback Period (Nominal & Exact)

Profit & Loss Statement

Balance sheet

Interest & Debt Repayment Schedules

Major Financial Ratios DSCR ROCE

Profit Margin etc


Real Life Challenges:

A h


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Assumptions are changing:

Model should be sensitive to all the assumptions

Easy to Understand:

Model should not be un-necessarily complex Appreciation comes to you if others understands your

work

Assumptions sheet should be easily identifiable

Result should be identified easily

Model should be checked for accuracy

Preparation of Financial Model - AssumptionsCapacity of Petrochemical 100000 TonsInitial Price of Polymers 10000 Rs/MT

Price Escalation 10%

Variable Cost 30% of Price

Fixed Cost 30% of Price


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Fixed Cost 30% of PriceCapex of Plant 10,000 Lakhs

Debt Equity 0.50

Equity Portion 0.50

Interest cost 10% Percentage

Corporate Tax Rate 33% PercentageDividend Payout 20% Percentage

Dividend Distribution Tax 15% Percentage

Gestation Period 2.00 Years

Marotorium Period 2.00 Years

Repayment 3.00 YearsLoan Tenor 5.00 Years

Economic Life of Project 4.00 Years

Project Tenor 6.00 Years

Discounting Rate 12% Percentage

Preparation of Financial Statements

Profit & Loss Statement

Revenue

Variable Cost

Balance Sheet

Liabilities

Share Capital

IDC Calculations

Capital Cost

Debt Funding

Loan Schedule

Openining Loan

Addition


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Variable Cost

Fixed Cost

Total Expenditures

Gross Margin (PBDIT)

Depreciation

InterestPBT

Tax

PAT

Appropriations

Dividend

Dividend Tax

Reserves

Share Capital

Reserves

Loan

Total - Liabilities

Assets

Gross Block

Less Depreciation

Net Block

CWIP

Current Asset

Total - AssetsRecon

Debt Funding

Equity Funding

Total Funding

Check for Funding

IDC Funding

IDC - Debt Funding

IDC - Equity Funding

Capex Including IDC

Debt FundingEquity Funding

Cumulative Debt Funding

Cumulative Equity Funding

Addition

Repayments

Closing Loans

Intrest

Interest CWIP

Interest P&L

Preparation of Financial Statements

C


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Project Cash Flows

Outflow

Inflows

Net Project Cash flows

Cumulative Cash FlowsProject IRR

Payback Period

Exact Payback Period

NAV

Equity Cash Flows

Outflow

Inflows

Net Project Cash flows

Cumulative Cash FlowsProject IRR

Payback Period

Exact Payback Period

NAV

Ratio Analysis

ROCE

DSCR

Profit Margin


N i i


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Now its your timePrepare the Financial Model

Real World is Complex,Does your model takes care of .Complexities Yes or No Funding Strategy Can change


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Interest Rate Can Change with time Change in Capacity Utilization Capital Expenditure Can vary with inflation

Economic life of Project may reduce / Expand Project may complete Early or may also delay Addition of Risks Complex Tax calculations


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THANK YOU

Documents

Excel Final UPES