Microsoft Office Excel 2003 Intermediate III:

Formulas and Worksheets

Formulas and how they work
A formula helps you analyze data and perform calculations on values on a worksheet. A formula can consist of up to 1024
characters. When you enter a formula the result will be displayed in the cell but the formula itself will be displayed in the
formula bar when you select the cell.

All formulas must begin with an equal sign (=). Formulas can have;
 Cell References (including named cells and ranges)
 Operators
 Values or Text
 Functions

Cell References
A reference identifies a cell or a range of cells on a worksheet and tells Microsoft Excel where to look for the values or
data you want to use in a formula. With references, you can use data contained in different parts of a worksheet in one
formula or use the value from one cell in several formulas. You can also refer to cells on other sheets in the same
workbook, and to other workbooks. References to cells in other workbooks are called links.

By default, Excel uses the A1 reference style, which refers to columns with letters (A through IV, for a total of 256
columns) and refers to rows with numbers (1 through 65536). These letters and numbers are called row and column
headings. To refer to a cell, enter the column letter followed by the row number. For example, B2 refers to the cell at the
intersection of column B and row 2.

Relative References
Excel adjusts the cell references and copies in a formula relative to the direction of the copying.
If the original formula in A8 is =SUM(A3:A7), when Excel copies the original formula next door to B8 it changes the
formula to =SUM(B3:B7).

All new formulas naturally contain relative cell references unless you specify otherwise.

Absolute References
There will be times when you want to compare a range of values to a single value (for example, where you want to
compute what percentage each part is to the total).

Start your formula and select the cell first, then press F4 (or type $ before the column number and the row number).
For example: =B9/$E$12
Then you can AutoFill the formula to other cells.

Cell Reference Examples

A range of cells (for example, A1:A10)
Use a full colon to create one reference to all the cells in between and including the two end references in block.

Individual cells (for example, B4,D4):

Use a comma. Often used in the arguments of a function.
For example: =SUM(A2,F5)

Other sheets in a workbook:

To refer to other sheets in a workbook, either click and select, or type:
Use the name of the worksheet, then an exclamation mark (to separate sheet reference from cell reference),
then the cell reference.
For example: =Sheet2!A1

Spanning two or more sheets in a workbook

To sum a range of cells that span two or more sheets in a workbook:
=SUM(Sheet2:Sheet6!A2:C5)
Microsoft Excel 2003: Intermediate III
Christina Jenkins, Booth Library, EIU
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Operators
The most commonly used operators are the numeric operators. If you combine operators in a formula, EXCEL will perform
operations in the order listed below. It is important to remember this precedence order since it influences how the formula
will be evaluated.

Operator Precedence
1 ^ Exponentiation
2 *, / Multiplication, Division
3 +, - Addition, Subtraction
4 & Concatenation
5 =, <, > Equal to, Less Than, Greater Than

Mathematical Operators Comparison Operators

^ Exponentiation = Equal to
* Multiplication < Less than
/ Division <= Less than or equal to
+ Addition > Greater than
- Subtraction >= Greater than or equal to
& Concatenation <> Not equal to

Reference Operators in Formulas and Functions

: Range – references all cells in the given range, for instance to show
the range of cells from B4 through B15 you would type B4:B15.
, Union – includes two references, such as (A3:A16, B23:B32)

Use parentheses to instruct Excel in which order you want to parts of the formula to be carried out. Every left
parenthesis must have a matching right parenthesis.

About formula syntax

Formula syntax is the structure or order of the elements in a formula. Formulas in Excel follow a specific syntax that
includes an equal sign (=) followed by the elements to be calculated (the operands) and the calculation operators. Each
operand can be a value that does not change (a constant value), a cell or range reference, a label, a name, or a
worksheet function.

By default, Microsoft Excel calculates a formula from left to right, starting with the equal sign (=). You can control how
calculation is performed by changing the syntax of the formula.

For example if you want to add the numbers in cells C2,C3 and C4 then multiply them by cell C5 the correct formula is
If we were to assigned numeric values, such as, =(1+2+3)*4, the result is 24.
SEE SHEET 1 in cell C6= (C2+C3+C4)*C5
Use parenthesis to alter the order of operations, operations within parentheses will be done first in order from left to right.
Without the parenthesis this formula =1+2+3*4, gives a result of 15.
SEE SHEET 1 in Cell D6=D2+D3+D4*D

Values or Text (Labels)

A worksheet is a set of cells aligned in rows and columns. Think of cells as empty boxes with no lids. The cell content can
be a statement containing a text message, a number, or a date: Dates are a special case. Although you see a date, the
application stores the information as a number. It counts the days since Jan 1, 1900 and displays the result in date format.
Because Excel stores each date as a number, you can add and subtract dates or easily put them in calendar order. You
can also use the auto fill function with dates.

The cell content can also be a formula. A formula asks a question and tells Excel to display the answer to that question. A
cell containing a formula the cell can display either the formula or the result of the formula. Usually the cell containing the

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Christina Jenkins, Booth Library, EIU
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formula will display the result of the calculation (the answer to your question), not the formula itself. The actual formula
appears in the formula box above the worksheet area. You can set a cell to show its formula instead of the result by
formatting the cell as text.
To Show Formulas
 Select row, column or cell where you want to see the formulas hold down Control~ to show and hide formulas or

 Select Tools, Options, View, at Window Options, Select Formulas,

 To turn off formulas you can deselect the formulas option.

Worksheets often have labels at the top of each column and to the left of each row that describe the data within the
worksheet. You can use these labels within formulas when you want to refer to the related data. You can also create
descriptive names that are not labels on the worksheet to represent cells, ranges of cells, formulas, or constants.

Use labels to represent cells

Microsoft Excel does not recognize labels in formulas. To use labels in formulas, on the Tools menu click Options, and
then click the Calculation tab. Under Workbook options, select the Accept labels in formulas check box.

When you create a formula that refers to data in a worksheet, you can use the column and row labels in the worksheet to
refer to the data, once you turned on the above option.
For example, the following example contains columns labeled Product 1, Product 2, and Product 3. To calculate
the total value for the Product 1 column, use the formula =SUM(Product 1).

1 A B C D E
2 Division Product 1 Product 2 Product 3 Average
3 Northern 30 70 110
4 Southern 40 80 120
5 Total =SUM (Product1)

Or if you need to refer to the Product 3 amount for the Northern division (the value 110), you can use the formula
=Product 3 Northern. The space in the formula between "Product 3" and "Northern" is the intersection operator. This
operator designates that Microsoft Excel should find and return the value in the cell at the intersection of the row labeled
Northern and the column labeled Product 3.

Referencing Named Cells in a Formula

To use a named cell or range of cells in a formula you can manually type the name, point to it or select Insert, Name,
Paste from the menu.
By default, names use absolute cell references.

Functions
A function is a predefined formula that performs a particular type of computation. All you have to do to use a function is
supply the values that the function uses when performing its calculations; these are the arguments of the function. For
help with functions, press Help and type in key words, such as, Creating Formulas or Using Functions.

Entering a formula
 Select the cell(s) in which you want to enter the formula and type = (an equal sign).
 If you use Insert Function , Excel inserts an equal sign for you.
 Enter the formula and press ENTER. The Function Arguments box comes up. You may press ok if the correct range of
cells is listed.

Built-in functions
Built-in functions are with references the most powerful features of EXCEL. There are hundreds of these functions
available in EXCEL. Some of these function are pretty simple to use, other take several arguments and are more difficult
to understand. All built-in function returns a value and many can return error values which signals you there is a problem

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Christina Jenkins, Booth Library, EIU
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either with the function itself or with the arguments you have used. SUM, COUNT, MAX, MIN, ROUND and AVERAGE
are all examples of the more commonly used built-in functions.

Excel supplies over 350 different functions organized into 10 categories; Database, Date and Time, Engineering,
Financial, Information, Logical, Lookup, Math, Statistical, Text and Data functions. You can learn about each function
using Excel’s online Help.

Enter a formula that contains a function

Excel provides formulas with many different functions. Some of the
commonly used functions are average, count, sum, max, min and
payment. When you create a formula that contains a function, the
Insert Function dialog box helps you enter worksheet functions. As
you enter a function into the formula, the Insert Function dialog box
displays the name of the function, the current result of the function,
and the current result of the entire formula.

 Click the cell in which you want to enter the formula.

 To start the formula with the function, click Insert Function on
the formula bar.
 Select the function you want to use.
 You can type a description of what you want to do in the Search for
a function box (for example, "add numbers" returns the SUM
function), or browse from the categories in the Or Select a category
box.
 After selecting the function, click ok.

 Enter the arguments. To enter cell references as an argument, click the

Collapse Dialog button to temporarily hide the dialog box.
 Select or block the cells on the worksheet, and then press the
Expand Dialog button.

 When you complete the formula, press ENTER.

########## This is not really an error, but it means that the column is not wide enough
to display the value
#DIV/0! This is a divide by zero error, it can also occur if the formula is trying to
divide by an empty cell.
#NAME? The formula has a name that Excel doesn’t recognize.
#N/A The formula is referring to a cell that uses the NA function which designates
that the data is not available.
#NULL! The formula uses an intersection of two ranges that do not intersect
#NUM! A problem with a value exists.
#REF! Wrong type of argument or operand is used
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Christina Jenkins, Booth Library, EIU
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 #VALUE! Wrong type of argument or operand is used

AutoSum
Sum is used so often that Excel has an AutoSum button on the Standard toolbar. To insert a formula that uses Sum,
select the cell where you want the sum, click the AutoSum button. Excel will ‘suggest’ a range. If the range is correct,
press Enter. If the range is incorrect, use your mouse to click and drag to make the selection yourself.
This Table is used with the Sample Formulas below:

A B C D
1 25 28 95
2 42 91 14
3 3 4 5

Type of Equation: Entered in Cell D3: Result Displayed in D3:

Addition of Two Cells = A2 + B3 46
Addition of a Constant = B1 + 25 53
Addition of a Row of Cells = SUM (A1:C1) 148
Addition of a Column of Cells = SUM (B1:B3) 123
Addition of a Range of Cells = SUM (B1:C3) 237
Addition of Scattered Cells = SUM (A2,B1,C3) 75
Subtraction of a Constant = C1 - 10 85
Subtraction of a Cell = B2 – B1 63
Multiplication by a Constant = A3 * 20 60
Multiplication of Two Cells = B3 * C3 20
Multiplication by a % = A1 * .40 10
Multiplication by a % = B1 * 25% 7
Division by a Constant = C1 / 5 19
Division by a Cell = A2 / C2 3
Exponentiation (Squaring) = B3 ^ 2 16
Exponentiation (Cubing) = A3 ^ 3 27
Increasing by a Percentage (4%) = A1 + (A1 * .04) 26
Increasing by a Percentage (4%) = A1 * 1.04 26
Increasing by a Percentage (4%) = A1 + (A1 * ($B$3/100)) 26
Increasing by a Percentage (4%) = A1 + (A1 * 4%) 26
Decreasing by a Percentage (8%) = A1 - (A1 *.08) 23
Decreasing by a Percentage (8%) = A1 *.92 23
Decreasing by a Percentage (8%) = A1 – (A1 * 8%) 23
Average of a Column = AVG (B1:B3) 41
Average of a Row = AVG (A3:C3) 4
Average of a Range = AVG (B1:C2) 57

SPECIAL CASES:

The contents of cell C4 in

Formula referring to a cell in another worksheet Sheet2. If the content is a
= ’Sheet2’!C4
formula, Excel shows the
results of the formula.
Absolute Cell Reference for a row:
Note: The row number stays unchanged when the = A$1+3 28
formula is copied.
Absolute Cell Reference for a column:
Note: The column letter stays unchanged when = $A2 + 3 45
the formula is copied.
Absolute Cell Reference for a specific cell:
Note: Both row number and column letter are = 78 / $A$3 26
unchanged if the formula is copied.

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Christina Jenkins, Booth Library, EIU
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3-D Reference
If you want to analyze data in the same cell or range of cells on multiple worksheets within the workbook, use a 3-D
reference. A 3-D reference includes the cell or range reference, preceded by a range of worksheet names. Excel uses any
worksheets stored between the starting and ending names of the reference. For example, SEE SHEET 4 in cell G2
=SUM(Sheet1:Sheet3!G2) adds all the values contained in cell G2 on all the worksheets between and including Sheet 1
and Sheet 3.

The workbook must contain more than one worksheet.

Click the cell where you want to enter the function.
Type = (an equal sign), enter the name of the function, and then type an opening parenthesis.
Click the tab for the first worksheet to be referenced.
Hold down SHIFT and click the tab for the last worksheet to be referenced.
Select the cell or range of cells to be referenced.
Complete the formula.
Enter.

Guidelines for using 3-D references

 You can use 3-D references to refer to cells on other sheets, to define names, and to create formulas by using the
following functions: SUM, AVERAGE, AVERAGEA, COUNT, COUNTA, MAX, MAXA, MIN, MINA, PRODUCT, STDEV,
STDEVA, STDEVP, STDEVPA, VAR, VARA, VARP, and VARPA.
 3-D references cannot be used in array formulas.
 3-D references cannot be used with the intersection operator (a single space) or in formulas that use implicit
intersection.

What happens to a 3-D reference when you move, copy, insert, or delete worksheets?
The following examples explain what happens when you move, copy, insert, or delete worksheets that are included in a 3-
D reference. The examples use the formula =SUM(Sheet2:Sheet6!A2:A5) to sum cells A2 through A5 on worksheets 2
through 6.
Insert or copy If you insert or copy sheets between Sheet2 and Sheet6 (the endpoints in this example), Microsoft Excel
includes all values in cells A2 through A5 from the added sheets in the calculations.
Delete If you delete sheets between Sheet2 and Sheet6, Excel removes their values from the calculation.
Move If you move sheets from between Sheet2 and Sheet6 to a location outside the referenced sheet range, Excel
removes their values from the calculation.
Move an endpoint If you move Sheet2 or Sheet6 to another location in the same workbook, Excel adjusts the
calculation to accommodate the new range of sheets between them.
Delete an endpoint If you delete Sheet2 or Sheet6, Excel adjusts the calculation to accommodate the range of sheets
between them.

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Christina Jenkins, Booth Library, EIU
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Additional Information
Display or hide all zero values on a worksheet
1 On the Tools menu, click Options, and then click the View tab.
2 Do one of the following:
 To display zero (0) values in cells, select the Zero values check box.
 To display zero values as blank cells, clear the check box.

Date and Time to insert the current date and time in a cell
To insert the current date, Press Ctrl Semicolon.
To enter the current time, Press Ctrl Shift Colon.

Change the case of text

Use UPPER, LOWER, or PROPER are all built in functions.

D E
1 Name Enter formulas here
2 tina Jenkins

Formula Description (Result)

Changes text to all

=UPPER(A1) UPPERCASE (TINA
JENKINS)

Changes text to all lowercase

=LOWER(A1)
(tina jenkins)

Changes text to Title Case

=PROPER(A1)
(Tina Jenkins)

Appendix
IF
Returns one value if a condition you specify evaluates to TRUE and another value if it evaluates to FALSE.Use IF to
conduct conditional tests on values and formulas.
Syntax
IF(logical_test,value_if_true,value_if_false)

Logical_test is any value or expression that can be evaluated to TRUE or FALSE. For example, A10=100 is a logical
expression; if the value in cell A10 is equal to 100, the expression evaluates to TRUE. Otherwise, the expression
evaluates to FALSE. This argument can use any comparison calculation operator.

Value_if_true is the value that is returned if logical_test is TRUE. For example, if this argument is the text string "Within
budget" and the logical_test argument evaluates to TRUE, then the IF function displays the text "Within budget". If
logical_test is TRUE and value_if_true is blank, this argument returns 0 (zero). To display the word TRUE, use the logical
value TRUE for this argument. Value_if_true can be another formula.

Value_if_false is the value that is returned if logical_test is FALSE. For example, if this argument is the text string "Over
budget" and the logical_test argument evaluates to FALSE, then the IF function displays the text "Over budget". If
logical_test is FALSE and value_if_false is omitted, (that is, after value_if_true, there is no comma), then the logical value
FALSE is returned. If logical_test is FALSE and value_if_false is blank (that is, after value_if_true, there is a comma
followed by the closing parenthesis), then the value 0 (zero) is returned. Value_if_false can be another formula.

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Christina Jenkins, Booth Library, EIU
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Remarks

 Up to seven IF functions can be nested as value_if_true and value_if_false arguments to construct more
elaborate tests. See the last of the following examples.
 When the value_if_true and value_if_false arguments are evaluated, IF returns the value returned by those
statements.
 If any of the arguments to IF are arrays, every element of the array is evaluated when the IF statement is carried
out.
 Microsoft Excel provides additional functions that can be used to analyze your data based on a condition. For
example, to count the number of occurrences of a string of text or a number within a range of cells, use the
COUNTIF worksheet function. To calculate a sum based on a string of text or a number within a range, use the
SUMIF worksheet function. Learn about calculating a value based on a condition.

SEE SHEET 7 in cell C2

A B C
1 Actual Expenses Predicted Expenses Status
2 1500 900 Over Budget
3 500 900 OK
4 500 925 OK
Formula Description (Result)
C2=IF(A2>B2,"Over Checks whether the first row is over
Budget","OK") budget
C3=IF(A3>B3,"Over Checks whether the second row is
Budget","OK") over budget

To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent),
or on the Tools menu, point to Formula Auditing, and then click Formula Auditing Mode.

SEE SHEET 6
H I
1 Average Grade
2 80
3 85
4 82
=IF(H2>89,"A",IF(H2>79,"B", Assigns a letter grade to the first score (B)
IF(H2>69,"C",IF(H2>59,"D","F"))))
=IF(H3>89,"A",IF(H3>79,"B", Assigns a letter grade to the second score (B)
IF(H3>69,"C",IF(H3>59,"D","F"))))
=IF(H4>89,"A",IF(H4>79,"B", Assigns a letter grade to the third score (B)
IF(H4>69,"C",IF(H4>59,"D","F"))))

In the preceding example, the second IF statement is also the value_if_false argument to the first IF statement. Similarly,
the third IF statement is the value_if_false argument to the second IF statement. For example, if the first logical_test
(Average>89) is TRUE, "A" is returned. If the first logical_test is FALSE, the second IF statement is evaluated, and so on.

The letter grades are assigned to numbers using the following key.

If Score is Then return

Greater than 89 A
From 80 to 89 B
From 70 to 79 C
From 60 to 69 D
Less than 60 F

Microsoft Excel 2003: Intermediate III

Christina Jenkins, Booth Library, EIU
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