Module 5: FORMULA AND FUNCTIONS

A. FORMULA
In Microsoft Excel, you can enter numbers and mathematical formulas into cells.
Whether you enter a number or a formula, you can reference the cell when you
perform mathematical calculations such as addition, subtraction, multiplication,
or division. When entering a mathematical formula, precede the formula with an
equal (=) sign.

a.1 To enter a formula:

1. Click the cell pointer on the desired cell and type the formula commencing with =
2. Press ENTER, an arrow key or TAB key to confirm the data entry and to move the cell
pointer to another cell (to get the cell address of the value you want to use for
computation).

Basic Mathematical Operators based on priority:

/ and * (division and multiplication)
+ and – (addition and subtraction)
^ Exponentiation

In any cases specifically if there is/are formulas that needs to be computed first use
parentheses ( ). In Excel formulas, any formula enclosed with parenthesis means first priority.

Syntax for computation using formula:

=value1 operator value2 …
Values are represented by either constant number, or cell address
Example:
a. =A1+A2
b. =A1*1
c. =(B2*10%) + A3 * (A1+A2)

PRACTICE 1 : Addition, Subtraction, Multiplication and Division of Numbers

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 1. Type: Add, Subtract, Multiply, and Divide in cells A1, B1, C1,
and D1 respectively
2. Type: 12, 25, 11 and 75 in cells A2, B2, C2 and D2 respectively
3. Type: 8, 13, 6 and 5 in cells A3, B3, C3 and D3 respectively
4. Type: = A2 + A3 in cell A5 and press Enter
5. Type: = B2 + B3 in cell A5 and press Enter
6. Type: = C2 + C3 in cell A5 and press Enter
7. Type: = D2 + D3 in cell A5 and press Enter

PRACTICE 2 : Complex Formulas

Using the data in Practice 1, perform the following instructions:

1. Move to cell A7.
2. Type =3+3+12/2*4.
3. Press Enter.

To change the order of calculation, use parentheses. Microsoft Excel calculates

the information in parentheses first.

1. Double-click in cell A7.

2. Edit the cell to read =(3+3+12)/2*4.
3. Press Enter.

What did you observe?

Microsoft Excel adds 3 plus 3 plus 12, divides the answer by 2, and then multiplies
the result by 4. The answer, 36, displays in cell A7.

B. FUNCTIONS

By using functions, you can quickly and easily make many useful calculations, such
as finding an average, the highest number, the lowest number, and a count of the
number of items in a list. Microsoft Excel has many functions that you can use.

To use functions, you need to understand reference operators. Reference operators

refer to a cell or a group of cells. There are two types of reference operators: range
and union.
 A range reference refers to all the cells between and including the
reference. A range reference consists of two cell addresses separated by
a colon.
Examples:
A1:A3 includes cells A1, A2, and A3.
A1:C3 includes cells A1, A2, A3, B1, B2, B3, C1, C2, and C3.

 A union reference includes two or more references. A union reference

consists of two or more numbers, range references, or cell addresses
separated by a comma.

Example: The reference A7,B8:B10,C9,10 refers to cells A7, B8 to B10, C9 and

the number 10.

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 Functions are prewritten formulas. Functions differ from regular formulas in that
you supply the value but not the operators, such as +, -, *, or /.

For example, you can use the SUM function to add. When using a function, remember
the following:

1. Use an equal sign to begin a formula.

2. Specify the function name.
3. Enclose arguments within parentheses. Arguments are values on which you want to
perform the calculation. For example, arguments specify the numbers or cells you want
to add.
4. Use a comma to separate arguments.

=function name (range of cells)

Example: =SUM(A1:10)
Sum is the function name , A1:A10 is the range of cells, this means that microsoft
excell will add the values stored in cells A1 to A10.

Since functions are predetermined formula, Microsoft

Excel has a library of this functions including the proper and correct
syntax. Once function name was read by MS Excel compiler, it already
knows what to do with the values.

The AutoSum

AutoSum button on the Home tab to automatically add a column or row of

numbers. When you press the AutoSum button , Excel selects the numbers it thinks you
want to add. If you then click the check mark on the Formula bar or press the Enter key,
Excel adds the numbers. If Excel's guess as to which numbers you want to add is wrong,
you can select the cells you want.

The AutoSum has also options when dropdown button was selected.

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  Sum – adds values within the range of cells
 Average- returns the average of the values within the range
 Count Numbers- literally counts the number of cells with values
within the range
 Max – returns the highest value
found within the range
 Min- returns the lowest value
found within the range
More Functions means: more
options of functions depending on
purpose.

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PRACTICE 3

Perform the basic functions used in Excel, given the

data presented.

Provide output for SUM, AVERAGE, COUNT, MAX and

MIN.

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 LABORATORY EXERCISE 2. FORMULA

Instructions:

1. Copy the data and format the text and numbers as shown on the worksheet below.
2. Perform mathematical basic formula to compute for the total sales, and use function to
compute for the total costs per month.
3. Create also a formula to compute for the Gross Income, Fixed Costs, Net Income and
Exchange Rate. (Compare the value displayed in your worksheet with the presented
values in the figure. If your computation is the same, you did it right with the formula).
4. Save your file as ACCTY215-Excel1-[yourfullname]

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