SPREADSHEET IN

BUSINESS
Dr.Bharath V MFM., M.Com., Ph.D
Assistant Professor
Department of Management
Kristu Jayanti College (Autonomous)
Bengaluru

[email protected]
UNIT 4
➢ Introduction to Spreadsheet
➢ Features of Spreadsheet
➢Cell reference, Format cells, Data Validation,
Protecting Sheets
➢Data Analysis in Excel: sort, filter, conditional
formatting, preparing charts, pivot table, what if
analysis(Goal Seek, Scenario manager)
➢Financial Functions: NPV, PMT, PV,FV, Rate,
IRR, DB,SLN,SYD.
➢Logical Functions: IF, AND, OR, Lookup
Functions: V Lookup, H Lookup, mathematical
functions, and text functions
SPREADSHEET
➢A spreadsheet is a computer program that can
capture, display and manipulate data arranged in
rows and columns. Spreadsheets are one of the
most popular tools available with personal
computers.
➢A spreadsheet is generally designed to hold
numerical data and short text strings.
➢A single spreadsheet can be used as a worksheet
to compile data for a purpose, or multiple sheets
can be combined to create an entire workbook.
POPULAR SPREADSHEETS
➢Jotform Tables ➢LibreOffice
➢Microsoft Excel ➢Apache
➢Apple Numbers OpenOffice
➢Google Sheets ➢Smartsheet
➢Quip ➢Airtable
➢EtherCalc
➢Stackby
➢Zoho Sheets
➢SeaTable
FEATURES OF SPREADSHEET
➢Formatting: The cells which one selects can be formatted to
represent different numeric values in the spreadsheet.
➢Formulas: Spreadsheets contain procedures because they exhibit
relationships of two or multiple cells. Users can use them to
emphasise cells that are required to add up and enter a sum
function.
➢Pivot tables: These tables identify, group, aggregate, count,
average or sort data through the toolbar. It enables the conversion
of rows into columns and vice-versa. Different tools and functions
vary according to the application the user prefers for use.
➢Charts: Charts are the graphical representation of data.
Spreadsheet software provides different types of charts. The data
in charts can be viewed and understood by the users easily.
FEATURES OF SPREADSHEET
➢ Sorting and Filtering: Sorting is the process of arranging your
data in a particular order. You can sort the data in your worksheets
in ascending or descending order. The filter allows displaying the
required data in a worksheet by giving criteria.
➢ Autofill: AutoFill in a feature in spreadsheet that can fill a range in
a specific direction by using the fill handle. The range is filled with
values (numerical, textual or a mix) which are either copied from
the initially selected cell or based on the pattern of the selected
cells. The range can be filled downwards, upwards, rightwards or
leftwards.
➢ Drag and drop: Drag and drop is a way to copy or move data in
Excel using the mouse. It is an alternative to using cut and paste.
TABS IN SPREADSHEET
❑ HOME
❑ INSERT
❑ PAGE LAYOUT
❑ FORMULAS
❑ DATA
❑ REVIEW
❑ VIEW
CELL REFERENCE
• A cell reference refers to a cell or a range of cells on a
worksheet and can be used in a formula so that
Microsoft Office Excel can find the values or data that
you want that formula to calculate.
• In one or several formulas, you can use a cell reference
to refer to:
▪ Data from one or more continuous cells on the
worksheet.
▪ Data contained in different areas of a worksheet.
▪ Data on other worksheets in the same workbook.
Formatting cells
• You can apply formatting to an entire cell and to the
data inside a cell or a group of cells. Formatting cells in
spreadsheet in Excel, can really help you improve not
just the aesthetic perspective of your document, but also
its effectiveness in providing relevant information to the
viewers of the files.
• Steps:
1. Select the cells in spreadsheet to be formatted
2. Right click and select “Format Cells”
3. Select the appropriate formatting option from
Numbers, Alignment, Font, Border, Fill and Protection
4. Save the spreadsheet
Data validation
➢Data validation in Excel is a feature that allows you to
control the type of data entered in your worksheet.

➢Use data validation to restrict the type of data or the

values that users enter into a cell, like a dropdown list.
Data validation
➢Select the cell(s) you want to create a rule for.
➢Select Data >Data Validation.
➢On the Settings tab, under Allow, select an option:
➢Under Data, select a condition.
➢Set the other required values based on what you chose
for Allow and Data.
➢Select the Input Message tab and customize a message
users will see when entering data.
➢Select the Show input message when cell is
selected checkbox to display the message when the user
selects or hovers over the selected cell(s).
➢Select the Error Alert tab to customize the error message
and to choose a Style.
➢Select OK.
Protecting sheets
• To prevent other users from accidentally or deliberately changing,
moving, or deleting data in a worksheet, you can lock the cells on
your Excel worksheet and then protect the sheet with a password.
• Steps

➢Select Review > Manage Protection.

➢To turn on protection, in the Manage Protection task pane, select
Protect sheet.
➢By default, the entire sheet is locked and protected
➢Optionally, to require a password to edit a range, select Range
password, enter, and confirm the password, and then select Save.
Data Analysis in Excel
➢ Sort
➢ Filter
➢ Conditional formatting
➢ Preparing charts
➢ Pivot table
➢ What if analysis(Goal Seek,
Scenario manager)
Sorting
1.Select a cell in the column you want to
sort.
2.On the Data tab, in the Sort &
Filter group, do one of the following:
•To quick sort in ascending order,
click (Sort A to Z).
•To quick sort in descending order,
click (Sort Z to A).
Filtering
Filter a range of data
1.Select any cell within the range.
2.Select Data > Filter.
3. Select the column header arrow .
4.Select Text Filters or Number
Filters, and then select a comparison,
like Between
5.Enter the filter criteria and select OK.
Filtering
• Filter data in a table
• When you put your data in a table, filter controls are
automatically added to the table headers.
• 1. Select the column header arrow
• 2. Uncheck (Select All) and select the boxes you want
to show
3. Select OK.

The column header arrow changes to a Filter icon.

Select this icon to change or clear the filter.
Conditional formatting
• Conditional formatting makes it easy to
highlight certain values or make particular
cells easy to identify.

1. Select the range of cells, the table, or the

whole sheet that you want to apply
conditional formatting to.
2. On the Home tab, click Conditional
Formatting.
3. Do one of the following:
Conditional formatting
To highlight Do this

Values in specific cells. Examples are dates after this week, or Point to Highlight Cells
numbers between 50 and 100, or the bottom 10% of scores. Rules or Top/Bottom Rules, and
then click the appropriate option.
The relationship of values in a cell range. Extends a band of Point to Data Bars, and then click the
color across the cell. Examples are comparisons of prices or fill that you want.
populations in the largest cities.
The relationship of values in a cell range. Applies a color scale Point to Color Scales, and then click
where the intensity of the cell's color reflects the value's the scale that you want.
placement toward the top or bottom of the range. An
example is sales distributions across regions.

A cell range that contains three to five groups of values, Point to Icon Sets, and then click a
where each group has its own threshold. For example, you set.
might assign a set of three icons to highlight cells that reflect
sales below 80,000, below 60,000, and below 40,000. Or you
might assign a 5-point rating system for automobiles and
apply a set of five icons.
Charts
➢Charts help you visualize your data in
a way that creates maximum impact
on your audience. Learn to create a
chart and add a trend line.
➢ You can start your document from a
recommended chart or choose one
from our collection of pre-built chart
templates.
Preparing charts
• Create a chart
➢Select data for the chart.
➢Select Insert > Recommended
Charts.
➢Select a chart on the Recommended
Charts tab, to preview the chart.
➢Select a chart.
➢Select OK.
Preparing charts
• Add a trend line
➢Select a chart.
➢Select Design > Add Chart Element.
➢Select Trend line and then select the
type of trend line you want, such
as Linear, Exponential, Linear
Forecast, or Moving Average.
Pivot tables
➢A PivotTable is a powerful tool to
calculate, summarize, and analyze
data that lets you see comparisons,
patterns, and trends in your data.
➢PivotTables work a little bit differently
depending on what platform you are
using to run Excel.
CREATING PIVOT TABLES

➢Select the cells you want to create a PivotTable

from.
➢Select Insert > PivotTable.
➢This creates a PivotTable based on an existing
table or range.
➢Choose where you want the PivotTable report to
be placed. Select New Worksheet to place the
PivotTable in a new worksheet or Existing
Worksheet and select where you want the new
PivotTable to appear.
➢Select OK.
What if analysis
• By using What-If Analysis tools in Excel, you
can use several different sets of values in one
or more formulas to explore all the various
results.
• For example, you can do What-If Analysis to
build two budgets that each assumes a certain
level of revenue. Or, you can specify a result
that you want a formula to produce, and then
determine what sets of values will produce
that result. Excel provides several different
tools to help you perform the type of analysis
that fits your needs.
SCENARIO MANAGER
• A Scenario is a set of values that Excel saves and can substitute
automatically in cells on a worksheet. You can create and save
different groups of values on a worksheet and then switch to any of
these new scenarios to view different results.

➢Select the data cell in spreadsheet

➢Go into the data tab of the Toolbar.
➢Under the Data Table section, select the What-if analysis.
➢A drop-down appears. Select the Scenario Manager.
➢A dialog box appears in the dialog box select add option
➢A new dialog appears to write the name of the new scenario in the
first column.
➢In the second column select the changing cell.
➢A new dialogue box name Scenario Values appears to write the
changed value in the box.
➢A new Dialog box name Scenario Summary appears.
➢See the result.
GOAL SEEK
• If you know the result that you want from a formula, but
you're not sure what input value the formula requires to
get that result, you can use the Goal Seek feature.
•
➢Select the data cell in spreadsheet
➢Go into the data tab of the Toolbar.
➢Under the Data Table section, select the What-if
analysis.
➢A drop-down appears. Select the Goal Seek.
➢The dialogue box appears in the first column write the
name of the cell in which you apply the formula.
➢In the second column write the value of the target.
➢Click ok and see the result.
Financial functions
➢NPV
➢PMT
➢PV
➢FV
➢IRR
➢DB
➢SLN
➢SYD
NET PRESENT VALUE
• Calculates the net present value of an investment by
using a discount rate and a series of future payments
(negative values) and income (positive values).
• Syntax
➢NPV(rate,value1,[value2],...)
➢The NPV function syntax has the following arguments:
➢Rate Required. The rate of discount over the length of
one period.
➢Value1, value2, ... Value1 is required, subsequent
values are optional. 1 to 254 arguments representing the
payments and income.
Loan payment (PMT)
• PMT, one of the financial functions, calculates the payment for a loan
based on constant payments and a constant interest rate.
• Syntax
➢PMT(rate, nper, pv, [fv], [type])
➢Rate Required. The interest rate for the loan.
➢Nper Required. The total number of payments for the loan.
➢Pv Required. The present value, or the total amount that a series of
future payments is worth now; also known as the principal.
➢Fv Optional. The future value, or a cash balance you want to attain
after the last payment is made. If fv is omitted, it is assumed to be 0
(zero), that is, the future value of a loan is 0.
➢Type Optional. The number 0 (zero) or 1 and indicates when
payments are due.
PRESENT VALUE (pv)
• PV, one of the financial functions, calculates the present value of a
loan or an investment, based on a constant interest rate. You can use
PV with either periodic, constant payments (such as a mortgage or
other loan), or a future value that's your investment goal.
• Syntax
➢PV(rate, nper, pmt, [fv], [type])
➢Rate Required. The interest rate for the loan.
➢Nper Required. The total number of payments for the loan.
➢Pmt Required. The payment made each period and cannot change
over the life of the annuity.
➢Fv Optional. The future value, or a cash balance you want to
attain after the last payment is made. If fv is omitted, it is assumed
to be 0 (zero), that is, the future value of a loan is 0.
➢Type Optional. The number 0 (zero) or 1 and indicates when
payments are due.
Future value (fv)
• FV, one of the financial functions, calculates the future value of an
investment based on a constant interest rate. You can use FV with
either periodic, constant payments, or a single lump sum payment.
• Syntax
➢ FV(rate,nper,pmt,[pv],[type])
➢ Rate Required. The interest rate per period.
➢ Nper Required. The total number of payment periods in an
annuity.
➢ Pmt Required. The payment made each period; it cannot change
over the life of the annuity. Typically, pmt contains principal and
interest but no other fees or taxes. If pmt is omitted, you must
include the pv argument.
➢ Pv Optional. The present value, or the lump-sum amount that a
series of future payments is worth right now. If pv is omitted, it is
assumed to be 0 (zero), and you must include the pmt argument.
➢ Type Optional. The number 0 or 1 and indicates when payments
are due. If type is omitted, it is assumed to be 0.
INTERNAL RATE OF RETURN (IRR)
• Returns the internal rate of return for a series of cash
flows represented by the numbers in values. These cash
flows do not have to be even, as they would be for an
annuity. However, the cash flows must occur at regular
intervals, such as monthly or annually.
• Syntax
➢IRR(values, [guess])
➢Values Required. An array or a reference to cells that
contain numbers for which you want to calculate the
internal rate of return.
➢Guess Optional. A number that you guess is close to
the result of IRR.
SLN
• Returns the straight-line depreciation of an asset for one
period.
• Syntax
• SLN(cost, salvage, life)
• The SLN function syntax has the following arguments:
• Cost Required. The initial cost of the asset.
• Salvage Required. The value at the end of the
depreciation (sometimes called the salvage value of the
asset).
• Life Required. The number of periods over which the
asset is depreciated (sometimes called the useful life of
the asset).
SYD
• Returns the sum-of-years' digits depreciation of an asset
for a specified period.
• Syntax
• SYD(cost, salvage, life, per)
• The SYD function syntax has the following arguments:
• Cost Required. The initial cost of the asset.
• Salvage Required. The value at the end of the
depreciation (sometimes called the salvage value of the
asset).
• Life Required. The number of periods over which the
asset is depreciated (sometimes called the useful life of
the asset).
• Per Required. The period and must use the same units
as life
DEPRECIATION (DB)
• Returns the depreciation of an asset for a specified period using
the fixed-declining balance method.
• Syntax
➢DB(cost, salvage, life, period, [month])
➢Cost Required. The initial cost of the asset.
➢Salvage Required. The value at the end of the depreciation
(sometimes called the salvage value of the asset).
➢Life Required. The number of periods over which the asset is
being depreciated (sometimes called the useful life of the asset).
➢Period Required. The period for which you want to calculate
the depreciation. Period must use the same units as life.
➢Month Optional. The number of months in the first year. If
month is omitted, it is assumed to be 12.
LOGICAL FUNCTIONS
➢IF
➢AND
➢OR
IF FUNCTION
➢The IF function is one of the most popular
functions in Excel, and it allows you to make
logical comparisons between a value and what
you expect.
➢So an IF statement can have two results. The
first result is if your comparison is True, the
second if your comparison is False.
➢For example, =IF(C2=”Yes”,1,2) says IF(C2 =
Yes, then return a 1, otherwise return a 2).
AND FUNCTION
➢Use the AND function, one of the logical
functions, to determine if all conditions in a test
are TRUE.
➢The AND Function in excel is a logical
function that tests multiple conditions and
returns “true” or “false” depending on whether
they are met or not.
➢The formula of AND function is
“=AND(logical1,[logical2]…),” where
“logical1” is the first condition to evaluate.
OR FUNCTION
➢Use the OR function, one of the logical
functions, to determine if any conditions in a
test are TRUE.
➢The function will determine if any of the
conditions in a test is TRUE.
➢In financial analysis, the OR function can be
useful in comparing two statements or two
values. For example, A1 for either “a” or “b,”
use =OR(A1=”a”,A1=”b”).
Lookup function
➢Use LOOKUP, one of the lookup and reference functions,
when you need to look in a single row or column and find
a value from the same position in a second row or
column.
➢For example, let's say you know the part number for an
auto part, but you don't know the price. You can use the
LOOKUP function to return the price.
➢ It is two types
A. Vector Form
B. Array Form
HLOOKUP

➢Searches for a value in the top row of a table or an array of

values, and then returns a value in the same column from a row
you specify in the table or array. Use HLOOKUP when your
comparison values are located in a row across the top of a table
of data, and you want to look down a specified number of rows.

➢HLOOKUP(lookup_value, table_array, row_index_num,

[range_lookup])
➢The HLOOKUP function syntax has the following arguments:
➢Lookup_value Required. The value to be found in the first row
of the table. Lookup_value can be a value, a reference, or a text
string.
➢Table_array Required. A table of information in which data is
looked up. Use a reference to a range or a range name.
VLOOKUP
➢The VLOOKUP function in Excel is a powerful function
used to lookup data in a table organized vertically. It looks
down the left column of a range to find a value.
➢Syntax: =VLOOKUP(lookup_value, table_array,
col_index_num, [range_lookup] )