Excel Chapter 2

Chapter 2 Using Formulas and Functions

Excel 2010 Using Formulas and Functions Skill 2.1 Using Functions in Formulas Skill 2.2 Using AutoSum to Insert a SUM Function Skill 2.3 Creating Formulas Using the AVERAGE Function Skill 2.4 Creating Formulas Using Counting Functions Skill 2.5 Using Other Statistical Functions Skill 2.6 Using Date and Time Functions Skill 2.7 Using Absolute and Relative References Skill 2.8 Naming Ranges of Cells Skill 2.9 Working with Named Ranges Skill 2.10 Using Logical Functions Skill 2.11 Calculating Loan Payments Using the PMT Function Skill 2.12 Finding Data Using the VLOOKUP Function Skill 2.13 Creating Formulas Referencing Data from Another Worksheet Skill 2.14 Displaying and Printing Formulas Skill 2.15 Checking Formulas for Errors 2-

Functions are preprogrammed shortcuts for calculating complex equations (like the monthly payment amount for a loan). Most functions require you to provide input called the arguments . Excel Skill 2.1 Using Functions in Formulas 2-

Type the formula directly in the cell or the formula bar. Use Formula AutoComplete by typing = and then a letter. Formula AutoComplete displays a list of potential matches. On the Formulas tab, select a function from the Function Library group, or click the Insert Function button to select a function from the Insert Function dialog. Use AutoSum to insert common functions (SUM, AVERAGE, COUNT, MIN, and MAX) with a single mouse click. Four Basic Ways to Add a Function to a Formula 2-

Excel Skill 2.2 Using AutoSum to Insert a SUM Function SUM function - used to add several cells together. = SUM(A3:A6) The range A3:A6 tells Excel to add the values in all of the cells between A3 and A6 ( A3 1 A4 1 A5 1 A6 ). Ways to Create a SUM Function Using the Function Arguments dialog box Using Formula AutoComplete Using the AutoSum button (much easier because Excel enters the function arguments for you.) 2-

Select the cell in which you want to enter the function. On the Formulas tab, in the Function Library group, or on the Home tab, in the Editing group, click the AutoSum button. Excel automatically inserts a formula with the SUM function, using the range of cells contiguous to (next to) the selected cell as the arguments for the function. You can increase or decrease the range of cells selected by clicking & dragging the corner of the highlighted cell range. Press Enter to accept the formula. To Insert a SUM Function Using AutoSum 2-

Excel Skill 2.3 Creating Formulas Using the AVERAGE Function AVERAGE function - used to calculate the average value of a group of values. = AVERAGE(A3:A6) The value of this formula is the average of the values of cells A3 through A6: (A3 + A4 + A5 + A6)/4. Average is calculated by adding the values, and then dividing the sum by the number of values. To calculate the average of numbers in more than one range of values, use a comma to separate arguments: = AVERAGE(A3:A6,B3:B6) The value is the average of the values of cells A3 through A6 and B3 through B6: (A3+A4+A5+A6+B3+B4+B5+ B6)/8. 2-

Select the cell in which you want to enter the function. On the Formulas tab, in the Function Library group, click the AutoSum button arrow, or on the Home tab, in the Editing group, click the AutoSum button arrow, and then click Average. Excel will automatically insert a formula using the AVERAGE function, using the range of cells contiguous to (next to) the selected cell as the arguments for the function. Press Enter to accept the formula. To Insert an AVERAGE Function Using AutoSum 2-

Excel Skill 2.4 Creating Formulas Using Counting Functions Counting functions are useful when you need to know how many numbers or items are in a list, or how many rows are missing data for a particular column Three basic counting functions in Excel: COUNT —Counts the number of cells that contain numbers within a specified range of cells. COUNTA —Counts the number of cells that are not blank within a specified range of cells. Use COUNTA if your cell range includes both numbers and text data. COUNTBLANK —Counts the number of blank cells within a specified range of cells. 2-

Click in the cell where you want the formula. Type = COUNT to display the Formula AutoComplete list of functions that begin with “count”. Double-click the function you want to use. Excel enters the beginning of the formula in the cell. Click the first cell in the range of cells you want to use for your arguments, and then drag and release the mouse button when you reach the last cell in the range. Press Enter. Excel enters the cell range as the function arguments, and adds ) to the end of the formula. Use Formula AutoComplete to Enter Counting Functions 2-

Excel Skill 2.5 Using Other Statistical Functions The MIN (minimum) statistical function will give you the lowest value in a range of values. = MIN(A3:A6) The MAX (maximum) statistical function will give you the highest value in a range of values. = MAX(A3:A6) To explore the wide variety of complex statistical functions available in Excel: On the Formulas tab, in the Function Library group, click the More Functions button and point to Statistical, or open the Insert Function dialog box and select the Statistical category. 2-

Select the cell in which you want to enter the function. On the Formulas tab, in the Function Library group, click the AutoSum button arrow, or on the Home tab, in the Editing group, click the AutoSum button arrow, and then click Min to display the smallest value or Max to display the highest value. Excel automatically inserts a formula, using the range of cells contiguous to (next to) the selected cell as the arguments for the function. Increase or decrease the range of cells selected by clicking and dragging the corner of the highlighted cell range. Press Enter to accept the formula. To Use AutoSum 2-

Excel Skill 2.6 Using Date and Time Functions NOW function - inserts the current date and time. = NOW() TODAY function - inserts only the current date. = TODAY() Both functions are volatile —that is, they are not constant. These functions do not require arguments. 2-

Select the cell where you want the date and time to appear. On the Formulas tab, in the Function Library group, click the Date & Time button. Click NOW. When the Function Arguments dialog box appears, click OK. If necessary, format the cell to display both the date and time. To insert just the current date, follow the same steps, but select the TODAY function instead. To Insert the Current Date and Time 2-

Excel Skill 2.7 Using Absolute and Relative References A cell’s address, its position in the workbook, is referred to as a cell reference when it is used in a formula. Cell references can be relative, absolute, or mixed. Relative reference - a cell reference that adjusts to the new location in the worksheet when the formula is copied. Example: A1 Absolute reference - a cell reference whose location remains constant when the formula is copied. Example: $A$1 The $ character before a letter or number in the cell address means that part of the cell’s address is absolute (nonchanging). A mixed reference is a combination cell reference with a row position that stays constant with a changing column position (or vice versa). Example: $A1 2-

When you type a formula into a cell, it uses relative references by default. Excel calculates the position of the referenced cell relative to the active cell. For example, if cell B17 is the active cell and you type the formula = B16, Excel displays the value of the cell that is up one row from the active cell. If you add another row, shifting the position of cell B17 to cell B18, Excel adjusts the reference in the formula to reflect the new cell address that is up one row from the current position. If you copy the formula = B16 from cell B17 and paste it into cell C17, the pasted formula will update to = C16 to reflect the cell address that is up one row from the new position. How Relative and Absolute References Work 2-

But what if you don’t want the cell reference to adjust? For example, cell B13 contains a value that you want to use in calculations for multiple cells in a row. If you copy the formula =B13*B16 from cell B17 to cell C17, the formula updates to =C13*C16 (not what you intended) because both of the cell references are relative. The reference in cell B13 needs to be absolute, so it doesn’t update when copied. Use the formula =$B$13*B16 instead and copy it from cell B17 to cell C17. The pasted formula will only update the relative reference (B16) . The absolute reference ($B$13) will remain constant. The formula in cell C17 will be =$B$13*C16. How Relative and Absolute References Work 2-

Excel Skill 2.8 Naming Ranges of Cells Cell references like A4 and J34 do not provide much information about what data the cell contains—they just tell you where the cell is located in the worksheet. However, you can assign names to cells or ranges of cells to give your cell references names that are more user-friendly. These names (also called range names or named ranges ) act as a list of shortcuts to the cell locations. 2-

Select the cell or range of cells to which you want to assign a name. Type the name in the Name box to the left of the formula bar. Press Enter to apply the name to the cell(s). To Create a Named Range 2-

Select the range of cells you want to name including the row or column label. On the Formulas tab, in the Defined Names group, click the Create from Selection button . In the Create Names from Selection dialog, click the check box(es) to indicate where the names are (top row, left column, bottom row, or right column). Click OK. Automatically Create Named Ranges Using Labels 2-

Excel Skill 2.9 Working with Named Ranges Rather than using a range of cells in your formulas, you can use a named range. The name will always refer to the cells, even if their position in the worksheet changes. Using named ranges in your formulas also makes it easier for others to use your workbook. Which formula is easier to understand: SUM(B5:B8) or SUM(JAN)? Formula AutoComplete lists named ranges as well as functions. Using the AutoComplete list is a good way to avoid typographical errors and ensure that you enter the name correctly. When you copy and paste a formula containing a named range, the name does not change with the new position in the workbook (similar to using an absolute reference). If you move a named cell, the name updates with the new cell location automatically. 2-

Click the cell where you want to enter the new formula. Type the formula, substituting the range name for the cell references. Press Enter to accept the formula. To Use a Named Range in a Formula 2-

Type an = sign to begin the formula. As you type alphabetical characters, Excel will offer name suggestions. When you find the name you want, double-click it. Excel inserts the name into the formula. To Use Formula AutoComplete with Names 2-

Excel Skill 2.10 Using Logical Functions The logical functions group includes: IF — Returns one value if a condition is true and another value if the condition is false. AND —Returns TRUE if the all of the arguments are true, and FALSE if at least one of the arguments is not true. OR —Returns TRUE if at least one of the arguments is true, and FALSE if all of the arguments are false. NOT —Returns TRUE if the argument is false, and FALSE if the argument is true. IFERROR —Returns an error message or specified value if the value of the referenced cell is an error; else it returns the value of the referenced cell. 2-

Select the cell where you want to enter the formula. On the Formulas tab, in the Function Library group, click the Logical button. Select IF from list of functions. Enter Logical_test argument. This argument states the condition to test for. Use cell references and/or values with logical operators. Enter Value_if_true argument. This is the text string or value displayed if the Logical_test argument is true. Enter Value_if_ false argument. This is the text string or value displayed if the Logical_test argument is false. Click OK. To Use the IF Function 2-

Excel Skill 2.11 Calculating Loan Payments Using the PMT Function PMT (payment) function - use to calculate loan payments. PMT is based upon constant payments and a constant interest rate. Example formula to calculate payments for a $250,000 loan paid in 120 installments at 12 installments per year with an annual percentage interest rate of 7%: = PMT(7%/12,120,250000) Example formula using named ranges & cell references where Interest rate is stored in a cell named Interest_Rate, Total number of payments is stored in cell H7 Amount of the loan is in a cell named Loan = PMT(Interest_Rate/12,H7,Loan,0,0) The result of both of these formulas is –2,902.71. Because the result of the formula is a payment, it is expressed as a negative number. 2-

Select the cell where you want to enter the formula. On the Formulas tab, in the Function Library group, click the Financial button. Select PMT from the list. Excel displays the appropriate Function Arguments dialog. In the Rate box, enter interest rate divided by number of payments per year. In the Nper box, enter total number of payments over life of loan. In the Pv box, enter the present value of the loan. (Optional) In the Fv box, enter the future value of the loan. (Optional) In the Type box, enter 1 if payment is at beginning of period. Click OK to enter the formula. To Use the PMT Function 2-

Excel Skill 2.12 Finding Data Using the VLOOKUP Function Lookup and reference functions return values based on a cell’s position in a table or array. Example: Use the VLOOKUP function to look up the part of a loan payment that is applied to the principal of the loan by: returning the value of column 7 (the Principal column) within the range named Loan_Data (cells A20:I123), where the value in the first column of the data array (the PmtNo column) is the value in cell D13: = VLOOKUP(D13,LoanRange,7) 2-

Select cell to enter the formula in. On the Formulas tab, in the Function Library group, click Lookup & Reference button. Select VLOOKUP from list. Excel displays the appropriate Function Arguments dialog. In Lookup_value box, enter value in first column to return a corresponding value for. In Table_array box, enter range of cells for array (or table or range name). In Col_index_num box, enter column number from which function should return matching value. (optional) In Range_lookup box, enter FALSE to find only an exact match for value entered in Lookup_value box. Click OK. To Use the VLOOKUP Function 2-

Excel Skill 2.13 Creating Formulas Referencing Data from Another Worksheet Cell references are not limited to cells within the same worksheet. Reference cells in other worksheets in a workbook or other workbooks. This is useful when creating summary sheets or performing analysis on data from multiple sheets. For example, this formula will display the value of cell B3 from the Cash Flow worksheet: = ‘ Cash Flow ’ !B3 If multiple workbooks are open, click a cell in another workbook to create an external reference. The reference will look like this: = B17 + ‘[Four Year Profit Projections.xlsx]Salaries’!$D$6 2-

Click the cell where you want the formula. Type an equal sign ( = ). Navigate to the cell you want to reference by clicking the sheet tab and then clicking the cell. Press Enter to complete the formula. To Include a Reference to a Cell From Another Sheet 2-

Excel Skill 2.14 Displaying and Printing Formulas How do you troubleshoot a worksheet that is displaying unexpected values? When you look at a worksheet, you see only the results of formulas—cells display the values, not the formulas themselves. When you click a cell, the formula is displayed in the formula bar. But what if you want to view all of the formulas in your worksheet at once? To display the formulas in the current worksheet instead of values, on the Formulas tab in the Formula Auditing group, click the Show Formulas button. 2-

First display the formulas in the worksheet by clicking the Show Formulas button. Next, print the worksheet: Click the File tab. Click Print. At the right side of the page is a preview of how the printed file will look. Adjust the print settings if necessary. Click the Print button to send the file to your default printer. To Print a Copy of the Worksheet with Formulas 2-

Excel Skill 2.15 Checking Formulas for Errors Some worksheet errors are easily identifiable—such as divide by zero errors: #DIV/0! (Excel cannot calculate a value to display). Other errors, like formulas that leave out part of a cell range, are harder to find. Use Excel’s Error Checking function to review a worksheet for errors. The Error Checking dialog displays each error it finds, allowing you to resolve or ignore each error in turn. If Excel is able to offer a solution to the error, the dialog will include a button to accept the suggested fix. Click Help on this error button to open Microsoft Office Help. Click Ignore Error to dismiss error. Click Edit in Formula Bar to fix the error manually. 2-

On the Formulas tab in the Formula Auditing group, click the Error Checking button. The Error Checking dialog displays information about the first error. The buttons available in the dialog box will differ, depending on the type of error found. Click the Next button to see the next error in your worksheet. When you have reviewed all errors, Excel displays a message that the error check is complete. Click OK to dismiss the message box. To Use Error Checking to Find Errors in Worksheet 2-

When a Smart Tag appears, move mouse over icon to display a ToolTip describing possible error. Click Smart Tag arrow to display possible error resolutions. To keep formula as it is, select Ignore Error. To resolve error, select an option: The first option is usually a suggestion of how to resolve error. Click to accept Excel’s suggestion. Select Help on this error to open Microsoft Office Help. Select Edit in Formula Bar to manually edit the formula. Select Error Checking Options. . . to open Options dialog and modify the way Excel checks for errors. After making selection from Smart Tag options, the Smart Tag is dismissed. To Use Smart Tags to Resolve Errors in Formulas 2-

Excel 2010 Using Formulas and Functions Recap Skill 2.1 Using Functions in Formulas Skill 2.2 Using AutoSum to Insert a SUM Function Skill 2.3 Creating Formulas Using the AVERAGE Function Skill 2.4 Creating Formulas Using Counting Functions Skill 2.5 Using Other Statistical Functions Skill 2.6 Using Date and Time Functions Skill 2.7 Using Absolute and Relative References Skill 2.8 Naming Ranges of Cells Skill 2.9 Working with Named Ranges Skill 2.10 Using Logical Functions Skill 2.11 Calculating Loan Payments Using the PMT Function Skill 2.12 Finding Data Using the VLOOKUP Function Skill 2.13 Creating Formulas Referencing Data from Another Worksheet Skill 2.14 Displaying and Printing Formulas Skill 2.15 Checking Formulas for Errors 2-

Excel Chapter 2

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