Chapter Four: Introducing Excel Formulas

Chapter Four: Introducing Excel Formulas. 1

Exercise One: Copying Formulas with Cell References. 5

Exercise Two: Payroll Forecast 6

Exercise Three: Sales Forecast 9

A worksheet consists of a set of cells (boxes) aligned in rows and columns. Each cell can contain a string (letters or numbers mixed with letters), a number, or a date. Each cell is referred to by the letter of the column it appears in, followed by its row number. 

 

Column A

Column B

Column C

Column D

Row 1

3

5

 

 

Row 2

Text Message

March 18, 2002

 

 

In Column A Row 1 the content of cell A1 is a number with the value 3.

In Column B Row 1 the content of cell B1 is a number with the value 5.

In Column A Row 2 the content of cell A2 is a label “Text Message.”

In Column B Row 2 the content of cell B2 is a number, 37333. The number has been formatted to appear as a date. Why is it a number? So you can add and subtract dates or easily put them in calendar order. Excel assigns a number to each date by counting the number of days since January 1, 1900.

A cell can also contain a formula. A formula is a mathematical equation. Formulas always start with an = sign. The result of calculating the equation will appear in the cell. The actual formula appears in the formula bar area, above the worksheet, when the cell containing the formula is selected.

If you use a cell name (called a cell reference) in a formula, Excel uses the value found in that cell to calculate the result of the formula. For example, if you enter =A1 + 5 as a formula in cell C1 Excel will look into cell A1. It sees a 3 in that cell, so it converts the formula into the form = 3 + 5. The answer, 8, will be displayed in cell C1. The formula bar will display the formula, =A1+ 5. Remember: formulas always start with = signs!

When you enter these statements or formulas in cell C1, here is what will be displayed:

 These strings

in cell C1

Display this

 in cell C1

 

These formulas

in cell C1

Display this

in cell C1

5+3

5+3

 

=5+3

8

B1 + 3

B1 + 3

 

=B1 + 3

8

A1+B1

A1+B1

 

=A1+B1

8

5+B1

5+B1

 

=5+B1

10

Displaying Formulas: Sometimes you may want to display the actual formulas, instead of their results. You can highlight each individual cell and its formula will be displayed in the formula box located above the worksheet area. To view all of the cells as formulas, press Ctrl + ~ (tilde). The tilde key is in the upper left corner of the keyboard. There is a checkbox on the View tab where you can reset the worksheet to display formulas. You can also turn the gridlines on and off from this location.

Sometimes you will write a formula referring to several cells. If these cells have a rectangle shape, called a range, you can use range notation to describe them. Simply enter the cell address from the upper left corner, followed by a colon and the cell address from the lower right corner.

Example of ranges: B3:C4, E2:E4, C6:E7

 

A

B

C

D

E

F

1

 

 

 

 

 

 

2

 

 

 

 

Range 2

 

3

 

Range 1

Range 1 

 

Range 2

 

4

 

Range 1

Range 1

 

Range 2

 

5

 

 

 

 

 

 

 6

 

 

Range 3

Range 3

Range 3

 

 7

 

 

Range 3

Range 3

Range 3

 

8

 

 

 

 

 

 

The Sum Function Excel has some built-in shortcuts, called functions, to perform complex tasks. The most commonly used function is =SUM. The Sum function tells Excel to add the total of all the cells in the range. Here’s a sample, =SUM(B3:C4) You can create Sum functions with an icon (S) found on the Standard toolbar.

Copying formulas:  

  

C

D

E

Comment

4

= A1+B2+C3

= C1+D2+E3

Letters change when you copy a formula into a different column. Numbers change when you copy a formula into a different row.

5

 

 

6

= A3+B4+C5

 

= C3+D4+E5

Cell addresses, like those in the table above, are called relative, or dynamic, cell references. Cell addresses written in this form will change when the formula is copied into other cells. The row numbers change when the formula is copied into a different row. The letters change when the formula is copied into a different column.

You can write cell references in a different form. Adding dollar signs to cell references tells Excel that you don’t want those cell references to change when the formula is copied. The part of the cell reference following each $ will not change.

The dollar sign does not change the result of the formula. = A1+B2 and = $A$1 + $B$2 will display exactly the same thing.

Cell references can have dollar signs in front of just the number, = C$3, or in front of just the letter, = $C3. These are called “mixed cell references.”  Cell references with dollar signs in front of the letter and number, = $C$3, are called “absolute cell references.”

If you want to create a set of formulas that will always refer to either one specific row: A$1, or one specific column: $B2, use a mixed cell reference.

For a formula with a fixed reference to a specific cell, use an absolute cell reference.

Mixed Cell Reference for a row: The row number stays unchanged when the formula is copied.

= A$1+3

Mixed Cell Reference for a column:

The column letter stays unchanged when the formula is copied.

= $A2 + 3

Absolute Cell Reference:

The row number and column letter are unchanged if the formula is copied.

= 78 / $A$3

You can combine absolute, mixed, and relative cell references in a single formula. In the following table, the formula in cell C4 was copied into other cells. Observe which row and column numbers changed and note the effect of the dollar signs.

 

C

D

E

Comment

4

= A$1+$B2

 

= C$1+$B2

Notice that only the A and the 2 (in cell C4) change. Because of the $ symbol, the others don’t change.

5

 

 

6

= A$1+$B4

 

= C$1+$B4

One use for an absolute reference is to divide numbers in several cells by the same divisor, to find percentages. The formula can be written once, using an absolute cell reference to refer to the cell containing the divisor. Then it can be copied into other cells. For example = A4 / $B$7.

Some common error messages:  Error messages start with a pound sign (#).

#####   If you see railroad tracks, your column is too narrow. Solution - widen the column.

#DIV/O!  You are dividing by an empty cell or zero. Solution - fix the formula’s denominator.

#REF! Your formula refers to a range or cell that no longer exists, due to a change in the worksheet.

#NAME?  Your formula contains text that Excel doesn’t recognize. This could have many causes. Usually it’s a typo or missing punctuation in a formula.

CIRCULAR  A formula cannot refer to the cell it is located in. For example the formula =C4+5 cannot be used in cell C4. The error message appears below the worksheet.

Examples of commonly used formulas: There is no one right way to write a formula; getting the correct result is what matters. Spaces are not necessary in formulas, but were included in the examples to make them easier to read.


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

 

SAMPLE FORMULAS:

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