BSBITU402A Develop and use complex spreadsheets
Writer: Lynda Frost, Hunter
Develop a linked spreadsheet solution:
Readings
Formulas and functions
By completing this reading you will be able to build formulas incorporating absolute/relative cell
referencing, arithmetic and math/statistical functions.
Formulas to Perform Calculations
Microsoft Excel interprets an entry beginning with an equals sign(=) as a formula. There are many
different types of formulas you will use. They are broken down into two main types of formulas:
Formulas which can contain
Arithmetic operators, constants and cell
references
Functions
Formulas containing functions
(built-in calculation tools).
=B1+B3*10%
=SUM(B1:B3)
Mathematical operators include:
Priority
Symbol
Math Function
1
*
Multiply
2
/
Divide
3
+
Addition
4
-
Subtraction
Cell Names
A cell or a range of cells can be given a name which can be used instead of cell references. Some of
the advantages to using names are:
 Easier identifier to use than cell references
 Reduces the risk of using an incorrect cell reference in a formula
 Enables you to move quickly to an area within the worksheet
 Can be used to reference across sheets
There are two ways you can give individual cells or ranges of cells a name, they are:
 Defining the Name
 Creating a Name
Once you have given a cell or cell range a name you can then use that name in formulas instead of
typing in the cell reference.
Understanding Absolute Cell Referencing
When you use an absolute reference in a formula, it points to a set cell address which will not change,
even if the formula is copied elsewhere in the worksheet.
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BSBITU402A Develop and use complex spreadsheets
Writer: Lynda Frost, Hunter
For example...
The formula in C6 is =B6*$C$3. The use of the $ signs in the cell reference for cell C3 indicate that
the cell reference is absolute - the reference cell C3 will not change even when the formula is copied.
Your spreadsheet application records the formula as:
"Multiply the cell two to the left with cell C3"
Therefore it can be copied down column C and into column F. Your spreadsheet application will
automatically change the relative cell reference to "the cell two to the left" to suit the current location,
but the absolute reference to "cell C3" will not be changed.
Functions and Their Syntax
Listed below are the functions you should already be familiar with. A formula constructed with a
function has a specific structure called the syntax. Check your spreadsheet application to ensure you
are familiar with the syntax of each of the functions below.
SUM
SUM is a mathematical function. The SUM function returns the sum of all its arguments.
AVERAGE
The AVERAGE function returns the average (or arithmetic mean) of its arguments. All
numbers are summed then divided by the total number of values. Empty cells are not
counted, however cells containing the value zero (0) are included.
MIN
The MIN function returns the smallest value in its argument.
MAX
The MAX function returns the largest value in its argument.
COUNT
The COUNT function counts the number of entries in its argument.
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BSBITU402A Develop and use complex spreadsheets
Writer: Lynda Frost, Hunter
Dates and Times
Microsoft Excel uses serial numbers to represent dates and times. In this way normal calculations
such as additional and subtraction can be carried out using dates and times. Dates and times are
displayed automatically in date format. To display the date as a serial number, you would need to
format the cell as General.
There are six functions used by MS Excel when dealing with date and time they are:
Date
DATE(year,month,day)
The DATE function returns the serial number of a date - useful in
formulas where the date arguments are the result of other
calculations.
Now
NOW()
The NOW function returns the serial number of the current date
and time. The result is updated each time a recalculation is
performed.
Today TODAY()
The TODAY function returns the serial number of the current date.
Year
Given a serial number, the YEAR function returns the year, eg
1999.
YEAR(serial_number)
Month MONTH(serial_number) Given a serial number, the MONTH function returns the number of
the month as a value from 1 to 12.
Day
DAY(serial_number)
Given a serial number, the DAY function returns the number of the
day as a value from 1 to 31.
Check your spreadsheet application to ensure you are familiar with the syntax for dates and times.
Using Conditions in Functions
The IF function is used to test the condition of a cell and return a result if the condition is true or
another if it is false. The IF function contains three elements, divided by a comma.
IF(logical_test, value_if_true, [value_if_false])
These three elements are entered into the three boxes in the Formula Palette.
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BSBITU402A Develop and use complex spreadsheets
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The first box contains a logical test or comparison using = or < or > or a combination of these.
The second box contains the value that is to appear in the cell if the comparison is true. Note: A text
entry must be enclosed in quotes and to leave a blank entry type in two set of quotes, opening and
closing.
The third box contains the value that is to appear in the cell if the comparison is not true.
Example
Auzzie supermarket charges $2.50 to deliver groceries if the destination is inside a distance of 10 km
but charges $5.00 if the distance is more than 10 km. Say you need to prepare a table which
automatically puts in the correct Charge depending on the distance entered into the Distance in km
column. Study the formula in the charge column that calculates the charge dependent on what is in
the distance column.
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BSBITU402A Develop and use complex spreadsheets
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(Darrah, I only want to include the table and the rows and columns – no application specific
information .i.e. crop it! – actual file is also available if required.)
Lookup values in an existing tables.
There are two versions of the LOOKUP function. VLOOKUP and HLOOKUP - where V stands for
vertical and H stands for horizontal.
The Vertical Lookup function is used to search a table for a given value and then return a value from a
corresponding column within the table. The HLOOKUP function works in a similar way but returns a
value from a corresponding row.
Check your application software to determine the correct syntax for both formulas.
Example
The example below shows a worksheet with both a VLOOKUP and HLOOKUP table within it. The
table headed Pay Rate and Hourly Rate on the left calls for a vertical lookup and the table headed
Pay and Tax calls for a horizontal lookup. You look down the column for one and across the columns
for the other. Most lookups, however, involve the vertical type.
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BSBITU402A Develop and use complex spreadsheets
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Using the PMT function to calculate mortgage repayments.
There is a function in Microsoft Excel that will calculate your mortgage repayments. The PMT function
provides a function that returns the payment for a loan based on periodic constant payments and
constant interest rates. The function includes the following arguments:
=PMT (rate, per, pv, fv, type)
Refer to the online help in your spreadsheet application for detailed information on each of the
arguments.
Inserting one function within another function.
A nested function is a function within another function. The example below uses an IF function and an
AVERAGE function. The syntax of the example nested function is:
=IF(AVERAGE(number1,number2...)logical_test,value_if_true,value_if_false)
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BSBITU402A Develop and use complex spreadsheets
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Summary of the most commonly used functions
In the tables below are the most commonly used functions.
Financial
Used to calculate and solve financial problems, eg to calculate cash flow, depreciation, interest rates
etc.
Future Value
FV(rate,nper,pmt,pv,type)
Calculates the future value of an investment
Internal Rate of
Return
IRR(values,guess)
Calculates the internal rate of return for a
series of cash flows
Net Present Value
Calculates the net present value of an
NPV(rate,value1,value2,....) investment based on a series of periodic cash
flows and a discount rate.
Periodic Payment
PMT(rate,nper,pv,fv,type)
Calculates the periodic payment for an
annuity
Date and Time
Used to display and calculate the date and time
Date
DATE(year,month,day)
Returns the serial number of a particular date
Now
NOW()
Returns the serial number of the current date
and time
Today
TODAY()
Returns the serial number of today's date
Logical
Formulas with logical functions in them are used for testing and decision making
AND
AND(logical1,logical2,....)
Returns TRUE if all the arguments are
true
IF
IF(logical_test,value_if_true,value_if_false)
Returns one value if true, another value
if false
Math and Trig
Used to solve basic mathematical problems through to more complex problems
Absolute
ABS(number)
Calculates the absolute value of a number
Cosine
COS(number)
Calculates the cosine of a number
Round
ROUND(number,num_digits) Rounds a number to specific number of digits
Sum
SUM(number1,number2,.....)
Adds the arguments
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BSBITU402A Develop and use complex spreadsheets
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Statistical
Used to gather statistical information about a series of data. Some of the statistical formulas used
include AVERAGE, COUNT, MIN, MAX etc
Average
AVERAGE(number1,number2,..)
Calculates the average of all the
arguments
Count
COUNT(value1,value2,....)
Counts the number of values in the
arguments
Maximum
MAX(number1,number2,....)
Calculates the maximum value in the
arguments
Minimum
MIN(number1,number2,....)
Calculates the minimum value in the
arguments
Standard
Deviation
STDEV(number1,number2,...)
Estimates the standard deviation based on
the arguments
Lookup and Reference
Formulas used to lookup and refer to values within a worksheet/workbook
Horizontal
Look Up
HLOOKUP(lookup_value,table_array, Looks in the top row of an array and
row_index_num,range_lookup)
returns the value of the indicated cell.
Vertical
Look Up
Looks in the first column of an array and
VLOOKUP(lookup_value,table_array,
moves across the row to return the value of
col_index_num,range_lookup)
a cell.
Database
Database functions perform calculations on a specific column within a specified database. They are
also used to determine which records are included (criteria range) in a calculation.
Database Sum
Adds the numbers in the field column of
DSUM(database,field,criteria) records in the database that match the
criteria.
Database
Minimum
DMIN(database,field,criteria)
Database
Maximum
Calculates the maximum values in the field
DMAX(database,field,criteria) column of records in the database that
match the criteria.
Calculates the minimum values in the field
column of records in the database that
match the criteria.
Text
Text functions are used to alter, change, trim text, or perform searches for text within a
worksheet/workbook
Lower
LOWER(text)
Displays text within a cell in lowercase.
Proper
PROPER(text)
Displays text within a cell with the first letter of
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BSBITU402A Develop and use complex spreadsheets
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each word capitalised.
Information
Information functions are primarily used to display information about a cell/range, whether the cell
matches a value to the formatting of the cell
Cell
Information
CELL(info_type,reference)
Displays specific information about the current
cell or a selected cell.
Information
INFO(type_text)
Displays information about the Excel operating
environment.
For more information on these functions refer to the on-line help.
Linking Files
With linked cells, the original information remains stored in the source file. The destination file
displays a representation of the linked information but stores only the location of the original data. The
source file must remain available on your computer or network to maintain the link to the original data.
The linked information is updated automatically if you change the original data in the source file.
A linking formula can also contain an external reference, which is a reference to another document.
Finally, a number of sheets can be linked together in order to produce a summary of all the linked
sheets.
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