Lab 6. Microsoft Excel
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1 Lab 6 Microsoft Excel
2 Objective At the end of this lesson, you should be able to describe components and functions in Excel perform and apply basic Excel operations Introduction to Management Information Systems, HKU 2
3 Describe Electronic Spreadsheet An Excel file is called a workbook. A worksheet is a two-dimensional grid. Within each worksheet, columns are the vertical dimension and rows are the horizontal dimension. The intersection of a column and a row is a cell, which is identified by an address. The cell can contain text, numbers, dates, time, formulae and functions Introduction to Management Information Systems, HKU 3
4 A Workbook CELL ROW COLUMN Introduction to Management Information Systems, HKU 4
5 Basic Operation Techniques Since Microsoft Excel provides similar formatting functions with Microsoft Word, therefore it is not difficult for a Microsoft Word user to use them. Copy Cell Generate Pattern Sorting Cell Formatting Formulae (+ - * / ^) Conditions Relative and Absolute Addressing Functions (SUM,AVG,MAX,MIN,COUNT) Introduction to Management Information Systems, HKU 5
6 Demonstration Refer to the worksheet called Demonstration Introduction to Management Information Systems, HKU 6
7 Exercise 1 Production Order Summary ABC company s monthly production order figures are shown in the worksheet called Production Order. Assume that the total number of business days in 2014 is 300 Calculate The total number of units sold in 2014 The average number of units sold per day The average number of units sold per month Introduction to Management Information Systems, HKU 7
8 Performance Forecasting Assume that it is now late 2014, and that you are trying to build a model to predict a company s net income (profit) and cash flow in the next year (2015). How do you forecast the net income and cash flow in the year? There are two possible states of economy in year 2015: an O for an optimistic outlook and a P for a pessimistic outlook. The state of the economy is expected to affect the number of units the company can sell as well as the unit selling price. Besides, there are two possible cost-of-goods-sold price directions: a U for up or a D for down. Introduction to Management Information Systems, HKU 8
9 Initial Setting Relative Addressing In CALCULATIONS section, set the value of NUMBER OF UNITS SOLD IN A DAY in 2014 to the AVERAGE NUMBER OF UNITS SOLD PER DAY calculated in Production Order worksheet To show NET INCOME AFTER TAXES in SUMMARY OF KEY RESULTS section For 2015, C12 is =C28 To show END-OF-THE-YEAR CASH ON HAND in SUMMARY OF KEY RESULTS section For 2015, set C13 to =C30 BEGINNING-OF-THE-YEAR CASH ON HAND in 2015 should equal END-OF-THE-YEAR CASH ON HAND in 2014 For 2015, set C22 to =B30 Introduction to Management Information Systems, HKU 9
10 Initial Setting Cell Formatting Format the cells in the SUMMARY OF KEY RESULTS section for zero decimal. Format the cells in INCOME STATEMENT AND CASH FLOW STATEMENT section for zero decimal. Introduction to Management Information Systems, HKU 10
11 Setup INCOME STATEMENT AND CASH FLOW STATEMENT Section Formulae SALES (REVENUE) equals NUMBER OF UNITS SOLD IN A YEAR times SELLING PRICE PER UNIT Enter =C17*C19 in cell C24 COST OF GOODS SOLD equals NUMBER OF UNITS SOLD IN A YEAR times COST OF GOODS SOLD PER UNIT In cell C25, type =C18*C19 INCOME BEFORE TAXES equals SALES (REVENUE) less COST OF GOODS SOLD In cell C26, type =C24-C25 Introduction to Management Information Systems, HKU 11
12 Setup INCOME STATEMENT AND CASH FLOW STATEMENT Section Conditions In US, income taxes are only paid on positive income before taxes. So, the logic should be as following: IF (INCOME BEFORE TAXES is <=0, put zero tax in C27, else in C27 put a number equal to the product of TAX RATE and INCOME BEFORE TAXES) NET INCOME AFTER TAXES is INCOME BEFORE TAXES less INCOME TAX EXPENSE END-OF-THE-YEAR CASH ON HAND is BEGINNING-OF-THE-YEAR CASH ON HAND plus NET INCOME AFTER TAXES Introduction to Management Information Systems, HKU 12
13 Setup CALCULATION Section Cell Formatting Set the format of NUMBER OF UNITS SOLD IN A DAY and NUMBER OF UNITS SOLD IN A YEAR to zero decimal. Format SELLING PRICE PER UNIT and COST OF GOODS SOLD PER UNIT to two decimals. Introduction to Management Information Systems, HKU 13
14 Setup CALCULATION Section Calculate the NUMBER OF UNITS SOLD IN A YEAR in 2015 In cell C19, type =C5*C16 Impact of ECONOMIC OUTLOOK on NUMBER OF UNITS SOLD IN A DAY if the ECONOMIC OUTLOOK is OPTIMISTIC, the 2015 NUMBER OF UNITS SOLD IN A DAY will be 6% more than that in 2014; if the ECONOMIC OUTLOOK is PESSIMISTIC, the 2015 NUMBER OF UNITS SOLD IN A DAY will be 1% less than that in 2014; Set the ECONMIC OUTLOOK in year 2015 to O and PURCHASE-PRICE OUTLOOK to U. You will need to use absolute addressing. Use conditional statement to handle this case: IF( economy variable = OPTIMISTIC, then NUMBER OF UNITS SOLD IN A DAY will go UP 6%, else NUMBER OF UNITS SOLD IN A DAY will go DOWN 1%) Introduction to Management Information Systems, HKU 14
15 Setup CALCULATION Section Impact of ECONOMIC OUTLOOK on SELLING PRICE PER UNIT if the ECONOMIC OUTLOOK is OPTIMISTIC, the SELLING PRICE PER UNIT in 2015 will be 1.07 times that in if the ECONOMIC OUTLOOK is PESSIMISTIC, the SELLING PRICE PER UNIT in 2015 will equal the per-unit price in 2014 (that is, the price will not change). Write your own conditional statement. You will need to use absolute addressing. Introduction to Management Information Systems, HKU 15
16 Setup CALCULATION Section The COST OF GOODS SOLD PER UNIT is a function of the PURCHASE-PRICE OUTLOOK. The two-part rule is (assume) as following: If the PURCHASE-PRICE OUTLOOK is UP (U), COST OF GOODS SOLD PER UNIT in 2015 will be 1.25 times that in 2014 On the other hand, if the PURCHASE-PRICE OUTLOOK is DOWN (D), the multiplier in each year will be Write your own conditional statement. You will need to use absolute addressing Introduction to Management Information Systems, HKU 16
17 Show Your Result Set the input values to PESSIMISTIC and DOWN. You will find the values in CALCULATIONS section updated automatically. The values in income statement and cash flow statement will be updated automatically as well. Copy and paste the forecasted values of END- OF-THE-YEAR CASH ON HAND in 2015 to the table END-OF-THE-YEAR CASH ON HAND FORECAST Show your finished worksheets Introduction to Management Information Systems, HKU 17
18 Intended Learning Outcomes Learning Outcomes Describe and explain the concepts of information systems/technology and their roles and functions in the organization Apply different information systems applications to support business analysis and improve decision making Describe and explain the concepts and issues concerned with managing, developing, and implementing contemporary information systems Describe and explain the issues relating to managing information systems security and control Apply different business models to evaluate the risks and opportunities of using information systems as a strategy for acquiring competitive advantage Apply different models to evaluate the applications of various information systems and propose information systems solutions in solving problems In This Lesson
19 Reference Problem-Solving Cases in Microsoft Access and Excel; Joseph A. Brady, Ellen F. Monk; Thomson Learning Introduction to Management Information Systems, HKU 19
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