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Spreadsheet Application

Updated December 3rd, 2005
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After learning how to use a wordprocessing package next in line is the financial modeling application better known as a spreadsheet. It is an accountant's worksheet on your computer.

This lecture on spreadsheets focuses on:

1. What a spreadsheet is.
2. Short History of electronic spreadsheets.
3. Main Features of a spreadsheet.
4. What is a spreadsheet used for?
5. When to use a spreadsheet.
6. Who uses a spreadsheet.

INTRODUCTION

The spreadsheet application is one a business man cannot afford to be without. It provides features to make managing your finances easy. No one should attempt to manages his finances without a tool like this. Microsoft Excel is the most powerful spreadsheet I have worked with and it is not difficult to learn.

WHAT IS A SPREADSHEET?

A spreadsheet is an application which is designed to manipulate numbers which are organized into rows and columns. The electronic spreadsheet is like a computerized ledger page and is sometimes called a financial modeling program.

Spreadsheet software instructs the computer to manipulate data in cells ( an intersection of row and column) , make calculations and evaluate algebraic formulae. Each row is numbered and each column is given a letter or letters of the alphabet in this way each cell has a unique cell Address by which the data is referenced. A valid cell address looks like this B24 which tells us that the cell is in the second column and in the twenty-fourth row.

SHORT HISTORY

The first electronic spreadsheet was called Visicalc and was developed by Bob Frankston and Dan Brickland in 1979. This was followed by LOTUS 123, by the Lotus Corporation. Today the most popular spreadsheet on personal computers is Microsoft Excel.

WHO USES SPREADSHEETS

Accountants and Businessmen find spreadsheet applications useful because they can use them to create Income and Expenditure statements, cash flow forecasts, profit and loss projections and bank reconsiliation to name a few tasks.

Bankers use them to track monetary transactions, create loan amortization schedules and make interest rate computations.

Managers use them to make decisions about future expenditure and plan for expansion of products and services.

Householders use them to manage domestic financial affairs.

MAIN FEATURES OF A SPREADSHEET APPLICATION

• The ability to perform calculations using any values entered on the spreadsheet and to place the results of any calculation in a user-designated cell.
• Instant recalculation of formulas. Whenever it is necessary to change a data item, all related cells will be updated in a fraction of a second to display the updated information.
• The ability to easily make changes to data and change formulas.
• The ability to generate graphs of many types including - line graphs, bar charts, pie charts and scatter graphs.
• The capability of a spreadsheet to perform "what-if-analysis". Changing selected entries on a worksheet enables users to see the different outcomes that might result.
• Built-in database functions.
• Entire spreadsheets can be password protected or only portions.
• Data and graphs form spreadsheet applications can be easily linked to data in other applications like word processing programs.
• Spreadsheets support macros : the creation of simple programs to automate frequently used tasks.

Microsoft Excel

The most common spreadsheet application found on IBM compatible PCs is Microsoft Excel. Another powerful spreadsheet is Lotus 123.

TYPES OF PROBLEMS SUITED TO SPREADSHEETS

• Problems that can be expressed in mathematical terms
• Problems that require accuarate, neat and legible presentation of numerical data.
• Problems that are routinely computed.
• Problems that will be edited or revised in the future.

TEST YOURSELF

1. Can a spreadsheet be used to create graphs?
2. What is the name of the first electronic spreadsheet application?
3. In what year was it created?
4. Can spreadsheets be used by households?
5. Can one expect to find a spreadsheet program on a PC in a bank?
6. What name is given to an intersection of a row and a column?
7. Is 5C a valid cell address?
8. What name is given to the spreadsheet created by Microsoft?
9. Do spreadsheets support macros?
10. Give another name for spreadsheet applications.

If you can answer the above questions then you are ready for a course in Practical Excel

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