Computer 2
Gelogo, ECE, LPT
Unit 1. The Spreadsheet
A. Terminologies
 Spreadsheet – is a document that contains rows and
columns of texts and numbers.
 Ledger – is a book of spreadsheets containing accounts to
which debits and credits are posted from books of original
entry.
 Electronic Spreadsheet – is a computerized version of the
accountant’s paper spreadsheet.
 Spreadsheet Program – is an application that helps the
user to create spreadsheets commonly used for budgets,
forecasting, and other finance-related tasks.
 Worksheet – a page organized into rows and columns
appearing onscreen and used for constructing a single table
 Workbook – a file containing a number of related
worksheets
 Cell - intersection of a row and column in the worksheet
 Block - a group of cells adjacent to one another
 Sheet Tab - a description at the bottom of each worksheet
that identifies the sheet in a workbook.
B. History of Electronic Spreadsheet
 VisiCalc
- In 1978, Harvard Business School student Dan Bricklin
developed a program called VisiCalc. It was a relatively
small program with few basic capabilities. It could only
calculate data within a matrix of 5 columns by 20 rows.
- To make VisiCalc more powerful Bricklin hired Bob
Frankston, who is also known as the co-creator of
VisiCalc. Frankston made the program fast and with
better arithmetic. VisiCalc was an instant success and the
duo were able to sell around 1 million copies of the
program.
 SuperCalc
- SuperCalc was a spreadsheet application published by
Sorcim in 1980, and originally bundled (along with
WordStar) as part of the CP/M (Control
Program/Monitor) software package included with the
Osborne 1 portable computer. It quickly became the de
facto standard spreadsheet for CP/M and was ported to
MS-DOS in 1982.
- An improvement over VisiCalc, SuperCalc was notable
for being one of the first spreadsheet programs capable of
iteratively solving circular references (cells that depend
on each other's results). It would be over 10 years after
the introduction of SuperCalc before this feature was
implemented in Microsoft Excel, although in Lotus 1-2-3,
manual programming of iterative logic could also be used
to solve this issue.
 Multiplan
- Multiplan was an early spreadsheet program developed
by Microsoft. Known initially by the code name "EP"
(for "Electronic Paper"), it was introduced in 1982 as a
competitor for VisiCalc.
- Multiplan was released first for computers running
CP/M; it was developed using a Microsoft proprietary p-
code C compiler as part of a portability strategy that
facilitated ports to systems such as MS-DOS, Xenix,
Commodore 64 and 128, Texas Instruments TI-99/4A,
Radio Shack TRS-80 Model II, TRS-80 Model 4, TRS-
80 Model 100 (on ROM), Apple II, and Burroughs B- 20
series.
- Despite the release of Microsoft Chart, a graphics
companion program, Multiplan continued to be outsold
by Lotus 1-2-3. It was replaced by Microsoft Excel,
which followed some years later on both the Apple
Macintosh (1985) and Microsoft Windows (1987).
- Around 1983, during the development of the first release
of Windows, Microsoft had plans to make a Windows
version. However, the plans changed a year later.
 Lotus 1-2-3
Engr. Khrisna Mae C.
- After the phenomenal success of VisiCalc, SuperCalc &
Multiplan, a team headed by Mitch Kapor in 1983,
developed a new spreadsheet program called Lotus 1-2-3.
Mitch and his team power packed Lotus 1-2- 3 with
charting, graphing and rudimentary database capabilities
along with the basic arithmetic. This made Lotus 1-2-3 a
new favorite in the industry.
- Although, before this in 1982 Microsoft had already
launched Multiplan but it was outshined by Lotus 1-2-3.
And this thing provoked Microsoft to come up with
Microsoft Excel and rest is history.
C. Microsoft Excel
 Microsoft Excel is a spreadsheet application developed by
Microsoft for Microsoft Windows, Mac OS X, and iOS. It
features calculation, graphing tools, pivot tables, and a macro
programming language called Visual Basic for Applications.
It has been a very widely applied spreadsheet for these
platforms, especially since version 5 in 1993, and it has
replaced Lotus 1-2-3 as the industry standard for
spreadsheets. Excel forms part of Microsoft Office.
History
 Microsoft originally marketed a spreadsheet program called
Multiplan in 1982, which was very popular on CP/M systems,
but on MS-DOS systems it lost popularity to Lotus 1-2-3.
 This promoted development of a new spreadsheet called
Excel which started with the intention to 'do everything 1-2-3
does and do it better'.
 The first version of Excel was released for the Mac in 1985
and the first Windows version was released in November
1987.
 Lotus was slow to bring 1-2-3 to Windows and by 1988 Excel
had started to outsell 1-2-3 and helped Microsoft achieve the
position of leading PC software developer.
 This accomplishment, dethroning the king of the software
world, solidified Microsoft as a valid competitor and showed
its future of developing graphical software.
 Microsoft pushed its advantage with regular new releases,
every two years or so. The current version for the Windows
platform is Excel 11, also called Microsoft Office Excel 2003.
The current version for the Mac OS X platform is Microsoft
Excel 2004.
 Excel 1.0
- Excel 1.0 was one of the first spreadsheet program to use a
graphical interface with pull down menus and a point and
click capability using a mouse pointing device. The first
version was only released for Macintosh.
 Excel 2.0
- Excel 2.0 was the first Windows version of excel and was
labelled “2” to correspond to the Mac version. This also
included a run-time version for Windows.
- Excel 2.0 is the first version of Excel for Intel platform.
There never was an Excel 1.0 for DOS or Windows.
 Excel 3.0
- The Binary Interchange File Format (BIFF) is a spreadsheet
file format developed by Microsoft. BIFF 3 is the native file
format of Microsoft Excel 3.0 for Windows. The format is
proprietary and Microsoft does not make details of its
structure public. The information contained here is derived
primarily from OpenOffice.org's reverse-engineered
documentation of the format, and should not therefore be
regarded as definitive. BIFF is a stream-based format, and a
BIFF 3 file comprises a single worksheet stream, containing
a Beginning of File (BOF) record, followed by a series of
Worksheet records, and terminated by an End of File (EOF)
record.
 Excel 4.0
- Excel 4.0 was the first popular version of Excel. It had
better mouse implementation, more shortcuts, customizable
toolbars and introduction of fill handle.
- Introduced auto-fill.
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- Also, an Easter egg in Excel 4.0 reveals a hidden animation
of a dancing set of numbers 1 through 3, representing Lotus
1-2-3, which was then crushed by an Excel logo.
 Excel 5.0
- Excel 5.0 was a major upgrade which included multi-sheet
workbooks and support for VBA. This was a major
breakthrough as now users could record macros to automate
repetitive tasks.
- With version 5.0, Excel has included Visual Basic for
Applications (VBA), a programming language based on
Visual Basic which adds the ability to automate tasks in
Excel and to provide user-defined functions (UDF) for use
in worksheets. VBA is a powerful addition to the
application and includes a fully featured integrated
development environment (IDE).
- Macro recording can produce VBA code replicating user
actions, thus allowing simple automation of regular tasks.
VBA allows the creation of forms and in-worksheet
controls to communicate with the user. The language
supports use (but not creation) of ActiveX (COM) DLL's;
later versions add support for class modules allowing the
use of basic object-oriented programming techniques.
 Excel 7.0
- Excel 7.0 is also known as Excel 95. it was the first major
32-bit version of Excel. Almost no external changes, but it
was faster and more stable.
- Released in 1995 with Microsoft Office for Windows 95,
this is the first major version after Excel 5.0, as there is no
Excel 6.0
- Internal rewrite to 32-bits. Almost no external changes, but
faster and more stable.
 Excel 8.0
- Included in Office 97 (for x86 and Alpha). This was a
major upgrade that introduced the paper clip office assistant
and featured standard VBA used instead of internal Excel
Basic. It introduced the now-removed Natural Language
labels. This version of Excel includes a flight simulator as
an Easter Egg.
 Excel 9.0
- Included in Office 2000. This was a minor upgrade, but
introduced the upgrade to the clipboard where it can hold
multiple objects at once. The Office Assistant, whose
frequent unsolicited appearance in Excel 97 had annoyed
many users, became less intrusive.
 Excel 10.0
- Included in Office XP. Very minor enhancements. Excel
10.0 was a part of Office XP. It had some useful features
like Background formula-auditing which identifies potential
errors in the formulas and capability to recover spreadsheets
whenever excel crashes.
 Excel 11.0
- Included in Office 2003. Minor enhancements, most
significant being the new Tables.
- Excel 11.0 or Excel 2003 and was a part of Office 2003. It
included the features like: improved support for XML, a
new “list range” feature and the Smart Tag enhancement.
 Excel 2007
- Included in Office 2007. This release was a major upgrade
from the previous version. Similar to other updated Office
products, Excel in 2007 used the new Ribbon menu system.
This was different from what users were used to, and was
met with mixed reactions. One study reported fairly good
acceptance by users except highly experienced users and
users of word processing applications with a classical
WIMP interface, but was less convinced in terms of
efficiency and organization.
 Excel 2010
- Included in Office 2010, this is the next major version after
v12.0, as version number 13 was skipped.
- Minor enhancements and 64-bit support, including the
following:
 Multi-threading recalculation (MTR) for commonly
used functions
Engr. Khrisna Mae C. Gelogo, ECE, LPT
 Improved pivot tables
 More conditional formatting options
 Additional image editing capabilities
 In-cell charts called spark lines
 Ability to preview before pasting
 Office 2010 backstage feature for document-related
tasks
 Ability to customize the Ribbon
 Many new formulas, most highly specialized to
improve accuracy
MS Excel 2010 Environment and Parts
• File menu - When clicked, this button opens the new
Backstage View containing a bunch of file-related options
including Info, Save, Save As, Open, Close, Recent, New,
Print, Share, and Exit as well as the Excel Options button that
enables you to change Excel’s default settings.
• Quick Access toolbar - You can click the Save, Undo, and
Redo buttons to perform common tasks to save your work and
undo and redo editing changes. You can also click the
Customize Quick Access Toolbar button to the immediate
right of the Redo button to open a drop-down menu
containing additional common commands such New, Open,
Quick Print, and so on, as well as to customize the toolbar,
change its position, and minimize the Ribbon.
• Ribbon - Most Excel commands are contained in the Ribbon.
They are arranged into a series of tabs ranging from Home
through View.
• Formula bar: This displays the address of the current cell
along with the contents of that cell.
• Worksheet area - This area contains all the cells of the
current worksheet identified by column headings, using letters
along the top, and row headings, using numbers along the left
edge, with tabs for selecting new worksheets. You use a
horizontal scroll bar on the bottom to move left and right
through the sheet and a vertical scroll bar on the right edge to
move up and down through the sheet.
• Status bar - This bar keeps you informed of the program’s
current mode and any special keys you engage, and enables
you to select a new worksheet view and to zoom in and out on
the worksheet.
PARTS OF THE RIBBON
Tab
s
Comman
d
Minimize Ribbon
Group
Buttons
Dialogue Box Launcher
The Ribbon is made up of the following components:
• Tabs: Excel’s main tasks are brought together and display all
the commands commonly needed to perform that core task.
 File – managing files
 Home – common tools
 Insert – insert objects
Computer 2 Engr. Khrisna Mae C. Gelogo, ECE, LPT
 Page Layout – printing
 Formulas – functions in categories
 Data – working with data
 Review – spelling, protecting and sharing
 View – how Excel appears on screen (does not affect
printing)
• Groups: Related command buttons can be organized into
subtasks normally performed as part of the tab’s larger core
task.
• Command buttons: Within each group you find command
buttons that you can select to perform a particular action or to
open a gallery. Note that many command buttons on certain
tabs of the Excel Ribbon are organized into mini-toolbars
with related settings.
• Dialog Box launcher: This button is located in the lower-
right corner of certain groups and opens a dialog box
containing a bunch of additional options you can select. To
get more of the Worksheet area displayed in the program
window, you can minimize the Ribbon so that only its tabs are
displayed. You can minimize the Ribbon by doing any of the
following:
o Click the Minimize the Ribbon button (the first button with
the caret symbol in the bank of buttons to the right, opposite
the last Ribbon tab).
o Double-click a Ribbon tab.
o Press Ctrl+F1.

The Importance of Using Spreadsheet in Business

 Presentations: When preparing a presentation for a
meeting, a spreadsheet can help you organize your
information. You can print spreadsheet tables, graphs and
calculations to share with other attendees. Tangible
references make your presentation easier to follow and give
meeting attendees a reference for future use.
 Illustrating Scenarios: Spreadsheets allow businesses to
compare and contrast information quickly. If a business
professional need to know the financial impact of a certain
task or action, he can rely on the use of a spreadsheet.
Multiple tabs can be added to spreadsheets so the document
holds a variety of spreadsheets in one. This can be useful in
scrolling between hypothetical business scenarios before
making a final decision on a project.
 Budgeting: Budgeting is a common use for spreadsheets.
With a layout consisting of rows and columns, spreadsheets
allow for the quick formatting of a business budget.
Accounting professionals can add budget categories as
needed and share the information with decision makers in a
clear format. As numerical data changes, accounting
professionals can make quick changes creating multiple
electronic budget formats to track adjustments.
 Formulas: Spreadsheets allow businesses to compile and
organize business intelligence. Spreadsheets can quickly
calculate percentages and totals of data compiled from
marketing research studies. Formulas can be set up between
tabbed pages to show how information is interrelated.
Without the help of a spreadsheet, all calculations would
have to be conducted manually, which leaves increased
room for error.
 Task Management: Spreadsheets are frequently used in
project management. Managers can assign tasks by creating
grids with the names, responsibilities and due dates for each
person in a department. Each person in the department can
view how tasks are allocated with ease. This benefit extends
to event planning, managing marketing campaigns and a
host of other deadline-oriented group projects.
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Mouse Pointers in Excel
1. Select – main mouse pointer used for selecting cells. Click
once in a cell to select it or click and drag to select several
cells.
2. Fill - appears after you have selected a cell (or cells) and
will show only at the bottom right of the selection (tiny
box called the Fill Handle). Using this will allow you to fill
a series such as Monday, Tuesday, Wednesday, etc.
3. Insertion point - appears when you are typing or have
double-clicked in a cell. The flashing insertion point
determines where new text and numbers appear.
4. Column/Row selector - appears when you are over a
column or row, allowing you to click once to select the
entire column or row
5. Resize - appears when you are between columns or rows,
allowing you to resize them
Formulas
Excel can handle calculations – from very simple summing
(adding) to very complicated multi-formula calculations
 Excel uses Formulas to perform calculations
 All formulas begin with = (the equals sign, next to
Backspace key on the keyboard)
 Functions make complicated formulas easy to use and
they can be placed into formulas
 The most common function is SUM, which calculates a
list (either across or down) of numbers.
Printing
1. Go to File/Print
2. 2Print Preview shows how your worksheet will appear
printed (you can zoom in or out and move to other pages in
your worksheet).
If you decide to make formatting changes, you’ll need to go
back to the workbook – click File a 2nd time or click Home
to get back to the workbook.
3. Be sure to click the Print button on the left side to send the
worksheet to the printer.
Financial Formulas
The key to using any of Excel’s financial functions is to
understand the terminology used by their arguments. Many
of the most common financial functions, such as PV
(Present Value), NPV (Net Present Value), FV (Future
Value), and PMT (Payment), take similar arguments:
 PV is the present value that is the principal amount of the
annuity.
 FV is the future value that represents the principal plus
interest on the annuity.
 PMT is the payment made each period in the annuity.
Normally, the payment is set over the life of the annuity
and includes principal plus interest without any other
fees.
 RATE is the interest rate per period. Normally, the rate is
expressed as an annual percentage.
 NPER is the total number of payment periods in the life
of the annuity. You calculate this number by taking the
Term (the amount of time that interest is paid) and
multiplying it by the Period (the point in time when
interest is paid or earned) so that a loan with a three-year
term with 12 monthly interest payments has 3 x 12, or 36
payment periods.
Remember: When using financial functions, keep in mind that
the fv, pv, and pmt arguments can be positive or negative,
depending on whether you’re receiving the money (as in the
Engr. Khrisna Mae C. Gelogo, ECE, LPT
case of an investment) or paying out the money (as in the case
of a loan). Also keep in mind that you want to express the rate
argument in the same units as the nper argument, so that if you
make monthly payments on a loan and you express the nper as
the total number of monthly payments, as in 360 (30 x 12) for a
30-year mortgage, you need to express the annual interest rate in
monthly terms as well. For example, if you pay an annual
interest rate of 7.5 percent on the loan, you express the rate
argument as 0.075/12 so that it is monthly as well.
The PV, NPV, and FV functions
The PV (Present Value), NPV (Net Present Value), and FV
(Future Value) functions all found on the Financial button’s
drop-down menu on the Ribbon’s Formulas tab (Alt+MI) enable
you to determine the profitability of an investment.
Calculating the Present Value
The PV, or Present Value, function returns the present value of
an investment, which is the total amount that a series of future
payments is worth presently. The syntax of the PV function is as
follows:
=PV(rate,nper,pmt,[fv],[type])
The fv and type arguments are optional arguments in the
function (indicated by the square brackets). The fv argument is
the future value or cash balance that you want to have after
making your last payment. If you omit the fv argument, Excel
assumes a future value of zero (0). The type argument indicates
whether the payment is made at the beginning or end of the
period: Enter 0 (or omit the type argument) when the payment is
made at the end of the period and use 1 when it is made at the
beginning of the period.
Calculating the Net Present Value
The NPV function calculates the net present value based on a
series of cash flows. The syntax of this function is
=NPV (rate, value1, [value2], [...])
where value1, value2, and so on are between 1 and 13 value
arguments representing a series of payments (negative values)
and income (positive values), each of which is equally spaced in
time and occurs at the end of the period. The NPV investment
begins one period before the period of the value1 cash flow and
ends with the last cash flow in the argument list. If your first
cash flow occurs at the beginning of the period, you must add it
to the result of the NPV function rather than include it as one of
the arguments.
Unlike when using the PV function, the NPV function doesn’t
require an even stream of cash flows.
Calculating the Future Value
The FV function calculates the future value of an investment.
The syntax of this function is
=FV(rate,nper,pmt,[pv],[type])
The rate, nper, pmt, and type arguments are the same as those
used by the PV function. The pv argument is the present value
or lump-sum amount for which you want to calculate the future
value. As with the fv and type arguments in the PV function,
both the pv and type arguments are optional in the FV function.
If you omit these arguments, Excel assumes their values to be
zero (0) in the function.