Spreadsheets

Spreadsheets

1. A spreadsheet appears as a grid

   • Each row has its own number and each column its own letter.
   • This labelling of rows and columns is used to give each cell a cell address or reference, for example, C5 means column C, row 5.
   • There are a number of formulae in the above spreadsheet but they're hidden, only the results are displayed.

2. Advantages

   • More effective data handling
     • Formulae can be used to instantly recalculate totals.
       • For example, if the builder changed his call-out charge, the total cost would be instantly recalculated taking the change into account.
     • You can carry out "what if?" investigations.
       • For example, the grocer could increase his prices to see the effect on sales and the builder could increase his hourly charge to see the effect on his daily total.
     • The information can be presented in different ways.
       • For example, the grocer could produce a graph of fruit and vegetable sales by choosing the ranges A4:A10 and E4:E10 in order to make the graph.
     • It is easy to make these changes, save your work and print it out again.
   • More flexible presentation
     • Alter column widths and easily delete or add columns and rows.
     • Underline, embolden text and use different fonts and graphics.
     • Justify your data to the left, centre or right.
     • Control the types of numbers you enter
       • For example you can choose percentage, currency or set the number of decimal places.

3. What if?

   • A spreadsheet can be used as a modelling tool.
     • The model is controlled by a set of rules introduced by formulae.
       • These rules can be changed easily to vary the model and, for example, provide information about running costs and profit margins.
   • A company could use a spreadsheet to find out what would happen if they reduced the price of their product, and the effect it would have on their income from sales.
     • To do this they lower the value in the price column and the data in the income from sales column will be automatically recalculated (downwards).
     • If the lower price resulted in higher sales, by adjusting the data in the number of sales column, the income from sales data will again be recalculated (upwards).
   • Being able to answer "what if?" questions like this is vital and allows a company to predict future trends in its income and outgoings.
   • A model is only as good as the rules used to create it. A mistake could have been made by whoever wrote the model and not every situation might have been considered