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Excel Fundamentals

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In this section, you will be introduced to the foundational interface and logic of Microsoft Excel. We’ve designed this module to ensure the “how-to” of the software doesn’t block you from the “why” of the financial analysis.

Learning Outcomes:

By the end of this section, you will be able to navigate the Excel interface and transform “messy” raw data into a structured, dynamic financial model without the stress of starting from a blank slate.

Here is a more distinguished breakdown:

  • Identify and locate key interface elements (Ribbon, Formula Bar, Sheets).
  • Correctly organize raw data into a structured grid format suitable for analysis.
  • Distinguish between data types and apply appropriate formatting.
  • Use basic functions (e.g., SUM) to create dynamic, self-updating calculations.

Activity 1: Setup & Data Entry

Before we can analyze a project, we have to know how to communicate with the grid of an Excel document. When broken down to basics, Excel acts as an input/output system. You input raw data into specific cells, and the software uses logic and rules to provide an output.

Here is a reference through Microsoft’s website about how to open and create a blank workbook in Excel to get you started.

https://support.microsoft.com/en-us/office/what-is-excel-94b00f50-5896-479c-b0c5-ff74603b35a3

To ensure you can dive straight into the logic of your project, we’ve prepared a starter workbook for you. This eliminates the stress of starting from a totally empty screen.

Step 1: Download the [Excel_Basics_Starter.xlsx] file below.

Excel_Basics_StarterDownload

Step 2: Open the file. You will see that we’ve already set up your headers in cells A1 (Project Item) and B1 (Cost).

Step 3: Familiarize yourself with the environment, look for the Ribbon at the top and the Formula Bar above the grid.

Check Your Understanding: Click on cell A1. Look at your Formula Bar. Does it show “Project Item”? If you change the text in the Formula Bar to “Startup Item”, does the cell on the sheet update automatically?

Activity 2: Formatting & Data Types

In Excel, letting the computer know what type of information is stored in a cell is crucial for accuracy.

The Input Task: Using your starter file, input the following initial startup expenses:

  1. A2:A4: Rent, Labor, Materials
  2. B2:B4: 1200, 4500, 800

The “Messy Data” Challenge: Imagine you are given a raw text note: “We spent $400 on insurance and $150 on permits.”

  1. Create two new rows in your spreadsheet for these items.
  2. Highlight your cost column (Column B) and select the “Currency” format from the Number section of the Ribbon.

Activity 3: Basic Calculations and Models

The real power of Excel lies in Dynamic Values. Instead of typing a static total, we use Functions to bridge the gap between human logic and machine results. By using a formula, you ensure that if one variable changes (e.g., labor costs go up), the entire model updates automatically.

Try it out:

  1. In cell A5, type: Total Cost
  2. In cell B5, type this specific command: =SUM(B2:B4)
  3. Press Enter.

The code you typed (=SUM...) is the “source code” for your calculation. Now, try changing the value of Labour (B3) from 4500 to 5000. If your total in B5 updates instantly, you have successfully created your first dynamic financial model.

Readings + Viewings

Take a few minutes to explore these interactive resources to solidify your baseline skills before moving to the assessment.

Interactive Activities:

In the next module, you will be learning how to create charts and graphs in Excel, here is a supplementary video to get familiarized with the environment.

Assessment Task: Please submit your final .xlsx file and a screenshot of your formatted table to the LMS for grading and review.

References:

Microsoft Support, “What is Excel?,” Microsoft.com. [Online]. Available: https://support.microsoft.com/en-us/office/what-is-excel-94b00f50-5896-479c-b0c5-ff74603b35a3

CS Class, “Creating and opening workbooks,” CS Class 2017, 2017. [Online]. Available: https://csclass2017.wordpress.com/creating-and-opening-workboks/

Microsoft Support, “Overview of formulas in Excel,” Microsoft.com. [Online]. Available: https://support.microsoft.com/en-us/office/overview-of-formulas-in-excel-ecfdc708-9162-49e8-b993-c311f47ca173

Teacher’s Tech. (2022, April 11). How to create charts and graphs in Microsoft Excel – Quick and simple [Video]. YouTube. https://www.youtube.com/watch?v=64DSXejsYbo