PROJECT REPORT ON

FINANCIAL MODELING AND SPREADSHEET

BACHELOR OF COMMERCE (HONOURS)

to
Guru Gobind Singh Indraprastha University, New Delhi

Under the guidance of: SUBMITTED BY:

Dr.Shikha Gupta Shubham Singh Rawat

Faculty, LLDIMS B.COM(HONS)

VI-sem
Enrollment Number:04119288821

LINGAYAS LALITA DEVI INSTITUTE OF

MANAGEMENT AND SCIENCES
Mandi Rd, near Chattarpur Metro Station Campus, Mandi
Hills, Mandi, New Delhi, Delhi 110047
Q1. What is Financial Modelling. Explain it’s components &
importance. Why it is important to learn practical of Financial
Modelling using excel?

Ans. Financial modelling is a tool for determining likely financial

outcomes based on a company’s historical performance and
assumptions about future revenue, expenses and other variables.
Financial modelling relies on financial forecasts: It takes a forecast’s
assumptions and plays them out using a company’s financial
statements to show how those statements may look in the future.
Because models are created from financial statements, they most often
generate results for a month, quarter or year.

Most financial models are constructed in an Excel spreadsheet and

require manual data entry. One of the simplest types, known as the
three-statement model, only requires an income statement,
balance sheet, cash flow statement and supporting schedules.
However, the uses for models vary greatly, so some are much more
complex.
Businesses routinely customize models for their own purposes.

Financial models are the simplest way to compute performance and

express projected outcomes for your company. Depending on the
specific model, they can advise you regarding the grade of risk
associated with implementing certain decisions. Financial models can
also be used to devise an effective financial statement that reflects the
finances and operations of company. This is important for pitching
investors, securing loans or calculating insurance needs. The
applications are virtually limitless, but the basic idea is that they help
you understand where your company stands now, how it has
performed historically and what to expect in the future.
2
Financial models are useful for many applications. Businesses
commonly use them for:

▪ Valuations and raising capital. If you’re aiming to go public,

for example, bankers will run financial models to determine
how much the company is worth. You might also need to
provide models in order to get venture capital funding, loans
or other types of financing.
▪ Budgeting and forecasting. Budget and forecasting models help
finance understand the company’s performance based on input
from its various components. As each program, department
and business unit creates its own budget, they can then roll
them up
into a single overall financial model for the entire business to be
used to allocate resources and predict financial results for the
coming year.
▪ Measuring possible outcomes of management decisions. You
might use a financial model to predict changes in revenue if you
were to, say, raise the price of your top-selling product next
year.
▪ Credit analysis. Investors will use financial models to
determine the likelihood of your business repaying its debts, if
they are to lend you funds.
Q2. What is Microsoft Excel. Explain it’s features & functions.
Ans. MS Excel is a spreadsheet program where one can record data in
the form of tables. It is easy to analyse data in an Excel spreadsheet.
The image given below represents how an Excel spreadsheet looks like:
3
Features of MS Excel
Various editing and formatting can be done on an Excel spreadsheet.
Discussed below are the various features of MS Excel.
The image below shows the composition of features in MS Excel:

Home
Comprises options like font size, font styles, font colour, background
colour, alignment, formatting options and styles, insertion and deletion
of cells and editing options.

Insert
Comprises options like table format and style, inserting images and
figures, adding graphs, charts and sparklines, header and footer option,
equation and symbols.

Page Layout
4
Themes, orientation and page setup options are available under the
page layout option.

Formulas
Since tables with a large amount of data can be created in MS excel,
under this feature, you can add formulas to your table and get quicker
solutions.

Data
Adding external data (from the web), filtering options and data tools
are available under this category.

Review
Proofreading can be done for an excel sheet (like spell check) in the
review category and a reader can add comments in this part.

View
Different views in which we want the spreadsheet to be displayed can
be edited here. Options to zoom in and out and pane arrangement
are available under this category.

Benefits of Using MS Excel

MS Excel is widely used for various purposes because the data is easy
to save, and information can be added and removed without any
discomfort and less hard work.
Given below are a few important benefits of using MS Excel:
· Easy To Store Data: Since there is no limit to the amount of
information that can be saved in a spreadsheet, MS Excel is
widely
5
 used to save data or to analyse data. Filtering information in Excel
is easy and convenient.
· Easy To Recover Data: If the information is written on a piece of
paper, finding it may take longer, however, this is not the case
with excel spreadsheets. Finding and recovering data is easy.
· Application of Mathematical Formulas: Doing calculations has
become easier and less time-taking with the formulas option
in MS excel
· More Secure: These spreadsheets can be password secured in a
laptop or personal computer and the probability of losing them
is way lesser in comparison to data written in registers or piece
of paper.
· Data at One Place: Earlier, data was to be kept in different files
and registers when the paperwork was done. Now, this has
become convenient as more than one worksheet can be added
in a single MS Excel file.
· Neater and Clearer Visibility of Information: When the data
is saved in the form of a table, analysing it becomes easier.
Thus, information is a spreadsheet that is more readable and
understandable.
Q3. How many data formats are available in Excel. Explain some of
them?
Ans. There are 11 types of Data Formats available in Excel :-
· Number :- It is used generally for the display of numbers.
· Currency :- This is used generally for monetary formats.
· Accounting :- They line-up the currency symbols &
decimal points in a column.
· Date :- They display date & time serial numbers as
data values.
· Time :- Time formats display date & time serial numbers
as date values.

6
 · Percentage :- They multiply 100 with the cell value
& display it in the form of %.
· Fraction :- They display the cell values in the form of
a fraction.
· Scientific :- The cell values are displayed scientifically.
· Text :- Text format cells are treated as text even when the
number is in the cell, the cell is displayed exactly as
entered.
· Special :- They are useful for tracking list & database values.
· Custom :- Type the number format code, using one of
the existing codes as a starting point.

Q4. Specify the order of operation used for evaluating formulas in

excel?
7
Ans.

When evaluating a formula, Excel follows a standard math

protocol called "order of operations". In general, Excel's order of
operation follows the acronym PEMDAS (Parentheses, Exponents,
Multiplication, Division, Addition, Subtraction) but with some
customization to handle the formula syntax in a spreadsheet.
First, any expressions in parentheses are evaluated. Parentheses
essentially override the normal order of operations to ensure certain
operations are performed first.
Next, Excel will resolve references. This involves replacing cell
references like A1 with the value from the cell, as well as evaluating
range references like A1:A5, which become arrays of values. Other range
operations like union (comma) and intersection (space) also happen at
this time.
Next, Excel will perform exponentiation, negation, and percent
conversions (in that order), followed by multiplication and division,
addition and subtraction, and concatenation . Finally, Excel will
evaluate logical operators , if present.
In summary, Excel solves formulas in the following order:
8
 1. Parentheses
2. Reference operators
3. Exponents
4. Negation
5. Percent
6. Multiplication and Division
7. Addition and Subtraction
8. Concatenation
9. Logical operators
Q5. What is conditional formatting? Explain different types of
conditional formatting using examples of each.

Ans. Conditional formatting enables you to apply special formatting to

cells in your spreadsheet that meet certain criteria. Excel has a sizable
library of pre-set conditions that you can apply fairly simply, or you can
create your own conditional formatting rules using Excel formulas.

9
Types of conditional formatting:

Example suppose we are given marks of 6 students of a class.

On the Home tab, in the Style group, click the arrow next to
Conditional Formatting, and then click Highlight Cells Rules. Select the
command you want, such as Between, Equal To Text that Contains, or
A Date Occurring. Enter the values you want to use, and then select a
format.
Example- Passing marks are 20 marks .We are required to find who
scored less than 20.
10
Top/Bottom Rules are premade types of conditional formatting in Excel
used to change the appearance of cells in a range based on your
specified conditions.
Example ; suppose we are given marks of 6 students of a class. We are
required to find who scored above average.

Data Bars are horizontal bars added to each cell, much like a bar graph.

11
Color Scales change the color of each cell based on its value. Each color
scale uses a two- or three-color gradient. For example, in the Green-
Yellow-Red color scale, the highest values are green, the average
values are yellow, and the lowest values are red.

Icon Sets add a specific icon to each cell based on its value.

Q6. Explain Macro in excel Explain with the help of examples.

A macro is a set of actions that you can run to perform the desired
task. Suppose every month you create a report that needs to mark the
user accounts with the overdue amount in bold and red. Then you can
create and run a macro that applies these formatting changes every
time you wish to.
How To Enable Macros In Excel

12
The Developer tab gives us the ability to work with features like
Macros, Add-ins, and also allows us to write our own VBA code that
will help us to automate anything we wish. This tab is hidden by
default.
Follow the below steps to unhide the Developer tab. This works on all
versions of Excel for Windows (Excel 2007,2010, 2013, 2016, 2019).
Note: This is a one-time process. Once you enable the Developer Tab, it
will always be shown in a custom ribbon for every Excel instance you
open, unless you go ahead and disable it explicitly.
Enabling The Developer
Tab #1) Click the File tab

#2) Click Options

#3) Click on Customize Ribbon.

13
#4) Under Customize Ribbon enable Developer.

Once you enable the Developer tab, it will be displayed on the ribbon
list.

Consider an example, that your company has a certain tool which

generates timesheets for various departments in Excel. You as a
14
manager have the responsibility of reviewing and sending the sheet to
the finance team every week.

15
But before sending you are asked to make some formatting like:
Insert the Title for every sheet that includes team name and week
number, mark it bold, and background yellow.
Draw a border
Bold the column headings.
Rename the sheet name as the team name.
Instead of doing this manually every week, you can just create a macro
and perform all these actions in just a click.
Recording macro is fairly easy. Navigate to the Developer tab, and hit
on Record Macro.

16
This will open up a window where you need to enter.

#1) Macro name: Name should not have spaces in between words. This
has to start with an alphabet or underscore.

#2) Shortcut key: This is useful when you are running a macro. If you
press the shortcut key, it will be executed. Make sure to give a key
which is not already taken, else macro will override that.
For example, if you mention Ctrl+S as the shortcut, then every time
you press Ctrl+S, your macro will be executed and thereby ignoring the
save file option. Hence it is recommended to add Shift, like
Ctrl+Shift+D

#3) Store macro in: This has 3 options as given below.

This Workbook: All the macros created will only be available to
the current workbook. If you open a new excel then the macro
created earlier won’t be available and hence it can’t be used.
Personal Macro Workbook: If you select this, then the macro created
will be stored and will be shown when you open a new excel sheet.
New Workbook: This option will open a new workbook and the actions
performed in that workbook will be recorded.
17
#4) Description: This will describe the purpose of the macro. It is
recommended to give a detailed description so that anyone using that
will know what exactly it is used for.
Once you fill in the details for the fields mentioned above, you can go
ahead and perform the actions required in the Excel Workbook and
everything will be recorded. Once done, go back to the Developer tab
and hit on Stop Recording.

Saving An Excel Workbook With Macro

Selecting Store macro in as “This Workbook”: Consider that you have
selected the Store macro in as “This Workbook” while recording. Once
done go ahead and save the file. While saving you need to select Excel
Macro-Enabled Workbook. You don’t have to explicitly save the
macro. It gets saved automatically.

18
Selecting Store macro in as “Personal Macro workbook”: Now consider
selecting the Store macro in as “Personal Macro workbook” while
recording. You need to save the macro explicitly. If you just save the
Excel file and then try to close the file. Then you will receive a pop-up
dialog as shown below.

Note: If you don’t save this then the macro will be deleted.
Executing A Macro
Now that we are done with recording and saving the file, let’s try to
run it and achieve the desired results. We have gone ahead and
recorded a macro with all the steps required to achieve in the
attendance timesheet example and saved it as a This Workbook with
the shortcut key as Ctrl+Shift+B.
So every week when you receive a new Excel from the software tool,
you just have to open that Excel file and hit the shortcut key
(Ctrl+Shift+B) and all the changes will be incorporated as expected. The
resulting Excel is given below.

19
Q7. Is it possible to prevent someone from copying a cell from your
worksheet?

To set a password to protect cells, follow the steps given below:

1) Go to REVIEW tab and click on "Protect Sheet" option.

2) Excel opens the Protect Sheet dialog box. By default, Excel

selects the Protect Worksheet and Contents of Locked Cells check
box.

3) Select any of the check boxes in the Allow All Users of This
Worksheet To list box (such as Format Cells or Insert Columns) that
you still want to be functional when the worksheet protection is
operational.
20
The Select Locked Cells and Select Unlocked Cells check boxes are
selected by default.

4) Type the password in the 'Password to unprotect Sheet' text box.

5) Click OK.

6) Excel opens the Confirm Password dialog box. Re-enter the

password in the Re-enter Password to Proceed text box and then click
OK. Notice that if you try to edit a cell, Excel displays an error message.

-- To remove worksheet protection, click the Unprotect Sheet button in

the Changes group on the Review tab. You’ll be prompted to type the
password that you had set for protection.

Q8. What is Pivot table? Explain its uses with the help of example?
Ans. A pivot table is a data summarization tool that is used in the
context of data processing. Pivot tables are used to summarize, sort,
reorganize, group, count, total or average data stored in a database. It

21
allows its users to transform columns into rows and rows into columns.
It allows grouping by any data field.
Creation of pivot table
After your source data is prepared, you can create a pivot table. First,
see which pivot table layouts are suggested by Excel.
Select any cell in the source data
table. On the Ribbon, click the Insert
tab.
In the Tables group, click PivotTables.

Substitution of count function: -

The Microsoft Excel SUBSTITUTE function replaces a set of characters
with another. The SUBSTITUTE function is a built-in function in
Excel that is categorized as a String/Text Function. It can be used as a
worksheet function (WS) in Excel.
22
Cross checking of data:-

Data cross checking can mean rechecking the data ( numbers for
example) to make sure they have been entered accurately. Validating
duty checking can be ensuring the base of the data was not skewed,
tampered with or faked. It enables you to validate data through cross-
verification from more than two sources.

23
Pivot chart: -

A pivot chart is the visual representation of a pivot table in Excel. Pivot

charts and pivot tables are connected with each other.

24
Q9. Explain the difference between substitute & replace function in
excel ?

Ans. The SUBSTITUTE function basically substitutes one or more

instances of previous text with the new text. The syntax for this is:
Syntax: SUBSTITUTE (text, old Text, new Text, [instance Number])
Whereas the REPLACE function swaps the part of the text string with
another set of text. The Syntax for this is:
Syntax: REPLACE (old Text, start Number, Number Characters, new
Text).

25
26
27
Q10. What is the difference between COUNT, COUNTA, COUNTIF &
COUNTBLANK functions in excel ?
Ans. Difference between COUNT, COUNTA, COUNTIF, and
COUNTBLANK in MS-Excel :-

COUNT function: The use of count function in MS Excel is to count

numbers present in the text data. For counting, you need to select a
cell and then enter the syntax, =COUNT (Range). Only the numbers of
selected cells will be counted.

COUNTA function: The purpose of the COUNTA function is to count

the cells ignoring all blank cells. This function is not present by Default
in Excel. You need to go to more functions and search for COUNTA.
You can also create direct syntax for it by using, =COUNTA (Range).

COUNTIF function: In case you want to count certain cells with criteria
then you need to go with COUNTIF function. You can select the
particular range/s for which you want the count.

COUNTBLANK: If you are in need of counting all blank cells in your

datasheet then you can use the COUNTBLANK function of MS Excel. It
will also differentiate the cells which are actually blanked or formula
return blank.

28
Q11. What is IF function in excel. Also explain NESTED IF function?

Ans. IF is one of the Logical functions in Microsoft Excel, and there are 3
parts (arguments) to the IF function syntax:
logical_test : TEST something, such as the value in a cell.

value_if_true : Specify what should happen if the test result is TRUE.

value_if_false : Specify what should happen if the test result is FALSE.

Nested IF Function :-

29
If you need to do more than one logical test in a formula, you can
combine multiple IF functions in one formula. This is called a nested
formula, because the additional IF functions act as arguments, nested
within another IF function.

Q12. What is the use of LOOKUP function in excel. Show the use of
VLOOKUP & HLOOKUP function with the help of example ?
30
Ans. VLOOKUP stands for ‘Vertical Lookup’. It is a function that makes
Excel search for a certain value in a column (the so called ‘table array’),
in order to return a value from a different column in the same row.
This article will teach you how to use the VLOOKUP function.

A VLOOKUP function exists of 4 components:

1. The value you want to look up;
2. The range in which you want to find the value and the
return value;
3. The number of the column within your defined range,
that contains the return value;
4. 0 or FALSE for an exact match with the value you are looking for;
1 or TRUE for an approximate match.
5. Syntax: VLOOKUP([value], [range], [column number], [false
or true])

In our example we have a list of fruits, the amount in stock and the
current price. We want to find the price of kiwi’s quickly in this table.
First, select a cell in which you want to publish the current price:

31
HLOOKUP function
Use HLOOKUP when your comparison values are located in a row
across the top of a table of data, and you want to look down a
specified
32
number of rows. Use VLOOKUP when your comparison values are
located in a column to the left of the data you want to find.
The H in HLOOKUP stands for "Horizontal."
HLOOKUP(lookup_value, table_array, row_index_num, [range_lookup])
The HLOOKUP function syntax has the following arguments:
▪ Lookup_value Required. The value to be found in the first row
of the table. Lookup_value can be a value, a reference, or a text
string.
▪ Table_array Required. A table of information in which data
is looked up. Use a reference to a range or a range name.
▪ The values in the first row of table_array can be
text, numbers, or logical values.
▪ If range_lookup is TRUE, the values in the first row of
table_array must be placed in ascending order: ...-2, -1, 0, 1,
2,... , A-Z, FALSE, TRUE; otherwise, HLOOKUP may not give
the correct value. If range_lookup is FALSE, table_array does
not need to be sorted.
▪ Uppercase and lowercase text are equivalent.
▪ Sort the values in ascending order, left to right. For
more information, see Sort data in a range or table.
▪ Row_index_num Required. The row number in table_array from
which the matching value will be returned. A row_index_num of
1 returns the first row value in table_array, a row_index_num of
2 returns the second row value in table_array, and so on. If
row_index_num is less than 1, HLOOKUP returns the #VALUE!
error value; if row_index_num is greater than the number of rows
on table_array, HLOOKUP returns the #REF! error value.
▪ Range_lookup Optional. A logical value that specifies whether
you want HLOOKUP to find an exact match or an approximate
match. If TRUE or omitted, an approximate match is returned. In
other words, if an exact match is not found, the next largest
value

33
 that is less than lookup_value is returned. If FALSE, HLOOKUP will
find an exact match. If one is not found, the error value #N/A is
returned.

Q-13. Define Cell Reference. Explain types of Cell Referencing and

how it can be useful in calculation?

Ans. Cell Reference in excel is the way to represent the identity and the
location of any cell with the help of combining Column Name and Row
Number on a worksheet. For example, if we say cell B10, then it
expands as Column B and 10th Row. Similarly, we can define or declare
cell references to any position in the worksheet. We can also activate
R1C1 from Excel Options, another way for cell reference, where R1 is
Row1 and C1 is Column1.

Types of Cell Reference in Excel

We have three different types of Cell References in Excel –

· Relative Cell Reference in Excel
34
 · Absolute Cell Reference in Excel
· Mixed Cell Reference in Excel
Using the correct type of Cell Reference in a particular scenario will
save a lot of time and effort and make the work much easier.

#1 – Relative Cell Reference in Excel

Relative cell references in excel refer to a cell or a range of cells in
excel. Every time a value is entered into a formula, such as SUMIFS, it is
possible to input into Excel a “cell reference” as a substitute for a hard-
coded number. A cell reference may come in the form B2, where B
corresponds to the cell column letter in question and 2 represents the
row number. Whenever Excel comes across a cell reference, it visits the
particular cell, extracts out its value, and uses that value in whichever
formula that you’re writing. When this cell reference in excel is
duplicated to a different location, the relative cell references in excel
correspondingly also change automatically.
When we refer to cells like this, we can achieve it with any of the two
cell reference types in excel: absolute and relative. The demarcation
between these two distinct reference types is the different inherent
behaviour when you drag or copy and paste them to different cells.
Relative Cell references can alter themselves and adjust as you copy
and paste them; absolute references contrarily do not. Therefore, in
order to successfully achieve results in Excel, it is critical to be able to
use relative and absolute cell references in the right way.
To comprehensively understand the versatility and usability of this
amazing feature of Excel, we will need to look at a few practical
examples to grasp its true value.
Example
let’s look at yet another practical scenario that would make the
concept quite clear. Let us assume that we have a data set consisting
of the Unit Price of a product and the quantity sold for each of them.
Now our objective is to calculate the Sale Price, which the following
formula can describe:
Sale Price = Unit Price x Units Sold.
35
To be able to find the Sale Price, we need to now multiply Unit Price
with Units Sold for each product. So, we shall now proceed to apply
this formula for the first cell in Sale Price, i.e. for Product 1.
It successfully multiplied the Unit Cost by the Units Sold for Product 1,
i.e. cell G2 * cell H2, i.e. 1826.00 * 20, which gives us the result
36520.00.
So now we see that we have 9 other products to go. In real case
scenarios, this could go up to hundreds or thousands of rows. It
becomes difficult and nearly impossible to simply go about writing the
formula for each row.
Hence, we will use the Relative Reference feature of Excel and simply
copy the contents of cell I2 and paste in all of the remaining cells in the
table for the column Sale Price or simply drag the formula from cell I2
to the rest of the rows in that column and get the results for the whole
table in less than 5 seconds.

#2 – Absolute Cell Reference in Excel

Most of our daily work in Excel involves handling formulae. Therefore,

having a working knowledge of Relative, Absolute, or Mixed cell
References in excel becomes quite important.
Let us see the following:
=A1 is a relative reference, where both the row and column change
when we copy the formula cell.
36
=$A$1 is an absolute cell reference; both the column and row are
locked and do not change when we copy the formula cell. Thus, the
cell value remains constant.

Unlike Relative Reference, which can change as it moves to different

cells, the absolute reference doesn’t change. The only thing
required here is to lock the specific cell completely.
Using a dollar sign in the formula, w.r.t. a cell reference makes it an
absolute cell reference as the dollar sign locks the cell. We can lock
either the row or the column using the dollar sign. If the “$” is before
an alphabet, then it locks a column, and if the “$” is before a number,
then a row is locked.

#3- Mixed Cell Reference in Excel

To get a comprehensive understanding of Absolute and Mixed cell

Reference in excel, let us look at the following example.

37
We have the sales data for 4 sales managers across different months,
where sales have occurred multiple times in a month.

Our objective is to calculate the consolidated sales summary of all 4

sales managers. We shall apply the SUMIFS formula to get the desired
result.

38
The result will be as:

Q-14. What is Template in Excel? Give example.

39
Ans. A template is a predesigned spreadsheet you can use to create
new spreadsheets with the same formatting and predefined formulas.
With templates, you don't need to know how to do the math, or even
how to write formulas—these are already integrated into the
spreadsheet.
Excel allows you to create a new workbook using a template, which
is a predesigned spreadsheet. Several templates are preloaded in
Excel, while others are located on Office.com.
To create a new workbook using a template:
Click the File tab to go to Backstage view.
Select New. The Available Templates pane appears.
Click Sample templates to choose a built-in template, or select
an Office.com template category to download a template. In this
example, we'll download a template from Office.com.
Thumbnail images of the templates you can choose from appear in the
center. A larger preview appears on the right.
Select the desired template, then click Download to open it. (If using a
Sample template, Download will be replaced with Create.
A new workbook will appear using the template you chose.
Use caution when downloading Office.com templates. Some of them
are uploaded by people not affiliated with Microsoft, and Microsoft
cannot guarantee that these templates are free from viruses or
defects. For these templates, you'll see a warning message before
downloading them.

Q-15. Give some certain keyboard shortcuts in Excel.

Ans.
1. Ctrl + N: To create a new workbook.
2. Ctrl + O: To open a saved workbook.
3. Ctrl + S: To save a workbook.
4. Ctrl + A: To select all the contents in a workbook.
5. Ctrl + B: To turn highlighted cells bold.
6. Ctrl + C: To copy cells that are highlighted.
40
7. Ctrl + D: To fill the selected cell with the content of the cell
right above.
8. Ctrl + F: To search for anything in a workbook.
9. Ctrl + G: To jump to a certain area with a single command.
10. Ctrl + H: To find and replace cell contents.
11. Ctrl + I: To italicise cell contents.
12. Ctrl + K: To insert a hyperlink in a cell.
13. Ctrl + L: To open the create table dialog box.
14. Ctrl + P: To print a workbook.
15. Ctrl + R: To fill the selected cell with the content of the cell on
the left.
16. Ctrl + U: To underline highlighted cells.
17. Ctrl + V: To paste anything that was copied.
18. Ctrl + W: To close your current workbook.
19. Ctrl + Z: To undo the last action.
20. Ctrl + 1: To format the cell contents.
21. Ctrl + 5: To put a strikethrough in a cell.
22. Ctrl + 8: To show the outline symbols.
23. Ctrl + 9: To hide a row.
24. Ctrl + 0: To hide a column.
25. Ctrl + Shift + :: To enter the current time in a cell.
26. Ctrl + ;: To enter the current date in a cell.
27. Ctrl + `: To change the view from displaying cell values to formulas.
28. Ctrl + ‘: To copy the formula from the cell above.
29. Ctrl + -: To delete columns or rows.
30. Ctrl + Shift + =: To insert columns and rows.
31. Ctrl + Shift + ~: To switch between displaying Excel formulas or
their values in cell.
32. Ctrl + Shift + @: To apply time formatting.
33. Ctrl + Shift + !: To apply comma formatting.
34. Ctrl + Shift + $: To apply currency formatting.
35. Ctrl + Shift + #: To apply date formatting.
36. Ctrl + Shift + %: To apply percentage formatting.
37. Ctrl + Shift + &: To place borders around the selected cells.
41
38. Ctrl + Shift + _: To remove a border.
39. Ctrl + -: To delete a selected row or column.
40. Ctrl + Spacebar: To select an entire column.
41. Ctrl + Shift + Spacebar: To select an entire workbook.
42. Ctrl + Home: To redirect to cell A1.
43. Ctrl + Shift + Tab: To switch to the previous workbook.
44. Ctrl + Shift + F: To open the fonts menu under format cells.
45. Ctrl + Shift + O: To select the cells containing comments.
46. Ctrl + Drag: To drag and copy a cell or to a duplicate worksheet.
47. Ctrl + Shift + Drag: To drag and insert copy.
48. Ctrl + Up arrow: To go to the top most cell in a current column.
49. Ctrl + Down arrow: To jump to the last cell in a current column.
50. Ctrl + Right arrow: To go to the last cell in a selected row.

Q-16. Write text functions available in Excel with

example. Ans.
1. Left()

You can use the Left function when you want to extract the leftmost
characters from a string. Syntax =left(text, num_char)

Similarly, you can also use the Right function to extract the rightmost
characters from a string.

42
2. Len ()

Len function in Excel helps you to know the length of a string that is
number of characters in a string. Syntax = LEN(text)
Note – Spaces are included while calculating length.

3. Mid ()
Mid function in Excel is used to extract the characters from the middle
of a string. Syntax = MID(text, start_char, num_chars)

4. Find ()
Find function in Excel is used when you want to know the position of
certain characters in a particular string. Syntax =FIND(find_text,
within_text,[start_num])

5. Proper ()
Proper function in Excel capitalizes each word in the string that is, it
converts the case into proper case. Syntax =PROPER(Text)
43
6. Rept ()
Rept function in Excel is used when you want a certain text to be
repeated certain number of times. Syntax =REPT(Text, number_times)

7. Trim()
Trim function in Excel removes the unnecessary spaces from a
particular string. Syntax =TRIM(Text )

8. Upper()
Upper function in Excel converts the text into Upper case from lower
case. Syntax =UPPER(Text )

9. Substitute ()

44
Substitute function in Excel helps to replace existing text with a new
text in a particular string. Syntax =SUBSTITUTE(text, old_text,
new_text, instance number)

10. Concatenate ()
Concatenate function in Excel helps to join the text of two or more
cells. Syntax =CONCATENATE(text1, text2….)

Q17. Write Statistical Functions available in Excel with example.

Ans.
1. Count Function

We use the count function when we need to count the number of cells
containing a number. Remember ONLY NUMBERS! Let’s see the
function:
COUNT(value1, [value2], …)
So, let’s try to find the answer to our first question – How many items
were on discount?

45
There are 11 products on discount.

2. Counta Function
While the count function only counts the numeric values, the COUNTA
function counts all the cells in a range that are not empty. The function
is useful for counting cells containing any type of information,
including error values and empty text.
COUNTA(value1, [value2], …)
We’ll answer the second question using the counta function since it is
able to count all the non-empty values – How many items/pieces of
equipment are sold by the store?

The total number of items sold by the store is 13.

3. Countblank
The COUNTBLANK function counts the number of empty cells in a
range of cells. Cells with formulas that return empty text are also
46
counted here but cells with zero values are not counted. This is a great
function for summarizing empty cells while analyzing any data.
COUNTBLANK(range)
Summarizing empty cells is the requirement for our third question –
What products are not in the discount section? Let’s apply the

function!

There are only 2 items not on discount.

4. Countifs Function

Countifs are one of the most used statistical functions in Excel. The
COUNTIFS function applies one or more conditions to the cells in the
given range and returns only those cells that fulfill all of the conditions.
COUNTIFS(criteria_range1, criteria1, [criteria_range2, criteria2]…)
Note: Every new range must have the same number of rows and
columns as the criteria_range1 argument. The ranges do not have to
be adjacent to each other.This function seems perfect to answer the
fourth question – Are there any products sold having cost more than
2000 along with a discount rate greater than 50%?

47
 The
questions seemed complex but it was really easy to find the answer in
Excel. Only 1 product i.e., sneakers, cost more than 2000 and sold at a
discount rate greater than 20%.Wonderful, isn’t it? We have gone
through some basic statistical functions in MS Excel so far. Next, let’s
have a look at the intermediate statistical functions.
Intermediate Statistical Functions in Excel
We will discuss some of the intermediate statistical functions in MS
Excel here related to central tendency and dispersion. These functions
are very useful in our day to day life as an analyst.
5. Average Function
The most common function we usually use in our daily lives is the
average (or mean). The AVERAGE function simply returns the
arithmetic mean of all the cells in a given range:
AVERAGE(number1, [number2], …)
But there’s one simple drawback to using averages – they are prone to
outliers. Therefore, they can paint a very unrealistic picture in our
analysis. Let’s find out the average number of goods sold:dispersed

48
The average comes out to be ~ 365.2. We will be doing similar
calculations for cost as well.

6. Median Function
The problem of outliers can be solved by using another function for the
central tendency – median. The median function returns the middle
value of the given range of cells. The syntax is quite simple:
MEDIAN(number1, [number2], …)
Let’s find the median of the number of goods sold in our sports store
and see how close this is to our average value:

We see that the median comes out to be ~ 320 which is pretty close to
the average value. It means there is not much fluctuation in our data.
Let’s see if this is the case for the cost of goods:

The
median and the average value for the cost of each item vary a lot. For
example, the cost of a ball is 50 but the cost of a bat is 2000 – resulting
in high dispersion.

49
7. Mode Function

For numerical values, mean and median usually, suffice but what about
categorical values? Here, mode comes into the picture. Mode returns
the most frequent and repeated value in the given range of values:
MODE.SNGL(number1,[number2],…)
Note: MODE.SNGL returns only a single value whereas MODE.MULT
returns an array of most commonly occurring values.
Well, this is a simple one. Let’s find the most frequent discount value
given by the sports store:

This
discount value is 10%.

8. Standard Deviation Function

Standard Deviation is one of the ways to quantify dispersion. It is a

measure of how widely values are dispersed from the average value.
Here, we will be using the STDEV.P function which is used to calculate
standard deviation based on the entire population given as arguments:
STDEV.P(number1,[number2],…)
Note: STDEV.P function assumes that its arguments are the entire
population. If that’s not the case, you may use the function STDEV.S()
function. For a large sample size, the standard deviation of the
population and samples will return approximately similar values.
Previously, we have calculated mean and median to get a picture of
the central tendency. Let’s find out the standard deviation to see the
level of dispersion:
50
As expected, the standard deviation of the quantity sold is less,
meaning that the dispersion is less whereas the standard deviation for
the cost of products is high.

9. Quartiles Functions
This is yet another function with abundant applications in the industry.
It helps us divide the population into groups. The QUARTILES.INC
returns the quartile of a dataset, based on percentile values from 0 to
1, inclusive.
For example, you can use this function to find out the top 25% of your
customer base.
QUARTILE.INC(array, quart)

10. Correlation Function

The CORREL() function is my personal favorite. It provides really
powerful insights that are not obvious to the naked eye.
The CORREL function returns the correlation coefficient of two cell
ranges. But what is that? It basically tells us how strong the
relationship is between the two variables.
Note: It does not portray any cause and effect relationship.
CORREL(array1, array2)
The range of correlation value is between -1 and 1.
Let’s head to our final and most interesting question – is there any
relationship between the number of goods sold and the percentage of
discount?
51
Well, the correlation comes out to be ~0.8 which is pretty high. It
seems these are positively related – meaning more the discount,
more the quantity sold.

Q18. Write logical function available in excel with example?

Ans. Logical functions are used in spreadsheets to test whether a
situation is true or false. Depending on the result of that test, you
can then elect to do one thing or another. These decisions can be
used to display information, perform different calculations, or to
perform further tests.
Logical functions provide decision-making tools for information in a
spreadsheet. They allow you to look at the contents of a cell, or to
perform a calculation, and then test that result against a required
figure or value. You can then use the IF logical function to determine
which calculation to perform or action to take depending on the
outcome of the test. Here are some examples.

1. The IF function :-
The IF function is the key logical function used for decision making. It
takes the format:
=IF(condition, true, false)
For example, you could use the following formula:
52
=IF(B2 > 2000, “High”, “Low”) where,
B2 > 2000 is the condition being
tested.
“High” is the text to display if B2 is greater than 2000 (the result of the
test is yes or TRUE)
“Low” is the text to display if B2 is less than or equal to 2000 (the result
of the test is no or FALSE).
53
 2. The AND function :-
The AND function is used to compare more than one condition. It
returns TRUE only if all of the conditions are met, and takes the
format:
=AND(condition1, condition2,…)
For example, you could use the following formula:
=AND(B2 > 400, C2 < 300) where,
B2 > 400 is the first condition being tested
C2 < 300 is the second condition being tested
This will only return the result TRUE if the value in cell B2 is greater
than 400 and the value in cell C2 is less than 300. In all other situations,
the result will be FALSE.
54
3) The OR function :-

The OR function is also used to compare more than one condition. It

returns TRUE if any of the conditions are met, and takes the format:
=OR(condition1, condition2,…)
For example, you could use the following formula:
=OR(B2 > 400, C2 < 300) where,
B2 > 400 is the first condition being tested
C2 < 300 is the second condition being tested
This will return the result TRUE if either the value in cell B2 is greater
than 400 or the value in cell C2 is less than 300. The result will be
FALSE only if neither of the conditions is met.

55
4) Nested IF :-

If you need to make more than one decision before calculating an

answer, you can nest or embed an IF function inside an IF function. For
example, you can use an IF function in place of the true component of
the IF function. If the result of the first condition test is true, the
second
56
condition will be tested. This structure provides for three alternative
outcomes instead of two.

5) NOT Function:-

Returns the reversed logical value of its argument. I.e. If the argument
is FALSE, then TRUE is returned and vice versa.

For example, =NOT(A2>=10). The formula returns FALSE if a value in

cell A1 is greater than or equal to 10; TRUE otherwise.

57
Q19. Explain MATCH & INDEX function with
syntax? Ans. INDEX function :-
The INDEX function in Excel is fantastically flexible and powerful, and
you'll find it in a huge number of Excel formulas, especially advanced
formulas. But what does INDEX actually do? In a nutshell, INDEX
retrieves the value at a given location in a range. For example, let's say
you have a table of planets in our solar system (see below), and you
want to get the name of the 4th planet, Mars, with a formula.

58
MATCH function:-
The MATCH function in Excel searches for a specified value in a range of
cells, and returns the relative position of that value.
The syntax for the MATCH function is as follows:
=MATCH(lookup_value, lookup_array, [match_type])
Lookup_value (required) - the value you want to find. It can be a
numeric, text or logical value as well as a cell reference.
Lookup_array (required) - the range of cells to search in.
Match_type (optional) - defines the match type. It can be one of these
values: 1, 0, -1. The match_type argument set to 0 returns only the
exact match, while the other two types allow for approximate match.
· 1 or omitted (default) - find the largest value in the lookup array
that is less than or equal to the lookup value. Requires sorting the
lookup array in ascending order, from smallest to largest or from
A to Z.
· 0 - find the first value in the array that is exactly equal to
the lookup value. No sorting is required.

59
 · -1 - find the smallest value in the array that is greater than or
equal to the lookup value. The lookup array should be sorted
in descending order, from largest to smallest or from Z to A.
To better understand the MATCH function, let's make a simple formula
based on this data: students names in column A and their exam scores
in column B, sorted from largest to smallest. To find out where a
specific student (say, Laura) stands among others, use this simple
formula:
=MATCH("Laura", A2:A8, 0)

Q20. Explain WHAT IF analysis. Show the use of goal seek, data table &
scenario manager?
Ans. What-If Analysis in Excel allows you to try out different values
(scenarios) for formulas. The following example helps you master
what- if analysis quickly and easily.
Assume you own a book store and have 100 books in storage. You sell
a certain % for the highest price of $50 and a certain % for the lower
price of $20.

60
If you sell 60% for the highest price, cell D10 calculates a total profit of
60 * $50 + 40 * $20 = $3800.

Create Different Scenarios

But what if you sell 70% for the highest price? And what if you sell 80%
for the highest price? Or 90%, or even 100%? Each different
percentage is a different scenario. You can use the Scenario Manager
to create these scenarios.
Note: You can simply type in a different percentage into cell C4 to see
the corresponding result of a scenario in cell D10. However, what-if
analysis enables you to easily compare the results of different
scenarios. Read on.
1. On the Data tab, in the Forecast group, click What-If Analysis.

2. Click Scenario Manager.

61
 The Scenario Manager dialog box appears.
1. Add a scenario by clicking on Add.

4. Type a name (60% highest), select cell C4 (% sold for the

highest price) for the Changing cells and click on OK.

5. Enter the corresponding value 0.6 and click on OK again.

62
 6. Next, add 4 other scenarios (70%, 80%, 90% and 100%).
Finally, your Scenario Manager should be consistent with the
picture below:

Scenario Summary
To easily compare the results of these scenarios, execute the following
steps.
1. Click the Summary button in the Scenario Manager.
2. Next, select cell D10 (total profit) for the result cell and click on OK.

63
Result:

Conclusion: if you sell 70% for the highest price, you obtain a total
profit of $4100, if you sell 80% for the highest price, you obtain a total
profit of $4400, etc. That's how easy what-if analysis in Excel can be.

Goal Seek

What if you want to know how many books you need to sell for the
highest price, to obtain a total profit of exactly $4700? You can
use Excel's Goal Seek feature to find the answer.
1. On the Data tab, in the Forecast group, click What-If Analysis.
64
2. Click Goal Seek.

The Goal Seek dialog box appears.

3. Select cell D10.
4. Click in the 'To value' box and type 4700.
5. Click in the 'By changing cell' box and select cell C4.
6. Click OK.

Result. You need to sell 90% of the books for the highest price to
obtain a total profit of exactly $4700.

65
Q21. State financial model for one period & forecast it for next 4 years?

Ans.

66
Q22. How to build a template in excel?

Ans. To create a template, execute the following steps.

1. Create a workbook.
2. On the File tab, click Save As.
3. Click Browse.

67
4. Enter a file name.
5. Select Excel Template (*.xltx) from the drop-down list.

68
Excel automatically activates the Templates folder. Notice the location
of the Templates folder on your computer. It's usually located here:
C:\Users\<username>\Documents\Custom Office Templates
6. Click Save.

To create a workbook based on this template, execute the following

steps.
7. On the File tab, click New.
8. Click Personal.
9. Click Wedding Budget.

69
Excel creates the workbook WeddingBudget1.xlsx based on
this template.
Note: to edit a template, on the File tab, click Open and then
click Browse, to open the template. Edit the file and save the file
to its original location.
Q23. What are TREND & FORECAST functions in excel?

Ans. Forecast
A forecast predicts something for the future. For example, the
expectations of the future numbers in terms of company growth can
be called a forecast. The forecast function, in short, is used to calculate
the straight lines that are based on known X and Y values. The values of
Y can be calculated for the values of X inside or outside the range of
the X values.

70
Trend

A trend is something that represents a particular status of something

currently happening. For instance, there is a trend for the youth of
today’s generation to be rather glued to their smartphones. OK, maybe
not all of them, but it is definitely a trend!

When you add a trendline to an Excel chart, Excel can display the
equation in a chart (see below). You can use this equation to calculate
future sales. The FORECAST and TREND function give the exact same
result.

Explanation: Excel uses the method of least squares to find a line that
best fits the points. The R-squared value equals 0.9295, which is a good
fit. The closer to 1, the better the line fits the data.
1. Use the equation to calculate future sales.

71
 2. Use the FORECAST function to calculate future sales.

Note: when we drag the FORECAST function down, the absolute

references ($B$2:$B$11 and $A$2:$A$11) stay the same, while the
relative reference (A12) changes to A13 and A14.
3. If you prefer to use an array formula, use the TREND function
to calculate future sales.

72
Note: first, select the range E12:E14. Next, type
=TREND(B2:B11,A2:A11,A12:A14). Finish by pressing CTRL + SHIFT +
ENTER. The formula bar indicates that this is an array formula b
enclosing it in curly braces {}. To delete this array formula, select the
range E12:E14 and press Delete.

Q24. Show some questions based on time value of money ?

Ans. TIME VALUE FUNCTIONS (FV AND FVSCHEDULE)
Excel's FV and FVSCHEDULE functions can be used to calculate the
future value of money, whether the application involves a lump
sum (i.e., one payment or deposit) or an annuity (i.e., several equal
payments or deposits made in equal intervals). These functions also
can be used to determine the expected future value of a cash
investment, IRA, or 401(k) account.
EXAMPLES USING FV AND FVSCHEDULE
Calculating the future value of a present single sum
Your client has $500,000 in an IRA and has asked you to estimate its
value when the client reaches retirement age in eight years, assuming
a 6% return each year.

73
EXAMPLES USING PMT
Calculating annual and monthly payments
Examples A and B: Your client desires a balance of $1 million in a
retirement account by the end of 20 years, and you project an annual
return of 6% on investments. To determine how your client can reach
this goal, the formula =PMT(0.06,20,0,-1000000,0) can be applied. As
shown in cell B13 of the screenshot "Using the PMT Function," the
client's required annual contribution at the end of each year would be
$27,185. Alternatively, if the client already has $100,000 in existing
retirement savings, cell B26 of the screenshot reveals the required

74
annual deposit would be only $18,466, calculated by applying the
formula =PMT(0.06,20,100000,-1000000,0).
Reviewing such calculations can be very eye-opening with younger
clients who are just starting to save for retirement. This analysis can
show them the value of starting their retirement savings early to reach
their goals.

75
EXAMPLES USING NPER
Calculating the number of months or years
Examples A and B: A client wants to know how long it would take for
her to achieve a retirement balance of $1 million if she plans on
contributing $1,250 per month and will earn a 10% annual return (or
0.8333% monthly return). The formula =NPER(0.008333,1250,0,-

76
1000000,1) is applied in cell B13 of the screenshot "Using the NPER
Function" to calculate that it would take over 244 months, or about
20 years and five months, to reach her retirement goal. If the client
already had $100,000 in existing retirement savings, her goal would
be reached in about 183 months, or 15 years and four months, as
shown in cell B28 and calculated by applying the
formula =NPER(0.008333,1250,100000,-1000000,1).

77
Q25. Show some questions based on capital budgeting?

78
Q26. Show some questions based on ratio analysis?
Ans.

79