A spreadsheet is the computer equivalent of a paper ledger sheet. It consists of a grid made from columns and rows. It is an environment that can make number manipulation easy and somewhat painless.

Here is a little example for a possible car loan with input variables car loan, interest rate and number of payments:

The math that goes on behind the scenes on the paper ledger can be overwhelming. If you change the loan amount, you will have to start the math all over again (from scratch). But lets take a closer look at the computer version.

Looking at our previous example it seems pretty evenly matched. Right? WRONG! The nice thing about using a computer and spreadsheet is that you can experiment with numbers without having to RE-DO all the calculations. Lets change the interest rate and then the number of months. Let the COMPUTER do the calculations! Once we have the formulas set up, we can change the variables that are called from the formula and watch the changes.

Let's try this at our car loan example:

Now change the interest rate:

Now change the number of months for repayment:

Do that on paper and you better get your calculator back out and get an Eraser and hope you punched all the right keys and in the right order. Spreadsheets are instantly updated if one of the entries is changed.
NO erasers! NO new formulas! NO calculators!

Spreadsheets can be very valuable tools in business. They are often used to play out a series of what-if scenarios! (much like our car purchase here.)

So let's get started digging into what makes a spreadsheet work. Spreadsheets are made up of

• columns
• rows
• and their intersections are called cells

In each cell there may be the following types of data

• text (labels)
• number data (constants)
• formulas (mathematical equations that do all the work)
• external data (e.g. from data bases)

Take a look at the explanations of each of these.
Remember there will be a short quiz later on so if there is something you need to take notes on,
TAKE NOTES ON IT!

 

In a spreadsheet the COLUMN is defined as the vertical space that is going up and down the window. Letters are used to designate each COLUMN'S location.

In the above diagram the COLUMN labeled C is highlighted.

In a spreadsheet the ROW is defined as the horizontal space that is going across the window. Numbers are used to designate each ROW'S location.

In the above diagram the ROW labeled 4 is highlighted.

In a spreadsheet the CELL is defined as the space where a specified row and column intersect. Each CELL is assigned a name according to its COLUMN letter and ROW number.

In the above diagram the CELL labeled B6 is highlighted. When referencing a cell, you should put the column first and the row second.