Financial Modeling

Q. What is Microsoft Excel

Microsoft Excel is a software program produced by Microsoft that allows users to organize,
format and calculate data with formulas using a spreadsheet system.

Q. What is a Spreadsheet
A MS Excel Spreadsheet is basically a worksheet which is divided into rows and columns to
store data related to business inventories, income and expenses, debits and credits. You can use it
to organize your data into rows and columns. You can also use it to perform mathematical
calculations quickly

Q. What is a Workbook
A Microsoft Office Excel workbook is a file that contains one or more worksheets that you can
use to organize various kinds of related information. To create a new workbook, you can open a
blank workbook. You can also base a new workbook on an existing workbook, the default
workbook template, or any other template.

Q. What is an Active Cell

An active cell refers to a cell in Excel spreadsheet that is currently selected by clicking mouse
pointer or keyboard keys. Only one cell can be active cell at a time. An active cell is bounded by
a heavy border around it.

Q. What is a Cell Address

A sell address is a combination of a letter and a number that specifies the column and row in
which a cell is located on a spreadsheet.
  Basic Commands in Ms Excel

1. CUT (CTRL + X): The cut command removes the selected data from its original position.

2. COPY (CTRL + C): The copy command creates a duplicate, the selected data is kept in a
temporary storage tool called the clipboard.

3. PASTE (CTRL + V): The data in the clipboard that was either cut or copied is later inserted
in the position where the paste command is issued.

4. BOLD (CTRL + B): Renders the text with a strong emphasis which is usually heavier than
surrounding text.

5. ITALIC (CTRL + I): Italicizes the selected text which usually appears slanted to the right

6. UNDERLINE (CTRL + U): Adds a line under the selected text.

7. BACKGROUND COLOURS: Enables you to fill color in the selected cells.

Wrap Text
Wrap Text is a feature that wraps the text within a cell.

1. In a worksheet, select the cells that you want to format.

2. On the Home tab, in the Alignment group, click Wrap Text. Data in the cell wraps to fit the
column width, so if you change the column width, data wrapping adjusts automatically

Example: We used the ‘Wrap Text’ function to wrap the text ‘Financial Modeling Assignment’
in one cell
Filtering and Sorting

Sorting is a common spreadsheet task that allows you to easily reorder your data. The most
common type of sorting is alphabetical ordering, which you can do in ascending or descending
order

Let us take the above example for Sorting

1. Select a cell in the column you want to sort (a column with numbers).

2. Click the Sort & Filter command in the Editing group on the Home tab.
3. Select From Smallest to Largest. Now the information is organized from the smallest to largest
amount.

Filtering data in a spreadsheet means to set conditions so that only certain data is displayed. It is
done to make it easier to focus on specific information in a large database or table of data.
Below is the Example for Filtering

1. Click the Filter command on the Data tab. Drop-down arrows will appear beside each column
heading and then click the drop-down arrow next to the heading you would like to filter.
2. First uncheck Select All, choose the value you want to filter (in this case 1000) and then click
OK. All other data will be filtered, or hidden, and only the data related to the value 1000 is
visible
Merger and Center

Merging cells is often used when a title is to be centered over a particular section of a
spreadsheet. When a group of cells is merged, only the text in the upper-leftmost box is
preserved

On the Home tab, in the Alignment group, click Merge and Center. The cells will be merged in a
row or column, and the cell contents will be centered in the merged cell. To merge cells without
centering, click the arrow next to Merge and Center, and then click Merge Across or Merge
Cells.
In this Example we will merge D1 and E1 and the word ‘March’ will be placed in the center as
shown below

1. Select D1 and E1 cells.

2. Choose the ‘Merge and Center’ function.

3. D1 and E1 merge into a single cell with the word ‘March’ being placed in the center.

4. To unmerge the merged cell, select the merged cell and choose the ‘unmerge cells’ option.
Find and Select

MS Excel provides you the flexibility to use ‘Find and Select’ features to find specified text and
replace it with your desired text

Let us take the above example

To find the value 50000

1. We choose the ‘Find’ function

2. Fill in the value 50000 in the field of ‘Find what’

3. Click on ‘Find All’ and it shows all the cells which have the value 50000 in them.
To replace the value 50000 with 35000

1. Select the ‘Replace’ function and fill 35000 in the field ‘Replace With’

2. Clicking ‘Replace All’ will replace every cell with value 50000 with 35000.

3. Clicking only ‘Replace’ will replace 50000 with 35000 of the selected cell.