CIS 3309.

190

Summer 2013

Dr. Jaesung Sim

Lab: MS Excel 1
This instruction sheet will be used to practice MS Excel advanced skills, including IF function, and Scenario Manager. After practicing skills here, students are able to submit Class Work 5 (due: 6/10), and Assignment 3 (due: 6/13). All following skills described here are well explained in your case book. Study Tutorial C if you have a book. Discussions on basic skills of MS Excel will be skipped since one of the prerequisites of this course is CIS2203: Software for Business Applications. 1. Data File Download CIS3309 A3.zip file from Assignment 3 link at [Dropbox] area in D2L. Use any zip utility to unzip this data file, and you will have 6 files, as following: Tutorial C.xlsx : Data file to practice this lab. After practicing, submit this file as a class work. Case7.pdf : Electronic copy of Case 7 in your Case book for Assignment 3 Case7.xlsx : Excel data file to complete Case 7 for Assignment 3 A3 Main High12.pdf : Sample of Main worksheet of Assignment 3 with High 12 A3 Main Mid6.pdf : Sample of Main worksheet of Assignment 3 with Mid 6 A3 Scenario.pdf : Sample of Scenario sheet of Assignment 3

Note: Aga in, you must unzip the zip data file. Do not open i t.

2. Starting Excel with a data file Find Tutorial C.xlsx that you unzipped in Step 1, and double click it. The file will be open in Excel. If necessary, click Edit button. This is the data file to practice todays skills based on Tutorial C, but the electronic copy of Tutorial C is not provided by the instructor because there are too many pages in Tutorial C. By completing this tutorial, you will make a decision to invest your money to open a local theater based on information from Excel. Refer Tutorial C for more backgrounds. 3. Inputs Type P & D to cells C8 & C9. This means that you (as an investor to open a local theater in 2008) assume the economic outlook for 2009 and 2010 will be pessimistic, and the purchase price outlook for two years will be going down.

CIS 3309.190

Summer 2013

Dr. Jaesung Sim

4. Calculations

Row 16 (Number of Units Sold in a Day) o This is the function of economic outlook. If economic outlook in C8 cell is O (optimistic), then Number of Units Sold in a Day will go up by 6%. If not, it will go down 1%. o Copy formulas above to Row 16. o Study IF function if necessary. Row 17 (Selling Price per Unit): Ticket Price o This is the function of economic outlook, too. If economic outlook in C8 cell is O (optimistic), then Selling Price per Ticket will go up by 7%. If not, it will be same as the one in a previous year. o Copy formulas above to Row 17. Row 18 (Cost of Goods Sold per Unit): All costs for one ticket o This is the function of the purchase price. If the purchase price outlook in C9 cell is U (going up), then Cost of Goods Sold per Unit will go up by 25%. If not, it will go up by 1%. o Copy formulas above to Row 18. Row 19 (Number of Units Sold in a): Total tickets for a whole year o This is the multiplication of C5 (total working days per year) and C16 (total tickets sold in one day)

5. Income Statements and Cash Flow Statement

Row 22 o This is copy of the ending cash in the previous year. Row 24 o Total revenue is the multiplication of C17 (price of one ticket) and C19 (total tickets for a whole year). Row 25 o Total cost is the multiplication of C18 (cost of one ticket) and C19 (total tickets for a whole year).

CIS 3309.190

Summer 2013

Dr. Jaesung Sim

Row 27 o Income tax is the multiplication of Income before Taxes (C26) and tax rate (C4), if Income before Taxes is positive. If not, there will be no tax. Row 28 o This is Income before taxes (C26) minus income tax (C27) Row 30 o This is beginning cash plus the net income of the current year.

6. What IF Analysis
Opt-Up Opt-Down Pes s -Up Pes s -Down

$ 1,535,752.93 $ 2,045,678.91 $ 1,098,681.34 $ 1,552,943.79

Now, the model in previous steps will calculate the ending cash in 2010. If you type P & D in input cell in Step 3, the ending cash will be about $1.5M. Type other combinations (O&U, O&D, P&U), and results will be numbers in the left table. If you have different results, you have to fix formulas in Steps 4 & 5.

Now, you can generate four different results based on 4 scenarios. It will be quite easy to make a table with only 4 scenarios, but it will take some time to generate results based on many scenarios. Also, yo u may generate inaccurate results. 7. Scenario Manager To generate a summary based on multiple scenarios very quickly and accurately, we can use Scenario Manager. Click Data tab What if Analysis Scenario Manager. Click Add button in the Scenario Manager Dialog box. Define the first scenario, which is the situation where Economic outlook is going up and Purchase price outlook is going up. I will name it as Opt -Up, so type it. This scenario will have inputs in two cells, C8 & C9, so define changing cells like the sample figure. You can skip comment. Now, click OK.

In the next Scenario Values dialog box, type values for the first scenario like the right sample figure. Values for OptUp should be O and U. Click OK. Click Add button again for the second scenario. Type Opt-Down with same changing cells, but values should be O & D. The 3rd scenario can be named as Pess -Up with P & O, and the last scenario is Pess -Down with P & D.

CIS 3309.190

Summer 2013

Dr. Jaesung Sim

Now, you should see 4 scenarios defined like the sample figure at the right. Ok. Lets create a summary table that will show something. What is something? What do you want to see? Probably you want to compare Ending cash of the last working year (2010) in 4 different scenarios. Click Summary button. Specify D30 as a result cell in the next dialog box since D30 will show the ending cash of Year 2010. OK. The final result will be similar to the one below. If you want, you can align text values in rows 2:3, 6:7 to center. Format numbers in row 9 to currency format. May remove column D. May change the title from $C$8 to Economic Outlook. Do similar works respectively. Scenario Summary
Current Va lues: Opt-Up Opt-Down Pes s -Up Pes s -Down

Changing Cells: $C$8 $C$9 Result Cells: $D$30

P D 1552943.794

O U 1535752.934

O D 2045678.908

P U 1098681.344

P D 1552943.794

Now, this is the information from Excel, which will support your decision. When you check the result very carefully, you will know you can make at least $1M (in Pess-Up scenario), which is enough to open a theater because it may be big money to you still. Or, in the best scenario (Opt-Down), you will make just $2M, which is still nothing to you if you are a billionaire. As it shows, Excel (one of Decision Support Systems, which you will learn from Chapter 12 of the main textbook) only provides information to support you (people) to make a decision. Machine does not make a decision here, only people make a decision with the help from the machine. Ok. Done. 8. Close Excel Finish Excel application. 9. Submit CW05 (Due: 6/10 Monday) Go to your working folder, and find Tutorial C.xlsx. If you want, rename this file to yourname5.xlsx (e.g. JSim-CW5.xlsx). Check Step 2 if you cannot find your file. Submit this file thru CW05 link in [Dropbox] area of D2L. You will get 10 points.

CIS 3309.190

Summer 2013

Dr. Jaesung Sim

10. Assignment 3 (Due: 6/13 Thursday) To complete your Assignment 3, use Case 7.pdf and Case 7.xlsx files in Step 2 or your Case book. When you type all formulas correctly, your values will be same with those in A3 Main Mid6.pdf when you enter 1% & 6 in cells C14 & C15. With values of 2% & 12, your values in the main worksheet should be same with those in A3 Main High12.pdf. Then, define all 12 scenarios correctly, and make a correct summary. Your result should be similar with the one in A3 Scenario.pdf. After completing it, submit a single Excel file which contains Assignment 1 (main worksheet) and Assignment 2A (scenario summary) sections from this case. Please be sure this assignment is extremely difficult, so please start it as early as possible. After creating a file, submit it thru Assignment 3 link in [Dropbox] area of D2L. If you work this assignment in a group, choose only one person in your group, and ask her to submit the file. Other members should not submit the file. In this case, the submitter should write down names of all your group members into Comments area of submission link in [Dropbox] like the sample figure. Thanks and post your questions to [Discussion Boards] and I will promptly answer them.