Home Archives for Excel Financial Tools
February 7, 2012 Leave a Comment

How to Use Excel Formulas and Functions to Analyze Inventory for a Retail Store

Excel Formulas to Analyze Inventory

Excel Formulas to Analyze Inventory

My friend, Alan Friedman, is a CPA and Partner in Friedman Kannenberg and Company, PC. I have been using one of the Excel Worksheets that Alan developed to teach retail store owners and managers how to analyze their inventory. In this lesson, I demonstrate how to write and copy the Excel formulas needed to perform this analysis.

Excel Formulas for Analyzing Inventory

Many retailers use a Point-of-Sale (POS) System that can generate three numbers: Sales by Product Category, Cost of Goods Sold (COGS) by Product Category and Average Inventory by Product Category. Taking these three numbers – also known as “hard-coded” values – you can use Excel Formulas to give you:

  • Gross Profit Dollars (Sales minus COGS)
  • Gross Profit Percentage (Gross Profit Dollars divided by Sales)
  • Inventory Turns (COGS divided by Average Inventory)
  • Product Category Sales as a Percentage of Total Sales (Category Sales divided by Total Sales) – Use an Absolute Cell Reference
  • Inventory by Category as a Percentage of Total Inventory – (Inventory by Category divided by Total Inventory) – Use an Absolute Cell Reference
  • Gross Margin Return on Inventory (GMROI) – (Gross Profit Dollars divided by Average Inventory)

Tips for Entering and Copying Excel Formulas

As I demonstrate in this tutorial, you can write and copy an Excel Formula in one step when you first select the cells to receive the formula and use the Ctrl + Enter Keyboard Shortcut to complete the formula. Instead of clicking on the AutoSum Command or writing =SUM(), use the Alt + = (equal sign) to sum up the values in the adjacent range of cells.

Learn to Improve Your Excel Skills

If you want to learn how to create and use more Excel Formulas and Functions, I have created the Best-selling DVD-ROM, “The 50 Best Tips for Excel 2007.” You can learn more about this resource by visiting my secure online shopping website – http://shop.thecompanyrocks.com

Watch Tutorial in High Definition

I produce my Excel Tutorials in High Definition. Follow this link to view this lesson on my YouTube Channel – DannyRocksExcels

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Filed Under: Excel Financial Tools, Excel Formulas, Excel Functions, Excel Training, YouTube Videos by Danny Rocks Tagged: , , , , , , ,
January 30, 2012 Leave a Comment

How to use Wrap Text and Merge Cells Formatting to Improve Excel Worksheet Appearance

Wrap Text for Labels

Wrap Text for Labels

In this tutorial – the second in my series explaining how a worksheet, that my accountant friend Alan Friedman created, works – I focus on improving the formatting for the column labels and other descriptive text.

Wrap Text for Labels

In my experience, I find that many accountants and other financial managers have not mastered the basics of formatting an Excel Worksheet. It seems that they are still using “old fashioned IBM typewriter tricks” when it comes time to create the labels for the columns of data in their spreadsheet.

Case in Point: Using two or more vertical cells to type “Cost of” (Return key on Computer) “Goods Sold.” This “old fashioned” process will lead to multiple problems. For example, improper sorting and filtering of data.

In this tutorial, I demonstrate how to use the Wrap Text command to format a single-cell text label. You will also learn how to use the Keyboard Shortcut Alt + Enter to control where your text “breaks” when wrapping text.

Merge Cells Across Columns

When you have a long, descriptive text – e.g. Your Company Name – it is best to type this into a single cell and then use the Merge Cells Command. Now, when you double-click between Column Letters to automatically expand the width of a column, only the “um-merged” labels in the column are extended in width.

Additional Resources for Tutorial

You can learn “The 50 Best Tips for Excel 2007” on my DVD-ROM. Visit – http://shop.thecompanyrocks.com/50-best-tips-for-excel-2007/ – to learn more about this.

Click on this link to download the Excel Worksheet – created by Alan Friedman – that I use in this lesson.

Watch Tutorial in High Definition

Follow this link to watch this tutorial in High Definition on my YouTube Channel – DannyRocksExcels

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Filed Under: Excel Financial Tools, Excel Training, Format Cells in Excel, YouTube Videos by Danny Rocks Tagged: , , , , , , ,
January 29, 2012 Leave a Comment

How to Apply Alternate Row Shading Using Conditional Formatting in Excel

Alternate Row Shading

Alternate Row Shading w/ Conditional Formatting

This is the first tutorial in a new series. In collaboration with my good friend, Alan Friedman – CPA and partner with the firm Friedman, Kannenberg & Co., PC – I am using Alan’s Financial worksheets to demonstrate how to get the most out of Excel. In this lesson, I show you how to apply Alternate Row Shading – aka “Green Bar Shading” – to a Year-end Inventory Analysis Excel worksheet.

Conditional Formatting in Excel

In this lesson, I create a new rule that uses a formula to determine the “condition” – or criteria – that must be met in order to apply the “formatting” to my selection of cells. The “key” to understanding this rule: The formula that you use for this “rule” must return either TRUE or FALSE. The cells – in the selection – that evaluate to TRUE will receive the special formatting – a background shading.

Extending Range of Cells to Receive Conditional Formatting

In general, you can use Excel’s AutoFill Handle to extend Conditional Formatting to adjacent cells. If, however, you want to apply the “Rule Using a Formula” to non-adjacent cells, first copy a cell that contains the Conditional Formatting. Then, use Paste Special – Formatting to apply this rule to your new selection of cells.

Resources for This Tutorial

I invite you to visit my secure online shopping website – http://shop.thecompanyrocks.com – to preview all of the resources that I offer to you.

Please visit the Friedman, Kanneberg & Co. website to download the worksheet used in this series of lessons – and other seminar handouts.

 

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Follow this link to watch this Excel Tutorial in High Definition on my YouTube Channel – DannyRocksExcels

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Filed Under: Conditional Formatting, Excel Financial Tools, Excel Training, Format Cells in Excel, YouTube Videos by Danny Rocks Tagged: , , , , , , , , , ,
September 23, 2011 1 Comment

How to Use the Solver Add-in for Excel – Part 2

Solver Parameters

Solver Parameters

This is Part 2 of my series of video tutorials where I demonstrate how to use the SOLVER Add-in Tool in Excel to produce a specific result for a formula.  Remember that SOLVER is an Add-in program that you must activate before you can use it. Watch Part 1 in this series to learn how to activate SOLVER.

In this tutorial, I work with the same data set that I used in Part 1. This time, I want to achieve a specific amount of Gross Profit Sales Dollars. First, however, I must determine what is a reasonable amount to set as the Target for Solver to return.

Use SUMPRODUCT Function in Excel

I use the SUMPRODUCT Function to quickly determine my possible Revenue, Cost of Goods Sold and Gross Profit is I sell all of the Units that I have in stock. Now, I have a reasonable Target for SOLVER to reach. SUMPRODUCT is a very efficient Function that, unfortunately, very feel Excel users – in my experience – know about. Follow this link to my Index of Excel Video Lessons to find additional tutorials for SUMPRODUCT.

Best Practice Tips for Solver

  • Work with a copy of your worksheet. This is always a good idea, and it is most important when you are beginning to learn how to work with SOLVER.
  • Write out your Goal for SOLVER.
  • Do you want SOLVER to Maximize the Formula? For example, to Maximize your potential profit?
  • Do you want SOLVER to Minimize the Formula? For example, to Minimize your costs?
  • Do you want SOLVER to return a Specific Number? If so, what is that number?
  • Determine your “Variable Cells.” SOLVER calls them the “By Changing Cells.” These are the cells that SOLVER will automatically adjust.
  • The Variable Cells must “feed int” the formula in your Target Cell – This is the key to making SOLVER work!
  • Write out your “Constraints.” These are the “real-world” conditions that you want SOLVER to operate under. This is the real power in SOLVER.
  • Do not treat the SOLVER results as “the Gospel.” SOLVER is a powerful Business Intelligence Tool. You, however, know your own business or industry. Use SOLVER as a tool to help you to make informed business decisions.

 

Watch Part 1 in SOLVER Series of Video Tutorials

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Follow this link to view this Excel Tutorial in High Definition on my YouTube Channel – DannyRocksExcels.

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How to Use Solver Add-in for Excel - Part 2 [ 11:48 ] Play Now | Play in Popup | Download (2137)
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Filed Under: Excel Financial Tools, Excel Functions, Excel Training, What-if Analysis, YouTube Videos by Danny Rocks Tagged: , , , , , , , ,
April 23, 2011 Leave a Comment

Create an Accounts Payable Summary Report in Excel

Accounts Payable Status Summary

Accounts Payable

Here is another video lesson that I created to answer a question from one of my viewers. In this case, the request is for help in creating an Accounts Payable Summary Report in Excel.

Formula to Create Label for Status

My viewer wants to know how to create one formula that will report the status of an Invoice as “Paid,” “Pay Now,” or “Delay.” To do this I “nested” one IF() formula inside another IF() formula. I used the ISBLANK() function as my first “logical test” in the formula. ISBLANK returns either TRUE or FALSE, so it is a good Function to become familiar with.

One of my “best practices” when learning how to “nest” IF Formulas, is to create each one separately – to test the results – and then copy and paste them into the combined formula.

Use SUMIF() Function to Total Status

Now, that your formula returns a status label for each invoice, you can use the SUMIF Function to search in the Named Range “Status” for the cells that match the criteria (Paid, Pay Now, Delay) and then Sum the Invoice Amounts for each category.

Watch This Video in High Definition on YouTube

Here is the link to my YouTube Channel, DannyRocksExcels, where you can watch this in High Definition.

Download this Excel Workbook

Follow this link to go to my Public SkyDrive to download this workbook to practice with.

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Create an Accounts Payable Report in Excel [ 8:15 ] Play Now | Play in Popup | Download (1680)
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Filed Under: Excel Financial Tools, Excel Functions, Excel Training, SUMIF and SUMIFS Functions Tagged: , , , , , , , ,
April 9, 2011 Leave a Comment

Functions to Analyze Loan Payments in Excel

Loan Payment Functions

Loan Payment Functions

When you use the PMT Function in Excel, the result is the amount of money that you will pay each period (usually monthly) until the loan is repaid. When you want to know how much of each payment is an interest charge, you use the IPMT Function. And,to find the amount that goes towards reducing the principal on your loan, you use the PPMT Function.

Cumulative Payments

Two other functions are helpful in analyzing your loan payments. When you want to see the Cumulative amount of Interest (CUMIPMT Function) that you paid between two periods – e.g. Starting with payment 1  and ending with payment 12. You use the CUMPRINC Function to total the amount of your loan payments that went towards reducing the principal on your loan between any two periods.

Absolute and Relative Cell References

As you will see in the video, I use a combination of Absolute Cell References (e.g. $A$4) and Relative Cell References (e.g. A4) in these formulas. An Absolute Cell Reference means that cell will “remain in place” when the formula is copied down or across to other cells. In this example, I have my Loan Information (Amount to borrow, Interest Rate, etc.) at the top of the spreadsheet. Almost all references to these cells in formulas is Absolute.

Function Arguments Dialog Box

I almost always use the Function Arguments Dialog Box when I am creating my formulas. I use the Keyboard Shortcut, Ctrl + A at this point in the formula – “=PMT(” to activate the dialog box. The advantages of using the Function Arguments Dialog Box are:

  • Explanation of both the function and each “argument” in the function
  • Ensures arguments are answered in the proper sequence
  • Ensures that all “required” arguments (Argument Labels are in Bold)
  • Evaluates the result of each “intermediate” calculation – to the right of each argument

This is the first of several Excel Video Lessons that I am creating to demonstrate how to perform Financial Calculations. Let me know what you think or send me your questions to answer. You can add a comment below this post.

Watch This Video in High Definition on YouTube

Follow this link you view this Excel Video on my YouTube Channel – DannyRocksExcels

Download Excel Workbook

Follow this link to download the Excel Workbook I used in this lesson.

Subscribe to My Video Podcast

I invite you to receive an automatic notice – via email – whenever I publish a new Excel Video Lesson. Follow this link to find out the details. The subscription is free; you do not need to provide and personal information beyond your email address; and you can cancel at any time – no questions asked!

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Functions to Analyze Loan Payments in Excel [ 8:05 ] Play Now | Play in Popup | Download (1170)
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Filed Under: Download Files from Video Lessons, Excel Financial Tools, Excel Training, Podcast Tips & Timesavers Tagged: , , , , , , ,
March 2, 2011 Leave a Comment

Make it Easier to Display Large Numbers in Excel with Formatting Codes

In order to establish and maintain your credibility, the numbers that you store in Excel must be accurate and precise. You cannot compromise on this principle! In most cases, you will be working with large numbers – sometimes, very large numbers. And, this may present a problem when you need to present these numbers to your audience.

So …

It is essential that you distinguish between your need to maintain accurate “data” and your need to communicate the essential “information” that resides in your data to your audience.

Format Custom Numbers

Format Custom Numbers in Excel

When you are presenting the “essential information” that resides inside your database, you need to consider the needs of your audience.

Ask yourself these questions:

  • What essential information do you need to communicate to your audience?
  • What are the trends and variances that you see inside your data, that you want your audience to see, to understand, and take action on?
  • What level of precision do you need to convey to your audience so that they can grasp this information?
  • How can you make it easier for your audience to see – and understand – the trends and variances in your data?
  • What techniques can you use to present this information to your audience?

Apply a Custom Format to Numbers in Excel

You can answer these questions by learning how to apply “Custom Number Formatting” in Excel.

For example, instead of presenting this level of precision – 19, 699, 499, you can use this custom number format – 0.0,,”M”, to present this as 19.7M. From my perspective as both a presenter and an audience member, I prefer to see 19.7M. This makes it easier for me to process the information as an audience member. This makes it easier for me to present – saying 19,7 million is a lot easier than trying to say 19 million, 699 thousand, 4hundread and 99 dollars!

What is your preference?

Watch this short, focused Excel training video lesson to learn how to format and display large numbers in Excel so that you can make it easier for your audience to understand and act on the information that you are presenting.

Learn how to “Master Excel in Minutes – Not Months!”

Follow this link to watch this video lesson in High Definition, Full-screen mode on my YouTube Channel – DannyRocksExcels

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Make it Easier to Display Large Numbers in Excel by Using Formatting Codes [ 6:29 ] Play Now | Play in Popup | Download (762)
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Filed Under: Excel Financial Tools, Excel Training, Format Cells in Excel, Podcast Tips & Timesavers Tagged: , , , , ,
January 1, 2011 Leave a Comment

The 10 Most Watched Videos at The Company Rocks During 2010

Reminder Note

Reminder Note

I like to look back to review the results of the past year. Which posts, which videos were the most popular, which videos were downloaded most often? As I look at this list of 10 videos, the clear winner – by category – is merging data from multiple worksheets. Three of the top 10 videos that were watch the most fall into this category!

Here is a listing of the 10 Video Lessons that were watched most frequently on my website – www.thecompanyrocks.com – during 2010:

1- Summarize Multiple Excel Worksheets – Consolidate by Position

2- Build an Accounts Receivable Aging Report

3- Use Pivot Tables to Summarize by Year, Quarter and Month

4- Simplify Data Lookups in Excel

5- Perform Break-Even Analysis with Excel’s Goal Seek Tool

6- How to Display Numbers During a PowerPoint Presentation

7- Make Excel Data Come Alive with Visualization Tools

8-  Excel 2003 Basics – Data Entry

9- How to Merge Multiple Excel Workbooks into a Master Budget

10- Consolidate Data from Multiple Excel Worksheets – Part 2 – by Category

If you enjoy these videos, you will enjoy my DVD-ROMs, “The 50 Best Tips for Excel 2007” and “The 50 Best Tips for PowerPoint 2007.” You can use my secure shopping cart to purchase them now.

I have reduced the purchase price of my Individual DVD-ROMs to $29.97 USD. You do not need a coupon to receive this special price. Simply, go to my online store – http://shop.thecompanyrocks.com

You can also watch my videos on iTunes. Click here to go to my Video Podcast, “Danny Rocks Tips and Timesavers” at the iTunes Store.

Learn how to “Master Excel in Minutes – Not Months!”

My most recent videos can be viewed in High Definition, Full Screen Mode on my YouTube Channel – DannyRocksExcels

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Filed Under: Consolidate Excel Data, Excel Basics, Excel Financial Tools, Excel Training, Goal Seek in Excel, Lookup Functions in Excel, Most Viewed Excel Videos, Pivot Tables, Powerpoint Techniques Tagged: , , , , , , , ,
October 18, 2010 Leave a Comment

Create User Friendly Excel Forms Using Spin Button Controls

An Excel Form is great way to distribute an Excel worksheet to your customers or field representatives. Most of the time, you do not want them to type values into a cell. You want to make this Form as “user friendly” as possible! You want to add “Spin Buttons” to your form, so that the user can simply click to change cell values up or down in the increments that you want to display.

A perfect example: A Mortgage Loan Scenario where – by clicking the Spin Buttons – your client can see what their monthly payment will be. This is my second lesson covering Excel’s Form Control Tools. Watch as I demonstrate how to “work around” the Form Controls limits of Maximum Amount for a Spin Button (30,000) and also how to increment interest rates by 1/4 of a Percent.

From personal observation, I know that many people start to create an Excel Form and then just give up in frustration. I did too – in the beginning! Watch me demonstrate how to avoid the traps of the “got’cha” steps in this short Excel Training Video.

Check out the great tips that I offer on my DVD, “The 50 Best Tips for Excel 2007.” Click here to start shopping.

Learn how you can “Master Excel in Minutes – Not Months!”

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Create User Friendly Excel Forms with Spin Button Controls [ 8:54 ] Play Now | Play in Popup | Download (1298)
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Filed Under: Excel Financial Tools, Excel Forms, Excel Functions, Excel Training, Podcast Tips & Timesavers Tagged: , , , , ,
October 1, 2010 3 Comments

How to Create a Pivot Table Year-to-Year Comparison Report

One of my viewers asked for my help in creating and Excel Pivot Table Report. She wants to compare the total number of units shipped during three time periods: the years 2008, 2009 and 2010. The trick to producing this report is to drag the field to be summarized – Units Shipped – to the Values Area three times. Then, you change the Value Field Settings to first Sum the Units, then to compare the change in units year-over-year and finally to express this as a percentage of change. This creates a Year-to-Year Comparison Report.

This is a tip that is best demonstrated visually. So, I invite you to watch this 6 minute and 55 second Excel Video Training Lesson.

If you do not have the time to watch the video now, you can use my RSS Feed to deliver it to your computer or you can subscribe to my Video Podcast on iTunes to watch it later.

Learn how to “Quickly Create Pivot Table Reports and Charts”

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How to Create a Pivot Table Year Over Year Comparison Report [ 6:55 ] Play Now | Play in Popup | Download (3302)
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Filed Under: Excel Financial Tools, Excel Training, Pivot Tables, Podcast Tips & Timesavers, Video Response to Viewers Tagged: , , , , , ,
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