Microsoft Office Tutorials and References
In Depth Information
Tutorial C: Building a Decision Support System in Excel
The Cost of Goods Sold cells C31, D31, C41, and D41 are simply copies of the contents of cells C19, D19,
C25, and D25, respectively, from the Calculations sections. Because the cells in both locations are directly
below the Sales cells in the four locations, you can use the Copy command to fill those cells easily. As you
can see in Figure C-8, you can drag your mouse pointer over both cells C40 and D40, right-click to see the
floating toolbar, and select Copy. Move your mouse pointer to select cells C41 and D41, right-click the mouse,
and select Paste. If you are uncomfortable working with the mouse, you can type =C19, =D19, =C25, and
=D25 in cells C31, D31, C41, and D41.
FIGURE C-8
Cost of Goods Sold cells copied from the Calculations sections
Next you determine the Business Loan Payment for cells C32 and D32—notice that it is only present in
the Income and Cash Flow Statements (Expansion) section, because if you do not expand the business, you
do not need the business loan of $100,000. Excel has financial formulas to figure out loan payments. To
determine a loan payment, you need to know three things: the amount being borrowed (cell C5 in the
Constants section), the interest rate (cell B21 in the Calculations-Expansion section), and the number of payment
periods. At the beginning of the tutorial, you learned that the bank was willing to loan money at either 5% or
4% interest compounded annually, to be paid over 10 years. Normally, banks require businesses to make
monthly payments on their loans and compound the interest monthly, in which case you would enter 120
(12 months/year × 10 years) for the number of payments and divide the annual interest rate by 12 for the
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