Now that we have learned how to move, copy, and fill data, and how to format cells and data, next we will take a look at the basics of formulas, including some basic calculations, selecting ranges in formulas, and how to copy formulas. A typical formula is made of several key components. The equal sign starts the formula off and lets Excel know you are creating a formula in this cell. The next part is the function, which performs the calculation. For example, the SUM function adds up the values in referenced cells or cell ranges. Then comes the reference, which is the cell or range of cells you want to include in your calculation, and these need to be enclosed in parentheses. You also have operators, which specify what type of calculation to perform. Common arithmetic operators include: addition, subtraction, multiplication and division. And these are represented by symbols. The plus symbol for addition, the minus symbol for subtraction, the asterisk for multiplication, and the forward slash for division. There are other types of operators too. Namely comparison, text concatenation, and reference. You may also use constants in your formulas, which as the name suggests are numbers or values which you can enter directly into a formula, and which don’t change. This might be a whole number such as 5, it might be a percentage such as 10%, or it might even be a date. So, a typical formula might be =SUM(B5*20), which would take the value in cell B5 and multiply it by 20. Let’s start with a few basic calculations. Suppose you want to add up January and February sales of accessories. You would start by typing an equal sign, which lets Excel know you are entering a formula. Then you type in the function you wish to use, in this case the SUM function. Note the description. Next you type an open parenthesis, then you select your cell range, which in this case would be E2 to E3, so you could enter that as ‘E2,E3’ then a close paranthesis and press Enter. And if you wanted to add March sales as well, then you would have to extend the cell range to include E4. So you could type E2,E3,E4 as your range and it will work. Remember, to edit a cell, you select the cell, and either edit it directly in the formula bar, or press F2, or double-click the cell. However, it’s very cumbersome and not very flexible to do it this way, because if you wanted to add up the entire column then you’d have to type every cell reference, one after the other. So thankfully, there’s a better way. Instead of typing each cell to include in the reference, you just put a colon between the first and last values in our range, so E2:E4, in this case. And if you wanted the whole column, then you would enter E2:E13 in your formula. But there’s another way of doing it, and that’s by using your mouse to select the range, so you still type =sum then open parenthesis, but select the range with your mouse (or SHIFT + arrow keys) and just press Enter. Excel will add the close parenthesis for you. To total these columns up, and add some tax, you’d add some headings first for Subtotals, and Tax at 20%. Then your formula will need to multiply the value in Subtotals by 20%. If you want to add up all the column subtotals and calculate the taxes, then you could repeat the previous process for each column, but that’s very time consuming, and you don’t need to, because Excel has some neat tricks to do this for you. Just select the fill handle in the bottom right corner of the cell, and drag across to the other cells to copy the formula; this is called AutoFill. Notice how the formula is copied, but the row references change in relation to the cells’ position on the worksheet. So what was E2:E13 has become B2:B13. These are known as relative references, but more on that later in the course. And you can do the same thing for the tax values in row 16. Now, you need a row for showing the totals. The calculation here is simply the subtotal value in cell B15, added to the tax in B16. And again, you can use the fill handle to copy the formula across. If you want to total the sales of all products by month, you’d add a column heading; notice how the cell style is copied to the new heading automatically. Remember, to widen a column, either drag the divider manually, or double-click the divider. Then enter the formula in cell F2 as you’ve done before. However, Excel has another trick up its sleeve. It’s called AutoSum and is found on the Home tab, in the Editing group. This is a great little shortcut for some simple common functions like Sum, Average, Count, Max, and Min, but you can choose other functions too. You want ‘Sum’ for this particular calculation. Notice that it also has a keyboard shortcut of ‘Alt plus equals’, and then press Enter, and it’s done. Now you can use the fill handle to copy down the remaining values. But hold on, there is one more Excel trick to show and it’s a good one! Suppose your column of data was very long; you might have to drag the fill handle down over several pages, which isn’t easy to do and can easily lead to errors when selecting large lists of data values. Rather than needing to drag down to the rest of the column, you can just double-click the fill handle, and it will automatically copy the formula to all the remaining cells in that column. This one is a real time-saver. Finally, let’s format all these values to use the US dollar currency format. In this video, we learned about the basics of formulas, how to perform simple calculations, how to select ranges in formulas, and how to copy formulas. In the next video, we will look at how to use some of the common functions used by Data Analysts and discover some more advanced functions.