PowerPoint Presentation · EXCEL –Working with VAT The amount you need in R = the amount you need in % / the amount you have in % X the amount you have in R Amount including VAT

AIN2601

2018

Excel

EXCEL – Basic Principles

Signs/operators

Multiplication: X = *

Division: ÷ = /

Exponents(“to the power”): a2

= ^

Not equal: = = <>


Order of operation (Sequence of computation)

Similar to BODMAS rules (Brackets, Of, Division,

Multiplication, Addition, Subtraction)

1. Brackets ( )

2. Exponents ^ , e.g., =2^3=8

3. Multiplication (*) and Division (/) from left to right

4. Addition (+) and Subtraction (-) from left to right

Example: 100 + 100 * 2 = ???

(100 + 100) * 2 = ???



Example: 100 + 100 * 2 = 300



(100 + 100) * 2 = 400

EXCEL – Basic PrinciplesChanging the sign of an amount

To change a sign of an amount multiply by -1 or add a – before the

cell reference i.e. –B40 or function i.e. –IF

+100 * -1 = -100

-100 * -1 = +100

Percentages

A percentage = a fraction i.e. 100% = 1.

Cell formatted as %Microsoft Office Excel

underlying value in cell

7%

14%

72.5%

100%

First format cells as a %, then type

0.07




+100 * -1 = -100

-100 * -1 = +100

Percentages




7% 0.07

14%

72.5%

100%




+100 * -1 = -100

-100 * -1 = +100

Percentages




7% 0.07

14% 0.14

72.5%

100%




+100 * -1 = -100

-100 * -1 = +100

Percentages




7% 0.07

14% 0.14

72.5% 0.725

100%




+100 * -1 = -100

-100 * -1 = +100

Percentages




7% 0.07

14% 0.14

72.5% 0.725

100% 1

EXCEL – Working with VAT

The amount you need in R = the amount you need in % / the amount you have in % X the amount you have in R

Amount including VAT = R1 140

VAT% = 14%

Amount excluding VAT = R???

R %

Microsoft Office

Excel underlying

value

Amount excluding VAT 100%

VAT 14%

Amount including VAT 114%




VAT% = 14%


R %

Microsoft Office

Excel underlying

value

Amount excluding VAT ? 100%

VAT 14%

Amount including VAT R1 140 114%




VAT% = 14%


R %

Microsoft Office

Excel underlying

value

Amount excluding VAT ? 100% 1

VAT 14%





VAT% = 14%


R %

Microsoft Office

Excel underlying

value


VAT 14% 0.14





VAT% = 14%


R %

Microsoft Office

Excel underlying

value


VAT 14% 0.14

Amount including VAT R1 140 114% 1.14




VAT% = 14%


FORMULA : Amount excluding VAT=

R %

Microsoft Office

Excel underlying

value


VAT 14% 0.14





VAT% = 14%


FORMULA : Amount excluding VAT= 1

R %

Microsoft Office

Excel underlying

value


VAT 14% 0.14





VAT% = 14%


FORMULA : Amount excluding VAT= 1/1.14

R %

Microsoft Office

Excel underlying

value


VAT 14% 0.14





VAT% = 14%


FORMULA : Amount excluding VAT= 1/1.14*1 140

Can think of it as a Maths problem

R %

Microsoft Office

Excel underlying

value


VAT 14% 0.14





VAT% = 14%


FORMULA : Amount excluding VAT = 1/1.14*1 140

Alternative formula = 1 140/1.14

R %

Microsoft Office

Excel underlying

value


VAT 14% 0.14





VAT% = 14%

Amount excluding VAT = R1 000

FORMULA : Amount excluding VAT= 1/1.14*1 140

Alternative formula = 1 140/1.14

R %

Microsoft Office

Excel underlying

value

Amount excluding VAT R1 000 100% 1

VAT 14% 0.14





VAT% = 14%

Amount excluding VAT = R1 000

Test your answer:1 000 * 0.14 = 140 (VAT)

1 000 + 140 = 1 140 (amount including VAT)

Or

1 000 * 1.14 = 1 140

R %

Microsoft Office

Excel underlying

value

Amount excluding VAT R1 000 100% 1

VAT R140 14% 0.14


EXCEL – Working with Gross Profit


Sales = R4 000

Gross profit % based on cost price= 25%

Gross profit R = ?

R %

Microsoft Office

Excel underlying

value

Cost of sales

Gross profit

Sales



Sales = R4 000


Gross profit R = ?

R %

Microsoft Office

Excel underlying

value

Cost of sales 100%

Gross profit 25%

Sales 125%



Sales = R4 000


Gross profit R = ?

R %

Microsoft Office

Excel underlying

value

Cost of sales 100%

Gross profit ? 25%

Sales R4 000 125%



Sales = R4 000


Gross profit R = ?

R %

Microsoft Office

Excel underlying

value

Cost of sales 100% 1

Gross profit ? 25%

Sales R4 000 125%



Sales = R4 000


Gross profit R = ?

R %

Microsoft Office

Excel underlying

value


Gross profit ? 25% 0.25

Sales R4 000 125%



Sales = R4 000


Gross profit R = ?

R %

Microsoft Office

Excel underlying

value



Sales R4 000 125% 1.25



Sales = R4 000


Gross profit R = ?

Formula: Gross profit R =

R %

Microsoft Office

Excel underlying

value



Sales R4 000 125% 1.25



Sales = R4 000


Gross profit R = ?

Formula: Gross profit R = 0.25

R %

Microsoft Office

Excel underlying

value



Sales R4 000 125% 1.25



Sales = R4 000


Gross profit R = ?

Formula: Gross profit R = 0.25/1.25

R %

Microsoft Office

Excel underlying

value



Sales R4 000 125% 1.25



Sales = R4 000


Gross profit R = ?

Formula: Gross profit R = 0.25/1.25 * 4 000

R %

Microsoft Office

Excel underlying

value



Sales R4 000 125% 1.25



Sales = R4 000


Gross profit R = R800

Formula: Gross profit R = 0.25/1.25 * 4 000

R %

Microsoft Office

Excel underlying

value


Gross profit R800 25% 0.25

Sales R4 000 125% 1.25



Sales = R4 000


Gross profit R = R800

Test your answer:

4 000-800= 3 200 (cost of sales)

3 200*0.25= 800(gross profit)

R %

Microsoft Office

Excel underlying

value

Cost of sales R3 200 100% 1

Gross profit R800 25% 0.25

Sales R4 000 125% 1.25

EXCELRELATIVE REFERENCES

RELATIVE REFERENCES

Copy down rows

EXCEL – Relative reference

Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1

8

9

10


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1

8 =A2*

9

10


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1

8 =A2*D2

9

10


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1

8 =A2*D2

9 =A3*

10

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1

8 =A2*D2

9 =A3*D3

10


Copy down rows


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1 "=C2/D3

8 =A2*D2 "

9 =A3*D3

10


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1 "=C2/D3

8 =A2*D2 "=C3/

9 =A3*D3

10


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1 "=C2/D3

8 =A2*D2 "=C3/D4

9 =A3*D3

10


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1 "=C2/D3

8 =A2*D2 "=C3/D4

9 =A3*D3 "=C4/

10


Copy down rows

A B C D

1 500 130 98 5

2 600 220 57 7

3 700 990 15 9

4 900 380 37 6

5 200 870 42 3

6

7 =A1*D1 "=C2/D3

8 =A2*D2 "=C3/D4

9 =A3*D3 "=C4/D5

10

RELATIVE REFERENCES

Copy across columns


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1

8


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*

8


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1

8


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1 =C1*

8


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1 =C1*D1

8


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1 =C1*D1

8 =C4/A2


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1 =C1*D1

8 =C4/A2 =D4/


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1 =C1*D1

8 =C4/A2 =D4/B2


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1 =C1*D1

8 =C4/A2 =D4/B2 =E4/


Copy across columns

A B C D E

1 500 130 98 5 5

2 600 220 57 7 7

3 700 990 15 9 9

4 900 380 37 6 6

5 200 870 42 3 3

6

7 =A1*B1 =B1*C1 =C1*D1

8 =C4/A2 =D4/B2 =E4/C2

EXCELABSOLUTE REFERENCES

(vs RELATIVE REFERENCES)

EXCEL – Absolute reference ($)

Like glue!!

Locks the row and/or column reference in a cell reference

• Lock the row reference only: Insert $ in front of row reference i.e. A$1

• Lock the column reference only: Insert $ in front of column reference i.e. $A1

• Lock both the row and column reference: Insert $ in front of both the row and column reference i.e. $A$1

ABSOLUTE REFERENCES

Copy down rows


Copy down rows

Formula will be copied to range B9:B10.

Reference to cell A1 must not change

A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A1*C4

9 COPY

10 COPY


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4

9

10


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4

9 =A$1*

10


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4

9 =A$1*C5

10


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4

9 =A$1*C5

10 =A$1*


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4

9 =A$1*C5

10 =A$1*C6


Copy down rows

Formula will be copied to range C9:C10.

Reference to cell B2 must not change

A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4 "=B4/B2

9 =A$1*C5 COPY

10 =A$1*C6 COPY


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4 "=B4/B$2

9 =A$1*C5

10 =A$1*C6


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4 "=B4/B$2

9 =A$1*C5 "=B5/

10 =A$1*C6


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4 "=B4/B$2

9 =A$1*C5 "=B5/B$2

10 =A$1*C6


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4 "=B4/B$2

9 =A$1*C5 "=B5/B$2

10 =A$1*C6 "=B6/


Copy down rows



A B C1 14% R 15.00 2 33% R 22.00 34 500 130 55 600 220 76 700 990 97

8 =A$1*C4 "=B4/B$2

9 =A$1*C5 "=B5/B$2

10 =A$1*C6 "=B6/B$2

ABSOLUTE REFERENCES

Copy across columns


Copy across columns

Formula will be copied to range B8:C8.


A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =B1*C5 copy copy

9


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 copy copy

9


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*

9


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5

9


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*

9


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*E5

9


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*E5

9 =B6/A2


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*E5

9 =B6/$A2


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*E5

9 =B6/$A2 =C6/


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*E5

9 =B6/$A2 =C6/$A2


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*E5

9 =B6/$A2 =C6/$A2 =D6/


Copy across columns



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$B1*C5 =$B1*D5 =$B1*E5

9 =B6/$A2 =C6/$A2 =D6/$A2

ABSOLUTE REFERENCES

Copy down rows and across columns



Formula will be copied to cells B9,C10.


A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =A1*B4

9

10



A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9

10







A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*

10





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*C5

10





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*C5

10 =$A$1*





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*C5

10 =$A$1*D6



Formula will be copied to cells C9,D8.


A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*C5

10 =B6/B2 =$A$1*D6





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*C5

10 =B6/$B$2 =$A$1*D6





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*C5 =D5/

10 =B6/$B$2 =$A$1*D6





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4

9 =$A$1*C5 =D5/$B$2

10 =B6/$B$2 =$A$1*D6





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4 =E4/

9 =$A$1*C5 =D5/$B$2

10 =B6/$B$2 =$A$1*D6





A B C D E1 14% R 15.00 2 33% R 22.00 34 500 130 5 150 515 600 220 7 411 456 700 990 9 153 117

8 =$A$1*B4 =E4/$B$2

9 =$A$1*C5 =D5/$B$2

10 =B6/$B$2 =$A$1*D6

Randomly pick any cell irt fixed cell

HOW TO ANSWER AN EXCEL QUESTION

Write down the structure of the Excel functions you must know out of your head

Example =IF(logical_test,value_if_true,value_if_false)

READ all the provided information and underline/highlight the important information

READ through the spreadsheet (left to right & top to bottom)

If an amount or a percentage(%) is given in a cell you MUST use that cell reference to use it in your formula/function

Writing a formula: Write the formula using amounts and replace the amounts with the applicable cell reference

Negative marks in exam – Refer to MO001 document at the end of Study Unit 5

Have a look at the bigger pictureExamples of exam questions

Some examples of negative marks

• Not starting a formula with = -1

• When referring to a range of cells using a ; to

indicate the range i.e. A10:D10 (correct)

• A10;D10 (-1 mark) -1

• Logical issue in a formula e.g. multiply where

we should divide, subtract where we should

add, etc. -1

• Incorrect use of ( ) or not using it where

necessary or not closing brackets -1


• Using [ ] instead of ( ) -1

• Using SUM in a formula where it is not

applicable i.e.

• =sum(H18 - H23) -1

• Using a formula when a function is available

i.e. = B5+B6+B7 instead of =sum(B5:B7) -1

• Add an argument which is not applicable to

the end of the function i.e. =Right(A11,1,1) -1


• Students can use either the , or ; as an

argument separator but it must be used

consistently throughout the question. -1

• Using x instead of * or ÷ instead of / -1

• For marks deducted at a function: The part

in brackets can however not be

EXCEL

QUESTION 1 – TL102 S1 2017

QUESTION 2 – TL102 S1 2016

EXCEL

QUESTION 1

EXCEL QUESTIONSTHE FOLLOWING IS APPLICABLE TO EXCEL QUESTIONS 1 AND 2

Please leave a line open after each individual question.

You used the Excel Help function to obtain the following formula structures which

might come in handy when answering questions 1 and 2:

=VLOOKUP(lookup_value,table_array,col_index_num,range_lookup)

=PMT(rate,nper,pv,fv,type)

=FV(rate,nper,pmt,pv,type)

=PV(rate,nper,pmt,fv,type)

EXCEL QUESTION 1Having just completed her Accounting degree, Jane Smith was appointed as Assistant Inventory Clerk

of Read-A-Lot Bookshop (RaL), a medium sized book shop co-owned by Mr and Mrs Pages. The

bookshop prides itself with stocking all the latest and best-selling books across various genres, eg

academic, fiction, non-fiction, sci-fi, and the Pages’ personal favourite romantic novels. RaL is a

registered VAT vendor.

During the interview with Jane, the Pages said: “We have been experiencing some serious challenges

with managing our inventory (stock), and we urgently need someone that will be extremely hands-on

from day one. The first task will be to fix/improve our inventory management system.”

In line with the Pages’ request, Jane’s first assignment was to develop a detailed inventory

management schedule “IMS” (see the Excel spreadsheet on the following page) for monthly inventory

management. The IMS will perform the following functions amongst others.

1) Illustrate the book’s physical location in the store,

2) Indicate book authors,

3) Indicate the book’s source; ie whether the book is “locally” bought/sourced or “Imported”, and

4) Project the total sales income (excluding VAT) generated per book title.

RaL’s current standalone inventory system uses a twelve (12) character stock reference number (SRN)

as inventory code. Jane rather wants to use the accounting information system’s (AIS) integrated

inventory function to manage the inventory. The AIS’s stock code format is however limited to seven

(7) characters and Jane therefore needs to create new SRNs to be used as inventory codes.

EXCEL QUESTION 1 A B C D E F G H

1 Read-A-Lot Bookshop: Inventory Management Schedule (IMS)

2 Authors Table

3 VAT percentage 14% Author code Initials

4 HashimL2 HL

5 Book source and related mark-up margin GuguB012 GB

6 Source Mark-up % GroblerO GO

7 Imported Books (IM) 25% ButlerP1 BP

8 Local Books (LS) 15%

9

10 Book Title Author code

Current SRN Location

Code Author Initials

New SRN Source Code

Mark-up %

11 Book-Worm ButlerP1 2005R4S2BPIM R4S2 BP R4S2*BP IM 25%

12 Silent Killer GuguB012 1998R1S1GBIM R1S1 GB R1S1*GB IM 25%

13 New World GroblerO 2007R2S4GOLS R2S4 GO R2S4*GO LS 15%

14 Love Portion HashimL2 2010R1S4HLIM R1S4 HL R1S4*HL IM 25%

15

16 New SRN Mark-up% Unit Cost Price

Incl. VAT

Unit Cost Price Excl.

VAT

Unit Selling

Price Incl. VAT

Unit Selling

Price Excl. VAT

Units sold Total Sales

Income Excl. VAT

17 R2S4*GO 15.00% R 98.76 R 86.63 R 113.57 R 99.63 14 R 1,394.77

18 R1S4*HL 25.00% R 290.56 R 254.88 R 363.20 R 318.60 38 R 12,106.67

19 R4S2*BP 25.00% R 198.25 R 173.90 R 247.81 R 217.38 22 R 4,782.35

20 R1S1*GB 25.00% R 458.98 R 402.61 R 573.73 R 503.27 9 R 4,529.41

21 Grand Total Sales Income Excl VAT R 22,813

22 Lowest Unit Cost Price Incl VAT R 98.76

23 Highest Unit Selling Price Excl VAT R 503.27

EXCEL QUESTION 1a. Value Added Tax (VAT) percentage is 14% (refer to cell B3).

b. Book source and related mark-up margin (refer to range A5:B8).

Each book’s mark-up margin (mark-up %) is determined based on whether the book is imported

(IM) or locally sourced (LS). Imported books (IM) attract a 25% mark-up margin (refer to cell B7)

and locally sourced books (LS) attract a 15% mark-up margin (refer to cell B8).

c. Authors Table (refer to range G2:H7) indicates the unique 8 character author code and the

corresponding authors’ initials.

d. Current stock reference number (SRN) - (refer to range C11:C14)

The current SRN structure is as follows:

• Characters 1 to 4: Refer to the year the book was published.

• Characters 5 to 8: Refer to the book’s location in the store.

• Characters 9 to 10: Refer to the initials of the author of the book.

• Characters 11 to 12: Indicate the source of the book as either imported (IM) or locally sourced

(LS).

1 2 3 4 5 6 7 8 9 10 11 12

Year published Location Code Author

Initials

Source code

EXCEL QUESTION 1e. The New stock reference number (SRN) (refer to range A16:A20) is created by combining the

location code, an asterisk (the * sign) and the author initials.

The new SRN structure is as follows:

• Characters 1 to 4: Refer to the book’s location in the store.

• Character 5: * (Asterisk sign)

• Characters 6 to 7: Refer to the initials of the author of the book.

f. The Source Code (refer to range G11:G14) is extracted from the current SRN (refer to point d)\

g. The Unit Cost Price Including VAT (refer to range C17:C20) was obtained from the inventory

system and is the cost price (including VAT) of one book.

h. The Unit Selling Price Including VAT (refer to range E17:E20) is based on the applicable Mark-up

% (refer to point b.) and the Unit Cost Price Including VAT.

i. The Total Sales Income Excluding VAT (refer to range H17:H20) is calculated by multiplying the

given units sold for every SRN (refer range G17:G20) and the Unit Selling Price Excluding VAT.

1 2 3 4 5 6 7

Location Code * Author Initials

EXCEL QUESTION 1REQUIRED:

Use the case study information and the spreadsheet to answer the following questions.

Note: Where it is indicated that your formula will be copied to other cells, your formula must

take absolute and relative cell references into account.

5.1. Which spreadsheet formula was entered into cell D11 to extract Book-Worm’s Location Code from

the current Stock Reference Number (SRN) in cell C11?

Note: Your formula will be copied to range D11:D14. (2.5)

5.2. Which spreadsheet formula was entered into cell E11 to obtain Book-Worm’s Author Initials from

the Authors Table in starting in cell G2?

Note: Your formula will be copied to range E12:E14. (3.5)

5.3. Which spreadsheet formula was entered into cell F11 to determine Book-Worm’s New Stock

Reference Number (SRN)?

Note: Your formula will be copied to range F12:F14. (3)

5.4. Which spreadsheet formula was entered into cell G11 to extract Book-Worm’s Source Code from

the current Stock Reference Number (SRN) in cell C11?

Note: Your formula will be copied to range G12:G14. (2)

EXCEL QUESTION 15.5. Which spreadsheet formula was entered into cell H11 to determine the Book-Worm’s Mark-up

margin?

Note: Your formula will be copied to range H12:H14. (3.5)

5.6. Which spreadsheet formula was entered into cell B17 to obtain R2S4*GO’s Mark-up margin from

the table in range F10:H14?

Note: Your formula will be copied to range B18:B20. (3.5)

5.7. Which spreadsheet formula was entered into cell D17 to calculate R2S4*GO’s Unit Cost Price

Excluding VAT?

Note: Your formula will be copied to range D18:D20. (2)

5.8. Which spreadsheet formula was entered into cell E17 to calculate R2S4*GO’s Unit Selling Price

Including VAT?

Note: Your formula will be copied to range E18:E20. (2)

5.9. Which spreadsheet formula was entered into cell H21 to calculate the Grand Total Sales Income

Excluding VAT? The formula should round your answer to zero decimal digits. (3)

5.10.Which spreadsheet formula was entered into cell H22 to determine the lowest unit cost price

including VAT? (1.5)

EXCEL QUESTION 1

5.11.Which spreadsheet formula was entered into cell H23 to determine the highest unit selling price

excluding VAT? (1.5)

[28]

EXCEL

QUESTION 2

EXCEL QUESTION 2You are the financial manager for GlasBot Pty Ltd, a registered VAT vendor. GlasBot manufactures a

range of glass perfume bottles.

GlasBot wants to invest in a new glass bottle-manufacturing machine. The production manager, Mr

Mashile has short-listed four machines. He asked your help in creating a spreadsheet calculating the

monthly instalment amount as well as extracting the downtime days and error margins from the given

information.

Mr Mashile provided you with the following information:

a) The Value Added Tax (VAT) percentage is 14% (refer to cell B3).

b) All the machines will be financed using the same loan finance terms:

a) Interest is compounded monthly at the end of each month at an annual interest rate of 8%

(refer to cell B4).

b) The finance period is five (5) years (refer to cell B5)

c) The purchase price including VAT for each machine (refer to range B15:B19).

d) The residual value of each machine at the end of the five (5) year term (refer to range C15:C19).

e) Each machine has a specific UMDG scale code. A machine’s UMDG scale code will fall within a

specific scale bracket (refer to cell range A7:C13), which indicates the error margin percentage (%)

at which each machine operates. For example a machine with a UMDG code of 120 will fall in the

scale bracket 100 to 199 and the machine will therefore have an error margin of 2.5%.

f) Each machine’s name (refer to range A15:A19) has a specific structure. The machine name

contains the UMDG scale code as well as the downtime code

EXCEL QUESTION 2(g) Each machine has either a B or a C downtime code. The downtime code

indicates the number of downtime days i.e. the number of days per month a

machine will not be operational due to routine maintenance. Two (2) days

downtime is indicated by a B and a C downtime code will be equal to one (1) day

downtime

The machine name structure is as follows:

– Characters 1-3: MAN

– Character 4: Space

– Character 5: X (machine configuration)

– Character 6: - (hyphen/dash)

– Characters 7-9: UMDG scale code (also refer to point e)

– Character 10: Downtime code (also refer to point g)

1 2 3 4 5 6 7 8 9 10

M A N X - 1 1 1 C

A B C D E F G H I

1 GlasBot Pty Ltd - New machine investigation

2

3 VAT 14%

4Annual

interest rate 8%

5Period (years) 5

6

7 UMDG scale

8From To

Error

margin (%)

9 100 199 2.5%

10 200 299 1.5%

11 300 399 2.0%

12 400 499 4.0%

13 500 599 3.0%

14

15Machine

name

Purchase

price

(including

VAT)

Residual

value after

5 years

Monthly

instalment

(including

VAT)

Monthly

instalment

(excluding

VAT)

UMDG

scale

code

Downtim

e code

Error

margin

(%)

Downti

me

days

16 Man X-545C R 4,747,160 R 300,000 R 100,338.21 R 88,015.97 545 C 3.0% 1

17 Man V-339B R 6,327,420 R 0 R 128,297.26 R 112,541.46 339 B 2.0% 2

18 Man X-237C R 7,528,060 R 40,000 R 153,186.30 R 134,373.95 237 C 1.5% 1

19 Man Z-183B R 4,925,000 R 50,000 R 100,541.73 R 88,194.50 183 B 2.5% 2

20

21Largest monthly instalment

excluding VAT R 134,373.95

EXCEL QUESTION 2

EXCEL QUESTION 2Required:

Use the information and spreadsheet provided to answer the following questions:

Note: Where it is indicated that your formula will be copied to other cells, your formula

must take absolute and relative addresses into account, but only where necessary!

1. Which spreadsheet formula was entered into cell D16 to calculate the monthly instalment

amount including VAT for Man X-545C? The formula should return a positive answer.

Note: Your formula will be copied to cells D17:D19. (4.5)

2. Which spreadsheet formula was entered into cell E16 to calculate the monthly instalment

amount excluding VAT for Man X-545C? Note: Your formula will be copied to cells

E17:E19. (2)

3. Which spreadsheet formula was entered into cell F16 to extract the UMDG scale code for

Man X-545C from the machine name? Note: Your formula will be copied to cells

F17:F19 (2.5)

EXCEL QUESTION 2Required cont…:

4. Which spreadsheet formula was entered into cell G16 to extract the downtime code for

Man X-545C from the machine name? Note: Your formula will be copied to cells

G17:G19. (2)

5. Which spreadsheet formula was entered into cell H16 to obtain the error margin % for Man

X-545C from the UMDG scale starting in cell A7? Note: Your formula will be copied to

cells H17:H19. (4)

6. Which spreadsheet formula was entered into cell I16 to calculate the number of downtime

days for Man X-545C? Note: Your formula will be copied to cells I17:I19. (3)

7. Which spreadsheet formula was entered into cell E21 to calculate the largest instalment

excluding VAT for all the machines? (2)

Total [20]

Good luck with your

exam!!

Documents

PowerPoint Presentation · EXCEL –Working with VAT The amount you need in R = the amount you need in % / the amount you have in % X the amount you have in R Amount including VAT