Preparing a Multi-Step Income Statement using Excel's IF and Basic Math Functions Reading Readiness, Inc. has provided you lts list of accounts and balances as of January 31. The Controller has asked you to prepare an Income Statement for the month ended January 31 Use the Information included in the Excel Simulation and the Excel functions described below to complete the task. Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "-85 . Basic Math functions Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: was entered, the formula would output the result from cell 85, or $37,500 in this example. (plus sign to add), (minus sign to subtract), (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank Cell "-11-Ct2" was entered, the formula would add the values from those cells and output the resut, or 28,800 in this example. If using the other math symbols the result would output an appropriate answer for its function SUM function; Alows you to refer to multiple cells and adds all the values. You can add ndividual cell references or ranges to utite this function. From the Excel Simulation below, If in a biank cell -SUM(C11,C12.C13) was entered, the formula would output the result of adding those three separate cellis, or 103,800 in this example. Similarly, If in a blank cell SUM(C11.C13) was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 103,800 this example. E unction: Allows you to testa condition and return a specific value is the result is true and dfferent value theres it is false. The x of the IF function is lF(test condition,value.it true.value it falsel" and specific considerations need to be made when using this function. The test condition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value- true and value_ faise arguments wil return any specific result for each option, such as another cell reference, a value, or text Throughout the entire equation, if text is being used in the test-condition, vaue_tue, or value.if folse arguments then the text itseilf should be entered in quotati instead of another function. From the Excel Simulation below, if in a blank cell IF(B5 20000, Cash is great Cash is bad") was entered, the formula would output the result of the value.if true since the test .condition would be result as true, or in this case the text "Cash is ons so that Excel will recognize the text as a "string of text great. Excel processes the IF function by separating it out into separate parts. First the test condition- Excel thinks, find cell 85 and determine if the value is greater than 20000 Once Excel determines if the result of that testcondition is TRUE or FALSE, it will return the value if true or value If false All answers must be entered as a formula Click OK to begin. OK
