6
Electronic
Spreadsheets
The greatest challenge to any thinker is
stating the problem in a way that will allow
a solution.
—Bertrand Russell
LEARNING OBJECTIVES
After studying this chapter you should be able to:
1. Define the terms used to identify the parts of an electronic spreadsheet.
2. Find online and program resources for learning how to use the program and its features.
3. Create and save an electronic spreadsheet.
4. Use some of the special features of spreadsheets, including creating
graphics.
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Chapter 6
OPENING SCENARIO
Mr. Mason and Caitlin were preparing for a labor negotiating session the
following day. They had been working on the different proposals and possible
counterproposals for a number of days. There were at least a dozen different
possibilities for how much each of the demands and offers would cost. He
needed to be able to quickly calculate what the costs and benefits would
be, based on any number the other side might throw out on the table. He
needed to quickly assess whether the total costs and bottom-line benefits to
the employees were within the negotiating authority and budgets, and basically if the proposal made any sense.
There were a fixed number of employees with current salary and hour
information available. What he needed was the ability to quickly calculate
what the cost for each proposal would be, based on the different percentage increases proposed, the individual fringe benefit cost, and a total
per employee and total for all employees, during the negotiating session
without having to leave to have the figures calculated. Caitlin had taken
a course in preparing and using spreadsheets, which had saved a lot of
time in doing calculations in a complex estate that required consideration
of a number of alternative tax and estate planning strategies. Mr. Mason
was hoping his paralegal could do the same thing in this case because
without an electronic spreadsheet it would take hours to get through
the session, and the other side always seemed to have the numbers at their
fingertips.
INTRODUCTION TO ELECTRONIC SPREADSHEETS
Many areas of legal practice involve calculating and presenting financial information.
In family law practice, the preparation of family and personal balance sheets and income and expense reports are routinely prepared for support and equitable distribution hearings. Wills, trusts, and estate practices frequently must calculate the
financial impact of taxes on different estate plans, or prepare and submit an accounting to beneficiaries or to the court for approval, with details showing how the
fiduciary handled the financial affairs of the estate or trust. Trial attorneys must account to clients for the proceeds of settlements, including details of the receipts and
disbursements from the case and in some cases, like minors’ compromises and class
action cases, to the court for approval. The computerized spreadsheet, when laid out
in the format acceptable to the court, can be printed without reentering the data, or
copied into word documents.
For many applications in legal practice there are templates with formulas for
calculating the information needed, such as an electronic spreadsheet version of the
Housing and Urban Development (HUD) sheet used in real estate settlements or closings. Electronic spreadsheets have reduced the potential for error in manually calculating or retyping amounts or in using formulas for calculation. The tedium of
manually completing a worksheet by hand to recalculate a small change is eliminated
by instant reproduction of the template or spreadsheet and changing a number to determine its effect on the rest of the calculation. The use of computer spreadsheets reduces the errors associated with manual mathematical calculations and errors in
retyping the information. Caution must be taken to make sure that the formula is accurate and performs the desired calculation. Even expert spreadsheet users use a set of
sample numbers to test the formulas, knowing what the result should be, based on
prior use or calculations.
131
Electronic Spreadsheets
CREATING AND WORKING WITH SPREADSHEETS
As you look at the following spreadsheet examples and at the templates provided
online from Microsoft, Corel, and other sources you will note a number of different
presentation styles and degrees of complexity. A spreadsheet in its most basic form is
any two items with some relationship that is acted upon mathematically and the result presented in a third location (called a cell). Spreadsheets are frequently used in
situations requiring many complex calculations, like in “what-if” tables in complex
estate planning. Some people specialize in developing these complex spreadsheets
using complex mathematical formulas and then designing a user friendly appearance
or format. With an understanding of what the spreadsheet can be used to accomplish,
you will be able to express what you need to present and what the relationships of the
data are to someone else, like the in-house IT person or outside computer consultant
to get what you need.
Row
A horizontal set of cells in a
spreadsheet.
Column
A vertical set of cells in a
spreadsheet.
Cell
In a spreadsheet, the box at
the intersection of a row and
column for text or numerical
data.
Formula Bar
NAVIGATING IN ELECTRONIC SPREADSHEETS
Spreadsheets use standard terms to describe the parts of the spreadsheet, such as rows,
columns, cells, formula bar, active cell and formula, and workbooks, as shown in
Exhibit 6.1.
In Excel, the area at the top of
the spreadsheet for entering
formula and data into
spreadsheet cells.
Workbook
A collection of worksheets.
These cells
are values.
Where rows and
columns intersect is a
cell. This is cell A1.
Cells A1 to A23
are labels.
The value of this cell
has been changed.
SUM function
=SUM(B10:B21)
adds the values in
B10 through B21.
Formula (=B8–B22)
subtracts Total
Expenses (cell B22)
from Total Income
(cell B8).
Exhibit 6.1
An additional
row of information
has been added.
These cells have been
recalculated after
changes were made
to the spreadsheet.
This entire page is a
worksheet. One or
more worksheets
make up a workbook.
Names of parts of a spreadsheet, using Excel 2003 as a sample spreadsheet.
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Chapter 6
Exhibit 6.2
Excel 2007 Ribbon view of Excel Spreadsheet (reproduced from the Excel tutorial Overview).
WWW MINI EXERCISE
The Excel 2003 courses from
Microsoft available online may
be accessed at http://office.
microsoft.com/en-us/training/
CR061831141033.aspx
Excel 2007 and its new Ribbon design changes the appearance of the user interface and some of the other items, including the menus and toolbar and layout, as
shown in Exhibit 6.1, but does not change the names of the basic parts of a spreadsheet, as shown in Exhibit 6.2, or change the basic functions for which a spreadsheet
is used.
As with other Microsoft Office Suite 2007 programs, the 2007 version uses tabs,
groups, and command buttons in the groupings to carry out a command or display a
menu of options for access to the features and functions formerly accessed using the
menus and toolbars.
WWW MINI EXERCISE
The Excel 2003 Overview
tutorial may be accessed at
http://office.microsoft.com/trai
ning/training.aspx?AssetID=R
C011234971033
The Excel 2007 Overview
tutorial may be accessed at
http://office.microsoft.com/trai
ning/training.aspx?AssetID=R
C100620751033
Property Bar
In Quattro Pro, the area at the
top of the spreadsheet for
entering formula and data into
spreadsheet cells.
RESOURCES FOR LEARNING AND USING
ELECTRONIC SPREADSHEETS
As seen in the chapter on word processing, most vendors of software provide help in
learning and using the software. Microsoft offers a number of online tutorials, some of
which are listed in Exhibit 6.3, which shows those for Excel 2003. An example is
shown in Exhibit 6.4.
Corel’s Quattro Pro provides tutorials within the program that can be used without the need for an internal connection to a website. Exhibit 6.5 shows a partial list of
the available tutorials and Exhibit 6.6 shows the contents of a tutorial, in this case on
using the property bar. The property bar in Quattro Pro appears above the column
letters and is a context sensitive set of commands. (Context sensitive means it changes
according to what is being worked on.)
Exhibit 6.3
Exhibit 6.4
Online tutorials available for learning Excel 2003.
Excel online tutorial Overview.
133
Exhibit 6.5
Exhibit 6.6
134
Partial list of tutorials available in Quattro Pro.
Quattro Pro online tutorial screen.
Electronic Spreadsheets
Excel 2007 offers a series of options, as shown in Exhibit 6.7, selected by a left
mouse click on the question mark symbol in the top right of the Excel frame.
In addition to the global help, content specific help is offered in select program
options as shown in Exhibit 6.8 for the Pivot Table feature.
Exhibit 6.7
options.
Exhibit 6.8
Pivot Table program Help.
Excel 2007 Help
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Chapter 6
CREATING A SPREADSHEET
As shown in Exhibit 6.9, in a decedent’s estate, the calculation involved may be as simple as multiplying the number of shares owned by a decedent by the value on the date
of death, and then calculating the profit or loss when the stock was sold. Without a
computerized spreadsheet, all of the calculations would have to be done manually,
using a multicolumn form known as a spreadsheet or accountant’s working papers. The
information then would have to be typed in a report format for submission to the court,
the beneficiaries, and/or the taxing authorities.
Using a computerized spreadsheet such as Microsoft Excel or Corel Quattro Pro,
the numbers are entered in cells, and a formula assigned to the cell in which the result
is to be displayed, such as:
“multiply Column E [Number of Units] by Column F [Cost per Unit]” and “display the
result in Column G [Original Cost]”
C REATING A B ASIC S PREADSHEET
First—Start with what you want the spreadsheet to show or calculate.
Creating a Spreadsheet Checklist
Exhibit 6.9
■
What do you want to do?
■
What are the inputs?
■
What is the desired outcome?
■
What are the formulas?
■
What columns are needed?
Estate Asset Ledger modified from an Excel 2007 template downloaded from the Microsoft Excel website.
Electronic Spreadsheets
For example:
Create a Dollar-Euro Conversion Chart, another chart where one item (column)
will be multiplied (or divided, added, or subtracted) by another item (column)
to arrive at a total.
What do you want to do?
Calculate the number of Euros I will get for a
dollar.
What are the inputs?
Number of dollars
Current value of Euro
What is the desired
outcome?
Number of Euros
What are the formulas?
Dollars times Euro conversion rate
Example
$100 × 0.86 = 86 Euros
Second—Create the column labels.
Setting up an electronic spreadsheet is a little like setting up the columns in a
table, with each column having a heading; in this example, Dollars, Conversion
Rate, and Euros. The label can be in any row, but in this example it is in Row 1.
Third—Enter a formula.
The cell (row and column) in which the answer will be calculated must
contain the desired formula.
In the example shown in Exhibit 6.10 it is Cell C2 (the intersection of
Column C and Row 2).
Each time you place your cursor in a cell, a window opens for input of
the formula in the property bar (Quattro Pro) or formula bar (Excel).
Electronic spreadsheets have many potential formulas that can be used
from the very simple (add two numbers) to the complex (calculate the present
or future value of a number). In Quattro Pro the @sum( ) formula is the most
basic and with a little effort can be used for most applications. The @sum
symbol-word combination tells the program you want to calculate the
information found between the parentheses ( ); in this example, to multiply the
amount in Cell A2 times the amount in Cell B2 and put the result in Cell C2.
Note: In Microsoft Excel the = sign is used instead of the @ used in Quattro Pro.
Exhibit 6.10 Dollar-Euro conversion spreadsheet. Note that the calculation
resides in Cell C (intersection of Column C and Row 2).
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Chapter 6
Exhibit 6.11
To change a label in Quattro Pro, type the desired words in the property bar.
Basic Mathematical Function Symbols Used in Spreadsheets
■
Multiply *
■
Divide
÷
■
Add
+
Subtract To add a set of numbers you enter a formula, such as,
@sum(A1+B1+C1)
To multiply a series of numbers
@sum(A1*B1*C1)
To divide one number by another
@sum(A1/B1)
Note that there are no spaces between formula symbols, letters, and numbers.
While the example shows the numbers in adjacent columns, they don’t have
to be. Any cell can be used from anywhere in the spreadsheet with any other
cell in the spreadsheet, such as
@sum(A1+C3+E40).
■
E DITING A L ABEL
Just as a formula can be entered or changed by editing it in the property bar, so can a
label. A label can be entered by typing it in a cell, or by selecting the cell and typing it
in the property bar (see Exhibit 6.11). Editing is easier if done in the property bar since
all the letters do not have to be retyped. If you edit words in a cell, all of the letters have
to be retyped.
SPREADSHEET TEMPLATES
Many offices save spreadsheet templates in the same way that sample word processing
documents are saved for future use. For example, a real estate settlement spreadsheet
with formulas and headings may be saved without amounts. Because the formulas do
not change and the form has proven accurate, it may be used as a template for other
clients’ real estate settlements. Exhibit 6.12 shows a HUD real estate settlement Excel
Electronic Spreadsheets
Formula in Active Cell
Columns
Menu/Toolbar
Rows
Active Cell: Column H Row 32
Exhibit 6.12
Excel spreadsheet template created for HUD real estate settlements.
spreadsheet with its parts identified. Notice the similarity in the menu bar and toolbar
between Excel and MS Word.
Corel’s Quattro Pro electronic spreadsheet is similar in function and appearance to
Microsoft’s Excel. As shown in Exhibit 6.13, Quattro also allows for personal customization in the way the program functions and displays items.
In most programs a selection from the active screen is made by using the mouse
to point to it and left-clicking the mouse button.
Some readers may wonder what the right mouse button is for; the right mouse
button usually brings up context sensitive options, like the Quattro Pro Options menu.
Pointing at the top of the Quattro page in the bar with the name of the program and
file name and location and right clicking brings up the Options menu for the program.
Selections are then made using the left button.
T EMPLATES —P ROJECTS
Quattro provides the option when creating a new spreadsheet to use Project Templates
or Projects (see Exhibit 6.14). These are similar to the templates provided in Excel for
use in Excel.
139
Exhibit 6.13
Options in Quattro Pro spreadsheet allow for personal customization.
Exhibit 6.14
140
Selecting the project Legal from Quattro Pro’s options menu.
141
Electronic Spreadsheets
One question often asked is, can Excel templates be used in Quattro Pro? As
described in the following boxed insert, the answer is no.
T EMPLATES FROM M ICROSOFT
A number of spreadsheet templates are available for download from the Microsoft
website by selecting the template option when creating a new spreadsheet. Most of the
templates will work with the more current versions of Excel; however, some will only
work with a specific version, such as Excel 2007. Always check the compatibility
before downloading.
The spreadsheet in Exhibit 6.15 is a weekly timesheet template downloaded from
the online Microsoft template resource.
Cell G24 has been selected and highlighted to show the formula in the formula
bar (Excel) or property bar (Quattro) used to calculate the total of the entries that will
be made in column G. Note that the references are to a total (SUM) of the cells G7
through G23 using this formula shortcut:
=SUM(G7:G23).
The same total could be calculated using the formula:
=SUM(G7+G8+G9+G10+G11+G12+G13+G14+G15+G16
+G17+G18+G19+G20+G21+G22+G23).
Note again that there are no spaces between symbols, numbers, and letters.
Exhibit 6.15
Weekly Timesheet Template in Excel 2007 showing formula for total hours.
FAQ–F REQUENTLY A SKED
Q UESTIONS
OPENING A MICROSOFT EXCEL
TEMPLATE IN QUATTRO PRO
Question
Can I open Microsoft Excel
templates .xlt files in Quattro Pro?
Answer
No, you can’t open Microsoft
Excel templates .xlt files in
Quattro Pro because they are not
supported.
Microsoft Excel and Quattro Pro
have similarities, but they are
proprietary applications that are
built using different architectures.
This makes it difficult to
successfully convert templates.
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Chapter 6
SPREADSHEET SECURITY
Most office suite applications can be password controlled for security. The example in
Exhibit 6.16 from the Excel 2003 tutorial shows the method for limiting access to an
Excel spreadsheet.
For comparison purposes Exhibit 6.17 shows the Review tab, Changes group
options, and the Protect Workbook commands in Excel 2007.
As with other Office 2007 programs, an Office Button feature—Prepare—provides
a number of security options, including inspections of the document for hidden metadata as shown in Exhibit 6.18, as well as the ability to encrypt the file with a password,
or to restrict access similar to that shown in Exhibit 6.17.
SPECIAL FEATURES OF ELECTRONIC SPREADSHEETS
Each spreadsheet has a choice of tools and features that may be displayed on the
toolbars for quick use. Exhibit 6.19 shows the Microsoft Excel standard buttons.
Exhibit 6.16
Limiting access in an Excel 2003 spreadsheet.
Electronic Spreadsheets
Exhibit 6.17
Excel 2007 Protect Workbook options.
Exhibit 6.18
The Office Button shows security options in Excel 2007.
One of the more useful is the AutoSum button, shown as the Greek letter sigma
(Σ) found in Excel 2007 (highlighted in Exhibit 6.20) in the Home tab and in the
Formulas tab in the Function Library Group as shown in Exhibit 6.21. This applies the
selected function; for example, Sum (add up), the selected cells in any row or column
without typing any formula.
143
Exhibit 6.19
Standard options available on Excel
toolbar.
Exhibit 6.20
144
Choose Σ for the AutoSum feature in Excel.
Electronic Spreadsheets
Exhibit 6.21
Excel 2007 Formulas tab.
Exhibit 6.22
Choosing a graph template in Excel 2003.
G RAPHING IN S PREADSHEETS
Data in a spreadsheet are frequently better explained in the form of a graph. In Excel any
selection of cells can be converted to a graph using the Chart Wizard button on the
toolbar. The Chart Wizard automatically converts the information in the cells into any
one of a number of graphic representations, as shown in Exhibit 6.22. This is a graph of
a portion of the information from a template downloaded from the Microsoft website.
The new Ribbon style screen view of Excel 2007 is shown in Exhibit 6.23.
C HANGE
As mentioned in Chapter 5, change is as inevitable in software as it is in life. There have
been significant changes in the functionality of the Quattro Pro and Excel spreadsheets
from prior versions. What has not changed is the basic function to compute rows and
columns of numerical data. The changes generally make the job easier, minimizing the
number of keystrokes required, like the use of the sum function shown in Exhibit 6.20.
Prior users will find the older functions, but possibly in a different location, and additional features.
I NTEGRATED S OFTWARE S OLUTIONS
A number of specialty software programs provide practice-area–specific software. The
real estate practice software such as that from Softro prepares all the necessary forms to
complete a real estate transaction instead of using multiple individual software programs
including spreadsheet, database, and word processing software. The Excel spreadsheet
template in Exhibit 6.12 is an example of the individual spreadsheet templates created
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Chapter 6
and used in many offices. The template provides spaces for the entry of the information
and embedded formulas are used for automatic computations. Programs such as SoftPro use a series of input screens, as shown in Exhibit 6.24, to capture and calculate the
necessary information that is then transferred to the appropriate forms to create the
Hud-1, as shown in Exhibit 6.25. The information is saved in a database for use in producing the other documents required for the real estate closing and title documents,
including deed descriptions and tax reporting forms.
Exhibit 6.23
Excel 2007 Ribbon view of graphing options.
Exhibit 6.24
SoftPro Escrow Automation Solutions input screens.
Electronic Spreadsheets
Exhibit 6.25
HUD-1 produced using the SoftPro ProForm software.
Source: Images courtesy of SoftPro, www.softprocorp.com.
S UMMARY
INTRODUCTION TO ELECTRONIC SPREADSHEETS
Many areas of legal practice involve calculating and
presenting financial information.
The computerized spreadsheet, when laid out in the
format acceptable to the court, can be printed without
reentering the data, or copied into word documents.
For many applications there are templates with formulas
for calculating the information needed, such as an
electronic spreadsheet version of the Housing and Urban
Development (HUD) sheet used in real estate settlements.
The use of computer spreadsheets reduces the errors
associated with manual mathematical calculations and
errors in retyping the information.
CREATING AND WORKING
WITH SPREADSHEETS
A spreadsheet in its most basic form is any two items with
some relationship that is acted upon mathematically and
the result presented in a third location.
NAVIGATING IN ELECTRONIC
SPREADSHEETS
Spreadsheets use standard terms to describe the parts of
the spreadsheet, such as rows, columns, cells, formula
bar, active cell and formula, and workbooks.
RESOURCES FOR LEARNING
USING ELECTRONIC
SPREADSHEETS
As seen in the chapter on word processing, most
vendors of software provide help in learning and using
the software. Microsoft offers a number of online tutorials.
AND
(continued)
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Chapter 6
CREATING A SPREADSHEET
Using a computerized spreadsheet such as Microsoft
Excel or Corel Quattro Pro, the numbers are entered
in cells, and a formula assigned to the cell in which the
result is to be displayed.
Start with what you want the spreadsheet to show or
calculate.
■
■
■
■
■
What do you want to do?
What are the inputs?
What is the desired outcome?
What are the formulas?
What columns are needed?
EDITING A LABEL
Just as a formula can be entered or changed by editing it
in the property bar, so can a label. A label can be entered
by typing it in a cell, or by selecting the cell and typing it
in the property bar.
SPREADSHEET TEMPLATES
Many offices save spreadsheet templates in the same way
that sample word processing documents are saved for
future use.
SPREADSHEET SECURITY
Most office suite applications can be password controlled
for security.
SPECIAL FEATURES OF ELECTRONIC SPREADSHEETS
Each spreadsheet has a choice of tools and features that
may be displayed on the toolbars for quick use.
AutoSum button, shown as the Greek letter sigma (⌺),
applies the selected function; for example, Sum (add up)
the selected cells in any row or column without typing
any formula.
GRAPHING IN SPREADSHEETS
Data in a spreadsheet are frequently better explained in
the form of a graph.
K EY T ERMINOLOGY
Cell
Column
Formula bar
Property bar
Row
Workbook
C ONCEPT R EVIEW Q UESTIONS AND E XERCISES
1.
2.
3.
4.
What are macros? What is the danger in using them?
What are the security features available in Excel?
Define the terms used to identify the parts of an electronic spreadsheet.
What steps may be taken to locate and use the resources for learning how to
use Excel or Quattro Pro programs and their features?
Electronic Spreadsheets
5. List the steps in creating and saving an electronic spreadsheet.
6. Create a spreadsheet that shows your grades for a course, or a list of five
numbers in the range of 1 to 100, including the average of all the grades or
numbers listed. Use the graphics feature to prepare a graph.
7. What are the steps that can be taken to protect an Excel workbook?
8. Use the Euro to Dollar conversion chart as a guide to creating a spreadsheet
to calculate total billing by multiplying a number of hours (try 26.4 hours)
by a billing rate (try $125). What is the difference in billing if the rate is
reduced to $90 per hour?
9. Prepare a spreadsheet for
a. support calculations
b. payroll computations
c. time and billing worksheet
I NTERNET E XERCISES
1. Download the Investment Ledger from the Microsoft website. Print out the
graph “Investment Chart.”
2. Complete the Microsoft Office online tutorial “Audio Course: Get to Know
Excel: Create Your First Workbook.”
3. Complete the Microsoft Office online tutorial “Get to Know Excel: Enter
Formulas.”
P ORTFOLIO A SSIGNMENTS
1. Prepare a procedure and related forms for requesting the creation of a
spreadsheet.
2. Prepare a presentation on the uses of an electronic spreadsheet as a
productivity tool.
S CENARIO C ASE S TUDY
Use the opening scenario for this chapter to answer the following questions. The setting
is an attorney and paralegal preparing for a labor negotiation session.
1. What should the attorney know about using a spreadsheet in the
negotiation session? Prepare a memo for the attorney to use in preparing for
the negotiation session.
2. What information should the attorney convey to the paralegal to enable the
paralegal to prepare an electronic spreadsheet?
3. How much of the spreadsheet can be set up ahead of time? Explain fully
with examples.
4. What hardware or software will the attorney need for the meeting? Be
specific and explain the reasons.
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Chapter 6
C ONTINUING C ASES AND E XERCISES
1. Prepare a spreadsheet for recording the time slips for the office.
a. What headings are needed?
b. See the rates previously mentioned.
c. Enter all of your time information accumulated since Chapter 1.
d. Sort the information by the billing function performed.
2. Prepare a spreadsheet for calculating the payroll for the office.
A DVANCED E XERCISES
1. Copy the table created in Chapter 5 and paste it into a spreadsheet.
2. Modify the table to add the necessary formula to calculate billing and payroll
information.
3. Identify the additional functions that the spreadsheet can perform.