Video transcription

here we have a sample spreadsheet that I created just to give you a look at how formulas and things like that work. We see here that we have a sheet of monthly expenses; now everything on the surface just looks like a bunch of numbers, it is a list of expenses, we have salaries, social security, transportation, manager cost and different, different expenses but we see embedded in these tables, is actually, is a lot of calculations and a lot of formulas. So if we go here, let’s say, we have the, we have our percentages of how much, what percentage of our monthly expense is due to this particular cost such as salaries. So here if we click on this percentage for salaries 22.90, how did we get to that number? We see that there is a formula in this cell D3. What is the formula for expenses? The formula is E3 divided by E23. Now let’s go back into our table and we’ll see that E3 pertains to the money spent on salaries, divided by the money spent in E23 which is, if we go down, E23 is our total cost for the month, so if we take our monthly expenses for salary and we divide it by total we come up with a percentage of 22.90. Now each of these percentages will be a formula based on the amount for the individual expense divided by the total amount of expenses so here we see for social security, it’s 1.36 because now our formula changes because E4 which is, E4 is the $69.00 a month for social security divided by E23 which again is our total cost so there are formulas embedded in this table and every time. Let’s say that our social security costs went up for the month then obviously our percentage would also change so that is the nice thing about Excel, you see it in action here that as our costs change we can get a running total of our total expenses and what percentage of our total expense are due to that particular cost.