In cell B5, enter a formula using defined names to subtract DirectCosts (cell B4) from Revenues (cell B3). In excel explain in detail
To subtract DirectCosts from Revenues using defined names in Excel, follow these steps:
1. Define names for the cells containing Revenues and DirectCosts:
- Select cell B3 containing Revenues.
- Go to the Formulas tab on the Excel ribbon.
- Click on Define Name in the Defined Names group.
- In the New Name dialog box, give a name like "Revenues" to refer to cell B3.
- Repeat the above steps for cell B4, giving it a name like "DirectCosts".
2. Now, in cell B5, enter the following formula:
- =Revenues - DirectCosts
3. Press Enter to calculate the result, which will be Revenues minus DirectCosts.
By using defined names in Excel, it makes it easier to reference cells and formulas in your calculations. This can also help with understanding and organizing your data, especially in more complex spreadsheets.