Original subtitles

Now let's see a simple example.

I have already created the named array for

the cells to correspond with the column headers.

So, here we have year in the name box,

we have total revenue, cost of revenue,

SGAs, R and D,

and other operating items.

As part of index,

this is what I want to do.

I want to be able to pull for this particular ticker symbol,

the appropriate total revenue,

cost of revenue, SGA,

R and D, and other operating items for year one.

So, it shows up like this.

So, keep in mind this is horizontal.

It's the very first row.

Each row indicating a different item in the financial statement,

but we want to convert it to a vertical array.

So, how do we go about doing that?

So, I've placed all the formulas here so you can follow me along,

and this is how we use the index.

We've already defined the array from which we want to pull the values.

This is how we want to be if we wanted,

from this array, you want the very first value.

From this array, we want the very first value to be

pulled into each of these cells. So, this is how you do it.

So, you'll say equal index.

One way to do it is to select the array,

but keep in mind that I've actually already named it.

So, I'm going to actually just call it up.

So, the way to call it up is you say, total.

So, you start typing in the word,

and it shows up with this icon.

You can select that,

and it puts that in the array parameter.

Then for row number,

we just want the very first row.

We don't have a column specification,

so because it's one array,

we're going to say one for the row number,

and we close the bracket.

Keep in mind there's one final step.

You have to Control, Shift,

and Enter on the PC,

and it puts the value in.

I repeat the same for the rest of the cells.

I start typing cost of revenue, one,

and I press Control, Shift,

Enter, and I believe it's the same on the mark.

Index, gross, this is actually going to be

our formula because this is revenue minus COGS,

and it's blue because I prepopulated the blue format,

because it's a calculation we're doing here.

Then here, I do index SGA.

I can select it from my name box,

one, Control Shift Enter,

and I keep going on to the other row,

which is the other operating expenses,

and finally to chip direct.

For the total operating expenses,

I just add up these three,

and operating income is gross profit minus the total operating expenses,

which gives us the operating income, or EBIT.

So, this is how you do an index function.