This document provides instructions for creating a basic spreadsheet model to predict the financial outcome of a cinema promotion. It outlines steps to identify relevant income and cost variables, draft a table on paper, build the model in Excel with formulas, and test the model by changing variable values to predict profit or loss outcomes. The goal is for students to learn the basics of spreadsheet modeling through a simple cinema business example.

1. Plan and create a spreadsheet modelYear 7 – Excel Tutorial

2. What information do you need?Before you create a spreadsheet model it is best to list the information that you will need. You are going to create a spreadsheet model to predict the outcome of a cinema promotion. Draw up a simple table and split it into two columns. Label the left column Income and the right column Cost.Make a list of four possible variables that will generate an income for the cinema (i.e. tickets). Make a list of four possible variables that will cost the cinema (i.e. staff wages).Tip: You may look at the starter activity for ideas.

3. Draft your tableNow that you have a list of variables for income and cost you want to draw up a draft table on a piece of paper.Draw up a draft table for both the income and costs. Make sure that you keep them separate.Determine whether you need to add any rules to your model. For example, if you had chosen ticket price as a variable you will want to know the quantity of tickets and how much income this will generate.Where you have identified rules in your model write down the formulae that you will use.Identify and label input and outputs in your model.

4. Create your model in ExcelNow that you have planned a draft of your model you will want to create it using Excel.Load Excel and create your table using your draft plan. Make sure that you also include a cell that calculates the profit.Enter formulae into your model.Check that your spreadsheet model is working correctly. Ask an adult or friend to check if your are unsure.Save your spreadsheet model in your user area. Save it as basic_cinema_model.xlsx

5. Predict an outcomeNow that you have a working spreadsheet model you will want to use it by asking What if...? questions to predict an outcome.You can predict an outcome by making changes to the value of variables in your model.Create a scenario where you model does not make any profit (i.e. it makes a loss). Print a copy for your evidence folder.Now create a scenario where your model makes a profit. Print a copy for your evidence folder.