Which software allows you to calculate data with formulas using a spreadsheet system?

What Does Microsoft Excel Mean?

Microsoft Excel is a software program produced by Microsoft that allows users to organize, format and calculate data with formulas using a spreadsheet system.

This software is part of the Microsoft Office suite and is compatible with other applications in the Office suite. Like other Microsoft Office products, Microsoft Excel can now be purchased through the cloud on a subscription basis through Office 365.

Techopedia Explains Microsoft Excel

MS Excel is a commercial spreadsheet application that is produced and distributed by Microsoft for Microsoft Windows and Mac OS operating systems. It features the ability to perform basic calculations, use graphing tools, create pivot tables and create macros, among other useful features.

Spreadsheet applications such as MS Excel use a collection of cells arranged into rows and columns to organize and manipulate data. They can also display data as charts, histograms and line graphs.

MS Excel permits users to arrange data in order to view various factors from different perspectives. Microsoft Visual Basic is a programming language used for applications in Excel, allowing users to create a variety of complex numerical methods. Programmers are given an option to code directly using the Visual Basic Editor, including Windows for writing code, debugging and code module organization.

History and Future of MS Excel

In the early days of accessible PC business computing, Microsoft Excel played a central role in bookkeeping and record-keeping for enterprise operations.

One of the best examples of a use case for MS Excel is a table with an autosum format.

It's very easy in Microsoft Excel to simply enter a column of values and click into a cell at the bottom of the spreadsheet, and then click the “autosum” button to allow that cell to add up all of the numbers entered above. This takes the place of the manual ledger counts that had been a labor-intensive part of business previous to the evolution of the modern spreadsheet.

The autosum and other innovations have made MS Excel a must-have for various kinds of enterprise computing, including looking at daily, weekly or monthly numbers, tabulating payroll and taxes, and other kinds of similar business processes.

Various types of simple use cases made Microsoft Excel a key end-user technology as well, useful in training and professional development. For a number of years, MS Excel has been included in basic business diploma courses on business computing, and temporary work agencies may assess individuals on their skills with Microsoft Word and Microsoft Excel for a wide range of clerical duties.

However, as the world of business technology has advanced, Microsoft Excel has become largely obsolete in some ways.

The reason for this is a concept called “visual dashboard” technology or “data visualization.”

Generally, companies and vendors have come up with neat new ways to present data visually that do not involve end users looking at a traditional spreadsheet with columns of numbers and identifiers. Instead, they look at graphs and charts and other sophisticated presentations, to understand the numbers better and more quickly. People have realized that the visual presentation is far easier to “read.”

The principle of data visualization has shifted the use cases for Microsoft Excel. Where businesses may have used Microsoft Excel in the past for, say, hundreds of records, most of today's business use cases involve spreadsheets that handle less than a few dozen values for any particular project.

The idea is that if the spreadsheet is longer than a couple of dozen rows, it will be more effective to display the information on a visual dashboard than in a traditional spreadsheet format.

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Introduction to Spreadsheet Software

Generating detailed reports, preparing a budget estimate, creating graphs and charts, or entering accurate data at the right place is no walk-in-the-park. Organizations have struggled with poorly constructed invoices, wrong incorporation of data, or unorganized inventory management to incur huge losses. But spreadsheets simplify all these cumbersome and laborious tasks with the added benefit of data analysis and storage in a table format. 

Initially, spreadsheets were introduced to carry out simple booking and accounting work. The emergence of spreadsheet software has proved to become a game-changing asset for diverse industry verticals to sift through thousands of data sets. The spreadsheet tools streamline an array of accounting activities to enhance efficiency and productivity. 

The following buyer’s guide will drive you through a detailed discussion on spreadsheet software, providing vital and comprehensive information on the prominent features, essential benefits, the latest trends, etc. helping to accomplish your business goals.

What is a Spreadsheet?

A spreadsheet is a computer application that stores all the information and data in a tabular format. It is also a sheet of paper where data is displayed in rows and columns. Apart from organizing data, spreadsheets enable you to sort and calculate the numerical data. 

The spaces that contain data or information in a spreadsheet are known as the cells. The cells are labeled based on their placement. It usually contains numerical data or short text strings. Also, you can use the paper sheet to represent graphical data relationships.

The spreadsheets allow you to modify the stored value and check the effects on calculated data. Hence, it becomes handy for analyzing what-if scenarios. The introduction of formulas has simplified and automated the calculation process. It further mitigates the errors of manual calculations.

What are the Uses of Spreadsheets?

Spreadsheets perform versatile roles when it comes to catering to different business requirements. In a general context, they not only store the essential data information but also serve as a potent vehicle for a wide range of utility functions. They can collect and calculate all sorts of data, along with creating clear, concise reports. The various purposes of spreadsheets are highlighted below. 

Accounting and Calculation Work- Most business organizations use spreadsheets to track their finance and accounting goals. The accountant needs to enter the formula to perform any calculations, such as adding or subtracting the numerical data. The auto-sum feature in the spreadsheet helps to speed up the calculation process, saving valuable time. 

Creating Charts and Graphs- With spreadsheets, you can easily translate your raw data into a beautiful visual depiction by creating charts and graphs. It helps you to show the trends and growth rates through statistics and figures. 

Storing Valuable Data- Data storage is indeed the primary function of the spreadsheets. You can keep any kind of valuable data such as related to finance, product, customer, or employees, etc. The data is usually stored in cells and formatted according to their types. Spreadsheets also provide heaps of rows and columns to store adequate data. 

Data Analysis- The spreadsheets not only help to store valuable data and information but also allows you to perform different analytical tasks. Data analytics is usually done through mathematical calculations. You can find various things such as profit and loss and generate during a term. 

Preparing Budget and Expenditure- Spreadsheets help to prepare a budget for a financial year. Plus, you can also keep track of all your expenditure in one place and manage your earnings and control the spendings.  

Generating Reports- Generate error-free reports about the total earnings and expenditures, available stock, total purchases and sales, and what products performed better than others. The reports are made available to every concerned individual so that he/she can analyze the information to make crucial decisions. 

Managing Inventory- Yes, spreadsheets also play a pivotal role in managing your inventory. You can perform different tasks such as adding the numbers, sorting, and then ranking the list based on the total sales and revenue generation. 

Managing Presentations- The spreadsheet with more advanced and premium features allow you to present data visualization. You can choose various options to gain insight into the data. You can use diagrams, graphs, charts, and other graphical ways to give client presentations or present any project report to the higher management. 

Invoice Management- Spreadsheets enable you to organize and streamline the invoice and billings. It helps you to know the payment status and dues. You can also maintain the invoice in chronological order, update the information regularly, and share it with ease. 

Data Sifting- The spreadsheets can help you in spotting the inaccuracies and mistakes while entering data. You can quickly eliminate all unwanted or outdated data. It helps to keep all your record books fresh and updated.

What are the different types of spreadsheets?

There is no doubt that spreadsheets play a central role in efficiently running various business operations. Also, there are multiple types of spreadsheets that allow managers to manage a wide range of information. 

Logical Spreadsheet- A logical spreadsheet is a type of spreadsheet where you can represent formulas as constraints instead of function definitions. When spreadsheets are written as logical constraints, it enhances their utility. 

Multi-dimensional Spreadsheet- A multi-dimensional spreadsheet provides more than two dimensions. It means that you can view the data from various dimensions such as sales by product, sales by region, sales by rep, sales by month, etc. 

Financial Spreadsheet- The financial spreadsheets are mostly used to manage the accounting details and data. It includes different options, such as displaying the currency and showing the negative growth or numbers in red. It further includes features like income and expense tracking. In short, it provides a clear picture of financial status. 

Statistical Spreadsheet- They allow you to analyze, manipulate, and present valuable data, which helps administrators and executives to make vital decisions. You can even perform statistical and arithmetic calculations. Statistical spreadsheets can filter data to customize a particular perspective. You can also find out average, calculate distributions, and sampling. 

Graphics and Presentation Spreadsheet- This a specific type of spreadsheet enables you to present the data sets in a graphical format. You can visualize the data in representations and then use it in your presentations for marketing or any other purpose. 

Project Tracking Spreadsheet-  You can use this spreadsheet to track the project and task status. You can record the activities and tasks related to a project. You can also check individual team members involved in the project.

What type of data can be entered into a spreadsheet?

The various columns and rows present in the spreadsheet form cells. It allows you to insert three kinds of data into a spreadsheet. These are- 

Labels or Texts- The labels or texts are descriptive pieces of information that are entered into the cells. It can include different things such as the name of the products, name of the clients, dates, months, description of the tasks completed, etc. It usually includes alphabetical characters. 

Values- The values include the numbers, statistical figures, raw numbers, and dates. You can enter the values after making the calculations. 

Formulas- Some advanced spreadsheets allow you to make automatic calculations and create custom formulas to make data analysis easier.

How to organize or sort data in a spreadsheet?

You are aware that the main function of a spreadsheet is to organize or sort data. You can take the following steps to organize or sort your data systematically. 

• First, highlight the row or the column that you want to sort. You have to point out all the cells that are associated with your data. 
• In the second step, you have to select the menu's data option and click on the sort option. 
• If you want to sort through a column, you have to choose the column you want to select for your sheet.
• If you have chosen to sort by row, then you have to select the Options and then click on sort from left to right. 
• In the next step, you have to choose the data you want to sort. 
• Now select the order preference of your sheet.
• Last, click on the Ok option. 
• Also, if the cells contain a formula,it helps you calculate the numerical operations. Spreadsheets allow you to use arithmetic and relational operators to carry out mathematical operations and understand the cell values and references. You can even compare two values to find out the relational expression. 

What are the main issues in preparing a manual spreadsheet?

If you are still using the traditional methodologies or using manual processes to prepare your spreadsheets, you are landing into a troubled land. There are various risks and challenges involved when designing a manual spreadsheet, which can be discussed below. 

Prone to Fraud Detection- One of the key drawbacks of a manual spreadsheet is that it is vulnerable to detecting fraud. For instance, it is difficult to find out who has accessed the spreadsheets in the last as there is a lack of access control. Also, it is challenging to maintain the accuracy of results after a certain period. 

Limited Collaboration- Reporting, budgeting, and planning are all the essential elements of a spreadsheet. But all these tasks require creating a collaborative environment., which normally is limited in traditional spreadsheets. 

Troubleshooting or Testing Becomes Difficult- Are you planning to troubleshoot or test your manual spreadsheet? Well, the truth is that you cannot do that as spreadsheets aren’t developed for that. The main concern is that spreadsheets are saved in different folders, workstations, and workplaces located at various geographical locations around the world. The more challenging part is to track the multiple formulas in the cells and understand that.

Prone to Committing Human Errors-  One of the other intricate issues you have to deal with is that spreadsheets are prone to committing human errors. Since you are entering the data manually, you may likely enter the wrong data or miss any number or label. These mistakes can prove costly to any organization resulting in huge revenue loss. 

Regulatory Compliance Becomes Difficult- Because manual spreadsheets are more prone to frauds and errors, regulatory compliance becomes a difficult task. Various regulations can affect spreadsheet usage, including Sarbanes-Oxley or SOX, Basel II, FAS 157, EU Data Protection, etc. 

Data Security a Big Concern- Of late, data security has been a large looming threat due to persistent cyber-attacks. The cause of worry is manual spreadsheets are susceptible to more security threats because it lacks control access. Furthermore, there is no such restriction on sharing the files and folders. Hence, anyone can easily access confidential information, leading to huge revenue loss. 

Difficult to Maintain the Updates- The technology is continuously upgrading, bringing a transformation in the business landscape. But updating a manual spreadsheet is a daunting, laborious, and time-consuming task due to the presence of mammoth data in thousands of cells. Also, the problem with a traditional spreadsheet is that it is not technology-friendly, making it difficult to implement the latest trends. 

Poor Scaling-  Managing data becomes a more complex task with the increase in the data distribution. Hence manual spreadsheets are not a feasible option for large organizations. 

Unfit for Agile Business Practices- Manual spreadsheet is also not deemed fit for organizations adopting the agile business model. These businesses keep changing their strategies and tactics due to the adoption of a more flexible approach. 

Does Not Support Quick Decision Making- Manual spreadsheets also does not support the quick decision-making process. The managers and executives may find the data presented haphazardly, making it difficult for them to find certain information from the sheet. It can lead to unnecessary wastage of time, which can further delay the decision-making process.   

But you can combat all these complex challenges and issues with much ease. You have to select the best spreadsheet software based on your business practices. Install the spreadsheet application and start unleashing the wide range of benefits.

What is a Spreadsheet Software?

A Spreadsheet Software is an application program that enables you to perform a plethora of tasks right from sorting, storing, and analyzing data to carrying out complex mathematical calculations and statistics for future planning and forecasting. You can even save and manage the data with ease in various rows and columns. 

Spreadsheet software helps you store all essential data and information in an electronic or digital format. It is similar to paper-based accounting sheets. The spreadsheet tools perform automatic calculations based on the inserted formulas providing accurate results. It has built-in features for accounting and statistical operations to find out standard deviation or net present value. 

VisiCalc was indeed the first spreadsheet application with Lotus 1-2-3 following as the next. In the current scenario, Microsoft Excel and Google Sheets have become the leading examples of spreadsheet software tools used by businesses worldwide.

What are the core features of a spreadsheet software?

Do you know why some special spreadsheet software has prominently gained the upper hand as compared to others? Well, the answer is a distinctive feature. The prominent features of spreadsheet software include-

• Provides More Access Control- The spreadsheet app has been armed with a built-in audit tracking facility. It means that you can gain more access control over your electronic spreadsheets with improved robust security. You can decide who can view and access the spreadsheet. You can also restrict the entry of new users and get accurate results even after months and years of use. 
• Managing the Calendar- The online spreadsheet software helps you manage your projects efficiently with the calendar management feature. You can also create your calendar using the software. You need to use the formulas to fill the days and the numbers. You can extend the days, change the date format, change the text orientation, and add various colors to make it look more attractive. 
• Efficient Sorting the Data- The spreadsheets allow you to sort a wide range of data in a most simplified manner. It means that you can easily organize the data systematically, which makes it easier to analyze the data. You can even order data from a menu such as a calendar to present the graph on sales performance. Sorting helps you to arrange the content in a particular order. 
• Filtering the Data- Data filtering is an essential feature enabling you to refine your data sets based on specific business strategies and solutions. It means that you can filter and get access to the detailed data that you want. This makes it easier to focus on precise information, especially when you have a large dataset. 
• Customized Formulas and Functions- The software allows you to create your customized formulas to express the relationship between two or more cells. It also helps to simplify mathematical calculations. The role of functions is to measure the values and carry out different types of activities. 
• Generating Real-Time Reports- Spreadsheet software is a powerful application that offers real-time reporting facilities for beginners and advanced users. Some tools such as Microsoft Excel have the PivotTable feature, enabling you to segment, group, and summarize your data with much ease. 
• Custom-Built Templates- Spreadsheet applications provide a template or predesigned sheets using which you can create new spreadsheets. You can use similar predefined formulas or formats. You don’t have to make any mathematical calculations or even write the formulas. All these functions are already integrated into the tool. 
• Streamlined Collaboration-  Spreadsheets programs are amazing tools that allow everyone to use and edit the same spreadsheet and seamlessly organize it. The collaboration feature also proves vital if you're forecasting or preparing a budget where everyone can easily share their inputs. Again, this feature works when you need to take feedback from your clients or higher management. 
• Activity Log- The activity log helps you to maximize your time efficiently. You can also keep track of all other activities. The manager can determine how much time was spent on a particular task or project. You can even know how much time has been wasted in carrying out unnecessary activities. 
• Automatic Reminders- There is an option to add automatic reminders in spreadsheets that allows you to list all your important tasks, due dates, and email ids of the team members in each of the columns. You can add the deadline column and recipient options to notify people associated with the task easily. 
• Create Statistical Charts and Graphics- The advanced tools provide premium features helping you to create more accurate statistical charts and graphs to show the company’s growth and performance in various departments. Also, this feature becomes a bonus when you are giving a presentation to a client. You can create charts to predict plans based on current market trends and scenarios. 
• Manage the Publishing- The publishing management in the spreadsheet application is a feature that enables you to assemble and edit all the distribution, design the document, and print the content. It allows you to control the data and decide how you want to publish your content.

Why should any business invest in spreadsheet software?

If you are planning to invest in spreadsheet software, you are indeed on the right track. Yes, spreadsheets tools provide businesses with an array of benefits that helps them drive more revenue. The various advantages are as follows-

1. Simplifying the Complex Accounting Works- The spreadsheet software plays an incredible role in facilitating your day-to-day accounting operations. It helps streamline all accounting management functions such as preparing a balance sheet, checking the cash flow, monitoring the incoming and outgoing payments, and preparing the budget for a specified period. 
2. Simplified Payment Tracking- Payment tracking is a must performing role regardless of business size. But if you haven’t maintained your accounts book properly, payment monitoring can become a nightmare. This is where spreadsheet programs come as a handy tool to offer a simple solution while tracking payments. The application can quickly analyze the money received and spent in real-time. You can even split the receivable and spent amount based on the period. 
3. Streamlining the Calculations- Are you tired of doing the same repetitive calculations? If yes, then an online spreadsheet software is one of the worthiest assets to invest in. The advantage is that you don’t have to do a single mathematical calculation as the program does it all. You have to enter the formula and set the command to perform complex calculations. For instance, the software can easily make shipping calculations, calculate the gross profit and sales discounts with ease. 
4. Data Optimization in Best Manner- Spreadsheet software is an incredible asset when it comes to gathering, organizing, and optimizing the essential data. You can easily arrange information in columns and rows based on the type of data. You can then analyze all these data in the form of pie-charts and tables for easy viewing. 
5. Ease Out the Editing Process- The spreadsheet editor also allows online spreadsheet makers to easily edit the data, which was quite a thorough process in manual spreadsheets. The software helps you to find the particular cells, rows, or columns where you have to change the data through preset functions. The preset function enables online spreadsheet creators to sort and filter data and even carry out a few calculations. 
6. Easy Integration With Other Software-  You can easily integrate spreadsheet software with other tools and applications. For instance, the spreadsheet tools can integrate with accounting software, reporting software, collaboration software, productivity software, etc. Aligning your device with all these applications, streamlines all your tasks and boosts your productivity, allowing you to generate more revenue. 
7. Create Multiple Spreadsheets in One File- The software will enable you to create multiple spreadsheets within a single file. For example, you can keep track of sales for each month and then add all the 12 months in one spreadsheet file. You can access individual monthly spreadsheets and view all data based on your requirements. 
8. Third-Party Support- The spreadsheet software also offers viable support for third-party applications. For instance, you can easily access the Microsoft Excel in Open Office and save Open Office in Excel form. 
9. Multiple-User Access- The spreadsheet tool promotes a more collaborative environment in the workplace. It means that various employees from different departments can easily access the same document. The spreadsheets can also be shared with ease. Also, you can make changes in the data and update the spreadsheet anytime. 
10. Robust Security- One of the fallouts of a traditional spreadsheet was lack of security concern. But thanks to the advanced spreadsheet applications, this issue has been resolved to a large extent. The software vendors are equipping the tools with cloud-hosting features that help to bolster the app security. 

How to use spreadsheet software for inventory management?

Inventory management has been one of the daunting challenges for wholesalers, stockists, and retailers as it requires them to carry out a wide-ranging task. But one has to credit spreadsheet software, which has simplified the entire process and streamlined the inventory tracking.

• Spreadsheets help manage inventory in the most efficient way taking into account all the data information such as purchases, sales, orders, returns, and available stock. You can then prepare a basic level report on the performance of the various products. 
• Tools such as Microsoft Excel or Google Sheets can support inventory management purposes even for small businesses and startups. 
• The spreadsheet apps help to minimize errors and boost productivity. You can control all your inventory items more efficiently with no or minimal investment. 
• The advanced mathematical calculations enable you to effectively organize and operate various inventory and financial management aspects with ease. 
• You can even create your spreadsheet and list multiple items in different cells such as product name and number, price of the product, description, product location, quantity sold, total inventory value, available stock, etc.
• You can also use some of the formulas to make additions, substitutions, sorting, and ranking the items. This is an essential step in inventory management. 
• The online spreadsheet applications also help to interlink the information, which is dependent on a few parameters. For example, the selling price of the product depends on the cost price or marked-up price. While the marked-up price remains mostly constant, the cost price may change depending on various factors. 
• It makes it easier to access or refer to the same information multiple times. It helps you to determine the stock location. 
• You can get real-time alerts in advance if you are running out of stock. 
• Spreadsheet software also helps to forecast or predict how a particular product will perform in the future. This enables you to create your business strategy well in advance.

Which factors are crucial for selecting the best spreadsheet software?

If you have decided to implement a spreadsheet software, don’t just jump on any application with attractive features and benefits. Instead, focus on various pivotal factors based on your specific business requirements. 

1. Ease of Use- Some spreadsheet programs may be more intuitive as compared to others. You should consider buying a spreadsheet software that is easy to implement and use so that you don’t have to bear the additional training costs. Most popular spreadsheet applications, such as Google Spreadsheet Software, are user-friendly with best-in-class features. 
2. Features and Functions- Another essential point that you must consider is the tool's necessary features and functions. You need to check whether the spreadsheet software contains the particular features you are looking for, which will help your business thrive. 
3. The Price- When it comes to price, you have got an array of options. You can check out free and open source spreadsheet software and even go for the ones providing premium features at some cost. To be precise, it all depends on your budget estimate. 
4. Scalability- You also need to consider whether the spreadsheet tool is capable of scaling your business growth. The trends change quickly, and you have to implement the latest technologies to survive the cutthroat competition. Hence, the spreadsheet software should be scalable, flexible, and technology-friendly. 
5. Support Available- You need to check the kind of support and technical assistance available from the concerned software vendor. Does it offer 24x7 online support with live chat, email, and phone facilities? Consider all these elements before selecting the best spreadsheet tool. Also, check out the spreadsheet software reviews before investing in one. 

What are the futuristic trends in spreadsheet software?

The spreadsheets have traveled a long way from the old log sheets and books to get equipped with the latest and innovative trends. These trends are encouraging business organizations to adopt digital transformation technology. The futuristic trends in spreadsheet software include-

• Use of Voice-Assisted Technology- The spreadsheet software will be embedded with a Voice Data Entry System (VDES) technology. It will allow you to dictate data, value, or a text into the cell and even speak the cell contents with the help of a microphone. Microsoft has already included this fantastic feature in the MS Excel 2016 version. 
• Use of Artificial Intelligence and Machine Learning- The good news for all spreadsheet users is that Google has introduced the new Artificial Intelligence and Machine Learning technologies in Google Sheets. And surely, both these innovative technologies are going to excel further. It will further simplify and streamline the work, especially with those working on large data sets. AI is also going to suggest a pivot table powered by natural language queries. 
• Use of Big Data Analytics- Spreadsheet tools such as MS Excel is readily supporting Big Data Analytics. This is a next-generation technology that will help you generate live charts and reports, evaluate and reevaluate formulas in real-time, and millions of cells. You can even perform mashups of structured data from different databases. 
• Mobility- Most of the prominent spreadsheet software such as Google Sheets offer cloud-based or web-based deployments. It means that you don’t have to download the application on your computers. The software is also available both on Android as well as iOS platforms. You can easily open it on your smartphones and tablets. 
• Compatibility- The spreadsheets have become smart applications that can easily be embedded or sent in emails. They are capable of exporting data in a separate sheet with customizable columns.

What is the average cost of a spreadsheet software?

Different variable factors determine the cost of spreadsheet software. First and foremost, you may come across free and open source spreadsheet software options such as LibreOffice, Apache OpenOffice, and Banana Accounting. Also, there are a few free versions, such as Airtable, Quip, and Apple Numbers. 

If you plan to buy Google Sheets, you have to pay a minimal fee of $1.65 per month with a 14-day trial period. Microsoft Excel comes for $5 per month with a 30-day free trial period. The other budget-friendly spreadsheet tools are OnlyOffice, which costs about $2 per month with a 30-day free trial. You can also check out SmartSheet, costing about $14, and DronaHQ costing about $15 per month. Both this software offer a 30-day free trial period. 

You can explore spreadsheet applications that offer more exclusive and premium features. The examples include TreeGrid Spreadsheet costing about $600 per year, and Excel Analyzer, which is priced around $543.47 per year with a 30-day free trial period. In case you want to invest more, select  Plena Data, which will cost you about $160 per month.

Why consider the GoodFirms’ list to select the best spreadsheet software?

GoodFirms’ is a top-rated and highly reliable research and rating agency that provides the list of top-notch software vendors and categories that exclusively cater to your business requirements. The platform has got more than 30,000 authenticated reviews that help entrepreneurs and service seekers find the best software company and services. 

You can check out the spreadsheet software list to determine which tool or application will suffice your business needs.

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