Question

In: Accounting

The model to the right is a very simple Income/Loss Statement for a manufacturing business. There...

The model to the right is a very simple Income/Loss Statement for a manufacturing business. There are many simplifications in this model, but an Income/Loss Statement is a very useful tool for analyzing profitability when numerous variables need to be considered. The model assumes that the variable values are known (deterministic), but this does not restrict the user from asking numerous important "What-If" questions. You can determine the model's assumptions by examining the cells where calculations take place...e.g. notice the parameters in Column N used in the calculations.

a) Build a two-way data table that varies Var. Cost % from 0.05-0.40 (in increments of 0.05 on the row) and Revenue from 100,000-1,000,000 (in increments of 50,000 on the column). Add conditional formatting to the data table that indicates when a value is negative. PLEASE LIST STEP-BY-STEP PROCESS FOR BUILDING THIS TABLE. THANK YOU SO MUCH!

b) Add a form-control scroll bar to control Tax Rate, which should vary from 0.24 to 0.45 in 0.01 unit increments. (Remember that the values of form control are integers and between 0-30,000, so you will need a dummy value cell to adjust for the scale.) PLEASE LIST HOW TO DO THIS STEP-BY-STEP. THANK YOU SO MUCH FOR THE HELP!!!

Typical Income Statement for Manufacturing Busniess
Revenue 600000
COGS 300000 0.5 <=COGS%
Gross Profit 300000
Variable Cost 120000 0.2 <=Vaar.Cost%
Fixed Cost 100000
Operating Expenses 220000
Net Operating Income 80000
Interest Expense 25000
Earnings Before Taxes 55000
Taxes 18700 0.34 <=Tax Rate
Net Income 36300 * units in $$

Solutions

Expert Solution

Formula Sheet for the above calculation

Conditional Formatting

Answer 2

Insert Developer Tab

Go to File> Options> Customize Ribbon and Check on Developer

Then go to developer tab> Insert> Inser the Scrool Box in one cell only

Then select the scroll box and go to properties

Or

Right Click the scrool box

This dialogue box will open. Inser the values as per image

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

A company can show a significant loss on its income statement but yet have a very...
A company can show a significant loss on its income statement but yet have a very substantial positive cash flow. Assuming the reporting is accurate and honest, what implications does this have for the business, its shareholders, its employees, and society as a whole? Are there ethical issues to be considered, and if so what are they and how should the business proceed?
Profit or Loss Account (Income Statement) of a business shows a net profit of 500,000. The...
Profit or Loss Account (Income Statement) of a business shows a net profit of 500,000. The owner of the business says, ‘Where is the money? My business does not have an increase in cash by $500,000 in the bank account. Where is the $500,000 profit? Required: Provide an explanation to the owner of the business about why net profit of a Profit or Loss Account (Income Statement) is not necessarily equal to the cash inflow. Your explanation must include two...
Income statement The income statement, also known as the profit and loss (P&L) statement, provides a...
Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were incurred,...
Income statement The income statement, also known as the profit and loss (P&L) statement, provides a...
Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were incurred,...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were...
3. Income statement The income statement, also known as a profit and loss (P&L) statement, provides...
3. Income statement The income statement, also known as a profit and loss (P&L) statement, provides a snapshot of a company’s financial performance during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they are incurred, not...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides...
3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT