Question

Janice Smith opened a small clothing store three years ago. She is setting her budget for the fourth year, but needs to determine certain key amounts from the previous three years' in order to do this. Below is the information from her first three years of business.

Projected Year 1 Year 2 Year 3 Year 4 Sales $105,000 $132,000 $165,500 Administrative Expenses 18,500 28,300 40,730 Selling Expenses 13,300 15,400 22,780 Other expenses 3,540 3,870 6,350 Net Income

Percentage increase in sales: Increase Increase over Year 1 over Year 2 Required: 1. Using Excel formulas, determine the Net Income for years 1 through 3. (Note:     to find net income, take "Sales" and deduct all of your expenses. 2.

Using Excel formulas, determine the percentage increase in Sales each year.      (To do this, take the current years' sales, subtract the previous years' sales and       divide this amount by the previous years' sales.) Make sure to show the       percentage signs in your answer and round to two decimal places. 3 Janice is trying to predict his income for year 4. She expects that her sales will     be 22% higher than they were in year 3, her Administrative Expenses will be     $12,000 higher than in year 3, her Selling expenses will be $10,000 higher than in     year 3 and her "Other" expenses will be $7,100 total. Using Excel formulas,     determine the projected sales, expenses and net income for year 4. (Note: You     must show Excel formulas for the new projected sales and expenses, as well     as the new net income.) 4. Using the "Fill color" feature, add color to the cells with the Net Income amounts. 5. Place "$" signs in the Projected Sales and Net Income cells.

Answer 1

The answer is as follows:

$wPCXWVvrC0YIQAAAABJRU5ErkJggg==$

Formulae used are as follows:

Use fill color option to fill color in Net Income Row