Download the file named “Chapter 2 Problem 3.xlsx” from the text support Web site.

Data from Chapter 2 Problem 3.xlsx

New Smyrna Surf Shop
Income Statements
For the Years 2019 and 2020
	2020	2019
Sales	$ 378,565	$ 303,750
Cost of Goods Sold	208,208	167,062
Gross Profit
Depreciation Expense		6,272
Selling & Admin Expense	1,113	972
Net Operating Income
Interest Expense	1,376	1,093
Earnings Before Taxes
Taxes
Net Income
Notes:
Tax Rate	25.0%	25.0%
Shares Outstanding
Earnings per Share
Dividends per Share	$6.00	$5.00
Addition to RE per Share

a. Fill in the blanks on the financial statements for New Smyrna Surf Shop with formulas. Some of the formulas will require links to data given in other worksheets in the workbook.

b. Create a common-size income statement and balance sheet using your answers from above. Using the techniques you have learned in this chapter, you should be able to do these statements in less than one minute with formatting that is identical to the original worksheets.