(a) Discuss why 'What-if analysis' plays an important role in modelling process.

(b) A Projected Income of Sam Sweet is in the excel file "Q3 data - Income Statement of Sam Sweet.xlsx".

Sam Sweet Income Statement

For the Years Ending Dec 31, 2019

Revenue 2019

Sales revenue 95,000

(Less sales returns and allowances)

Service revenue 62,000

Interest revenue

Other revenue

Total Revenues 157,000

[42]

Expenses

Advertising 1,000

Bad debt

Commissions

Cost of goods sold 63,000

Depreciation

Employee benefits

Furniture and equipment 8,000

Insurance

Interest expense 5,200

Maintenance and repairs

Office supplies

Payroll taxes

Rent

Research and development

Salaries and wages 55,000

Software

Travel

Utilities

Web hosting and domains

Other

Total Expenses 132,200

Net Income Before Taxes 24,800

Income tax expense 9,920

Income from Continuing Operations 14,880

{42} [42]

Below-the-Line Items

Income from discontinued operations

Effect of accounting changes

Extraordinary items

Net Income 14,880

Perform three what-if analyses: scenarios, data tables, and Goal Seek.

->To answer this question, for each of the three analyze, please

Clearly identify the input/changing and output variables

Insert the corresponding screenshot for the result of the analysis

Briefly interpret the results