Question: A firm performs its financial projections using excel. Sales for the year 2018 were sh.15,500,000. Sales are expected to decrease at the rate of 2%

A firm performs its financial projections using excel. Sales for the year 2018 were sh.15,500,000. Sales are expected to decrease at the rate of 2% per year up to (and including) 2020 then increase at the rate of 7% per year till 2024 (inclusive). Purchases are 65% of sales. Opening stock for 20185 was sh. 750,000. Opening stock in a year is closing stock for the immediate previous year. Closing stock is 10% of purchases up to 2021 then it becomes 11% of purchases. Gross profit is Sales - (opening stock + purchases - closing stock). Make these entries and the relevant functions or formula to an excel worksheet, and hence make projections from 2018 to 2024.

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