Question: Accounting class homework assignment in excel. The class excel model includes cost of goods sold but not selling, general, and administrative (SG&A) expenses. Suppose that
Accounting class homework assignment in excel.
The class excel model includes cost of goods sold but not selling, general, and administrative (SG&A) expenses. Suppose that the firm has $200 of these expenses each year, irrespective of level of sales.
a. Change the model to accommodate this new assumption. Show the resulting profit and loss statements, balance sheets, the free cash flows, valuation.
b. Calculate your financial formulae on the newly created model. If the formula does not apply state it does not apply, and why.
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