Below is an Excel model which forecasts yearly profit for an accounting practice Smith & Chua, Chartered Accountants, based upon the following requirements: The model has to show forecast profit for the next 3 years (2011,2012,2013) The yearly service revenue is $1,000,000 and is forecast to grow by 15% per year The average salary is $100,000 and isn't expected to change over the next few years. However the company has a strong recruiting drive and expects to increase it's workforce by 20% per year. The company has a rule it only employs full time staff and the currently has 5 full time staff Other expenses are $250,000 and aren't expected to change in the next 3 years The model must be contained in cells A1:E24 What is the best formula in E16?

A.ROUND(D16*(1+$B$5),0) B.ROUND (D16*(1+$B$5),2) C. ROUND($D$16*(1+$B$5),0) D.ROUND ($D$16*(1+$B$5),2)

INPUT/ASSUMPTIONS 2 Service Revenue 1,000,000 3 Revenue Growth 4 Average Salary 5 Staff Growth 6 Staff numbers 7 15% $100,000 20% 10 11 Service Revenue 12 Revenue Growth 13 Average Salary 14 Staff Growth 15 16 Staff Numbers 17 Service Revenue 18 Expenses 19 20 21 22 Profit 23 REPORT 1,000,000 15% $100,000 20% 2011 2012 2013 1,000,000 $1,150,000 $1,322,500 $500,000 $600,000 $700,000 $250,000 $250,000 $250,000 Total $750,000 $850,000 $950,000 $250,000 $300,000 372,500 Salaries Other