MasterTech is a new software company that develops and markets productivity software for municipal government applications. In developing their income statement, the following formulas are used:

1 Gross Profit = net sales - cost of sales

2 Net Operating Profit = gross profit - administrative expenses - selling expenses

3 Net Income before taxes = net operating profit - interest expense

4 Net Income = net income before taxes - taxes

Net sales are expected to be $1,250,000. Cost of sales is estimated to be $300,000. Selling expenses have a fixed component that is

estimated to be $90,000 and a variable component that is estimated to be 8% of net sales. Administrative expenses are $50,000.

Interest expenses are $8,000. The company is taxes at a 50% rate.

Develop your spreadsheet using good spreadsheet-engineering principles. (on Excel)