Question: Please help me prepare the following schedules using a spreadsheet! Use the following estimated information for Super Shirts, Inc. to perform the analyses: Revenues $255,000
Use the following estimated information for Super Shirts, Inc. to perform the analyses: Revenues $255,000 Cost of goods sold 40% of revenues Salaries and wages = 0% of revenues Additional costs Operating Costs-$45,000 Depreciation $1,500 Bad debts expense-2% of 80% of revenues Interest expense- $375 REQUIRED: On the basis of the facts as given above, prepare the following schedules using a spreadsheet software package: A. Super Shirts would like to be more profitable. Use Goal Seek in Excel to determine the following changes. Each situation is independent of the others. 1. How much would the cost of goods sold percentage need to be for net income to be $100,000? 2. Assume original percentages, how much would the salaries percentage need to be for net income to be $100,000? B. GO BACK TO THE ORIGINAL DATA. Use Solverin Excel to determine the following assuming these constraints (COGS not more than 50% or less than 25%. Salaries not more than 20% or less than 5%; the salaries percentages have to be in order to get $100,000 net income? above constraints? above constraints? 1. Assuming both must change, what percentages would the COGS and 2. What is the maximum net income Super Shirts can achieve with the 3. What is the minimum net income Super Shirts can achieve with the C. GOBACKTO THEORGNALDATA. following: Use Solver in Excel to determine the 1. Assuming COGS-40% and Salaries-10%, how much would revenues have to be to earn $100,000 net income? 2. Assuming COGS-30% and Salaries 15%, how much would revenues have to be to earn $100,000 net income? D. GO BACK TO THE ORIGINAL DATA. Use Scenarios in Excel, Prepare and print a Scenarios Summary Report for net income with the following options: (Each case is independent.) 1. Best case- Sales twice the original amount. 2. worst case-sales are as much as original amount. 3, Lower COGS-30% instead of 40%. 4. Change sales, COGS, and salaries: Sales increase by 30% of original amount. COGS = 35%, higher salaries = 15%. (1) For your Scenarios Summary Report, be sure to format your Scenarios Summary by putting titles in for the variables. (2) Conditional format your net income by highlighting with your choice of color any incomes above $100,000. Also format your net income with another color choice for those incomes below the current net income
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