Using the data presented below:

Aspen Industries Income Statement For the Years Ended December 31, 2004 and 2003 2004 2003 Sales 285,000 190,000 Cost of Goods Sold 215,000 143,000 Gross Profit 70,000 47,000 Operating Expenses Variable Expenses 28,500 19,000 Fixed Expenses 21,000 20,000 Depreciation 10,000 4,500 Total 59,500 43,500 Earnings Before Interest and Taxes 10,500 3,500 Interest Expense 6,100 3,000 Earnings Before Taxes 4,400 500 Taxes 1,540 175 Net Income 2,860 325

a. Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Try to duplicate the formatting exactly.

b. On another worksheet, create a statement of cash flows for 2004. Do not enter any numbers directly on this worksheet.
All formulas should be linked directly to the source on previous worksheets.

c. Using Excelís outlining feature, create an outline on the statement of cash flows that, when collapsed, shows only the subtotals for each section.

d. Suppose that sales were $320,000 in 2004 rather than $285,000. What is the 2004 net income and retained earnings?

e. Undo the changes from Part

d, and change the tax rate to 40%. What is the 2004 net income and retained earnings?