Figure AE-1 shows an Excel spreadsheet that the resort bicycle rental business uses to value and analyze its bicycle inventory.

Examine this figure to understand the meaning of the data. Now use Excel to create a similar spreadsheet. Note the following:

• The top heading is in 20-point Calibri font. It is centered in the spreadsheet. Cells A1 through H1 have been merged.

• The second heading, Bicycle Inventory Valuation, is in 18-point Calibri, italics. It is centered in Cells A2 through H2, which have been merged.

• The column headings are set in 11-point Calibri, bold. They are centered in their cells, and the text wraps in the cells.

a. Make the first two rows of your spreadsheet similar to that in Figure AE-1. Choose your own colors for background and type, however.

b. Place the current date so that it is centered in cells C3, C4, and C5, which must be merged.

c. Outline the cells as shown in the figure.

d. Figure AE-1 uses the following formulas:

Please use these formulas in your spreadsheet, as shown in Figure AE-1.

e. Format the cells in the columns, as shown.

f. Give three examples of decisions that management of the bike rental agency might make from this data.
g. What other calculation could you make from this data that would be useful to the bike rental management? Create a second version of this spreadsheet in your worksheet document that has this calculation.

Transcribed Image Text:

12 3 D E Resort Bicycle Rental Bicycle Inventory Valuation Monday, October 29, 2007 Cost of Current Number of Total Rental H Number Revenue Revenue as percent 4 Make of Bike Bike Cost on Hand Inventory Rentals Revenue per Bike of Cost of Inventory 5 Wonder Bike $325 12 $3,900 85 $6,375 $531 163.5% 6 Wonder Bike II $385 4 $1,540 34 $4,570 $1,143 296.8% 7 Wonder Bike Supreme $475 8 $3,800 44 $5,200 $650 136.8% 8 Lite Lift Pro $655 8 $5,240 25 $2,480 $310 47.3% 9 Lite Lift Ladies $655 4 $2,620 40 $6,710 $1,678 256.1% 10 Lite Lift Racer $795 3 $2,385 37 $5,900 $1,967 247.4%