1. Using the data presented below for Blue Sky Inc.;

	2017	2016
Sales	$7,550,000	$6,150,000
Cost of Goods	5,750,000	4,550,000
Depreciation	120,000	100,000
Selling and G&A Expenses	820,000	730,000
Fixed Expenses	200,000	200,000
Lease Expense	150,000	150,000
Interest Expense	350,000	300,000
Tax Rate	40.00%	40.00%
Shares Outstanding	100,000	80,000
Cash	108,000	50,000
Marketable Securities	150,000	100,000
Accounts Receivable	450,000	350,000
Inventory	1,250,000	850,000
Prepaid Expenses	120,000	40,000
Plant & Equipment	5,350,000	4,800,000
Accumulated Depreciation	410,000	290,000
Long Term Investments	450,000	360,000
Accounts Payable	420,000	380,000
Notes Payable	150,000	100,000
Accrued Expenses	150,000	100,000
Other Current Liabilities	200,000	180,000
Long-term Debt	2,900,000	2,500,000
Common Stock	2,500,000	2,000,000
Additional Paid-in-Capital	600,000	500,000
Dividends per Share	$0.48	$0.45
Retained Earnings	548,000	500,000

a) Enter the data in Excel. Create Blue Skys income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Improve the readability of the data by using (000s) format (#, ##0.00). Make the appropriate note on the heading of each financial statement.

b) Below Income Statement, find Earnings per Share (Hint: EPS deals with Net Income) and Addition to RE per Share (Hint: EPS less Dividends) for 2017 & 2016.

c) On another worksheet, create a statement of cash flows for 2017. All formulas should be linked directly to the source on previous worksheets.

d) Using Excels outlining feature, create an outline or group the balance sheet that, when collapsed, shows only the subtotals for each section.

e) Visualize 2016 & 2017 Sales, Gross Profit, and Net Income using appropriate graph and formatting.

2. Using the data from the previous problem:

a) Create a common-size income statement and balance sheet for 2017 and 2016 and common-size statement of cash flows for the year ending 2017. These statements should be created on a separate worksheet with all formulas linked directly to the income statement and balance sheet.

b) Using the common-size income statement for 2017, create a forecasted income statement for 2018 assuming that each item is expected to remain in the same proportion as in 2017. The forecasted sales for 2018 are $8,500,000. Use data validation technique.