A. Introduction Computers Are Us is a store and repair shop that sells desktop parts and provides services (like installation and maintenance) for desktop computers. At the end of the first quester of 2023, the store accountant collected financial data showing the quarter's income and expenses. The store manager is asking for financial projections for the next 3 quarters. These projections will be based on growth/decline parameters (rates), defined by analyzing financial data over the last 10 years. At the same time, it is known that these parameters (rates) can vary to a certain degree. This assignment asks you to prepare an Excel spreadsheet that will permit the store manager to assess the financial situation over the next 3 quarters and to simulate the situation by changing the growth/decline parameters.

B. Financial data

The starting point for your work is the income and expenses for the first quarter, specified as monthly averages as follows:

Income

Ia) Parts sales (net) 48,000

Ib) Warranty sales 7,200

Ic) Installation sales 9,800

Id) Maintenance sales 3,100

Expenses

Ea) Rental costs 6,800

Eb) Wages 12,450

Ec) Office costs 3,780

Ed) Other expenses 11,360

The change rates (parameters) are as follows:

Income

ICa) Parts sales (net) 3.5%

ICb) Warranty sales 3.0%

ICc) Installation sales 2.8%

ICd) Maintenance sales 1.8%

Expenses

ECa) Rental costs 0.4%

ECb) Wages -0.2%

ECc) Office costs 1.1%

ECd) Other expenses -0.6%

C. Terminology and tax rates The following terms are either standard definitions in financial analysis or are given by the accountant: Gross Profit is the difference between Total Income and Total Expenses. Taxes are 20 % of the first $12,000.00 of Gross Profit plus 25 % of any Gross Profit in excess of $12,000.00. For example: - the tax on $8,000.00 would be $1,600.00 - the tax on $15,000.00 would be $2,4000.00 + $750.00 = $3,150.00. There is no tax if there is no Gross Profit. Taxes are paid at the end of each quarter based on the Gross Profit for the quarter. At the end of the year: - taxes are calculated based on the Gross Profit for the year and the formula given above. - the store may pay the difference (if it has underpaid during the preceding terms) or may receive a refund (if it has overpaid during the preceding terms). Net Profit is equal to Gross Profit less Taxes.

D. Spreadsheet layout

The spreadsheet will have the following layout:

- Header: with two parts: > Income (Ia-Id), Expenses (Ea-Ed) and Change rates/parameters (ICa-ICd) and (ECa-ECd);

> Graph (bar chart) showing Income, Expenses, and Net Profit for each quarter

- Details: > has a column for each quarter and one showing the yearly total for items Ia-Id, Ea-Ed.

> Besides the rows for each item Ia-Id, and Ea-Ed, there will be a row for Total Income, Total Expenses, Gross Profit, Taxes, and Net Profit.

E. Formatting In the Details section:

- the rows containing Total Income and Total Expenses will have upper and lower solid line borders.

- A double line border will be used at the bottom of the Net Profit row.

- Numbers will be formatted appropriately: dollars should be shown as such, and percentages should show a per cent symbol.

- Column and row headings are to be in bold type

Remarks: - Replace all (ICa-ICd) and (ECa-ECd) with their corresponding names;

- Replace all values with their corresponding values as given above.