Angel,

I need your assistance with a budget, incremental analysis, and NPV question. I've attached the question in excel form. With the answer can you place it in excel with formulas and a description.

Purpose To report a company's financial performance (use of assets from the business' primary mode of business and generate revenues) over a specific accounting period (a calendar year or fiscal year). Financial performance is assessed by giving a summary of how the business increase its revenues and expenses through both operating and non-operating activities. The net profit or loss incurred over a specific account period (a calendar year or fiscal year) is also shown (Investopedia, LLC, 2017). Income Statement Data for 2016 Net Sales $33,291.00 Expenses Cost of Goods Sold Labor Advertising Fees Bank Fees Phone/Internet Shipping Utilities Office Supplies Expenses $10,276 0 $2,000 $120 $1,200 $1,380 $900 $785 $16,661 Income Before Taxes $16,661 Income Tax Income After Taxes $4,331.86 $12,329.14 Gross Sales = $33,291 Coupons and Discounts = $549 Cost of Goods = $10,276 Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves) Advertising fees =$2000 Bank fees = $120 Phone/internet = $1200 Shipping = $1380 Utilities = $900 Office supplies = $785 Income tax = 26 % Purpose To serve as a decision-making technique for a business to determine the true cost difference between alternatives; it's usefule in determining wheter to self-produce or outsource (Investopedia, LLC, 2017). 3. Cost Classification: The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs. If business is expected to be steady from month to month, provide a monthly budget based on these figures. a. Advertising Fees = $4,000 b. Labor = $400/month One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month. c. Packaging Supplies = $3,000 d. Ofce Supplies = $800 e. Phone and Internet Service = $115/month f. Product Supplies = $9,000 g. Shipping Fees = $1,000/month h. Conference Exhibitor Fee = $3,000 i. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1,200 j. Utilities for the Home Workshop = $105/month 5. Budget Preparation: The Lees believe that there production could quadruple in one month after being on Shark Tank. They want to be prepared for this. Based on the monthly budget calculated above, create a new monthly budget for quadrupled production. Assume that 70 units were produced in the first budget and 280 units will be produced per month with the new budget. 6. Incremental Analysis: If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, there rent will be $1,200 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1350 per month. However, utilities will likely only cost an additional $150 per month. They want to compare their options over one year's time (since each rental contract is a 1 year commitment). Purpose Please verify title of tab is correct To provide the difference between the present value of cash inflows and the present value of cash outflows. This is used in captial budgeting (the process a business uses to determine and evaluate potential expensees or investments that are large in nature) to analyze the profitability of a projected investment or project (Investopedia, LLC, 2017). Where: Ct = net cash inflow during the period t Co = total initial investment costs r = discount rate t = number of time periods 4. Net Present Value: The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42,000. It is expected that the new piece of equipment will lead to cash flows of $17,000, $29,000, and $40,000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings