. Below are the Brant Freezers 2021 balance sheet and 2021 income statement. Please use this information to answer the following questions

Balance Sheet 2021
Asset
	Cash				701034
	Account Receivable				345450
	Inventory				1570435
	Total current asset				2616919
	Net fixed asset				803056
	Total assets				3419975
Liabilities
	Current liabilities				1568589
	Long-term debt				398060
	Total liabilities				1966649
Shareholders' Equity					1453326
Total Liabilities and Equity					3419975

Income Statement 2021
Sales		4203450
Cost of goods sold		938000
Gross Margin		3265450
Transportation cost	657322
Warehousing cost	735982
Inventory carrying cost	567987
Other operating	345876
Total operating cost		2307167
Earnings Before Interest and Taxes		958283
Interest		110000
Taxes		68000
Net income		780283

5.1 Use the 2021 income statement and balance sheet to complete a strategic profit model (Note: Total Expenses include both Interest and Taxes).

5.2 Because you, as a Logistics manager, believe moving to a greater on-line presence will improve the customer experience, you and the VP of Logistics meet with the VP of Marketing to try to determine how Internet sales will affect customer satisfaction and buying behavior. The VP of Marketing believes that sales will go up by 6.5%. As you discuss what this really means, you note the following:

Transportation costs are likely to increase by 2.5%

Warehousing cost will increase by 3.5%

Inventory will go up by 3.5%.

Others will remain unchanged.

Please complete the following strategic profit model and discuss whether Brant Freezer should have a greater on-line presence (Please indicate your calculation processes).