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D HW1a-FIN474. pof (page 2 of bl the Year 2015 2016 2016 Sales 5309,300 Cost of Goods 285 400 Gre Pro 3.900 Depreciation 26,820 Selling

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D HW1a-FIN474. pof (page 2 of bl the Year 2015 2016 2016 Sales 5309,300 Cost of Goods 285 400 Gre Pro 3.900 Depreciation 26,820 Selling & Admin. Expense 21,340 Other Operating Expense 1,00 Net Operating Income 32.660 Interest Expense 7,685 Earnings Before Tuses 24.975 Taxes 9,990 Net Income S14986 2015 354,000 281,800 72,200 26,360 21,820 1080 22,940 7,505 15435 6,174 $9,261 Notes Tax Rate 40 0096 40.00% Shares $2,100 $2.100 Eamine per Share 50.29 50 18 Big Rock Candy Mountain Mining Co. Balance Sheet For the Year Ended December 31, 2016 2016 2015 Cash Marble Securities Acts Receivable Inventory Total Currentes Go Find Aucts Accumulated Depreciation $14,714 $1,841 541,090 $45,910 SI535 5138 $78920 s109 414.535 S10 300 S550 542100 548,490 S10140 $15.500 $31200 $101 100 S4020 Total Asses 5321200 Liities & Oher's Equity Als Pays Ad Ex TO Long Det Tales Com Stock Adal Padal Retained TOS Total Labas 5332 50 SINO 515 SIST SESSO 39 5110 SIZES 200 SONG S402 40 ses 54145 a. Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Try to duplicate the formatting exactly. b. On another worksheet, create a statement of cash flows for 2016. Do not enter any numbers directly on this worksheet. All formulas should be linked directly to the source on previous worksheets. c. Using Excel's outlining feature, create an outline on the statement of cash flows that, when collapsed, shows only the subtotals for each section. d. Suppose that sales were $400,000 in 2016 rather than $369,300. What is the 2016 net income and retained earnings? e. Undo the changes from part d, and change the tax rate to 35%. What is the 2016 net income and retained earnings? 2. Using the data from the previous problem: a. Create a common-size income statement for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the income statement. b. Create a common-size balance sheet for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the balance sheet. c. Create a common-size statement of cash flows for 2016 that can be switched between using sales and the 2015 cash balance in the denominator a 3. Download the file named "Chapter 2 Problem 3.xlsx" from the text support Web site (www.cengagebrain.com) Fill in the blanks on the financial statements for Winter Park Web Design with formulas. Some of the formulas will require links to data given in other worksheets in the workbook. b. Create a common-size income statement and balance sheet using your answers from above. Using the techniques you have learned in this chapter, you should be able to do these statements in less than one minute with formatting that is identical to the original worksheets D HW1a-FIN474. pof (page 2 of bl the Year 2015 2016 2016 Sales 5309,300 Cost of Goods 285 400 Gre Pro 3.900 Depreciation 26,820 Selling & Admin. Expense 21,340 Other Operating Expense 1,00 Net Operating Income 32.660 Interest Expense 7,685 Earnings Before Tuses 24.975 Taxes 9,990 Net Income S14986 2015 354,000 281,800 72,200 26,360 21,820 1080 22,940 7,505 15435 6,174 $9,261 Notes Tax Rate 40 0096 40.00% Shares $2,100 $2.100 Eamine per Share 50.29 50 18 Big Rock Candy Mountain Mining Co. Balance Sheet For the Year Ended December 31, 2016 2016 2015 Cash Marble Securities Acts Receivable Inventory Total Currentes Go Find Aucts Accumulated Depreciation $14,714 $1,841 541,090 $45,910 SI535 5138 $78920 s109 414.535 S10 300 S550 542100 548,490 S10140 $15.500 $31200 $101 100 S4020 Total Asses 5321200 Liities & Oher's Equity Als Pays Ad Ex TO Long Det Tales Com Stock Adal Padal Retained TOS Total Labas 5332 50 SINO 515 SIST SESSO 39 5110 SIZES 200 SONG S402 40 ses 54145 a. Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Try to duplicate the formatting exactly. b. On another worksheet, create a statement of cash flows for 2016. Do not enter any numbers directly on this worksheet. All formulas should be linked directly to the source on previous worksheets. c. Using Excel's outlining feature, create an outline on the statement of cash flows that, when collapsed, shows only the subtotals for each section. d. Suppose that sales were $400,000 in 2016 rather than $369,300. What is the 2016 net income and retained earnings? e. Undo the changes from part d, and change the tax rate to 35%. What is the 2016 net income and retained earnings? 2. Using the data from the previous problem: a. Create a common-size income statement for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the income statement. b. Create a common-size balance sheet for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the balance sheet. c. Create a common-size statement of cash flows for 2016 that can be switched between using sales and the 2015 cash balance in the denominator a 3. Download the file named "Chapter 2 Problem 3.xlsx" from the text support Web site (www.cengagebrain.com) Fill in the blanks on the financial statements for Winter Park Web Design with formulas. Some of the formulas will require links to data given in other worksheets in the workbook. b. Create a common-size income statement and balance sheet using your answers from above. Using the techniques you have learned in this chapter, you should be able to do these statements in less than one minute with formatting that is identical to the original worksheets

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