el Assignment Saved Reading Readiness, Inc. has provided you its list of accounts and balances as of January 31. The Controller has asked you to prepare an Income Statement for the month ended January 31. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell,-B5" wa entered, the formula would output the result from cell 85, or $37,500 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: (plu sign to add),-(minus sign to subtract), (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cel1%C11C12" was entered, te formula would add the values from those cells and output the result, or 28,800 in this example. If using the other math symbols the result would output an appropriate answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell " SUM(C11,C12,C13) was entered, the formula would output the result of adding those three separate cells, or 103,800 in this example. Similarly, If in a blank cell SUM(C11.C13) was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 103,800 in this example . IF function: Allows you to test a condition and return a specific value is the result is true and different value if the result is false. The syntax of the IF function is F test.conditionvale /Lt uevalue false and specific considerations need to be made when using this function. The test condition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value if true and value if false arguments will return any specific result for each option, such as another cell reference a value, or text. Throughout the entire equation, if text is being used in the test.condition, value If true, or value if, faise arguments then the text itself should be entered in quotations so that Excel will recognize the text as a "string of text" instead of another function. From the Excel Simulation below, if in a blank cell -IF(B5>20000 Cash is great "Cash is bad") was entered, the formula would output the result of the value it. true since the test.condition would be result as true, or in this case the text Cash is great". Excel processes the IF function by separating it out into separate parts. First the test condition-Excel thinks, find cell B5 and determine if the value is greater than 20000 Once Excel determines if the result of that test-condition is TRUE or FALSE, it will return the value- true or value- false. Merchandising operations and the multi-step income statement- Excel FLE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Callbri 1% Fe Paste AAlignment Number Conditional Format asCellCels Edding Formatting TableStyles Styles Cpboard Font Prev 1 of Next A37 Noodles Unlimited, Inc. sells swimming pool toys. The following adjusted trial balance 2 is for the year ended December 31, 20x1. Debits $37,500 28,600 43,300 2,000 69,000 6 Accounts Receivable 7 Inventory 8 Prepaid Rent 10 Accumulated Depreciation $20,700 8,800 20,000 75,000 31,800 175 500 1 Accounts Payable 12 Notes Payable 13 Common Stock 14 Retained Earnings, January 1,20x1 15 Sales Revenue 16 Sales Returns and Allowances 17 Sales Discounts 18 Cost of Goods Sold 19 Salaries Expense 20 Depreciation Expense 21 Rent Expense 22 Interest Expense 23 Loss on Sale of Equipment 24 Totals 4,700 6,000 67,700 25,900 13,800 24,000 1,600 7,700 S331800 S331.800 ..Sheet1 Attempt(s) 3/3 Prey 1 of 1 i A37 7,700 $331800$331800 23 Loss on Sale of Equipment 24Totals 25 26 Required: 27 1. Prepare a multistep income statement that would be used for internal reporting purposes. 28 Note: When more than one correct account could appear in a cell, list items in order of largest to 29 smallest dollar amounts. Use cell referencing to select account titles and values 0All numbers should appear as positive numbers 31 2. After entering the formula in cell B52, use the Excel IF funetion to label cell A52 as either 32 "Net Income" or "Net Loss" as appropriate based on the value calculated in cell B52. 35 36 NOODLES UNLIMITED, INC Income Statement For the Year Ended December 31, 20X1 38 Less: 40 41 Net Sales 43 Gross Profit 44 Expenses 45 46 Sheet1 | .. , ( Attompt(s) 3/3 Prev1 of 1 Next lAssignment A37 40 41 Net Sales 42 43 Gross Profit 44 Expenses: 45 46 47 48 Operating Income 9 Other Expenses and Losses 50 51 52 53 54 3. Compute the gross profit percentage. 55 Note: Make sure to include *100 at the end of your formula 56 in order to convert the decimal to a percentage 57 Gross Profit Ratio 58 percent 61 Sheeti Attempt(s) 3/3 Prey 1 of 1 EE