1. Go to the Estimated Earnings worksheet. Hwan has entered most of the income and expense data on the worksheet. He estimates sales will be $825,000 in Year 1 and $1,800,000 in Year 5. He needs to calculate the sales amounts for Years 2-4. The sales should increase at a constant amount from year to year. Project the sales amounts for Years 2-4 (cells D9:F9) using a Linear Trend interpolation.
2. Hwan also needs to calculate some expense amounts. He knows the starting amount of the miscellaneous expense and has estimated the amount in Year 5. He thinks this expense will increase by a constant percentage. Project the miscellaneous expenses for Years 2-4 (cells D17:F17) using a Growth Trend interpolation.

New Product Estimated Earnings W N ChargeAll Full-Room Wireless Charger CHARGEALL U1 Percent cost of sales & marketing 28% Percent cost of research & development 22% Income Year 1 Year 2 Year 3 Year 4 Year 5 9 Sales $ 825,000 $ $ 1,800,000 Cost of sales & marketing 231,000 504,000 Cost of research & development 181,500 396,000 Gross Profit $ 412,500 $ - $ - $ 900,000 Expenses Insurance $ 22,000 $ 24,250 $ 25,563 $ 26,941 $ 28,388 16 Licensing 24,000 25,250 26,563 27,941 29,387 Miscellaneous 15,000 18,233 18 Payroll 400,000 443,000 517,300 542,330 618,563 19 Rent 45,000 20 Utilities 55,000 58,000 61, 150 64,457 67,930 21 Total General Expenses $ 561,000 $ 550,500 $ 630,575 $ 661,668 $ 762,500 23 Initial Earnings $ (148,500) $ (550,500) $ (630,575) $ (661,668) $ 137,500 25 Projected Monthly Revenue $120,000 28 $1,000,000