Goal Kick Sports (GKS) is a retail chain that sells youth and adult soccer equipment. The GKS financial planning group has developed a spreadsheet model to calculate the net discounted cash flow of the first five years of operations for a new store. This model is used to assess new locations under consideration for expansion. (a) Use Excel's Formula Auditing tools to audit this model and correct any errors found. What is the total discounted cash flow (in dollars) calculated by the corrected spreadsheet. (Round you answer to the nearest dollar.) (b) Once you are comfortable that the model is correct, use Scenario Manager to generate a Scenario Summary report that gives Total Discounted Cash Flow for the following scenarios. Scenario 1 2 3 4 Tax Rate 38% 23% 34% 24% Inflation Rate 3% 1% 2% 4% Annual Growth of Sales 26% 11% 9% 16% What is the range of values for the Total Discounted Cash Flow (in dollars) for these scenarios? (Round your answer to the nearest dollar.) B D E F G H J 1 Goal Kick Sports New Store Financial Model 2 Parameters 3 4 Store Size (square feet) 5 Total Fixed Assets 6 Straight Line Depreciation period 7 Discount Rate 8 Tax Rate 9 Inflation Rate 7,500 $ 280,000 5 10% 33% 2% 10 Cost of Merchandise (% of sales) 28% 11 12 First Year Sales Revenue 13 Annual Growth Rate of Sales 14 $ 950,000 15% 15 Operating Expenses 16 Rent Per Square Foot $ 30 17 18 Labor Cost $ 150,000 Other Expenses $ 235,000 19 20 Model 21 22 23 24 25 26 27 28 29 30 Net Operating Income Depreciation Expense $74,000 $56,000 31 32 Net Income Before Tax $18,000 33 Income Tax $5,940 Year Sales Revenue Cost of Merchandise Labor Cost Rent Other Expenses 1 3 4 5 2 $950,000 $1,092,500 $1,256,375 $1,444,831 $1,661,556 $266,000 $305,900 $351,785 $404,553 $465,236 $150,000 $153,000 $156,060 $159,181 $162,365 $225,000 $299,250 $398,003 $529,343 $704,027 $235,000 $239,700 $244,494 $249,384 $254,372 $94,650 $106,034 $102,370 $75,557 $56,000 $56,000 $56,000 $56,000 $38,650 $12,755 $50,034 $46,370 $19,557 $16,511 $15,302 $6,454 34 35 Net After Tax Income $12,060 $25,896 $33,522 $31,068 $13,103 36 Plus Depreciation Expense $56,000 $56,000 $56,000 $56,000 $56,000 37 Annual Cash Flow $68,060 $81,896 $89,522 $87,068 $69,103 38 39 Discounted Cash Flow $61,873 $67,682 $67,260 $59,469 $42,908 40 41 Total Discounted Cash Flow $299,191