Goal Kiek Sports New Store Financial Model Parameters S Store Size (square feet) Total Fixed Assets Straight Line Depreciation period Discount Rate Tax Rate Inflation Rate Cost of Merchandise % of sales) 7.500 280,000 5 10% 33% 2% 28% S First Year Sales Revenue Annual Growth Rate of Sales 950,000 15% Operating Expenses Rent Per Square Foot S Labor Costs Other Expenses S 30 150,000 235,000 Model Year Sales Revenue 1 S950.000 2 $1.092,500 3 $1,256,375 4 $1,444,831 5 $1.661,556 Cost of Merchandise Labor Cost Rent Other Expenses S266,000 SI 50,000 $225,000 S235,000 $305,900 S153,000 S299 250 $239,700 $351,785 $156,060 $398,003 S244,494 S404,353 $159.181 S529,343 S249,384 S465,236 S162,365 $704,027 S254,372 Net Operating Income Depreciation Expense S74,000 S56,000 $94,650 $56,000 S106,034 $56,000 S102.370 $56,000 $75,557 $56,000 Net Income Before Tax Income Tax $18,000 $5,940 $38,650 $12.755 $50,034 $16,511 $46,370 S15,302 $19,557 S6,454 Net After Tax Income Plus Depreciation Expense Annual Cash Flow S12.060 $56,000 $68,060 $25,896 $56,000 $81.896 $33,522 $56,000 $89.522 $31,068 $56,000 $87,068 $13.103 $56,000 $69,103 Discounted Cash Flow $61,873 $67,682 $67,260 $39,469 $42.908 Total Discounted Cash Flow $299,191 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 34% 24% 34% 24% Inflation Rate 1% 2% 4% 3% Annual Growth of Sales 27% 14% 6% 18% What is the range of values for the Total Discounted Cash Flow (in dollars) for these scenarios? (Round your answer to the nearest dollar)