I hope this is better.

Phillips Company purchased 100% of the outstanding stock of Smith, Inc., on January 1, 2022, for a purchase price of $1,500,000. At the acquisition date, Smith's book value consisted of common stock of $800,000 and retained earnings of $400,000. Phillips attributed the cost over book to a building with an estimated 15 -year remaining useful life. Phillips uses the equity method to account for its investment in Smith. During the next two years, Smith reported the following: Smith sells inventory to Phillips after a markup based on a gross profit rate. At the end of 2022 and 2023,30 percent of the current year's purchases remain in Smith's inventory. Required Create an Excel spreadsheet that computes the following: 1. Investment in Smith, Inc., account as of December 31 , 2023. 2. Worksheet adjustments (consolidation journal entries) for the December 31, 2023, consolidation of Phillips and Smith. Your solution should be formulated so that Smith's gross profit rate on sales to Phillips is treated as a variable (this requires the use of formulas in your Excel spreadsheet!). Most amounts should be formula-driven so that when you change the gross profit rate (or any other variable), all other numbers update, including the equity income, balance in the investment account, and amount of the worksheet adjustments. Use formulas everywhere you reasonably can. Not sure where to start or what to include in your solution? The attached guide will provide direction. In addition, here are two important notes about the gross profit rate: - You do not have to calculate the gross profit rate; you just pick any rate you want. You will need a gross profit rate to complete the Excel Case - all you have to do is make one up. The number doesn't matter; how you apply it and the calculations that you perform matter. Make sure you use formulas throughout the Excel Case (see guide) - that is the purpose of the assignment, and I will be checking for those. - Do not use 60% as your GPR. bitio entify inwestory framilen. - The amounts labeled "given" are provided in the case study and will just be entered into the spreadsheet. - The cells tabeled "formula" should include formulas. They can be as simple as "-H20" for the 2022 reported net income in the calculation of Equity in Smith Earnings. That formula is just pulling a number from somewhere else in the spreadsheet. Or, it could be more complicated and indude references to other cells and have mathematical operations like the formula at the end of the consolidation entries that wil calculate whether the investant account goes to zero or not. - The amounts labeled "ghen" are provifed in the case st idy and wil juat be entered inte the seread hect. - The ceds labeled "formils" should include foemulas. Fhey can be as simple as "ache" for the 2022 reportfd aet inceme in the calculation of fquity in Simith fareines. That formuls is jus pulling a number from somewhere dige in the spreadsheet. Or, it could be more complicated and indude references to other cells and have mathematical oferations ilis the fovnula at the end of the cenioldation entries that will caltulate whether the investment account goes to aere or not. Phillips Company purchased 100% of the outstanding stock of Smith, Inc., on January 1, 2022, for a purchase price of $1,500,000. At the acquisition date, Smith's book value consisted of common stock of $800,000 and retained earnings of $400,000. Phillips attributed the cost over book to a building with an estimated 15 -year remaining useful life. Phillips uses the equity method to account for its investment in Smith. During the next two years, Smith reported the following: Smith sells inventory to Phillips after a markup based on a gross profit rate. At the end of 2022 and 2023,30 percent of the current year's purchases remain in Smith's inventory. Required Create an Excel spreadsheet that computes the following: 1. Investment in Smith, Inc., account as of December 31 , 2023. 2. Worksheet adjustments (consolidation journal entries) for the December 31, 2023, consolidation of Phillips and Smith. Your solution should be formulated so that Smith's gross profit rate on sales to Phillips is treated as a variable (this requires the use of formulas in your Excel spreadsheet!). Most amounts should be formula-driven so that when you change the gross profit rate (or any other variable), all other numbers update, including the equity income, balance in the investment account, and amount of the worksheet adjustments. Use formulas everywhere you reasonably can. Not sure where to start or what to include in your solution? The attached guide will provide direction. In addition, here are two important notes about the gross profit rate: - You do not have to calculate the gross profit rate; you just pick any rate you want. You will need a gross profit rate to complete the Excel Case - all you have to do is make one up. The number doesn't matter; how you apply it and the calculations that you perform matter. Make sure you use formulas throughout the Excel Case (see guide) - that is the purpose of the assignment, and I will be checking for those. - Do not use 60% as your GPR. bitio entify inwestory framilen. - The amounts labeled "given" are provided in the case study and will just be entered into the spreadsheet. - The cells tabeled "formula" should include formulas. They can be as simple as "-H20" for the 2022 reported net income in the calculation of Equity in Smith Earnings. That formula is just pulling a number from somewhere else in the spreadsheet. Or, it could be more complicated and indude references to other cells and have mathematical operations like the formula at the end of the consolidation entries that wil calculate whether the investant account goes to zero or not. - The amounts labeled "ghen" are provifed in the case st idy and wil juat be entered inte the seread hect. - The ceds labeled "formils" should include foemulas. Fhey can be as simple as "ache" for the 2022 reportfd aet inceme in the calculation of fquity in Simith fareines. That formuls is jus pulling a number from somewhere dige in the spreadsheet. Or, it could be more complicated and indude references to other cells and have mathematical oferations ilis the fovnula at the end of the cenioldation entries that will caltulate whether the investment account goes to aere or not