Input the fact pattern below into the Integrated Financial Model workbook. Submit your completed excel spreadsheet with your name in the file name.Integrated Technologies Inc. $($ITI$)$ is a new startup that is developing and introducing new products in the consumer electronics category. This company does the design work for new products, but outsources all of the production. There are only $5$ employees working out of an office space. Rent is $$2,000$ per month. Utilities are $$300$ per month. Their investor has invested $$4\mathrm{.}5$million for a $30\%$ stake in the company. $$2\mathrm{.}5$million is available in month $1$ and the other $$2$million will be made available in $$500,000$ chunks every $6$ months $($in month $6$ and month $12)$ as long as the team stays on track for profitability. The investor will provide another $$5$million once the company brings a new version of their product to market $($Product $2).$ The company will launch Product $1$ at the beginning of Year $1.$ Based upon the company's market and customer research, they believe that the total market for their first product is approximately $1\mathrm{.}2$ million $($units$)$ per year. The company believes that they can sell $12,000$ units of Product $1$ in its first year. Sales will not be distributed evenly from month to month; they expect to see a spike in sales beginning in October, and ramping up through November and December due to the holiday season, and a continued $($but smaller$)$ bump in sales in January, due to the annual Consumer Electronics Show. Jan $1000$ units Feb$-$Sep $5\%$ of annual salesOct $1200$ unitsNov $2100$ unitsDec $2900$ units For Product $1,$ the company anticipates selling to distributors, who will then sell to retailers, with a target retail price of $$400.$ The distributor has agreed to pay $75\%$ of the retail price. ITI will have a Cost of Goods Sold of $75\%$ of selling price. ITI has negotiated terms with their supplier to pay $80\%$ of accounts payable upfront and the balance in the next month. $0\%$ of sales will be in cash. Historically, in this industry, accounts receivable collections have been collected as follows, reflecting $60$ day payment terms: $\%$ collected in month of sale$5\%\%$ collected in month following$10\%\%$ collected in second month following$65\%\%$ collected in third month following$8\%\%$ not collected $($bad debt expense$)12\%$ The company aims to keep a minimum of $$10,000$ in cash and $2$ months of inventory on hand. ITI does not own its own manufacturing, and has no plans to purchase property, plant, or equipment. The company runs lean and keeps very few full$-$time employees. The CEO makes $$100,000$ per year and the other $4$ employees make $$80,000$ each per year. With a competitive benefits package, additional benefits account for $12\%$ of salaries. They have no salaries that are considered direct expense, the company records all $5$ salaries as administrative. ITIs only insurance expense is the $$1,000$ monthly general business insurance they include as an administrative expense. They have an attorney and accountant on retainer for $$1000$ per month.Office supplies are minimal at $$100$ per month, since printing and coffee are their main expenses. The company leases some prototyping equipment and computers for a total of $$1200$ per month. In a crowded market, ITI knows that marketing is incredibly important. They start by spending $$1000$ in marketing in the first $8$ months and then increase their advertising spend by $50\%$ each month $($previous month marketing spend x$1\mathrm{.}5)$ until the end of the year. They start with small blog and internet ads and ramp up to targeted magazine ads in magazines like Popular Mechanics, Pc World, and Scientific American for the holiday purchasing season. In Year $2,$ the company intends to double sales of Product $1$ as compared to Year $1,$ and the same distribution of sales from month$-$to$-$month is expected. Marketing must be increased to boost sales. They will spend $$5000$ per month in the first $8$ months and then increasing by $50\%$ each month until the end of the year. With increased order size and some tweaks to the product, ITI slashes Cost of Goods Sold to $65\%.$ All other numbers remain the same from year $1.$ In Year $3,$ ITI will roll out Product $2,$ which will replace product $1$ in Month $1$ of Year $3.$ Product $2$ is a higher$-$end version of Product $1$ and is planned to retail for $$800,$ with a $65\%$ cost of goods sold. ITI also hires a part$-$time sales person to boost sales. The salesperson works on $100\%$ commission, which is $$2$ for every sale. They expect to sell approximately $22,000$ units of Product $2$ in Year $3,$ with similar month$-$to$-$month sales distribution to Product $1(5\%$ of sales in Feb$-$Sep, $10\%$ in Oct, $17\mathrm{.}5\%$ in Nov, remainder in Dec$).$ The only difference is that, due to retooling and as part of their marketing campaign, no products will be sold in Month $1.$ $$10000$ per month will be spent on marketing in year $3.$ Other expenses will not change. Year $4$ begins with $4200$ sales in Month $1$ due to a strong performance at the Consumer Electronics Show. Sales then level off at half that amount. New terms with the manufacturer lower the cost of goods sold to just $60\%.$