Please provide excel answer to shivaz project question as soon as possible for question sent Saturday Thank you

Sara wants to use the Regression method for the development of a regression equation/model for forecasting the sales of the company. She has accumulated 12 months of recent data on sales units, advertising expenditures, and the number of dealers as shown in Table I.

TABLE I

Sales Advertising Number of Units Expenditures Dealers 248,000 19080 300 256,000 19440 337 264,000 19800 375 304,000 27000 312 320,000 30600 318 272,000 21600 303 296,000 28800 315 216,000 19800 225 232,000 19440 247 240,000 19620 270 268,000 23400 306 280,000 25200 309

Shiraz expects the following for the first five months of year 20X2:

January February March April May Advertising Expenditures $28,000 $25,000 $27,000 $26,500 $25,800 No. Of Dealers 290 300 208 285 265 Budgeting: Management of Shiraz Company is interested in a number of budgets. The preferred formats for budgets are displayed in Exhibit I. As shown in Exhibit I, Saras Excel file has two sections. Section One contains the required data for the preparation of budgets. Section Two contains the budgets. Since management of Shiraz wants to simulate the budgets for various possible conditions, the content of budgets will be stated all in formulas. The only area where data should be entered manually is in the data section, under the January column only! (Hint: this will require the use of excel functions including: IF, AND, SUM, ROUNDUP, ROUNDDOWN, ROUND etc.). Sara has prepared the following data for the preparation of budgets:

1. Sales Selling price per unit of Alpha is expected to be $12 in January through February. Five percent increase in selling price is expected in March. Aril and May are expected to have the same selling price as in March. Seventy-five (75) percent of each months sales are collected in the month of sale. The remaining is collected in the following month. 2. Manufacturing Expenses Production of each Alpha requires: Direct materials: 5 pounds of direct material @ $0.80 per pound (expected to increase by 1% each month) Direct Labor: hour of direct labor @ $10 per hour Variable manufacturing overhead (each unit): $0.50 per unit Fixed manufacturing overhead: Total of $25,000 per month of which $3,000 is depreciation expense 3. Operating (Selling & Administrative) Expenses Sales Commission: $0.80 per unit Shipping and Handling: $0.50 per unit Fixed Operating Expenses: Total $12,000 per month of which $1,500 is depreciation expense. 4. Payment of Expenses Other than purchase of materials, all expenses are expected to be paid in the month incurred. Sixty (60) percent of purchases are paid in the month of purchase and the remaining is paid in the following month 5. Capital Expenditures Shiraz is in the process of expansion of its operations by adding new equipment. The expansion requires $200,000 cash outflow in the month of January and another $100,000 in the month of February. 6. Loan Repayments & Interest Expense The Company can borrow from its bank as needed to bolster the Cash account. Borrowings and repayments of principle must be in multiples of $1,000, unless you are paying off the entire balance. All borrowings and repayments take place at the end of a month. The annual interest rate is 12%. Interest is compounded every month and added to the principle. Compute interest on whole month (1/12, 2/12, and so on). 7. Inventory Policy It is the company's policy to maintain an inventory of Alpha at the end of each month equal to 20% of next month's anticipated sales. Company also maintains an inventory of raw materials equal to 25% of next months production needs. 8. Other Information Sales on December of previous year were $4,350,000. Direct material purchases for December of the previous year were $1,800,000. The balance of cash on December 31 of the previous year was $21,000. The Company desires to maintain a minimum balance of $20,000 cash on hand at all times. Applicable income tax rate is 30%.

Requirements: Write a one to two page single-spaced memo to the management of Shiraz Company and include/attach your findings (use 1 margin along with Arial Font with font size of 10 for your report). Specifically: 1. Using the data provided by Sara in Table I calculate all possible regression equations that could be used for forecasting sales of Shiraz Company. 2. In your memo, discuss these various equations and state which of the equations you would recommend to be used and why. Provide a complete and detailed justification for your choice. Also, discuss the meaning of the regression coefficients of the equation that you choose. Attach your Excel work for this section to your memo. In your regression equation, carry two decimal points for coefficient of X variables and none for the intercept. (Hint: Your selection should be based on highest R 2 and t-values or P-values.) 3. Using the chosen equation in Item 1, forecast sales of Shiraz Company for January to May and state the results in a Table similar to the following in the memo. Month January February March April May Sales Units 4. Using the format in Exhibit I, summarize the requisite data for the preparation of budgets in the January column of Section One of your Excel file. Then, write the necessary formulas for all other cells to calculate the budgets. Format nicely the content of budgets (allow two decimal points for per unit items and round to whole numbers for total items). Attach a print copy of (a) the budgets containing numbers, and (b) the budgets displaying the formulas in the cells (dont worry about displaying the whole formula in order to save paper!) 5. There are rumors that the price of direct materials and direct labor for Alpha to be increased by 15% and 5%, respectively effective January 1, 20X2. Management of Shiraz wants to know the impact of this increase on its financial position. Recalculate the budgets by incorporating the expected increases in the price of direct materials and direct labor. Compute and discuss the percentages of change in the profit and cash balance of the company due to the increase in the price. Hint: To save time in typing, you could copy the necessary data from this Word file to your Excel file.

Exhibit I

SECTION ONE: DATA FOR BUDGETS Sales Data: January January

February March March

April May Sales Units Selling price per unit Percentage of sales collected in the month of sales

Percentage of sales collected in the following month

Variable Expenses: Pounds of material needed per unit of Alpha Price of material per pound Direct labor hours needed per unit of Alpha Direct labor rate per hour Variable manufacturing overhead per unit of Alpha

Variable operating expenses per unit of Alpha

Fixed Expenses: Fixed manufacturing overhead Depreciation portion of fixed overhead Fixed operating expenses Depreciation portion of fixed operating expenses

Inventory Policy: Desired ending inventory of Alpha (% of next month sales)

Desired ending inventory of DM (% of next month's production needs)

Other Information: Capital Expenditures Loan Repayments & Interest Expense Income tax rate Minimum cash retained at the end of month December 20X1 Sales dollars Cash balance as of January 1, 20X2 SECTION TWO: BUDGETS Sales Budget January January

February March March

April May May Sales in Units Unit Selling Price Sales in Dollars Production Budget January January

February March March

April May Sales Units Add: Desired Ending Inventory Total Required Units Less: Beginning Inventory Required Production Units Direct Materials Budget (Purchases Budget)

January January

February March March

April May Units to be Produced Direct Material Qty Required Per Unit of Alpha (pounds)

Total Direct Materials Needed for Production (pounds)

Add: Desired Ending Inventory Direct Materials

Total Direct Materials Needed Less: Beginning Inventory of Direct Materials

Direct Material Purchases (pounds) Cost Per Pound Total Cost of DM Purchases Cost of Production Budget (Usage Budget) January January

February March March

April May Units to be Produced Direct Material Costs Direct Labor Cost Variable Manufacturing Cost Fixed Manufacturing Cost Total Production Costs Cost of Production Per Unit Operating Expense Budget January January

February March March

April May Variable Fixed Total Operating Expenses Budgeted Income Statement January January

February March March

April May Sales ($) Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Interest Expense Income Taxes Net Income Cash Budget January January

February March March

April May Beginning Cash Balance Add: Receipts Current Month Sales Prior Period Month Sales Total Receipts Total Cash Available Less: Disbursements Direct Materials Purchases Direct Labor Fixed Manufacturing Overhead Variable Manufacturing Overhead Fixed Operating Expenses Variable Operating Expenses Income Taxes Capital Expenditures Loan Repayment & Interest Expense Total Disbursements Excess (deficiency) of available cash over disbursements

Financing/Borrowing