Please show reasoning and all calculations. Especially with inventory turnover.
Required: 1. Prepare a projected multiple step income statement for the year ended December 31, 2017. Submit using the Group Project 2 work paper excel file. Tab parts 1-2. Use the Merchandise Your sister T Company, a mell 0 t outorship a s third single step income statement Prepare the vertical analysis of the income statement for the two vears ended December 31. 2 perations r the year ended December 2017 and December 31, 2016. Use the Merchandise Operations vertical analysis video as a guide to prepare the Analysis. Submit using the Group Project 2 work paper excel file Tab 31 2016 Parts 1-4 3 he projections, does it appear that Hercules will do a better job controlling their inventory? Why or Why Not? Include your computation of the inventory turnover for 2017 and 2016 to support the rationale for your answer. Submit using the Group Project 2 work paper any Income Statement Year Ended December 31, 2016 Revenues 4. Based on your projected income statement and vertical analysis would you recommend the $600,000 sales revenue proposed changes? Why per excel fle. why not? Submit using Tab Parts 3-4 of the Group Project 2 work Expenses Cost of Goods Sold Sales Salaries Expense 420.000 38.850 (shipping charges) S 20 Advertising Expense Office Salaries Expense Office Supplies Expense 7 000 00 31.200 2,800.00 $ 10,000.00 xpense Total Expenses Net Income $ 529,850 $ 70.150 Your sister had the following inventory balances: 38,000.00 T701716 Projected inventory as of 12/31/17 18.000.00 Your sister is considering a proposal to increase net income by offering their sales representatives a salary commission on every unit they sell. This should help increase sales. They also will be able to adopting just-in-time inventory and by shipping al merchandise EOR Shipning Point Presentiy all merchandise is shipped FOB Destination. (Assume that the interest expense will remain the same in 2017 It is estimated that more creative marketing (in 2017) will enable Hercules to have a 20 % increase in the Net Sales they had in 2016 by attracting new customers. Assume the new shipping terms (in 2017) will cause Hercules to have 15% decrease in the Net Sales they had in 2016. Due to intense negotiations, Hercules was able to reduce the cost of goods sold to 65% of Net Sales. Assume that Sales Salaries Expense, Advertising Expense, Office Salaries Expense and Office ceive a 5% commission on every sales dollar This will create a new expense that we will call Sales Commission Expense. Required: 1. Prepare a projected multiple step income statement for the year ended December 31, 2017. Submit using the Group Project 2 work paper excel file. Tab parts 1-2. Use the Merchandise Your sister T Company, a mell 0 t outorship a s third single step income statement Prepare the vertical analysis of the income statement for the two vears ended December 31. 2 perations r the year ended December 2017 and December 31, 2016. Use the Merchandise Operations vertical analysis video as a guide to prepare the Analysis. Submit using the Group Project 2 work paper excel file Tab 31 2016 Parts 1-4 3 he projections, does it appear that Hercules will do a better job controlling their inventory? Why or Why Not? Include your computation of the inventory turnover for 2017 and 2016 to support the rationale for your answer. Submit using the Group Project 2 work paper any Income Statement Year Ended December 31, 2016 Revenues 4. Based on your projected income statement and vertical analysis would you recommend the $600,000 sales revenue proposed changes? Why per excel fle. why not? Submit using Tab Parts 3-4 of the Group Project 2 work Expenses Cost of Goods Sold Sales Salaries Expense 420.000 38.850 (shipping charges) S 20 Advertising Expense Office Salaries Expense Office Supplies Expense 7 000 00 31.200 2,800.00 $ 10,000.00 xpense Total Expenses Net Income $ 529,850 $ 70.150 Your sister had the following inventory balances: 38,000.00 T701716 Projected inventory as of 12/31/17 18.000.00 Your sister is considering a proposal to increase net income by offering their sales representatives a salary commission on every unit they sell. This should help increase sales. They also will be able to adopting just-in-time inventory and by shipping al merchandise EOR Shipning Point Presentiy all merchandise is shipped FOB Destination. (Assume that the interest expense will remain the same in 2017 It is estimated that more creative marketing (in 2017) will enable Hercules to have a 20 % increase in the Net Sales they had in 2016 by attracting new customers. Assume the new shipping terms (in 2017) will cause Hercules to have 15% decrease in the Net Sales they had in 2016. Due to intense negotiations, Hercules was able to reduce the cost of goods sold to 65% of Net Sales. Assume that Sales Salaries Expense, Advertising Expense, Office Salaries Expense and Office ceive a 5% commission on every sales dollar This will create a new expense that we will call Sales Commission Expense
