Prepare an income statement and a common-sized income statement from the 4 following information. 5 6 DATA 7 Sales $525,000 8 Cost of goods sold 200.000 9 General & administrative expenses 62,000 10 Depreciation expenses 8.000 11 Interest expense 12,000 12 Income taxes 97,200 13 14 SOLUTION 15 Income Statement and Common-Sized Income Statement: 16 Sales 17 Cost of goods sold 18 Gross profits 19 General & administrative expenses 20 Depreciation expense 21 Total operating expense 22 Operating income (EBIT) 23 Interest expense 24 Earnings before taxes 25 Taxes (40%) 26 Net income 27 Important note: All calculations must be shown using cell references. Do NOT enter 29 numerical values in the cells. 30 2. In cell C16, input the sales amount. (1 point) 3. In cell C17, input the cost of goods sold amount. (1 point) Note: The output of the 31 expression or function you typed in this cell is expected as a positive number. 32 4. In cell C18, calculate the gross profits. (I point) 5. In cell B19, input the general & administrative expenses amount. (1 point) Note: The output of the expression or function you typed in this cell is expected as a positive 33 number. 6. In cell B20, input the depreciation expense amount. (1 point) Note: The output of the 34 expression or function you typed in this cell is expected as a positive number. 35 7. In cell C21, calculate the total operating expense. (1 point) 36 8. In cell C22, calculate the operating income (EBIT). (1 point) 9. In cell C23, input the interest expense amount. (1 point) Note: The output of the 37 expression or function you typed in this cell is expected as a positive number. 38 10. In cell C24, calculate the earnings before taxes. (1 point) 11. In cell C25. input the taxes amount. (1 point) Note: The output of the expression or 39 function you typed in this cell is expected as a positive number. 40 12. In cell C26, calculate the net income. (1 point) 13. To prepare the common-sized income statement, find the ratio between each account in the income statement and the sales amount. In cell D16, divide the sales amount by the sales datum in cell C7 and make an absolute cell reference to the sales datum for copying and pasting purposes. (1 point) 42 14. Copy cell D16 and paste onto the cell ranges D17:018 and D21:D26. (2 points) 15. In cell D19, divide the general & administrative expenses amount by the sales datum and make an absolute cell reference to the sales datum for copying and pasting 43 purposes. (1 point) 44 16. Copy cell D19 and paste onto cell D20. (1 point)