Preparing a Multi-Step Income Statement using Excel's IF and Basic Math Functions Reading Readiness, Inc. has provided you lts list of accounts and balances as of January 31. The Controller has asked you to prepare an Income Statement for the month ended January 31. Use the Information Included In the Excel Simulation and the Excel functions described below to complete the task Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, 85 was entered, the formula would output the result from cell B5, or $37,500 in this example. . - Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: (plus sign to add), (minus sign to subtract), (asterisk sign to multiply), and / (forward slash to dvide) From the Excel Simulation below, i in a blank cell C11HC12" was entered, the formula would add the values from those cells and output the result, or 28,800 in this example. If using the other math symbols the result would output an appropriate answer for its function SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank ce'-sUMCILC12,C13)" was entered, the formula would output the result of adding those three separte cellis, or 103,800 in this example. Similarly, if in a blank cell -sUM(C11C13) was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 103.800 in this example. . IF function: Allows you to test a condition and return a specific value is the result is true and different value if the resuit is false. The syntax of the IF function is F test condoonvale i-true value false and specific considerations need to be made when usng this function. The test condition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value true and value r_fase arguments will return any specific result for each opon, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in the test condition, valve if true, or vale-r-false arguments then the text itseshould be entered in quotations so that Excel will recog0e the text as a-string of text. Instead of another function. From the Excel Simulation below, if in a blank cell IF(B5 20000, Cash is great "Cash is bad) was entered the formula would output the result of the value_true since the test, condron would be result as true, or in ths case the text "Cash s great. Excel processes the IF function by separating it out into separate parts. First the test.condition-Excel thinks, find cell 85 and determiner the value is greater than 20000. Once Excel determines if the result of that test-condition is TRUE or FALSE, it wil return the value.if true or value if false. All answers must be entered as a formula Click OK to begin OK Merchandisling operations and the multi-step income statement - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VE Sign In Calibr 11A A Paste B 1 u. . E. 5-A-Alignment Number Conditional Format as Call Formatting Table Styles Clipboard Font Styles "J : Ici Noodles Unlimited, Inc ells swimming pool toys. The following adjusted trial A1 x 1 Noodles Ualimited, Inc. sells swimming pool toys. The following adjusted trial balance 2 is for the year ended December 31,20X1. nt Titles 5 Cash 6 Accounts Receivable 7 Inventory $37,500 28,600 43,300 2,000 69,000 Prepaid Rent 9 Equipment 10 Accumulated Depreciation 11 Accounts Payable 12 Notes Payable 13 Common Stock 14 Retained Earnings, January 1,20X1 5 Sales Revenue 16 Sales Returns and Allowances 17 Sales Discounts 18 Cost of Goods Sold 19 Salaries Expense 20 Depreciation Expense 21 Rent Expense 22 Interest Expense 23 Loss on Sale of Equipment 24Totals $20,700 8,800 20,000 75,000 31,800 175,500 4,700 6,000 67,700 25,900 13,800 24,000 1,600 7.700 $331.800 $331,800 FLE HOME| INSERT PAGE LAYOUT FORMULAS DATA REVEW vin Paste .. B 1 u. Ib-|-A- Alignment Number! 1-le-A, . Alignment Number Conditional Format as Cell . Cells | Editing Formatting" Table7 Styles" Styles Clipboard Font Noodles Unlimited, Inc. sells swimming pool toys. The following adjusted trial A1 B. 26 Required: 27 1. Prepare a multistep income statement that would be used for internal reporting purposes. 28 Note: When more than one correct account could appear in a cell, list items in order of largest to 29 smailest dollar amounts. Use cell referencing to select account titles and values 30 All numbers should appear as positive numbers. 31 2. After entering the formula in cell B52, use the Excel IF function to label cell A52 as either 32 "Net Income" or "Net Loss" as appropriate based on the value calculated in cell B52. 34 35 NOODLES UNLIMITED, INC Income Statement For the Year Ended December 31, 20x1 37 38 Less: 39 40 41 Net Sales 42 43 Gross Profit 44 Expenses: 45 46 48 Operating Income 49 Other Expenses and Losses Sheet1 Merchandising operations and the multi-step income statement-Exce HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEN VIEW Sign In FILE 11A A B 1 u -A . Alignment Number conditional Format assd el- Cells Editing Paste Clipboard Al Formatting Table Styles Font Noodies Unlimited, Inc ells sw imming pol toys. The following acdjusted trial 40 41 Net Sales 42 43 Gross Profit 44 Expenses: 46 47 48 Operating Income 49 Other Expenses and Losses 51 52 4 3. Compute the gross profit percentage. 55 Note: Make sure to include *100 at the end of your formula 56 in order to convert the decimal to a percentage. 57 Gross Profit Ratio 58 59 60 61 percent Sheet1