Project Description: In this problem you wiprepare an income statement and a common-sized income statement from given data. In cell C25, input the taxes amount. Note: The autput of the expression or function you typed in this cell is expected as a positive number 12 In cel C26, calculate the net income. For the purpose of grading the project you are required to perform the following tasks: Step 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 cel C7 and make an absolute cell reference to the sales daturm for copying and pasting purposes and open the workbook Problem 3-2 Start. 13 0.000 Important note: All cakulations must be shown using cell references. Do NOT enter numerical values in the cells 14 Copy cel D16 and paste onto the cel ranges D17:D18 and D21 D26. In cel C16, input the sales amount. 1.000 In cel D19, divide the general &administrative expenses amount by the sales daturm and make an absclute cel reference to the sales datum for copying and pasting purposes. 15 In cel C17, input the cost of goods sold amount. Note: The output of the expression or function you typed in this cell is expected as a postive number 1.000 16 Copy cel D19 and paste onto cell D20. In cell C18, calculate the gross profits 1.000 Save the workbook. Close the warkbook and then ext Excel Submit the workbook as directed, 17 In cel B19, input the general & administrative expenses amount. Note: The autput of the expression or function you typed in this cell is expected as a positive number 1.000 Total Points In cel B20, input the deprecialtion expense amount. Note: The output of the expression or functicn you typed in this cell is expected as a pasitive number 1.000 In cel C21, calculate the tatal aperating expense 1.000 In cell C22, calculate the operating income (EBIT 1.000 In cel C23, input the interest expense amount. Note: The output of the expression or function you typed in this cell is expected as a positive number 1.000 10 In cel C24, calculate the earnings before taxes 1.000 1 PROBLEM 3-2 2 WORKING WITH INCOME STATEMENT Prepare an income statement and a common-sized income statement from 4 the following infomation. 6 DATA 7 Sales 8 Cost of goods sold 9 General & administrative expenses 10 Depreciation expenses 11 Interest expense 12 Income taxes 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 (EBI 23 Interest expense 24 Eamings before taxes 25 Taxes (40%) 26 Net income 27 S525,000 200,000 62,000 8,000 12,000 97,200