Reading Readiness, Inc. has provided you its 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, "B5" 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 divide). From the Excel Simulation below, if in a blank cell "-C11+C12" 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 cell =SUM(C11,C12,C13)" was entered, the formula would output the result of adding those three separate cells, or 103,800 in this example. Similarly, if in a blank cell =SUM(C11:C13)" 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 result is false. The syntax of the IF function is "IF(test condition,value if true,value_if_false)" and specific considerations need to be made when using 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 if true and value if false arguments will return any specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in the test condition, value if true, or value if false arguments then the text itself should be entered in quotations so that Excel will recognize 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...if true since the test_condition would be result as true, or in this case the text "Cash is great". Excel processes the IF function by separating it out into separate parts. First the test condition-Excel thinks, find cell B5 and determine if the value is greater than 20000. Once Excel determines If the result of that test condition is TRUE or FALSE, it will return the value true or value it false A 4 Account Titles B Debits C Credits 5 Cash $37,500 6 Accounts Receivable 28,600 7 Inventory 43,300 8 Prepaid Rent 2,000 9 Equipment 69,000 10 Accumulated Depreciation 11 Accounts Payable $20,700 8,800 12 Notes Payable 13 Common Stock 20,000 75,000 14 Retained Earnings, January 1, 20X1 31,800 15 Sales Revenue 175,500 16 Sales Returns and Allowances 4,700 17 Sales Discounts 6,000 18 Cost of Goods Sold 67,700 19 Salaries and Wages Expense 25,900 20 Depreciation Expense 13,800 21 Rent Expense 24,000 22 Interest Expense 23 Income Tax Expense 1,600 7,700 24 Totals $331,800 $331,800 < fx Noodles Unlimited, Inc. sells swimming pool toys. The followin B C D 1. Prepare a multistep income statement that would be used for internal reporting purposes. Note: When more than one correct account could appear in a cell, list items in order of largest to smallest dollar amounts. Use cell referencing to select account titles and values. All numbers should appear as positive numbers. 2. After entering the formula in cell B52, use the Excel IF function to label cell A52 as either "Net Income" or "Net Loss" as appropriate based on the value calculated in cell B52. Less: NOODLES UNLIMITED, INC. Income Statement For the Year Ended December 31, 20X1 1 Net Sales 2 3 Gross Profit 4 Expenses: 5 46 47 18 Income from Oneratione Clipboard A1 Font x fx A Styles Noodles Unlimited, Inc. sells swimming B C 40 41 Net Sales 42 43 Gross Profit 44 Expenses: 45 46 47 48 Income from Operations 49 50 Income before Income Tax Expense 51 52 53 54 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 Percentage 58 59 60 percent