Relationships among Financial Statements using Excel's SUM and Basic Math Functions Marta Communications, Inc. has provided incomplete financial statements for the month ended March 31. The Controller has asked you to help calculate the missing amounts in the incomplete financial statements. 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, =B11" was entered the formula would output the result from cell B11, or $34.500 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"B15-B16" was entered the formula would add the values from those cells and output the result, or 5.600 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(B15,816)" was entered the formula would output the result of adding those two separate cells, or 5.600 in this example. Similarly, if in a blank cell"-SUM(B15 816)" 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 5.600 in this example. A1 f Presented below are incomplete financial statements for Marta Communications, A B D 2 1 Presented below are incomplete financial statements for Marta Communications, Inc. 3 Required: 4 Solve for the missing amounts. NOTE: When an amount on one financial statement is again shown on 5 another statement, you MUST reference the cell from the earlier statement rather than calculate the amount, thus 6 indicating the relationship between the two statements. 7 8 MARTA COMMUNICATIONS, INC. 9 Income Statement 10 For the Month Ended March 31, 20X1 11 Sales Reve les $34,500 12 Expenses: 13 Rent Expense 2,600 14 Wages Expense 22,200 15 Utilities Expense 4,800 16 Income Tax Expense 800 17 Net income $4,100 18 19 20 MARTA COMMUNICATIONS, INC. 21 Statement of Retained Earnings 22 For the Month Ended March 31, 20X1 23 Retained Earnings, March 1, 20X1 $0 B D MARTA COMMUNICATIONS, INC. Statement of Retained Earnings For the Month Ended March 31, 20X1 Retained Earnings, March 1, 20X1 $0 Add: Net income 4,100 Subtract: Dividends (500) Retained Earnings, March 31, 20X1 $3,600 MARTA COMMUNICATIONS, INC. Balance Sheet At March 31, 20X1 Liabilities $3,400 Accounts payable Stockholders' Equity 2,300 Common stock 12,000 Retained earnings Total Liabilities and Stockholders' Equity Assets Cash Accounts receivable Office supplies Land Total Assets $6,800 14,000 Preparing an Income Statement using Excel's SUM, IF and Basic Math Functions 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."-C11" was entered the formula would output the result from cell C11, or 6,050 in this example, Basic Moth 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 10,850 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 C12.013)" was entered the formula would output the result of adding those three separate cells, or 17732 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 17.732 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(rest.condition value. true value. Ifalse)" and specific considerations need to be made when using this function. The rest.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 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 true, or value 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(C6>10000."Cash is great" "Cash is bad") was entered the formula would output the result of the value_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 C6 and determine if the value is greater than 10000. Once Excel determines if the result of that rest.condition is TRUE or FALSE, it will return the value_true or value_ir_false B. D E F A 1 The list below shows select accounts for Reading Readiness, Inc. as of January 31, 20x1. 2 (Accounts are in alphabetical order.) 3 4 Accounts Payable $ 8,088 5 Accounts Receivable 6,960 6 Cash 13,445 7 Equipment 4,800 8 Income Tax Expense 1,350 9 Operating Expense 11,800 10 Other Expenses 3,482 11 Other Revenues 6,050 12 Rent Expense 4,800 13 Salaries Expense 6,882 14 Short-term Notes Payable 17,200 15 Test Prep Revenue 15,400 Tutoring Revenue 9,100 17 Unearned Revenue 1,046 18 19 Required: 20 1. Prepare an Income Statement for the month ended January 31, 20X1. Use cell references 21 to select account titles and amounts to be included on the income statement. 22 Note: List revenues and expenses in order of largest to smallest dollar amounts. 23 24 2. After entering the formula in cell C42, use the Excel IF function to label cell B42 as either "Net Income" or Sheet1 1. Prepare an Income Statement for the month ended January 31, 20X1. Use cell references to select account titles and amounts to be included on the income statement. Note: List revenues and expenses in order of largest to smallest dollar amounts. 2. After entering the formula in cell C42, use the Excel IF function to label cell B42 as either "Net Income" or "Net Loss" as appropriate based on the value calculated in cell C42. READING READINESS, INC. Income Statement For the Month Ended January 31, 20X1 Revenues: Total Revenues Expenses: Total Expenses Sheet1 * ***