The Board of Directors at Dan's Dependable Delivery wants a glimpse into the future. Use tab 3 (Income Statement) of the Excel spreadsheet to prepare an income statement for the coming year for both companies. Base your income statements on the following assumptions:

• Sales are expected to increase 5% for AAA Inc. and 2% for ZZZ Inc.
• COGS will increase 1% for AAA Inc. and decrease 1% for ZZZ Inc.
• Selling and Marketing Expense will increase for AAA Inc. by 2% and remain constant as a percent of sales for ZZZ Inc.
• Administrative Expense will remain constant as a percent of sales for each company.
• Depreciation will increase 5% for each company.
• Interest expense will increase 10% for each company.
• Income taxes will remain constant as a percent for each company.
• No new shares will be issued or purchased in the coming year.
• After making the budget for each company, which do you feel is the better investment with respect to the coming year?

AutoSave On deliverable 7 . Last Modified: Wed at 5:36 PM . Search (Alt+Q) Lanna Taylor LT X File Home Insert Page Layout Formulas Data Review View Help Comments Share & Cut _ AutoSum Calibri v 11 ~ A" A ay Wrap Text General X AY O Fill Paste [G Copy E $ ~ % " Conditional Format as Cell Insert Delete Format Sort & Find & Analyze $00 0 Format Painter BIU DAY E Merge & Center Formatting * Table Styles Clear Filter ~ Select Data Clipboard Font Alignment Number Styles Cells Editing Analysis E18 X V B D F G H K M N O P Q 1 AAA Inc. ZZZ Inc. Pro Year 1 Vertical Vertical Pro Year 1 |Vertical Vertical Forma Analysis Analysis Forma Analysis Analysis Pro Year 1 Pro Year 1 2 Income Statement (in 000) Forma Income Statement (in 000) Forma Sales Revenue $ 590,000 $ 600,000 100.00% 100.00% Sales Revenue $ 507,000 |$ 487,000 100.00% 100.00% Cost of Goods Sold 300,000 295,000 51.00% 49.00% Product Cost of Goods Sold 150,000 162,000 30.00% 33.00% 5 Total Gross Margin 290,000 305,000 49.00% 51.00% Total Gross Margin 357,000 325,000 70.00% 67.00% 6 Selling and Marketing Expense 83,000 81,000 14.00% 14.00% Selling and Marketing Expense 44,000 44,000 9.00% 9.00% 7 Admisnistrative Expense 123,000 115,600 21.00% 19.00% Admisnistrative Expense 70,000 6,80 14.00% 1.00% 8 Depreciation Expense 24,000 28,000 4.00% 5.00% Depreciation Expense 9,000 9,000 2.00% 2.00% 9 Earnings from Operations 50,000 80,400 10.00% 13.00% Earnings from Operations 234,000 265,200 46.00% 54.00% 10 Interest Expense 7,000 7,000 1.00% 1.00% nterest Expense 42,000 20,000 3.00% 4.00% 11 Income Taxes 15,000 18,000 3.00% 3.00% Income Taxes 47,000 46,000 9.00% 9.00% 12 Net Earnings 380,000 55,400 6.00% 9.00% Net Earnings 145,000 199,200 29.00% 41.00% 13 E.P.S. 1.92 3.30 E.P.S. 2.08 4.02 14 15 16 17 18 19 20 21 AAA Inc and ZZZ Inc Financials Tab 2 ratios Tab 3 Income Statement + D Ready UX Accessibility: Investigate + 100% O X 62.F Sunny 7:52 PM Type here to search w 4/26/2022 E