Technology Financial Projection Assumptions

Problem: Your supervisor in the finance department at August Online Technology has asked you to create a worksheet for the flagship product that will project the annual gross margin, total expenses, Operating Income, Income Taxes, and Net Income for the next eight years based on the assumptions in the next table. August Online Technology Financial Projection Assumptions Units Sold in Prior Year 235,411 Unit Cost $150.00 Annual Sales Growth 3.25% Annual Price Increase 3.00% Margin 29.90% Perform the Following tasks: Instructions Part 1: Open Excel, open a blank workbook, and then create the worksheet. Apply the Parallax theme to the worksheet. Enter the worksheet title August Online Technology in cell A1 and the subtitle Eight-Year Financial Projection for Product X in cell A2. Format the worksheet title in cell A1 to 26-point and the worksheet subtitle in cell A2 to 16-point. Enter the system date in cell I2 using the NOW function. Format the date to the 14-Mar-12 style. Change the following column widths: A=24.00 characters; B through I = 14.00 characters. Change the heights of rows 7,15, 17, 19, and 22 to 18.00 points. Enter the eight-column title Year 1 through Year 8 in the range: B3:I3 by entering Year 1 in cell B3 and then dragging cell B3’s fill handle through the range C3:I3. Format cell B3 as follows: Increase the font size to 12. Center and italicize it. Angle its contents 45 degrees. Use the Format Painter button to copy the format assigned to cell B3 to the range C3:I3. Enter the row titles as shown in Figure 3-85, in the range A4:A19. Change the font size in cells A7, A15, A17, and A19 to 14-point. Add thick bottom borders to the ranges A3:I3 and A5:I15. Use the Increase Indent button (Home Tab|Alignment group) to increase the indent of the row titles in cell A5, the range A8:A14, and cell A18. Enter the table title Assumptions in cell A22. Enter the assumption in Table 3-9 in the range A23:B27. Use format symbols when entering the numbers. Change the font size of the table title in cell A22 to 14-point and underline it. Select the range B4:I19 and then click the Number format Dialog Box Launcher (Home Tab | Number group) to display the Format Cells dialog box. Use the Number category (Format Cells dialog box) to assign the appropriate style that displays numbers with two decimal places and negative numbers in black font and enclosed in parentheses to the range B4:I19. Complete the following entries: Year 1 Sales (cell B4) = Unit sold in Prior Year * (Unit Cost/ (1-Margin)) Year 2 Sales (Cell C4) = Year 1 Sales * (1+ Annual Sales Growth) * (1+Annual Price Increase). Copy cell C4 to range D4:I4. Use Absolute Value in cell C4.

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