Developing A Financial Plan Spreadsheet Application (Page 3 of 4) in pdf

Developing A Financial Plan Spreadsheet Application Page 3

Name _________________________________________ Date _______________ Class ____________

Spreadsheet Directions

1. Start your spreadsheet software program and open problem SA18.xls.

2. Record the revenue projections for equipment rentals and production fees for

January through December. Remember to account for the increases that the team

projects. Note: Format all dollar amounts to Currency, decimal places 0.

3. Insert formulas to compute the amounts for Total Revenues.

4. Record the fixed and variable expense estimates for the business.

5. Insert formulas to compute Total Variable Expenses, Total Fixed Expenses, and

Total Expenses.

6. Insert formulas to calculate Net Income (Loss).

7. Perform your calculations and complete the spreadsheet, then save your work to a

new file labeled SA18***.xls. (Replace *** with your initials.)

8. Print out a copy of your work if your teacher has instructed you to do so.

Interpreting Results

1. What is the total of the variable expenses?

2. What is the total of the fixed expenses?

3. What is the total of all expenses?

4. What Net Income or Loss is realized in the first month of operation? In July?

Explain.

5. What Total Income or Loss is realized for the first year of operation?

Chapter 5 Business and Personal Finance

Developing A Financial Plan Spreadsheet Application Page 3