elevant cash flows for a marketing campaign / Need Excel Formulas, please Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 4% per year, Marcus has been unsuccessful in sharing this growth. To increase its sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual tax-deductible expenditure of $159,000 over the next 5 years. Sales revenue, as shown in the income statement for 2020 totaled $19,700,000. If the proposed marketing campaign is not initiated, sales are expected to remain at this level in each of the next 5 years, 2021 through 2025. With the marketing campaign, sales are expected to rise to the levels shown in the table for each of the next 5 years; cost of goods sold is expected to remain at 74% of sales; general and administrative expense (exclusive of any marketing campaign outlays) is expected to remain at 11% of sales; and annual depreciation expense is expected to remain at $510,000. Assuming a 21% tax rate, find the net cash flows over the next 5 years associated with the proposed marketing campaign. How do I create excel spreadshet (with formulas) for these questions? Question content area bottom Part 1 The annual operating cash flow without the marketing campaign will be $2,441,5502,441,550. (Round to the nearest dollar.) Part 2 Calculate the net profits after taxes and operating cash flows with the marketing campaign below: (Round to the nearest $1,000.) Marcus Tube Calculation of Relevant Cash Flow ($000) 2021 Sales $ 20,200 Cost of good sold (74%) $ 14,948 Gross profit $ 5,252 Less: Operating expenses General and administrative expense (11%) $ 2,222 Marketing campaign $ 159 Depreciation $ 510 Total operating expenses $ 2,891 Net profit before taxes $ 2,361 Less: Taxes (21%) $ 496 Net profit after taxes $ 1,865 Operating cash flow $ 2,375 Incremental cash flow $ (67) Part 3 (Round to the nearest $1,000.) Marcus Tube Calculation of Relevant Cash Flow ($000) 2022 Sales $ 20,700 Cost of good sold (74%) $ 15,318 Gross profit $ 5,382 Less: Operating expenses General and administrative expense (11%) $ 2,277 Marketing campaign $ 159 Depreciation $ 510 Total operating expenses $ 2,946 Net profit before taxes $ 2,436 Less: Taxes (21%) $ 512 Net profit after taxes $ 1,924 Operating cash flow $ 2,434 Incremental cash flow $ (8) Part 4 (Round to the nearest $1,000.) Marcus Tube Calculation of Relevant Cash Flow ($000) 2023 Sales $ 21,200 Cost of good sold (74%) $ 15,688 Gross profit $ 5,512 Less: Operating expenses General and administrative expense (11%) $ 2,332 Marketing campaign $ 159 Depreciation $ 510 Total operating expenses $ 3,001 Net profit before taxes $ 2,511 Less: Taxes (21%) $ 527 Net profit after taxes $ 1,984 Operating cash flow $ 2,494 Incremental cash flow $ 52 Part 5 (Round to the nearest $1,000.) Marcus Tube Calculation of Relevant Cash Flow ($000) 2024 Sales $ 22,200 Cost of good sold (74%) $ 16,428 Gross profit $ 5,772 Less: Operating expenses General and administrative expense (11%) $ 2,442 Marketing campaign $ 159 Depreciation $ 510 Total operating expenses $ 3,111 Net profit before taxes $ 2,661 Less: Taxes (21%) $ 559 Net profit after taxes $ 2,102 Operating cash flow $ 2,612 Incremental cash flow $ 170 Part 6 (Round to the nearest $1,000.) Marcus Tube Calculation of Relevant Cash Flow ($000) 2025 Sales $ 23,200 Cost of good sold (74%) $ 17,168 Gross profit $ 6,032 Less: Operating expenses General and administrative expense (11%) $ 2,552 Marketing campaign $ 159 Depreciation $ 510 Total operating expenses $ 3,221 Net profit before taxes $ 2,811 Less: Taxes (21%) $ 590 Net profit after taxes $ 2,221 Operating cash flow $ 2,731 Incremental cash flow $ 289
Relevant
Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 4% per year, Marcus has been unsuccessful in sharing this growth. To increase its sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual tax-deductible expenditure of $159,000 over the next 5 years. Sales revenue, as shown in the income statement for 2020 totaled $19,700,000.
If the proposed marketing campaign is not initiated, sales are expected to remain at this level in each of the next 5 years, 2021 through 2025. With the marketing campaign, sales are expected to rise to the levels shown in the table for each of the next 5 years; cost of goods sold is expected to remain at 74% of sales; general and administrative expense (exclusive of any marketing campaign outlays) is expected to remain at 11% of sales; and annual
How do I create excel spreadshet (with formulas) for these questions?
Question content area bottom
Part 1
Part 2
Marcus Tube
|
||
Calculation of Relevant Cash Flow ($000)
|
||
|
|
2021
|
Sales
|
$
|
20,200
|
Cost of good sold (74%)
|
$
|
14,948
|
Gross profit
|
$
|
5,252
|
Less: Operating expenses
|
||
General and administrative expense (11%)
|
$
|
2,222
|
Marketing campaign
|
$
|
159
|
Depreciation
|
$
|
510
|
Total operating expenses
|
$
|
2,891
|
Net profit before taxes
|
$
|
2,361
|
Less: Taxes (21%)
|
$
|
496
|
Net profit after taxes
|
$
|
1,865
|
Operating cash flow
|
$
|
2,375
|
Incremental cash flow
|
$
|
(67)
|
Part 3
Marcus Tube
|
||
Calculation of Relevant Cash Flow ($000)
|
||
|
|
2022
|
Sales
|
$
|
20,700
|
Cost of good sold (74%)
|
$
|
15,318
|
Gross profit
|
$
|
5,382
|
Less: Operating expenses
|
||
General and administrative expense (11%)
|
$
|
2,277
|
Marketing campaign
|
$
|
159
|
Depreciation
|
$
|
510
|
Total operating expenses
|
$
|
2,946
|
Net profit before taxes
|
$
|
2,436
|
Less: Taxes (21%)
|
$
|
512
|
Net profit after taxes
|
$
|
1,924
|
Operating cash flow
|
$
|
2,434
|
Incremental cash flow
|
$
|
(8)
|
Part 4
Marcus Tube
|
||
Calculation of Relevant Cash Flow ($000)
|
||
|
|
2023
|
Sales
|
$
|
21,200
|
Cost of good sold (74%)
|
$
|
15,688
|
Gross profit
|
$
|
5,512
|
Less: Operating expenses
|
||
General and administrative expense (11%)
|
$
|
2,332
|
Marketing campaign
|
$
|
159
|
Depreciation
|
$
|
510
|
Total operating expenses
|
$
|
3,001
|
Net profit before taxes
|
$
|
2,511
|
Less: Taxes (21%)
|
$
|
527
|
Net profit after taxes
|
$
|
1,984
|
Operating cash flow
|
$
|
2,494
|
Incremental cash flow
|
$
|
52
|
Part 5
Marcus Tube
|
||
Calculation of Relevant Cash Flow ($000)
|
||
|
|
2024
|
Sales
|
$
|
22,200
|
Cost of good sold (74%)
|
$
|
16,428
|
Gross profit
|
$
|
5,772
|
Less: Operating expenses
|
||
General and administrative expense (11%)
|
$
|
2,442
|
Marketing campaign
|
$
|
159
|
Depreciation
|
$
|
510
|
Total operating expenses
|
$
|
3,111
|
Net profit before taxes
|
$
|
2,661
|
Less: Taxes (21%)
|
$
|
559
|
Net profit after taxes
|
$
|
2,102
|
Operating cash flow
|
$
|
2,612
|
Incremental cash flow
|
$
|
170
|
Part 6
Marcus Tube
|
||
Calculation of Relevant Cash Flow ($000)
|
||
|
|
2025
|
Sales
|
$
|
23,200
|
Cost of good sold (74%)
|
$
|
17,168
|
Gross profit
|
$
|
6,032
|
Less: Operating expenses
|
||
General and administrative expense (11%)
|
$
|
2,552
|
Marketing campaign
|
$
|
159
|
Depreciation
|
$
|
510
|
Total operating expenses
|
$
|
3,221
|
Net profit before taxes
|
$
|
2,811
|
Less: Taxes (21%)
|
$
|
590
|
Net profit after taxes
|
$
|
2,221
|
Operating cash flow
|
$
|
2,731
|
Incremental cash flow
|
$
|
289
|
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