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

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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Relevant 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







### Marcus Tube Income Statement for the Year Ended December 31, 2020

**Sales Revenue:**  
- $19,700,000

**Less: Cost of Goods Sold (74%):**  
- $14,578,000

**Gross Profits:**  
- $5,122,000

**Less: Operating Expenses**  
- General and Administrative Expense (11%): $2,167,000  
- Depreciation Expense: $510,000  

**Total Operating Expense:**  
- $2,677,000

**Earnings Before Interest and Taxes:**  
- $2,445,000

**Less: Taxes (21%):**  
- $513,450

**Net Operating Profit After Taxes:**  
- $1,931,550

### Notes:

- The statement breaks down the financial performance by listing sales revenue and subtracting various expenses to calculate the net operating profit.
- Cost of goods sold is presented as a percentage of sales revenue, highlighting the proportion of costs relative to sales.
- Operating expenses are further detailed into administrative expenses and depreciation to show their impact on total expenses.
- The income statement provides a clear overview of profitability before and after tax deductions.
Transcribed Image Text:### Marcus Tube Income Statement for the Year Ended December 31, 2020 **Sales Revenue:** - $19,700,000 **Less: Cost of Goods Sold (74%):** - $14,578,000 **Gross Profits:** - $5,122,000 **Less: Operating Expenses** - General and Administrative Expense (11%): $2,167,000 - Depreciation Expense: $510,000 **Total Operating Expense:** - $2,677,000 **Earnings Before Interest and Taxes:** - $2,445,000 **Less: Taxes (21%):** - $513,450 **Net Operating Profit After Taxes:** - $1,931,550 ### Notes: - The statement breaks down the financial performance by listing sales revenue and subtracting various expenses to calculate the net operating profit. - Cost of goods sold is presented as a percentage of sales revenue, highlighting the proportion of costs relative to sales. - Operating expenses are further detailed into administrative expenses and depreciation to show their impact on total expenses. - The income statement provides a clear overview of profitability before and after tax deductions.
Click on the icon here to copy the contents of the data table below into a spreadsheet.

**Marcus Tube Sales Forecast**

| Year | Sales Revenue |
|------|---------------|
| 2021 | $20,200,000   |
| 2022 | $20,700,000   |
| 2023 | $21,200,000   |
| 2024 | $22,200,000   |
| 2025 | $23,200,000   |

This table presents the sales forecast for Marcus Tube over a five-year period, from 2021 to 2025. It shows a gradual increase in sales revenue each year.
Transcribed Image Text:Click on the icon here to copy the contents of the data table below into a spreadsheet. **Marcus Tube Sales Forecast** | Year | Sales Revenue | |------|---------------| | 2021 | $20,200,000 | | 2022 | $20,700,000 | | 2023 | $21,200,000 | | 2024 | $22,200,000 | | 2025 | $23,200,000 | This table presents the sales forecast for Marcus Tube over a five-year period, from 2021 to 2025. It shows a gradual increase in sales revenue each year.
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