For this assignment, you will reconstruct the Income Statement Analysis

For this assignment, you will reconstruct the Income Statement Analysis. I attached the examples from the book below (document 1), use the formulas which are provided in the book. An example of the solution is also provided (document 2).

The second part of this assignment applies a simulation. The second tab of the spreadsheet provides the information and a solution (keep in mind this is a simulation based on the parameters for sales units so your numbers will not be the same) to the income statement where the number of units sold is assumed to have a normal distribution with the given parameters. This is not the format and summary statistics for the net income that is required. Also, in your model, develop a histogram of your solution. These are all shown in the example.

As usual, your model should include proper documentation and instructions and other information expected of well-constructed models/spreadsheets. The example solution could be improved upon so do not just use that as a guide for your submission.

Keep in mind, we could have used distributions for other variables as well. This may be the first time you have used probability distributions for modeling so the goal is to get you used to the tools. More complicated models would simply add more uncertainty.

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