What to expect

Learning Objectives
- Relative Referencing
- Mixed Referencing
- Absolute Referencing

Absolute referencing

10% 25%
10,000 10,000
20,000 20,000
30,000 30,000
40,000 40,000
50,000 50,000
60,000 60,000
70,000 70,000
80,000 80,000
90,000 90,000
100,000 100,000
110,000 110,000

Relative referencing

Tax rate 10% 12% 14% 16% 18%

Year 2022 2023 2024 2025 2026

Revenue 10,000 11,000 12,650 15,180 20,493

20,000 22,000 25,300 30,360 40,986
30,000 33,000 37,950 45,540 61,479
40,000 44,000 50,600 60,720 81,972
50,000 55,000 63,250 75,900 102,465
60,000 66,000 75,900 91,080 122,958
70,000 77,000 88,550 106,260 143,451
80,000 88,000 101,200 121,440 163,944
90,000 99,000 113,850 136,620 184,437
100,000 110,000 126,500 151,800 204,930
110,000 121,000 139,150 166,980 225,423

Tax rate Revenue

10% 10,000 11,000 12,650
12% 20,000 22,000 25,300
 14% 30,000 33,000 37,950
16% 40,000 44,000 50,600
18% 50,000 55,000 63,250
20% 60,000 66,000 75,900
70,000 77,000 88,550
80,000 88,000 101,200
90,000 99,000 113,850
100,000 110,000 126,500
110,000 121,000 139,150

Mixed referencing

10% 12% 14% 16%

10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
 15%
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000

20% Estimate the tax to be paid on each revenue

2027 2022 2023 2024 2025 2026

27,666
55,331
82,997
110,662
138,328
165,993
193,659
221,324
248,990
276,656
304,321

2022 2023 2024

15,180 20,493 27,666

30,360 40,986 55,331
 45,540 61,479 82,997
60,720 81,972 110,662
75,900 102,465 138,328
91,080 122,958 165,993
106,260 143,451 193,659
121,440 163,944 221,324
136,620 184,437 248,990
151,800 204,930 276,656
166,980 225,423 304,321

18% 20%
2027

2025 2026 2027

What to expect
Learning Objectives
- Relative Referencing
- Mixed Referencing
- Absolute Referencing

Absolute referencing

2023 2024 2025 2026 2027

Revenue 50,000 50,000 50,000 50,000 50,000

Direct costs (10,000) (10,000) (10,000) (10,000) (10,000)
Gross profit 40,000 40,000 40,000 40,000 40,000
Operating expenses (15,000) (15,000) (15,000) (15,000) (15,000)
Profit before tax 25,000 25,000 25,000 25,000 25,000
Tax
Profit after tax 25,000 25,000 25,000 25,000 25,000

Using the One-Row, One Formulae Principle of modelling, what is the expected tax for each of the years of analysis

Relative referencing

2023 2024 2025 2026 2027

Revenue
Gari 2,000
Meat 3,000
Fish 1,200
Beans 3,000
Rice 4,000
Tomatoes 5,000
Total revenue 18,200 - - - -
Operating expenses (5,600)
Profit before tax 12,600 - - - -
Tax
Profit after tax 12,600 - - - -

If the income statement escalates by the projected inflation, complete the income statement schedule above

Mixed referencing

2023 2024 2025 2026 2027

Revenue
Gari
Meat
Fish
Beans
Rice
Tomatoes
Total revenue - - - - -
Operating expenses
Profit before tax - - - - -
Tax
Profit after tax - - - - -
 2028 2029 2030 2031 2032 2033

50,000 50,000 50,000 50,000 50,000 50,000

(10,000) (10,000) (10,000) (10,000) (10,000) (10,000)
40,000 40,000 40,000 40,000 40,000 40,000
(15,000) (15,000) (15,000) (15,000) (15,000) (15,000)
25,000 25,000 25,000 25,000 25,000 25,000

25,000 25,000 25,000 25,000 25,000 25,000

the years of analysis

2028 2029 2030 2031 2032 2033

- - - - - -

- - - - - -

- - - - - -

schedule above

2028 2029 2030 2031 2032 2033

- - - - - -

- - - - - -

- - - - - -
Tax rate 10%

Projected Inflation 2023 2024

19% 12%

Tax rate 0% 20%

2022 Projected Inflation 2023 2024

Revenue
Gari 2000 19% 12%
Meat 3000
Fish 1200
Beans 3000
Rice 4000
Tomatoes 5000

Operating expeneses 9000

2025 2026 2027 2028 2029 2030 2031 2032 2033

12.2% 12.4% 12.6% 12.8% 13.0% 13.2% 13.4% 13.6% 13.8%

22.0% 25.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%

2025 2026 2027 2028 2029 2030 2031 2032 2033

12.2% 12.4% 12.6% 12.8% 13.0% 13.2% 13.4% 13.6% 13.8%
What to expect
Learning Objectives
-Introduction to name ranges
- Application of name ranges

Name ranges

PAY SCHEDULE

Full name Department Hours worked Gross wage NHIL Income tax

Kofi Koo Construction 200

Ama Bebi Construction 345
Abena Osoro Construction 124
Kwabena Ohene Construction 230
Gertrude Adepa Construction 902
Ohene Yere Construction 33
Osofo Nii Construction 234
Ilori Okwonkwo Construction 940

Hourly rate 25
NHIL 12.50%
Income tax 15%
 TOTAL SALES

Net wage Full name Sale quantity

Orange Sweet potato
Kofi Koo 200 195
Ama Bebi 345 340
Abena Osoro 124 119
Kwabena Ohene 230 225
Gertrude Adepa 902 897
Ohene Yere 33 28
Osofo Nii 234 229
Ilori Okwonkwo 940 935

Unit prices GHS

Orange 25
Sweet potato 34
Grape 12
Water melon 10
Sale quantity Total sales (GHS)
Grape Water melon
190 185
335 330
114 109
220 215
892 887
23 18
224 219
930 925