I am creating an excel spreadsheet with a circular reference for the following problem. I have created one but am getting different numbers than another student so we are unsure if we are creating it correctly with the right formulas
Bubba wants to pay his brother‐in‐law Jim‐Bob a year end bonus for all the extra catfish Jim‐Bob harvested this year. Bubba knows he must pay Uncle Sam 20% of his profits. Louisiana always wants 5% of profits for state taxes, but these are deductible before calculating profits for federal purposes. Bubba wants the bonus to Jim‐Bob equal to 7% on net income. This year’s profit before bonus and taxes was $125,000. Calculate Bubba’s bonus.