ACC 3010 Project 3 Winter2018 Submission 1 (6 points) - due Tuesday April 10 before 5pm - You must submit your completed Depreciation schedules and the Depreciation formulas tab.Your file must be named correctly - "Your name (first and last) Project 3 part 1.Failure to name your file correctly will result in a 1 point deduction Submission 2 (12 points) - due Tuesday April 17 before 5pm -You must submit your completed Bonds portion of the financining options tab and the Bonds portion of the partial balance sheets and the bonds formulas tab completed.Your file must be named correctly - "Your name (first and last) Project 3 part 2.Failure to name your file correctly will result in a 1 point deduction Submission 3 (12 points) - due Tuesday April 24 before 5pm - You must submit your total excel file with the equity optionsection of the financing options worksheet tab completed, the equity option section of the partial balance sheets tab completed, the ratios tab completed, the choice and reasons tab completed, and the balance sheet and ratios formula tabs completed.Your file must be named correctly - "Your name (first and last) Project 3 part 3.Failure to name your file correctly will result in a 1 point deduction Because you will need to complete Part 1 to be able to complete Part 2 and complete Parts 1 & 2 to complete Part 3 you may earn partial credit for a Part of the Project that you did NOT submit in a timely fashion when you submit the subsequent part of the project. For example, if you do not complete and submit Part 1 of the project by the due date you will lose the 6 points allocated to that part of the project.If you complete that part of the project and submit it along with your completed Part 2 of the project in a timely manner, you may earn up to 3 points partial credit for part 1. This project is a continuation of Projects 1 & 2, NFT Consulting and Sales Inc. A time machine has taken us 2 years into the future and you have been asked to make some recommendations to the company regarding financing for an upcoming major expansion. The company has been very successful but they will need a major inflow of cash to purchase the fixed assets they need for the expansion and hire additional employees. They believe they will need at least $1,500,000 and have asked for your recommendations as to how they should obtain the necessary funds. They have provided information about their available financing options and have asked you to evaluate them and make a recommendation as to which option they should pursue. They have also asked for depreciation schedules for the new assets they plan to purchase. Finally they have asked for information about the cash inflows they can expect from each of the financing options and the expected annual cash outflow required for each financing option. They also request a calculation of several ratios under each of the financing alternatives. When you need information about Assets for any of the ratio calculations, remember that Assets = Liabilities + Equity. Also, assume the split between Current Assets and Long Term Assets is 20% current and 80% long term. The included post closing trial balance represents the year end information for October 31, 2018. (The company's fiscal year is from November 1 to October 31). You have been asked to consider the company's financing options and provide the company with a recommended choice andthree UNIQUE reasons you believe this is the best choice.The information about the various financing opportunities available is provided in this project information. You are also provided information regarding the plant asset purchases the company plans with the cash inflows. The following is a suggested series of steps for completing the project: RECOMMENDED STEPS FOR COMPLETION 1.Complete the attached Depreciation Schedules for each of the planned asset purchases using the provided information regarding cost, useful life, and selected method.You should do only the first 4 years for the building and do the complete useful life depreciation schedules for all of the other assets. This is part of part 1 of the project. 6.Copy the Depreciation calculations from the Depreciation tab to the Depreciation formulas tab. Highlight the entire areaand press the "ctrl" key and the "~" key.This will cause the formulas used to display instead of the numbers.Save your file with the formulas displayed. This is part of part 1 of the project. 2.Complete the worksheet for the various financing options using the information provided and providing all the detailed information requested that is used in the calculations for the various financing options.You will do the bond financing options first and submit them as part of part 2 of the project.You will do the equity financing option second and submit that as part of part 3 of the project. 3.Complete the 3 "partial classified balance sheets". These should include ONLY the Liabilities and Equities sections of the classified balance sheet. Thesemust have all proper formatting with $ and underlines, double underlines but do NOT need to have headings. They should be labeled to indicate which financing option they represents.You will do the bond financing options partial balance sheets and submit them as part of part 2 of the project and do the equity financing option partial balance sheet next and submit it as part of part 3 of the project. 6.Copythe Partial Balance Sheets from thePartial Balance Sheets tab to the Partial Balance Sheets formulas tab. Highlight the entire areas respectively and press the "ctrl" key and the "~" key.This will cause the formulas used to display instead of the numbers.Save your file with the formulas displayed. This will be done for part 2 of the project and then again for part 3 after you complete the equity financing options. 4.Complete the Ratio Calculation worksheet .You are computing the ratios listed for each of the 3 financing considerations listed. You should show your work for potential full credit.Remember Assets = Liabilities + Equity. Also Current Assets is 20% of total assets.The projected Net Incomes for the year for the 3 alternatives are: Option 1$296,850; Option 2 $287,560; and Option 3$356,675 6.Copythe Ratios from the Ratios tab to the Ratios formulas tab. Highlight the entire area and press the "ctrl" key and the "~" key.This will cause the formulas used to display instead of the numbers.Save your file with the formulas displayed. 5.Complete the information requestion on the "choice & reasons" tab with your recommendation to the company as to which financing option they should pursue and why you feel that is the appropriate option. To be considered for full credit you will need to include at least 3 different (unique) reasons for why you recommend a particular financing option. (Referring to 3 different ratios is NOT 3 unique reasons. Ratios are ONE unique reason.)Your instructor and the lab tutors will not provide guidance on information related to your recommendation of a financing option or on your 3 UNIQUE reasons.You will need to read the information in chapters 10 and 11 and possible investige other options to determine which financing option to recommned and why.. Each student must submit an ORIGINALexcel file to the appropriate project 3 assignment link in Canvas.While students are encouraged to work together, each student must process and format his/her own excel file.Duplicate submissions (format, not numbers) will result in the students receiving a 0 for the assignment. Just changing the font size or orientation/placement is not really an "original effort". REQUIRED TO BE SUBMITTED - You must submit your excel fileto the correct assignments links on the class Canvas site by the appropriate due dates indicated. Your file must be named - "Your name (first and last) project 3". Submissions will NOT be accepted via email attachment. Submission to other than the correct links on Canvas will result in a 5 point deduction. NO LATE SUBMISSIONS WILL BE ACCEPTED. Submission 1 (6 points) -due Tuesday April 10 before 5pm - You must submit your completed Depreciation schedules and the Depreciation formulas tab.Your file must be named correctly - "Your name (first and last) Project 3 part 1.Failure to name your file correctly will result in a 1 point deduction Submission 2(12 points ) - due Tuesday April 17 before 5pm -You must submit your completed Bonds portion of the financining options tab and the Bonds portion of the partial balance sheets..Your file must be named correctly - "Your name (first and last) Project 3 part 2.Failure to name your file correctly will result in a 1 point deduction Submission 3 (12 points)- due Tuesday April 24 before 5pm - You must submit your total excel file with the equity optionsection of the financing options worksheet tab completed, the equity option section of the partial balance sheets tab completed, the ratios tab completed, the choice and reasons tab completed, and the balance sheet and ratios formula tabs completed.Your file must be named correctly - "Your name (first and last) Project 3 part 3.Failure to name your file correctly will result in a 1 point deduction

NFTConsulting and Sales Inc Post Closing Trial Balance October 31, 2018 Cash $304,900 Accounts Receivable 76,580 Allowance for Uncollectible Accounts $5,690 Supplies 56,500 Inventory 68,596 Prepaid Insurance 57,890 Land 260,000 Building 550,000 Accumulated Depr - Building 25,650 Office Equipment 856,850 Accumulated Depr - Office Equip 22,500 Computer Equipment 556,500 Accumulated Depr - Computer Equip 10,250 Accounts Payable 56,560 Utilities Payable 16,850 Wages Payable 58,950 Interest Payable 25,000 Long term Note Payable 390,000 Mortgage Payable 406,800 Common Stock($1 par, 1,000,000, 400,000 shares authorized, 400,000 issued and outstanding) Retained Earnings 1,369,566 $2,787,816 $2,787,816

PLANNED ASSET ACQUISITIONS Reminder that the company's fiscal year is November 1 through October 31. Asset Cost Useful life Salvage Value Depreciation Method Purchase Date Land 100,000 N/A N/A N/A 1-Nov-18 Building 465,500 30 15,500 Straight line 1-Nov-18 Office Equipment 150,500 4 10,500 Straight line 1-Apr-19 Delivery Equipment 200,000 6 20,000 production 1-May-19 Additional information related to the $200,000 delivery equipment purchase:It is ESTIMATED that the equipment will be ABLE TO DRIVE 150,000 total miles over its lifetime. To complete the depreciation schedule, PRESUME that the actual miles driven for its useful life are as indicated below. Also, round depreciation expense per unit to the nearest cent and depreciation expense to the nearest dollar. Year 1 12,560 Year 2 32,560 Year 3 31,650 Year 4 29,850 Year 5 26,500 Year 6 22,350 155,470

Building Depreciation Schedule Depreciation for the Year Asset Dep'ble Depreciation Accumulated Book Date Cost basis Rate Expense Depreciation Value 11/1/18 10/31/19 10/31/20 10/31/21 10/31/22 Office Equipment Depreciation Schedule Depreciation for the Year Asset Dep'ble Depreciation Accumulated Book Date Cost basis Rate Expense Depreciation Value 4/1/19 10/31/19 10/31/20 10/31/21 10/31/22 10/31/23 Delivery Equipment Depreciation Schedule Depreciation for the Year Depreciation Asset per unit Units of Depreciation Accumulated Book Date Cost Production Expense Depreciation Value 5/1/19 10/31/19 10/31/20 10/31/21 10/31/22 10/31/23 10/31/24

NFTConsulting and Sales Inc Cash Received/Annual Cash Payment Requirement The company could issue $2,000,000 of long-term bonds, due in 5 years with a stated rate of interest, paid semiannually, of 4%.The market rate for similar debt is 6%. Cash Received Annual Cash Required Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate PV factors used single sum annuity PV face PV interest The company could issue $1,500,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 8%.The market rate for similar debt is 6%. Cash Received Annual Cash Required Face amount Face rate Interest Payment periods Interest Payment Term Market rate PV factors used single sum annuity PV face PV interest The company could issue 400,000 additional shares of $1 par value common stock for $4 per share The company will begin paying a dividend to ALL the common shareholders of $0.12 per share and this will continue into the future. Cash Received Annual Cash Required number of existing shares number of new shares total shares at year end market price Dividend rate Dividend period PIC year end PIC > par year end

PARTIAL BALANCE SHEETS The company could issue $2,000,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 4%.The market rate for similar debt is 6%. The company could issue $1,500,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 8%.The market rate for similar debt is 6%.

Ratios The company could issue $2,000,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 4%.The market rate for similar debt is 6%. The company could issue $1,500,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 8%.The market rate for similar debt is 6%. The company could issue 400,000 additional shares of $1 par value common stock for $4 per share Current Ratio Current Assets Current Liabilities Debt to Asset Ratio Total Debt Total Assets Return on Equity Net Income Total Equity Return on Assets Net Income Total Assets