ACCTG 331, Intermediate Accounting I

Simulation #1: Balance Sheet and Income Statement in Excel (30 PTS)

REQUIRED: Given the data and information on the following page, use Excel to prepare a balance sheet as of December 31, 2016 and an income statement using multi-step for the year ended December 31, 2016 for Sprouts Farmers Market. Use the SUM function to total columns or rows of data when appropriate. Otherwise use =, + or functions. Format the statements with leading $ signs, underscore and double-underscore as appropriate.

Shown below is an adjusted trial balance for Sprouts Farmers Market, Inc. for the period ending December 31, 2016 (with the exception of Accumulated Deficit, which shows the balance at December 31, 2015):

ACCOUNT	BALANCE	ACCOUNT	BALANCE
COGS	$ 1,264,514	Investments (*)	9,521
Loss on sale of equipment	993	Note Receivable (*)	45,156
Accumulated Deficit (*)	20,351	Selling, general and administrative expenses	93,495
Accumulated Depreciation	94,034
Inventory	98,382	Accounts Payable	82,721
Interest income	562	Prepaid Advertising (*)	6,535
Property and equipment (gross)	393,200	Intangible Assets (net)	196,772
Goodwill	408,078	Common stock	126
Sales Revenue	1,794,823	Amortization of trademarks	4,937
Accounts Receivable (gross)	9,015	Cash and cash equivalents	67,211
Additional paid-in-capital	435,480	Allowance for doubtful accounts	600
Accumulated other comprehensive income	2,000	Direct store expenses	368,323
Interest Expense	35,488	Accrued salaries	48,958
Loans from Bank (*)	584,802

(*) Additional information:

The note receivable is structured such that Sprouts will receive the balance in two equal annual equal installments with the first payment to be received on August 1, 2017 and the second installment on August 1, 2018.

Management intends to hold onto the companys investments until December 2018 at which point the investments will be sold.

The company paid out $10,000 in dividends to its shareholders in 2016.

Almost all of the loans from the banks are due in 3 years or more with the exception of a 90-day line of credit that has a balance of $5,167 on December 31, 2016.

Prepaid advertising is for newspaper marketing services that will be provided over the first eight-months of 2017.

The company had 97,000 common shares outstanding on January 1, 2016. It issued an additional 46,000 common shares on July 1, 2016.

Sprouts has a 43.91% income tax rate

Sprouts incurred aggregate losses since its inception, which resulted in an Accumulated Deficit at the end of 2015.