All amounts are in billions of Naira (000,000,000) unless noted otherwiseplease round to the nearest hundred million Naira (one decimal place) if needed (0.0B). Assume a tax rate of 30%.

Part I: Income Statement and Balance Sheet (50 Points)

Forecast an income statement and balance sheet for Nigerian Breweries (NB) for 2016. For this part, refer to the attached summary financial statements and the following assumptions. Please provide journal entries in the space provided below. Dont worry if accounts temporarily have negative balances (transactions are not sequential; they are aggregations over the period). The parts can be worked in the order they appear (i.e., you dont need information from later parts to solve earlier parts).

Sales in 2016 will total 300.0. At the end of 2016, Nigerian Breweries will be owed 20.0 by customers.

When NB sells product in containers (kegs or other large containers), they sometimes require that the customer make a deposit for the return of the containers (i.e., NB retains title to the container and the deposit is returned in cash to the customer when the container is returned).During 2016, NB will collect cash of 50.0 for container deposits from customers. At the end of 2016, 13.0 of container deposits will remain outstanding (i.e., for containers that have not yet been returned).

NB sometimes prepays farmers for barley and hops (grains) to be provided in subsequent years harvests. Prepayments are sometimes for two seasons, but never for more than two. Prepayments always pay out as expected (i.e., grain associated with a 2015 prepayment for the 2017 season will be received in 2017).Note that this implies that you need to think about how deposits move between the noncurrent and current Prepayment accounts

During 2016, NB will sign contracts and prepay 4.0 for grains to be provided in 2017 and 2.0 for grains to be provide in 2018. In addition, NB will sign contracts for 3.5 for grain to be delivered in 2019, payment for which will be made in 2018.

During 2016, NB will purchase 150.0 of grains from brewers of which 3.3 was prepaid and the remainder is on trade payable. The ending balance in the Trade Payable account will be 83.0. Note that all costs incurred to produce the beer (including the cost of grains) should be booked to Inventories.

During 2016, NB will pay employees who are directly involved in brewing the beer 10.0 as well as paying 5.0 for other ingredients that go into the beer. In addition, NB will pay 52.6 to employees and for other costs involved in marketing and administration.

The ending balance in inventory will total 32.0.

NB will purchase 50.0 of Property, Plant and Equipment (PP&E) during 2016, all for cash. They will sell PP&E during 2016 which originally cost them 9.0 and is two-thirds of the way through its useful life, and will record a gain on sale of 0.5. In addition, they will record depreciation during 2016 based on a total of 390.0 of PP&E with an average useful life of 12 years and no salvage value.

For simplicity, assume there will be no interest income or interest expense in 2016 (just to keep the problem manageable).The 2016 income tax rate will be 30% (tax rates vary slightly across years).Taxes Payable for each years earnings are always paid in February of the following year.