By showing your calculations solve the question below..............................................

Chapter 6 Case Problem 4: ROSEY'S ROSES kosey's Roses is contemplating several alternative means of financing their ac- quisition of $100,000 in new equipment in year 1. One option is to borrow $80.000 from a local bank. The bank has asked them to produce a 3-year cash budget broken down by year (Year 1, 2, and 3). Sales of $250,000 were earned in the prior year and are expected to increase each year thereafter by 15 percent Prior year purchases were $195,500. Future purchases are based on an expected cost of sales of 75 percent and a required ending inventory of 20 percent of next year's sales. Prior year expenses included advertising expense of $15,000, depreciation expense of $1,000, wages expense of $20,000, supplies expense ofCash Andgeting $1.000, and utilities expense of $3.300. All expenses except s except depreciation and interest expense are paid in the year in which they are incurred and in to increase 5 percent each year. Interest expense is paid in the year incurred re expec is expected to remain constant at $4.000 each year for years 1-3. Collections in the year of sale are expected to be 85 percent, with the remaining 15 percent collected in the next year. Payments in the year of purchase are expected to be 90 percent. with the remaining 10 percent paid in the next year. Proceeds from the $80,000 loan are expected at the beginning of year 1, and $100,000 of equipment will be purchase chased during year 1. In subsequent years, equipment pur- chases are expected to be $2.000 each year. Proceeds from projected equipment sales each year are expected to amount to $500. Annual payments of $10,360 on the loan occur at the end of each year, Cash and Inventory at the beginning of year I were $20.200 and $58,000 respectively, Using the ch6-07 file to start your work, create a cash budget (as you did in the chapter) based on the assumptions just provided. Use Excel's grouping feature to group operating cash receipts, operating cash payment, cash from (to) operating activities, cash from (to) investing activities, and cash from (10) financing activities. Define names as appropriate. Save your file as ch6-07_student name (replacing student name with your name) a. Print the newly completed worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer. Print the resulting worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer, Print cash budget and assumptions. b. Collapse rows to level 2, and then print the worksheet in Value view. with your name and date printed in the lower left footer and the file name in the lower right footer. Print the cash budget, no assumptions. c. Expand all rows and then use what-if analysis to calculate end-of-year cash if the sales growth each year were 0 percent. Print the resulting worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer. Print cash budget and assumptions. d. Undo the what-if analysis performed in part c. Use goal seek to deter- mine what annual sales growth would be needed to produce an ending cash balance of $50,000 in year 3. Print the resulting worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer. Print cash budget and assumptions.AutoSave Con ch6-07 (1) - Ex File Home Insert Draw Page Layout Formulas Data Review View Help P Sea Calibri - 11 - AA 29 Wrap Text General Paste BIU - - A . MEE Merge & Center - $ - % " Clipboard Font Alignment Number 840 C D E F I Rosey's Roses 2 Cash Budget Prior Year 2 3 4 Operating activities 5 Operating cash receipts Product sales revenue 250 000 Collections in the year of sale 8 Collections in the year following sale 9 Operating cash receipts 10 Operating cash payments 11 Purchases 12 Cost of expected sales 13 Required ending inventory 14 Beginning inventory 15 Purchases 195.900 16 Payments in the year of purchase 17 Payments in the year following purchase 18 Cash payments for purchases 200,000 19 Expenses 20 Advertising expense 15,000 21 Interest expense 22 Wages expense 20,000 23 Supplies expense 1,000 24 Utilities expense 9,300 25 Expenses 39 300 Cash Budget Sheet2 Sheets W Type here to search OAutoSave OOH H ch6-07 (1) - Excel File Home Insert Draw Page Layout Formulas Data Review View Help Search Calibri 11 - A A BAT ab Wrap Text General Paste BIU . H - M.A. Merge & Center - $ - % 9 Clipboard Font Alignment Number B40 EX B C D E H I J 21 Interest expense 22 Wages expense 20,010 23 Supplies expense 1 000 24 Utilities expense 3,300 25 Expenses 39,300 26 Operating cash payments 259,300 27 Cash from (to) operating activities 26 Investing activities 29 Equipment purchases 30 Equipment sales 31 Cash from (to) investing activities 32 Financing activities 33 Loon proceeds 34 Loan payments 35 Cash from (to) financing activities 36 Change in cast 14,300) 37 Beginning cash 24,501 30 Ending cash 20,200 40 Assumptions 41 Prior year sales 42 Sales growth each year 43 Expense growth each year 44 Collections in the year of sale 45 Collections in the year following sale Cash Budget Sheetz Sheet3 Type here to search O 9AutoSave CO - 5. ch6-07 (1) - Ex File Home Insert Draw Page Layout Formulas Data Review View Help P Sea Calibri - 11 - AA 29 Wrap Text General Paste BIUT. CA - Merge & Center - $ .% " Chipboard Font Alignment Number A40 Assumptions A B C D E 39 40 Assumptions + 41 Prior year sales 42 sales growth each year 43 Expense growth each year 44 Collections in the year of sale 45 Collections in the year following sale 46 Prior year purchases 47 Payments in the year of purchase 48 Payments in the year following purchase 49 Cost of expected sales 50 Required ending inventory 51 Beginning inventory 52 Interest expense 53 Loan proceeds 54 Annual loan payment 55 Annual equipment purchases 56 Annual equipment sales 57 Year 1 equipment purchase 58 Beginning cash for year 1 59 GO Cash Budget Sheetz Sheets Type here to search O Et W