Could you please check to see if the balances coincides with the instructor, Thanks Bessie

ACC 3010 Project 3 Spring Summer 2017 DUE July 28, 2017- This project is due on July 28 before 11 pm. Additional hours for help with the project will be post on the class Blackboard site in the week proceeding the due date. Your file must be named - "Your name (first and last project 3". Failure to name the file correctly will result in a deduction in points. This project is a continuation of Projects 1 & 2, FigMint 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. Th 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 ea 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 August 31, 2018. (The company's fiscal year is f September 1 to August 31). You have been asked to consider the company's financing options and provide the company with a paragraph recommendation as to which opportunity they should pursue. (a blank sample memo format is posted on the class Blackboard site under the Projects button with the 3rd project information) 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 use life depreciation schedules for all of the other assets. 2. Complete the worksheet for the various financing options using the information provided remembering that you must show work on the worksheet not just as a formula used to compute the numbers on the worksheet. You must show how you arrived a the numbers in the body of the worksheet. 3. Complete the 3 \"partial classified balance sheets\". These should include ONLY the Liabilities and Equities sections of the classified balance sheet. These must have all proper formatting but do NOT need to have headings. They should be labeled t indicate which financing option it represents. 4. Complete the Ratio Calculation worksheet . You are computing the ratios listed for each of the 3 financing considerations lis 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 5. Complete the memo with your recommendation to the company as to which financing option they should pursue and why yo feel that is the appropriate option. In your recommendation please explain in words which option you are recommending. Do no just refer to the number of the option. This MUST be typed in Word and be in proper memo format . Your memo will be graded grammar, structure, spelling, etc. as well as how you justify which option you choose to recommend to the company. To be considered for full credit for the memo 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.) Sandee, Stacy and I will not provide guidance on information related to your memo. Sandee, Stacy and I also will not proofread your me before its submission. You MUST prepare the memo on your own based on what you have read and what you know. The Word Document must be named the same as your excel file - Your Name project 3. Failure to do so will result in a deduction of points Your file must also generate a preview to be graded. 6. Copy the Depreciation calculations from the Depreciation tab to the Depreciation formulas tab, the Ratios from the Ratios ta to the Ratios formulas tab and the Partial Balance Sheets from the Partial 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 display instead of the numbers. Save your file with the formulas displayed. Each student must submit an ORIGINALexcel file to the final project 3 assignment link in Blackboard and their own original memo to the memo submission link in Blackboard. While students are encouraged to w together, each student must process and format his/her own set of statements. Duplicate submissions (format, not numbers) will result in the students receiving a 0 for the assignment. Just changing the font siz or orientation/placement is not really an "original effort". REQUIRED TO BE SUBMITTED - You must submit your excel file and your memo file to the correct assignments links on the class Blackboard site by 11 pm July 28. Your file must be named - "Your name (first last) project 3". Your project and memo must generate a preview to be graded. Submissions will NOT be accepted via email attachment. Submission to other than the correct links on BlackBoard will result in a 5 point deduction. NO LATE SUBMISSIONS WILL BE ACCEPTED. INCENTIVE POINTS FOR PROJECT 3 - to earn the incentive points, you must submit your whole excel file the appropriate assignment link on the class Blackboard site before 11 pm on the date indicated. Your submiss must be correct and your file must be named correctly and generate a preview to earn the incentive points. Incentive Point 1 - due July 14 You must submit your complete excel file with the Depreciation tables completed. Incentive Point 2 - due July 21. You must submit your complete excel file with the financing options worksheet and t partial balance sheets completed. FigMint Consulting and Sales Inc Post Closing Trial Balance August 31, 2018 Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Inventory Prepaid Insurance Land Building Accumulated Depr - Building Office Equipment Accumulated Depr - Office Equip Computer Equipment Accumulated Depr - Computer Equip Accounts Payable Utilities Payable Wages Payable Interest Payable Long term Note Payable Mortgage Payable Common Stock ($1 par, 1,000,000, shares authorized, 400,000 issued and outstanding) Retained Earnings $ 304,900 76,580 $ 5,690 56,500 68,596 57,890 260,000 550,000 25,650 856,850 556,500 22,500 10,250 56,560 16,850 58,950 25,000 390,000 406,800 400,000 1,369,566 $ 2,787,816 $ 2,787,816 PLANNED ASSET ACQUISITIONS Reminder that the company's fiscal year is September 1 through August 31. Asset Land Building Office Equipment Delivery Equipment Cost Useful life 100,000 465,500 150,500 N/A 30 4 200,000 6 Salvage Depreciation Purchase Date Value Method N/A N/A 1-Sep-18 15,500 Straight line 1-Sep-18 10,500 Straight line 1-Feb-19 20,000 production 1-Mar-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 Year 2 Year 3 Year 4 Year 5 Year 6 12,560 32,560 31,650 29,850 26,500 22,350 155,470 Building Depreciation Schedule Depreciation for the Year Date Aug. 31. 2019 Aug. 31. 2020 Asset Cost Dep'ble basis 465,500 450,000 465,500 450,000 Aug. 31. 2021 465,500 450,000 Aug. 31. 2022 465,500 450,000 Aug. 31. 2023 465,500 450,000 Aug. 31. 2024 465,500 450,000 Rate 0.0333333333 0.0333333333 0.0333333333 0.0333333333 0.0333333333 0.0333333333 Depreciation Expense Accumulated Depreciation Book Value 15000 15000 450,500 15000 30,000 435,500 15000 45,000 420,500 15000 60,000 405,500 15000 75,000 390,500 15000 90,000 375,500 Office Equipment Depreciation Schedule Depreciation for the Year Date Aug. 31. 2019 Asset Cost Dep'ble basis Depreciation Expense Rate Accumulated Depreciation Book Value 150,500 140,000 0.25 20,416.67 20,416.67 130,083 Aug. 31. 2020 150,500 140,000 0.25 35,000.00 55,417 95,083 Aug. 31. 2021 150,500 140,000 0.25 35,000.00 90,417 60,083 Aug. 31. 2022 150,500 140,000 0.25 35,000.00 125,417 25,083 Aug. 31. 2023 150,500 140,000 0.25 14,583.33 140,000 10,500 Date Aug. 31. 2019 Asset Cost Delivery Equipment Depreciation Schedule Depreciation for the Year Depreciation per unit Units of Depreciation Accumulated Production Expense Depreciation Book Value 200,000 1.2 12560 15072 15072 184,928 200,000 1.2 32560 39072 54144 145,856 200,000 1.2 31650 37980 92124 107,876 200,000 1.2 29850 35820 127944 72,056 Aug. 31. 2023 200,000 1.2 26500 31800 159744 40,256 Aug. 31. 2024 200,000 1.2 22350 26820 186564 13,436 Aug. 31. 2020 Aug. 31. 2021 Aug. 31. 2022 FigMint Consulting and Sales Inc Cash Provided/Annual Year Cash Payment Requirement Be sure to show your work on this page for full credit - at a minimum you need to show the present value factors you used and the computations that you made to calculate the numbers in the boxes 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 $1,829,400 Annual Cash Required $80,000 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 $1,605,300 Annual Cash Required $90,000 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 $1,600,000 Annual Cash Required $96,000 to show the te the numbers in a stated rate of a stated rate of stock for $4 per ders of $0.12 per 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%. Liabilities Current Liabilities Accounts Payable Utilities Payable Wages Payable Interest Payable Total current liabilities Long Term Liabilities Bonds Payable Less: Discount on bonds payable Long term Note Payable Mortgage Payable Total long term liabilities Total Liabilities Stockholders Equity Common Stock ($1 par, 1,000,000, shares authorized, 500,000 issued and outstanding) Retained Earnings Total stockholders equity Total liabilities and strockholders equity $ $ $ $ $ 2,000,000 170,600 56,560 16,850 58,950 25,000 $ 157,360 $ 2,626,200 2,783,560 1,829,400 390,000 406,800 400,000 1,369,566 1,769,566 $ 4,553,126 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%. Liabilities Current Liabilities Accounts Payable Utilities Payable Wages Payable Interest Payable Total current liabilities Long Term Liabilities Bonds Payable Add: Premium on bonds payable Long term Note Payable Mortgage Payable Total long term liabilities Total Liabilities Stockholders Equity $ $ $ $ $ 1,500,000 105,300 56,560 16,850 58,950 25,000 $ 157,360 $ 2,402,100 2,559,460 1,605,300 390,000 406,800 Common Stock ($1 par, 1,000,000, shares authorized, 500,000 issued and outstanding) Retained Earnings Total stockholders equity Total liabilities and strockholders equity 400,000 1,369,566 1,769,566 $ 4,329,026 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. Liabilities Current Liabilities Accounts Payable Utilities Payable Wages Payable Interest Payable Total current liabilities Long Term Liabilities Long term note payable Mortgage Payable Total long term liabilities Total liabilities Stockholders Equity Common Stock ($1 par, 1,000,000, shares authorized, 500,000 issued and outstanding) Pic>Par Retained Earnings Total stockholders equity Total liabilities and strockholders equity $ $ $ $ 56,560 16,850 58,950 25,000 $ 157,360 $ 796,800 954,160 390,000 406,800 800,000 1,200,000 1,369,566 3,369,566 $ 4,323,726 FigMint Consulting and Sales Inc Financial Ratios and Calculations The company could issue $2,000,000 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 $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 5.79 5.50 5.50 Current Assets 910,625 865,805 864,745 Current Liabilities 157,360 157,360 157,360 0.61 0.59 0.22 Total Debt 2,783,560 2,559,460 954,160 Total Assets 4,553,126 4,329,026 4,323,726 Ratios Current Ratio Debt to Asset Ratio Debt to Equity 1.57 1.45 0.28 Total Debt 2,783,560 2,559,460 954,160 Total Equity 1,769,566 1,769,566 3,369,566 17% 16% 11% Net Income 296,850 $287,560 $356,675 Total Equity 1,769,566 1,769,566 3,369,566 7% 7% 8% Net Income 296,850 $287,560 $356,675 Total Assets 4,553,126 4,329,026 4,323,726 Return on Equity Return on Assets Straight line depreciation = (Asset value - Salvage value)/Life of asset Production method = (Asset value - Salvage value)/ Total production units Liabilities Current Liabilities Accounts Payable Utilities Payable Wages Payable Interest Payable Total current liabilities Long Term Liabilities Long term note payable Mortgage Payable Total long term liabilities Total liabilities Stockholders Equity Common Stock ($1 par, 1,000,000, shares authorized, 500,000 issued and outstanding) Pic>Par Retained Earnings Total stockholders equity Total liabilities and strockholders equity From Balance sheet From Balance sheet From Balance sheet From Balance sheet Total of all variables Long-term debt as per balance sheet and as per the option for Optio From the balance sheet Total of long-term note payable and mortgage payabel Total of current liabilities and long-term liabilities From the balabce sheet + Option 3 par value of 400,000 400000*$3 From balance sheet Total of stockholders' equity Total liabilities + Total stockholders' equity per the option for Option 1 it will be $2,000,000, option 2 will be $1,500,000 and option 3 will be no addition. and mortgage payabel g-term liabilities e of 400,000 Current Ratio Debt to Asset Ratio Debt to Equity Return on Equity Return on Assets `=current asset/current liabilities `=Total liabilities/Total assets `=Total liabilities/Total stockholders' equity `=Net income/Total stockholders' equity `=Net income/Total assets Project 3 Post closing trial balance: $2,787,816. $2,000,000 bonds Annual Cash Req'd = $80,000. $1,500,000 bond Cash Received = $1,604,700. Bldg 8/31/2022 Acc. Dep = $60,000; Office Equip ending B.V = $10,500; Delivery Equip BV 8/31/2019 = $184,928. Partial Balance Sheet: $2,000,000 bonds Total Liabilities = $2,783,360. $1,500,000 bond Total Liabilities = $2,558,860. 400,000 shares Total Equity = $3,369,566