Credit WALNUT GROVE TRIAL BALANCE For the Years Ended December 31, 2020 and December 31, 2021 2020 2021 Debit Credit Debit Cash 173,000 Accounts Receivable 26,415 Inventory 32,160 Prepaid Expenses Building 275,000 Computers & Software 10,000 Furniture & Fixtures 25,000 Land 75,000 Machinery & Equipment Accumulated Depreciation 8,775 Accounts Payable 12,311 Payroll Tax Payable 136 Sales Tax Payable 22,135 Unearned Revenue Line of Credit 250,000 Notes Payable Peters, J., Capital 2,500 Peters, M., Capital 2,500 Retained Earnings 201,301 Custom Cabinet Sales Material & Supplies Sales 288,368 Small Tool Sales 35,972 Tool Rental Revenue 16,201 COGS: Custom Cabinets COGS: Material & Supplies 92,278 COGS: Small Tools 21,735 COGS: Wages 33,721 Depreciation Expense 8,950 Insurance Expense 6,426 Office Supplies Expense 1,464 Payroll Tax Expense 6,069 Postage Expense 347 Small Tool Expense 6,162 Interest Expense 7,500 Income Tax Expense 38,972 840,199 840,199 0 Prepare an Excel workbook which contains the following information: Tab 1: 2020 Trial Balance (provided in this document) Tab 2: 2021 Projected Income Statement Tab 3: 2021 Projected Balance Sheet Tab 4: 2021 Projected Statement of Cash Flows Assumptions: 1. Sales will change as follows: a. Material & Supplies Sales will increase 5.0% b. Small Tool Sales will increase 4.0% C. Tool Rental Revenue will continue throughout the 2021 year. An average of 16 tools will be rented each week. The weekly rental per tool is $55. Assume that the average number of tools given will be rented for all 52 weeks. 2. Cost of sales for materials and supplies and small tools will increase proportionately based on their current percentage of sales, respectively. (HINT: You will need to use vertical analysis.) 3. Small tools, including blades and other items, is expected to total $7,300 in 2021. 4. Office supplies and postage are expected to increase by 9% during 2021. 5. On January 1st, the company will invest $122,000 in new equipment for its custom cabinet division. a. This equipment will have a 5-year life and should be depreciated using the straight-line method. This purchase represents the only expected change to property, plant, and equipment. b. The company will finance the equipment purchased with a 5-year note at 3.50% interest. You will need to use an amortization schedule to find the principle and interest payment amounts. The loan is paid monthly