Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. 3. To evaluate alternative 1, refer to the "Requirement 3 Financials" tab within your template. Assume the company streamlines it working capltal management practices with the following estimated Impacts: - Next year's ending balance in accounts recelvable decreases by $80,000 compared to its beginning balance. - Next year's ending balance in inventory decreases by $120,000 compared to its beginning balance. - Next year's ending balance in property, plant, and equlpment (net) decreases by $40,000 compared to its beginning balance to reflect next year's depreclation expense. - Next year's ending balance in accounts payable decreases by $40,000 compared to its beginning balance. - Next year's ending balance in bonds payable decreases by $300,000 compared to its beginning balance to reflect a retirement of bonds payable. - Next year's ending balances in other assets and common stock are the same as their beginning balances. - Next year's total sales, varlables expenses, fixed expenses, and net operating Income are the same as this year. a. Based on the above estimated impacts, use Excel formulas to calculate ending balances as needed in column C. What is the ending balance in the following accounts? b. Create formulas within column D that calculate next year's average balances for all balance sheet accounts (except Cash which will automatically be computed for you). What is the average balance in the following accounts? c. What is the company's estimated average total llabilities and stockholders' equlty for next year? Complete this question by entering your answers in the tabs below. Based on the above estimated impacts, use Excel formulas to calculate ending balances as needed in column C. What is the ending balance in the following accounts? Create formulas within column D that calculate next year's average balances for all balance sheet accounts (except Cash which will automatically be computed for you). What is the average balance in the following accounts? What is the company's estimated average total liabilities and stockholders' equity for next year? Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. 3. To evaluate alternative 1, refer to the "Requirement 3 Financials" tab within your template. Assume the company streamlines it working capltal management practices with the following estimated Impacts: - Next year's ending balance in accounts recelvable decreases by $80,000 compared to its beginning balance. - Next year's ending balance in inventory decreases by $120,000 compared to its beginning balance. - Next year's ending balance in property, plant, and equlpment (net) decreases by $40,000 compared to its beginning balance to reflect next year's depreclation expense. - Next year's ending balance in accounts payable decreases by $40,000 compared to its beginning balance. - Next year's ending balance in bonds payable decreases by $300,000 compared to its beginning balance to reflect a retirement of bonds payable. - Next year's ending balances in other assets and common stock are the same as their beginning balances. - Next year's total sales, varlables expenses, fixed expenses, and net operating Income are the same as this year. a. Based on the above estimated impacts, use Excel formulas to calculate ending balances as needed in column C. What is the ending balance in the following accounts? b. Create formulas within column D that calculate next year's average balances for all balance sheet accounts (except Cash which will automatically be computed for you). What is the average balance in the following accounts? c. What is the company's estimated average total llabilities and stockholders' equlty for next year? Complete this question by entering your answers in the tabs below. Based on the above estimated impacts, use Excel formulas to calculate ending balances as needed in column C. What is the ending balance in the following accounts? Create formulas within column D that calculate next year's average balances for all balance sheet accounts (except Cash which will automatically be computed for you). What is the average balance in the following accounts? What is the company's estimated average total liabilities and stockholders' equity for next year
