Excel Analytics 16-2 (Static) Return on Equity (ROE) [LO16-3, 16-4, 16-5] [The following information applies to the questions displayed below.] Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. Click here to download the Excel template, which you will use to answer the questions that follow 3. Io evaluate aliemative 1, refer to the "Requirement 3 Financlats" tab within your template. Assume the company streamanes it warking capital management practices with the following estimated impacts: - Next year's ending balance in accounts receivable decreases by $80,000 compared to is 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 equipment (net) decreases by 540,000 compared to iss begining balance to reflect next year's depreciation expense. - Next year's ending balance in accounts payable decreases by $40,000 compared to iss beginning balance. - Next year's ending balance in bornds payoble decreases by $300,000 compared to its beginning balance to reflect a refirement of bonds payable. - Next year's ending bolances in other assets and common slock are the saine as their beginning balances - Next year's total sales, variables expenses, fuxed expenses, and net operating income are the same as thas yeat. a. Based on the above estimated impacts, use Excel formulas to calculate ending batances 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 ali balance sheet accounts (eucept Cash which will automatically be computed for youl. What is the average bolance in the following accounts? c. What is the company's estimated average total liabilities and stockholders equity for next year? Complete this question by entering yoar answers in the tabs beilow. Based on the above estimuted impacta, use Excel formulas to calcilate ensing balances as needed in colum c. What is the ending bolance in the folowing accourits? automatically be computed for you). What is the average balance in the following accounts? c. What is the company's estimated average total liabilities and stockholders' equity for next year? Complete this question by entering your answers in the tabs below. Create formulas within column D that calculate nokt year's average balances for all balance sheet accounts fexcept Cash which will automatically be computed for you). What is the average 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 automatically be computed for you). What is the average balance in the following accounts? c. What is the company's estimated average total liabilities and stockholders' equity for next year? Complete this question by entering your answers in the tabs below. What is the company's estimated average total liabilities and stockholders' equity for next year
