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. 5. To cvaluate alternative 2, refer to the "Requirement 5 Financiats" tab within your template. Assume the company purchases new. equipment in an effort to grow sales with the following esthmated imeacts: - Next year's sales and variable expenses increase by 5% - Next year's fixed expenses are the same as this year. - Next year's ending balances in accounts recelvable, inventory, and accounts payable cachi increase by 5 ticompared to thei respective beginning balances. - Next year's ending balance in property, plant, and equipment inet increases by $110000 campared to its beginning balince. This reflects the purchase of a 5150,000 piece of equipment minus nextyears depreciation expense of 540.000 - Next year's ending balance in bonds paryable decreanes by 550.000 campared to its begining balance. This teflects a bend issuance of $150,000 to purchase the equipenent and a bond retirement of $200,000 - Next year's ending balances in other assets and common stock are the same as their begrning batances. a. Based on the above estirnated inpacts, use Excet formulas to calculate the revibed sales and variable expenses as needed in column B. (Hint Your formalas should refer to information coctained in the flequirenent 1 finanicials tabj) What are the revised amounts of sales and the variable expenses? b. Based on the above estimated impacts, vse Excel formulas to calculate ending balences as needed in column C. What is the ending balance in the following accourits? c. Create formulas withiri column D that calculate next year's average balances for all balarce sheet accounts fexept Cash which wit automatically be comsited for youj. What is the arverage batance in the following accounts? d. What is the company's estimated average total liabities and stockholders' equity for nextyear? Comiplete this geestion try entering your answers in the tals bulow. What is tha companyin estemated wreman total habibes and steckhelfers' qquily for net year? a. Based on the above estimated impacts, use Excel formulas to calculate the revised sales and variable expenses as needed in column B. (Hint Your formulas should refer to information contained in the Requirement I Financials tab) What are the revised amounts of sales and the variable expenses? b. 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? c. Create formulas within column D that calculate next year's average balances for all baiance sheet accounts (except Cash which will automatically be computed for you). What is the average balance in the following accounts? d. 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. Based on the above estimated impacts, use Excel formulas to calculate ending balances an nended in coluann C. What is the ending balance in the following accounts? D. Edsed on the above estimated impacts, use Excel formulas to calculate ending balances as needed in column C. What is the c. Create formulas within column D that calculate next year's average balances for all balance sheet accounts (except Cash which wil automatically be computed for you). What is the average balance in the following accounts? d. 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 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? amounts of sales and the varlable exp refer to information contained in the Requirement 1 financiats table expenses as needed b. Based on the above exariable expenses? ending balance in the following accounts? c. Create formulas within column D that calculate next year's average balances for all balance sheet accounts (except Cash wh automatically be computed for you). What is the average balance in the following accounts? d. 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
