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EXCEL PROJECT ASSIGNMENT INSTRUCTIONS OVERVIEW Assume ABC Company has asked you to not only prepare their 2 0 1 7 year - end Balance Sheet
EXCEL PROJECT ASSIGNMENT INSTRUCTIONS
OVERVIEW
Assume ABC Company has asked you to not only prepare their yearend Balance Sheet but to also provide proforma financial statements for In addition, they have asked you to evaluate their company based on the proforma statements with regard to ratios. They also want you to evaluate projects they are considering. Their information is as follows:
End of the year information:
Account
Ending Balance
Cash
Accounts Receivable
Inventory
Equipment
Accumulated Depreciation
Accounts Payable
Shortterm Notes Payable
Longterm Notes Payable
Common Stock
Retained Earnings solve
Additional Information:
Sales for December total units. Each months sales are expected to exceed the prior months results by The products selling price is $ per unit.
Company policy calls for a given months ending inventory to equal of the next months expected unit sales. The December inventory is units, which complies with the policy. The purchase price is $ per unit.
Sales representatives commissions are of sales and are paid in the month of the sales. The sales managers monthly salary will be $ in January and $ per month thereafter.
Monthly general and administrative expenses include $ administrative salaries, $ depreciation, and monthly interest on the longterm note payable.
The company expects of sales to be for cash and the remaining on credit. Receivables are collected in full in the month following the sale none is collected in the month of sale
All merchandise purchases are on credit, and no payables arise from any other transactions. One months purchases are fully paid in the next month.
The minimum ending cash balance for all months is $ If necessary, the company borrows enough cash using a shortterm note to reach the minimum. Shortterm notes require an interest payment of at each monthend before any repayment If the ending cash balance exceeds the minimum, the excess will be applied to repaying the shortterm notes payable balance.
Dividends of $ are to be declared and paid in February.
No cash payments for income taxes are to be made during the first calendar quarter. Income taxes will be assessed at in the quarter.
Equipment purchases of $ are scheduled for March.
ABC Companys management is also considering new projects consisting of the purchase of new equipment. The company has limited resources, and may not be able to complete make all purchases. The information is as follows for the purchases below:
Project Project Project
Purchase Price $ $ $
Required Rate of Return
Time Period years years years
Cash Flows Year $ $ $
Cash Flows Year $ $ $
Cash Flows Year $ $ NA
Cash Flows Year NA $ NA
Cash Flows Year NA $ NA
INSTRUCTIONS
Part A:
Prepare the yearend balance sheet for Be sure to use proper headings.
Prepare budgets such that the proforma financial statements for the first quarter of may be prepared.
Sales budget, including budgeted sales for April.
Purchases budget, the budgeted cost of goods sold for each month and quarter, and the cost of the March budgeted inventory.
Selling expense budget.
General and administrative expense budget.
Expected cash receipts from customers and the expected March balance of accounts receivable.
Expected cash payments for purchases and the expected March balance of accounts payable.
Cash budget.
Budgeted income statement.
Budgeted statement of retained earnings.
Budgeted balance sheet.
Part B:
Calculate using Excel formulas, the NPV of each of the projects.
It is possible that ABC Company may not be able to complete all projects. Therefore, advise ABC Company as to the order in which they should pursue the projects ie which project should ABC Company attempt to do first, second, and last
Provide justification and analysis as to why you chose the order you did. The analysis must also be done in Excel, not in a separate document.
This assignment must be submitted as one Excel document
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