Excel sheet is for answers, we have to solve the case study and put values into excel sheets. first two sheets for statement of income. And next two sheets for statement of finnacial position.

THE CASE: it is currently 4 in 2014 and ABC corporation has placed your team in charge of preparing the company's Income Statement and Balance Sheet (Statement of Financial Position) for 2014, as well as the projected statements for 2015. You are told that sale revenue has increased 6% from the 2013 values. ABC Company also plans to expand their inventory to meet growing demand and they forecast sales revenue to increase by 35% in 2015 (from current values). 40,045.00$ of additional purchases were made in 2014 (Paid for with Retained Earnings), with another 230,545.00 planned to be purchased in the future to expand inventory in 2015. Along with the increase in inventory, Freight expenses are expected to double. ABC has been preapproved a short-term loan in the amount of $100,000 today to be repaid in full at the end of 2015 to finance this expansion, the rest will be paid for using the companies Retained Earnings. The total financing cost of the loan will be $9,500. Labour cost is expected to be the same as last year and are expected to increase by 15% in 2015. ABC is also planning to hire 2 new employees on salary, one for Distribution and one as Administrative staff in 2015, they will be paid $40,000/year each Commissions are expected to increase by $30,000 in 2015. Plant Property and equipment are also the same as last year (2013), however, in the coming year (2015) the company is faced with a choice to buy or rent a warehouse to house the additional inventory. The building may be purchased outright for 350,000$ or leased on a one-year term for $90,000 spilt into 12 equal monthly payments. Assume a 15% down payment is required to buy the land, with payments made monthly amortized over 25 years, and the interest rate on the mortgage is foed at 2.5%. Whether you decid to rent or buy the land is up to your team to decide, either way provide a rationale and adjust your financial statements for the projected year accordingly, **if you choose 'buy', add the principal payments of the loan for 12 months and include them in the "current portion of long term debt" cell in the Statement of Financial Position Add the total financing cost of the loan interest portion less the principal) for 12 months and add to existing financing costs (Cell A35) in the Statement of income. TV If you choose tease, add the total monthly payments under "leasing in the Statement of Income Statement of Income 2011 2012 2013 2014[Current) 2015(Projected) 3 Revenue 1083 1058 1.564 6 630 30 380 3 S 787 355 29 366 4 529 4 0 1.207 754 296 304 357 7. Cost of sales 8 Purchases 9 Freight in 10 Labour 11 Depreciation/amortization 12 Other charges 13 Total cost of sales 14 15 Gross profit 16 17 Other income 18 19 Distribution costs 20 Salaries 21 Commissions 22 Travelling 23 Advertising Depreciation/amortization 25 Other charges 0 0 37 33 12 47 16 10 9 7 2 10 2 0 3 0 Statement of Income Statement of Financial Position 34 4 12 11 16 10 9 2 2 3 0 O 10 98 91 117 102 107 19 Distribution costs 201 Salaries 21 Commissions Travelling 23 Advertising 24 Depreciation/amortization 25 Other charges 26 Total distribution costs 27 28 Administrative expenses 29 Salanes 30 Leasing 31 Depreciation/amortization Other charges 33 Total administrative expenses 34 35 Financing costs 36 37 Total expenses loss other income 38 39 Profit before fares 40 41 Income taxe expense 94 20 13 20 147 20 9 26 24 16 173 142 13 7 14 248 240 304 48 64 53 10 12 43 Profit for the year 30 46 41 > 10 D Statement of Financial Position 2011 2012 2013 2014 Current) 2015(Projected) Assets Non current assets Property, plant and equipment Goods Investments 156 14 90 14 0 24 128 14 0 50 220 252 Sub total 0 Accumulated depreciation amortization 11 12 Total non current assets 31 158 159 210 290 14 Current assets 15 Inventones 16 Trade recevables 17 Prepaid expenses 18 Cash and cash equivalents 19 Other current asset 20 Other current asset 2 109 207 3 10 4 9 0 368 525 22 Total current assets 23 24 Total assets 526 634 D 369 368 525 450 526 684 Total current assets 23 24 Total assets 25 26 Equity and liabilities 27 Share capital 28 Retained earnings Other comprehensive income foss) 30 31 Total equity attributable to owners 32 33 Total non current liabilities 25 125 0 25 171 0 25 212 0 150 196 237 63 51 74 35 Current liabilities 36 Trade and other payatles Short term bortowings 38 Current portion of long-term debt 39 Accruals 40 Other current liability 41 Total current liabilities 94 85 0 58 130 106 0 137 198 0 38 237 279 373 300 330 43 Total labilities 44 45 Total equity and liabilities 46 AZ Net Asets Foulabilities 525 THE CASE: it is currently 4 in 2014 and ABC corporation has placed your team in charge of preparing the company's Income Statement and Balance Sheet (Statement of Financial Position) for 2014, as well as the projected statements for 2015. You are told that sale revenue has increased 6% from the 2013 values. ABC Company also plans to expand their inventory to meet growing demand and they forecast sales revenue to increase by 35% in 2015 (from current values). 40,045.00$ of additional purchases were made in 2014 (Paid for with Retained Earnings), with another 230,545.00 planned to be purchased in the future to expand inventory in 2015. Along with the increase in inventory, Freight expenses are expected to double. ABC has been preapproved a short-term loan in the amount of $100,000 today to be repaid in full at the end of 2015 to finance this expansion, the rest will be paid for using the companies Retained Earnings. The total financing cost of the loan will be $9,500. Labour cost is expected to be the same as last year and are expected to increase by 15% in 2015. ABC is also planning to hire 2 new employees on salary, one for Distribution and one as Administrative staff in 2015, they will be paid $40,000/year each Commissions are expected to increase by $30,000 in 2015. Plant Property and equipment are also the same as last year (2013), however, in the coming year (2015) the company is faced with a choice to buy or rent a warehouse to house the additional inventory. The building may be purchased outright for 350,000$ or leased on a one-year term for $90,000 spilt into 12 equal monthly payments. Assume a 15% down payment is required to buy the land, with payments made monthly amortized over 25 years, and the interest rate on the mortgage is foed at 2.5%. Whether you decid to rent or buy the land is up to your team to decide, either way provide a rationale and adjust your financial statements for the projected year accordingly, **if you choose 'buy', add the principal payments of the loan for 12 months and include them in the "current portion of long term debt" cell in the Statement of Financial Position Add the total financing cost of the loan interest portion less the principal) for 12 months and add to existing financing costs (Cell A35) in the Statement of income. TV If you choose tease, add the total monthly payments under "leasing in the Statement of Income Statement of Income 2011 2012 2013 2014[Current) 2015(Projected) 3 Revenue 1083 1058 1.564 6 630 30 380 3 S 787 355 29 366 4 529 4 0 1.207 754 296 304 357 7. Cost of sales 8 Purchases 9 Freight in 10 Labour 11 Depreciation/amortization 12 Other charges 13 Total cost of sales 14 15 Gross profit 16 17 Other income 18 19 Distribution costs 20 Salaries 21 Commissions 22 Travelling 23 Advertising Depreciation/amortization 25 Other charges 0 0 37 33 12 47 16 10 9 7 2 10 2 0 3 0 Statement of Income Statement of Financial Position 34 4 12 11 16 10 9 2 2 3 0 O 10 98 91 117 102 107 19 Distribution costs 201 Salaries 21 Commissions Travelling 23 Advertising 24 Depreciation/amortization 25 Other charges 26 Total distribution costs 27 28 Administrative expenses 29 Salanes 30 Leasing 31 Depreciation/amortization Other charges 33 Total administrative expenses 34 35 Financing costs 36 37 Total expenses loss other income 38 39 Profit before fares 40 41 Income taxe expense 94 20 13 20 147 20 9 26 24 16 173 142 13 7 14 248 240 304 48 64 53 10 12 43 Profit for the year 30 46 41 > 10 D Statement of Financial Position 2011 2012 2013 2014 Current) 2015(Projected) Assets Non current assets Property, plant and equipment Goods Investments 156 14 90 14 0 24 128 14 0 50 220 252 Sub total 0 Accumulated depreciation amortization 11 12 Total non current assets 31 158 159 210 290 14 Current assets 15 Inventones 16 Trade recevables 17 Prepaid expenses 18 Cash and cash equivalents 19 Other current asset 20 Other current asset 2 109 207 3 10 4 9 0 368 525 22 Total current assets 23 24 Total assets 526 634 D 369 368 525 450 526 684 Total current assets 23 24 Total assets 25 26 Equity and liabilities 27 Share capital 28 Retained earnings Other comprehensive income foss) 30 31 Total equity attributable to owners 32 33 Total non current liabilities 25 125 0 25 171 0 25 212 0 150 196 237 63 51 74 35 Current liabilities 36 Trade and other payatles Short term bortowings 38 Current portion of long-term debt 39 Accruals 40 Other current liability 41 Total current liabilities 94 85 0 58 130 106 0 137 198 0 38 237 279 373 300 330 43 Total labilities 44 45 Total equity and liabilities 46 AZ Net Asets Foulabilities 525