Hi, I don't know how to do the calculation for the Part A, can you please help me with it?

l\\"'l.r'"\\N( 'I H l |1 Ell The University of Ma nchester Alliance Manchester Business School Foundations of Accounting A2 Assignment Individual Assignment Assignment Instructions for PART A: Assignment Reference {Subject Title} FA-StudentNumber-Sept20-A2A Due Date 15 January 2021, 23:59 U K time Word count (if applicable} Weighting File Format Submission Details MS Excel {must use template) Blackboard instructions provided on Blackboard Intended Learning outcomes Assignment Instructions for PART B: Assignment Reference {Subject Title} Due Date Part A: 5.1, 5.2 and 5.3 FA-StudentNumber-Sept20-A2B 15 January 2021, 23:59 U K time Word count (if applicable} Weighting File Format Submission Details Intended Learning outcomes 20% MS Word Blackboard instructions provided on Blackboard 2.1, 2.2, 2.3, 2.4, 3.1, 3.2, 3.3 3.1, 3.2, 3.3, 4.1 Instructions concerning part A: 1. Download the Excel template from blackboard. 2. Complete the Cash Budget, Income Statement and Balance Sheet using the Excel templates provided. 3. Textual headings in this template are protected. They contain all the headings you need to complete the assignment and should therefore remain protected. Only the cells coloured in YELLOW should be completed. You can use other excel sheets as workings, or use the additional sheets in the Excel template, but please note you can only submit this template, and only the first worksheet in the template will be used as the basis for marking. You should not change any of the text or format of any of the textual cells, nor move any of the three statements {cash budget, income statement or balance sheet} into different sheets in excel. 4. You should express all values in a positive format in the excel spreadsheet. The only exceptions where negative values can be entered are for the following three items and only if they happen to arise as a result of the transactions and calculations processed during the accounting exercise: closing cash deficit carried forward {cash budget cell XXX); cash out of bank {balance sheet cell XXX); and retained loss (balance sheet cell XXX). All other values must be recorded as positive values {including cash outflows in the cash budget, expenses in the income statement and current and non-current liabilities). 5. Save your assignment according to your student ID number, followed by XYZ. 6. Submit your completed Excel-based assignment through blackboard. [The assignment accompanying part a can be found across the following pages] l\\"'l.r'"\\N( 'I H l'f\" J1 Ell The University of Manchester Alliance Manchester Business School 'EyeSe nse' {represents 30% of total weighting of the course) As a result of being made redundant by a large electronics manufacturer, Simon Philips took time out to work on a project that had intrigued him for some time. Why, he asked do PC users have to manually adjust their monitors when their built-in cameras could follow the position of a users' pupils to determine whether they are sitting too close, slouching their backs, tilting their necks too much andfor are likely to suffer from tired or dry eyes as a result of not blinking frequently enough? Having suffered from many of these symptoms over the years, and recognising the total cost to employees and employers, he set about prototyping his innovation under the trading name 'EyeSense'. Simon started trading in January 20X1. By 20x4, he realised that initial projections for the growth of the business were not realistic. In December 20x4, he decided to take time out of the business for health reasons. Simon had been particularly worried that an original bank loan, taken out on the 15t January 20X1, was due to expire on the 31St December 20x5, and had learnt that EyeSense's operational model required revisions if it was to be a viable going concern. In winding down the business, Simon decided to reduce the showroom opening hours in December 20x4 to 40 hours in total for the full month. He also decided not to trade for four months (15t January 30th April 20x5} while he took time out to recuperate and re-evaluate the business. Feeling revitalised, he started trading again on the 15t May 20x5. Unfortunately, the profit and loss accounts and statements of financial position for the previous year {20x4} have been lost, but the accountant has been able to obtain information on the following transactions relating to 20x4. Notes on 20X4 transactions Non-current assets to keep {in stock) at all times, sufcient inventory of raw materials to cover the following month's trading. materials for July will have to be procured and paid for by the end of June X5. Equipment Purchased on 1*;t Expected life 10 years Straight line depreciation January 20x1 for method at the rate of 10% 400,000 Expected residual value per annum 25,000 Van Purchased on 1St Expected life 5 years Straight line depreciation Jan 20x1 for method at the rate of 20% 20,000 Expected residual value per annum 4,000 Sold on 30th June 20x5 for 2,500 Fixtures 8: Fixtures & fittings Expected useful life of 8 Estimated residual value Fittings costing 80,000 years 10,000 were purchased on January 'I51 Depreciated on a straight 20x1 line basis Inventory The director plans So for example, raw In winding down the business in December 20x4, the business closed the nancial year planning not to sell any units of output in Jan X5. The director, decided not to order raw materials in Dec 20x4 for Janua 20x5. therefore, MANCHESTER 1824 The University of Manchester Alliance Manchester Business School Raw materials will be ordered on the standard basis/terms to ensure that the business is suitably ready for the resumption of trading on 1St May 20X5. Receivables: 400 products sold 20% of total output at No credit (cash sales only) direct sales in November and E180 p/unit 400 in December 20X4 Receivables: 400 products sold 45% of total output at 1 month credit retailers in November and E1 10 p/unit 400 in December 20X4 Receivables: 400 products sold 35% of total output at 2 months credit large in November and E130 p/unit corporate 400 in December clients 20X4 Prepaid Rent of $8,000 per A deposit equal to two deposit & month is payable month's rent was rent quarterly in payable when the advance and has directors moved in on not changed since January 1st 20X1. This 20X1 will be returnable only when they vacate the premises Business For 20X4 were In both years, the annual rates charged at a rate charge is payable in 9 of E36,000 per equal monthly annum. For 20X5 nstalments, from 1 st the rates have April increased to $45,000 per annum. Cash in bank Cash surplus / Surplus of E300,000 deficit 31s Dec 20X4 3MAM :pr 111512. The University of Manchester Alliance Manchester Business School Current liabilities: accruals Bank loan (long term) Financed by: showroom opening hours to 40 hours for the full month. Non-current liabilities In 1$1 January 20x1 the business borrowed 200,000 on a 5-year loan energy at the rate of 4 for each hour that it was oen for business Interest rate of 6% per annum was payable monthly. It was on an interest-only basis with interest paid monthly at the end of each month Staff on- In 20x4, 10 full time Between Jan and Staff on-costs for the costs people were employed in November 20x4, 4 full workshop & showroom of the workshop and paid time people were 20% are payable 1 month 15 per hour, each employed in the in arrears working a 50hour week showroom and paid 9 per hour, each working a In 20x5, Simon employed 50hour week. just 6 people in the workshop on a full time In December 20x4, basis, each working a 37.5 Simon reduced the hour week paid the same showroom staff to just 1 hourly rate. full time person working 40 hours for the full month. He also decided to close the showroom as from 1/1120X5) Energy 400 products were The workshop Payable 1 month in workshop produced and sold in consumed energy and arrears plus a 50 at fee November and 400 in water at the rate of 12 irrespective of output December 20x4 per product. plmonth Energy In December 20x4, Simon The showroom Payable 1 month in showroom decided to reduce the continued to consume arrears No repayments of capital until the end of the loan period on 31St December 20x5. On the 315' December 20x5 the owner took out a new loan of 220,000 at a lower interest rate of 4.5% per annum. The loan incurred an arrangement fee of 2,500 payable immediately (on 31St Dec 20x5). It is also on an interestonly basis with interest paid monthly at the end of each month Owner's Equity In January 20x1, the director invested 350,000 of his own savings in the form of equity He has not taken any prots from the business in the form of dividend and reinvested it in the business, These reinvestrnents currently stand at 151 ,231 l\ "'l.r'"\\N( :I H l). I1 ER The University of Manchester Alliance Manchester Business School Business Units The business premises originally consisted of a workshop where the products are made, with a loading bay at which vehicles can be loaded for despatch to customers, and a showroom to display the company's products and make some sales directly. In 20X1, he segmented his market and set differing prices and credit terms for three distinct groups of customers to whom he was selling: 20X1-20X4 Selling price per product\" Credit terms Direct sales to Retailers homeowners E200 Large Corporate Clients E130 110 No credit (cash 1 month 2 months sales only) 20% 45% 35% Expected proportion of total sales The following transactions relate to 20x5 As he embarks on the 'EyeSense' business again with fresh eyes on the 1St May 20x5, he is preparing the accounts for the calendar year (12 months} ending 315t December 20x5, and has asked you for your assistance in preparing these. He has provided you with information on a number of transactions. Business Units The business premises originally consisted of a workshop where the products are made, with a loading bay at which vehicles can be loaded for despatch to customers, and a showroom to display the company's products and make some sales directly. In 20X1, he segmented his market and set differing prices and credit terms for three distinct groups of customers to whom he was selling: For the start of trading on the 1St May 20x5, Simon restructured his operations by closing down the showroom and not selling direct to homeowners. The revised segmentation for 20x5 was as follows: ZOXS onwards Direct sales to Retailers Large Corporate homeowners Clients Selling price per None E150 E180 product\" Credit terms I Not applicable 1 month 2 months Expected 0% 50% 50% proportion of total sales * NB: To maintain focus and minimise complexity, the business still only produces a single standard product 20x5 Sales: The sales records show that in May, Simon sold 300 products. This was followed by 320 in June, July 340, August 360, September 380, October 400, November 420 and December 420. He is assuming that there will not be any seasonality in demand, and 440 units will be sold in January 20KB 5 l\\"'l.r'"\\N( 'I H Ila-ll |1 Ell The University of Manchester Alliance Manchester Business School The raw materials required to produce the sensors have not changed price since 20X1 at 64.50 per product. As a small business, Simon has not been able to secure credit and procures the raw materials he needs 1 month in advance. Supplier's invoices all have to be paid at the time of purchase. Stacosts Due to the decline in the business, in 20x5, workers' hourly week was reduced to 37.5 hours. Simon also eliminated the need for any showroom staff in 20x5, and reduced the numbers in the workshop, such that staffing levels were as follows: Workshop: 6 full time people paid at 15 per hour, each working a 37.5 hour week. Showroom: 0 full time people, paid 0 p/hour. Staff wages were paid at the end of each week. The company also continues to have to pay a further 20% of this amount in social security and pensions contributions (staff on-costs), and these will be payable 1 month in arrears. These costs are common in UK businesses, resulting in additional costs for employers. In 20x5, the workshop employed staff from 15t March 20x5 for resumption of trading on the 15t May 20x5. Staff continued to be employed for the rest of the year on the same employment terms. Energy & water: The workshop consumed energy and water at the rate of 10 per product. These costs are payable 1 month in arrears. Plus a flat rate fee of 50 p/month irrespective of output. Premises rent of 8,000 per month is payable quarterly in advance. Given the challenges Simon faced, the landlord agreed not to charge any rent for the period January to April 20x5, so the first payment of rent was paid on the 1St May 20x5 {covering the period May-July 20x5), with subsequent quarterly payments for August-October 20x5 (payable on 15t August 20x5), November-January 20x5 (payable on 1"t November 20x5). This original rental agreement which commenced lstianuary 20X1 will expire after 7 years, after which the building will revert to the landlord. Additional workshop xtures and ttings were acquired in the 20x5 calendar year. These cost 18,000 and were installed by an outside contractor over the period January, February and March 20x5 with the costs spread equally during these three months. They are expected to have a useful life of 5 years and an estimated residual value of 3,000, and were depreciated on a straight line basis at the rate of 20% per annum. Business rates for 20x4 were charged at a rate of 36,000 per annum. For 20x5 these increased to 45,000 per annum. In both years, the annual charge is payable in 9 equal monthly instalments, from 15t April 20x5. Additional equipment, costing 4,000 was purchased in the financial year 20x5, being delivered in March 20x5 and installed and tested in April 20x5, in time to resume trading on May 15t 20x5. The suppliers allowed 1 month's credit after the date of delivery, and Simon took up this offer. The equipment is expected to last for 5 years before it will need replacing, with an expected residual value of 1,000. The company chose the straight line depreciation method for the equipment at the rate of 20% per annum. l\\"'l.r'"\\N( 'I H l'f' J1 Ell The University of Manchester Alliance Manchester Business School A smaller delivery van was purchased on 1\" April 20x5 in time for the start of business on 1\" May 20x5. This new van has less carrying capacity given the drop in output expected over the next five years. It cost 18,000, and was paid in full at the time of purchase. It is expected to last for 5 years, after which it is expected to be sold for 2,500. The company chose the straight line depreciation method for the van at the rate of 20% per annum. Marketing & advertising has previously been a weak-point for the business and in 20x5, the business invested 5,000 each in in April, May and June, reducing to 3,500 for each month thereafter. This was paid for as it was incurred; on the first day of each month (i.e. there is no credit}. Financing: The original bank loan of 200,000 at an interest rate of 6% per annum Simon took out in 20X1 had to be repaid on 31\" December 20x5. He had spent time securing a refinancing package, and on the 31\" December 20x5, he secured a new loan of 220,000 at an interest rate of 4.5%per annum, payable monthly. It is on an interest-only basis, with interest paid monthly at the end of each month and no repayments of capital until the end of the five year loan period. A loan arrangement fee of 2,500 was payable 31\" December 20x5. Assu mptions For simplicity and to keep this exercise manageable, make the following working assumptions:- I Unless otherwise specified in the brief, assume that the first and second months in each quarter (January, February, April, May etc.) are of 4 weeks, and the third month (March, June, September, December} is a 5-week month. I Assume 52 weeks in each year I The Corporation Tax rate is 20% on profits. If no profits are generated, no tax will be payable I Round any odd amounts to the nearest whole pound {do not show pence). Part A requirements Prepare, for from 1\" January to 31\" December 20x5 inclusive, based on the data and forecasts above: 1. A cash budgetfor the period 1\" January to 31\" December 20x5 on a month-by-month basis. This should show the total cash in and/out for the year as a whole for each item, and the closing balances of cash both for each month and at the year-end. You should show these in the template provided [8% of the weighting for the course] 2. An income statement for the whole of the period 15t January to 31\" December 20x5 (not month-by-month), following the usual financial accounting conventions. You should do this in the template provided [11% weighting for the course] 3. A statement offinanciai position as at 315t December 20x5. You should do this in the template provided [11% weighting for the course} For requirements 1-3, please do not provide your workings. Only the result will be marked. Total: 100 marks, representing 30% of the grade for the course