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How do you complete the depreciation schedule? How do you complete the bonds portion of the: - financing options tab, partial balance sheet, and the

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How do you complete the depreciation schedule?

How do you complete the bonds portion of the: - financing options tab, partial balance sheet, and the bonds formula tab?

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Submission 1 (6 points) - due Tuesday April 10 before 5pm - You must submit your completed Depreciation schedules and the Depreciatior 'ormulas tab. Your file must be named correctly - "Your name (first and last) Project 3 part 1. Failure to name your file correctly will em\" in a 1 point deduction. Submission 2 (12 points) - due Tuesday April 17 before 5pm - You must submit your completed Bonds portion of the nancining options tab and the Bonds portion of the partial balance sheets and the bonds formulas tab completed. Your file must be named correctly - "Your 1ame (first and last) Project 3 part 2. Failure to name your file correctly will result in a 1 point deduction Submission 3 ( 12 points) - due Tuesday April 24 before 5pm - You must submit your total excel le with the equity option section of the inancing options worksheet tab completed, the equity option section of the partial balance sheets tab completed, the ratios tab completed, the :hoice and reasons tab completed, and the balance sheet and ratios formula tabs completed. Your file must be named correctly - "Your 1ame (first and last) Project 3 part 3. Failure to name your file correctly will result in a 1 point deduction This project is a continuation of Projects 1 & 2, NFT Consulting and Sales Inc. Atime machine has taken us 2 years into the future and you have been asked to make some recommendations to the company regarding nancing for an upcoming major expansion. The company has been very successful but they will need a major inow of cash to purchase the xed assets they need for the expansion and hire additional employees. They believe they will need at least $1,500,000 and have asked for your recommendations as to how they should obtain the necessary funds. They have provided information about their available nancing options and have asked you to evaluate them and make a recommendation as to which option they should pursue. They have also asked for depreciation schedules for the new assets they plan to purchase. Finally they have asked for information about the cash inows they can expect from each of the nancing options and the expected annual cash outow required for each nancing option. They also request a calculation of several ratios under each of the nancing alternatives. When you need infon'nation about Assets for any of the ratio calculations, remember that Assets = Liabilities + Equity. Also, assume the split between Current Assets and Long Term Assets is 20% current and 80% long term. RECOMMENDED STEPS FOR COMPLETION 1. Complete the attached Depreciation Schedules for each of the planned asset purchases using the provided information regarding cost, useful life, and selected method. You should do only the first 4 years for the building and do the complete useful life depreciation schedules for all of the other assets. This is part of part 1 of the project. 6. Copy the Depreciation calculations from the Depreciation tab to the Depreciation formulas tab. Highlight the entire area and press the "ctrl" key and the "-" key. This will cause the formulas used to display instead of the numbers. Save your le with the formulas displayed. This is part of part 1 of the project. 2. Complete the worksheet for the various nancing options using the information provided and providing all the detailed information requested that is used in the calculations for the various nancing options. You will do the bond nancing options rst and submit them as part of part 2 of the project. You will do the equity nancing option second and submit that as part of part 3 of the project. 3. Complete the 3 \"partial classied balance sheets". These should include ONLY the Liabilities and Equities sections of the classied balance sheet. These must have all proper formatting but do NOT need to have headings. They should be labeled to indicate which nancing option they represents. You will do the bond nancing options partial balance sheets and submit them as part of part 2 of the project and do the equity nancing option partial balance sheet next and submit it as part of part 3 of the project. 6. Copy the Partial Balance Sheets from the Partial Balance Sheets tab to the Partial Balance Sheets formulas tab. Highlight the entire areas respectively and press the "ctrl" key and the "-" key. This will cause the formulas used to display instead of the numbers. Save your le with the formulas displayed. This will be done for part 2 of the project and then again for part 3 after you complete the equity nancing options. 4. Complete the Ratio Calculation worksheet . You are computing the ratios listed for each of the 3 nancing considerations listed. You should show your work for potential full credit. Remember Assets = Liabilities + Equity. Also Current Assets is 20% of total assets. The projected Net Incomes for the year for the 3 alternatives are: Option 1 $296,850; Option 2 $287,560; and Option 3 $356,675 6. Copy the Ratios from the Ratios tab to the Ratios formulas tab. Highlight the entire area and press the "ctrl" key and the "~" key. This will cause the formulas used to display instead of the numbers. Save your le with the formulas displayed. NFF Consulting and Sales Inc Cash Received/Annual Cash Payment Requirement The company could issue $2,000,000 oflong-term bonds, due in 5 years with a stated rate ofinterest, paid semiannually, of4%. The market rate for similar debt is 6%. Cash Received Annual Cash Required Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate PV factors used single sum annuity PV face PV interest The company could issue $1,500,000 oflong-term bonds, due in 4 years with a stated rate ofinterest, paid semiannually, of8%. The market rate for similar debt is 6%. Cash Received Annual Cash Required Face amount Face rate Interest Payment periods Interest Payment Term Market rate PV factors used single sum annuity PV face PV interest ..-_.__- . _,..._..- Term Market rate PV factors used single sum annuity PV face PV interest The company could issue 400,000 additional shares of$1 par value common stock for $4 per share The company will begin paying a dividend to ALL the common shareholders of$0.12 per share and this will continue into the future. Cash Received Annual Cash Required number of existing shares number ofnew shares total shares at year end market price Dividend rate Dividend period PIC year end P|C>paryearend PAR11AL BALANCE SHEEI'S The company could issue $2,000,000 of long-term bonds, due in 4 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The company could issue $1,500,000 of long-term bonds, clue in 4 years with a stated rate of interest, paid semiannually, of 8%. The market rate for similar debt is 6%. l'he company could issue 400,000 additional shares of $1 par value common stock for $4 per share l'he company will begin paying a dividend to ALL the common shareholders of $0.12 per share and his will continue into the future

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