I have an assignment on Advanced Financial Management Accounting. I need to prepare budgeted income statement, cash flow budget and budgeted balance sheet along with Memorandum and business ratios.
Im finding it very difficult to solve. I need someone to help me doing the step by step processes please.
Student Instructions... Student Instructions Follow these steps in analyzing the case: 1. Assuming the status quo (no change to existing practices), prepare pro forma income statements, cash budgets, balance sheets, and ratio tables for quarter 1, 2, 3 and 4 of 2017. Note: The status quo includes the decision to reduce the dividends to CAD 200,000 and to delay the purchase of new service bay equipment to beyond 2017 due to the low utilization of existing facilities. 2. For each quarter, discuss the changes in cash flows, the financial decisions made, and whether the company is meeting its financial goals and lending conditions in each quarter based on Step 1. 3. What possible actions can RMV take to achieve its financial goals (higher profitability, reduced borrowing, and capital accumulation for the new dealership) and lending conditions? Are they reasonable? 4. Implement all reasonable actions identified in Step 3, and prepare revised pro forma income statements, cash budgets, balance sheets and ratio tables for quarter 1, 2, 3 and 4 of 2017. 5. Is RMV able to meet its financial goals and lending conditions after making the changes to the financial plan? How should the company proceed? Submission Requirements 1. Prepare pro forma income statements, cash budgets, and Student Instructions... 1. Prepare pro forma income statements, casn vuagers, and balance sheets for quarter 1, 2, 3 and 4 of 2017 as required in discussion question 1. This should be done in a separate Excel workbook from Part 2. 2. Prepare revised pro forma income statements, cash budgets, and balance sheets for quarter 1, 2, 3 and 4 of 2017 as required in discussion question 4. This should be done in a separate Excel workbook from Part 1. 3. Prepare a 2-page memorandum addressing discussion questions 2, 3, and 5. Pro forma Template The pro forma financial statements should be prepared using the templates: Badgeted Income Statement Quarter Quarter 2 Quarter 3 Quarter 4 Year Sales RV Freedom Independence Autonomy Total Service Storage Total sales Expenses RV Freedom Independence Autonomy Total Service Parts Supplies Selling Administration and storage Depreciation Total expenses Student Instructions... Net Income Cash Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Cash balance, beginning Cash receipts RV Last quarter This quarter Service Parts Storage Interest income Total cash receipts Cash disbursements Purchases Last quarter This quarter Service technicians Parts Supplies Selling Administration and storage Interest expertise Income tax Regular dividends Capital purchase Total cash disbursements Sub-total Financing Repayment Line-of-credit Term loan - Regular loan payment Term loan-Extra loan payment Borrowing Line-of-credit Term loan Special dividends Issuance and repurchase of shares Total financing Temporary Investment Cash balance, ending Student Instructions... Budgeted Balance Sheet Quarter 1 Quarter 2 Quarter 3 Quarter 4 Current assets Cash Temporary investments Accounts receivable Inventory Income taxes receivable Total current assets Fixed assets.net Totales Current liabilities Accounts payable Line of credit Income taxes payable Current portion of long-term debe Total current liabilities Term loan Shareholders' equity Common shares Retained carings Total liabilities and equities Key Financial Raties Quarter 1 Quarter 2 Quarter Quarter 4 Current ratio 1.50) XX XX XX XX Net profit margin xx Total asset turnover XX Return on assets XX Return on equity XX Line of credit/(ARInventory (
