I would like a review of accounting work already completed by me. I have two areas of concern they are around the cash budget -incorrect and budgeted balance is not correct. I have attached project instructions, my actual project, and feedback received. Seeking to correct the deficiencies and resubmit.

BMAL 530 EXCEL PROJECT INSTRUCTIONS Assume ABC Company has asked you to not only prepare their 2015 year-end Balance Sheet but to also provide pro-forma financial statements for 2016. In addition, they have asked you to evaluate their company based on the pro-forma statements with regard to ratios. They also want you to evaluate 3 projects they are considering. Their information is as follows: End of the year information: Account Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Accounts Payable Short-term Notes Payable Long-term Notes Payable Common Stock Retained Earnings 12/31/15 Ending Balance 50,000 175,000 126,00 480,000 90,000 156,000 12,000 200,000 235,000 solve Additional Information: Sales for December total 10,000 units. Each month's sales are expected to exceed the prior month's results by 5%. The product's selling price is $25 per unit. Company policy calls for a given month's ending inventory to equal 80% of the next month's expected unit sales. The December 31 2015 inventory is 8,400 units, which complies with the policy. The purchase price is $15 per unit. Sales representatives' commissions are 12.5% of sales and are paid in the month of the sales. The sales manager's monthly salary will be $3,500 in January and $4,000 per month thereafter. Monthly general and administrative expenses include $8,000 administrative salaries, $5,000 depreciation, and 0.9% monthly interest on the long-term note payable. The company expects 30% of sales to be for cash and the remaining 70% 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 month's purchases are fully paid in the next month. Page 1 of 3 BMAL 530 The minimum ending cash balance for all months is $50,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. Dividends of $100,000 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 35% in the quarter. Equipment purchases of $55,000 are scheduled for March. ABC Company's management is also considering 3 new projects consisting of the purchase of new equipment. The company has limited resources, and may not be able to complete make all 3 purchases. The information is as follows for the purchases below. Project 1 Project 2 Project 3 Purchase Price $80,000 $175,000 $22,700 Required Rate of Return 6% 8% 12% Time Period 3 years 5 years 2 years Cash Flows - Year 1 $48,000 $85,000 $15,000 Cash Flows - Year 2 $36,000 $74,000 $12,000 Cash Flows - Year 3 $22,000 $38,000 N/A Cash Flows - Year 4 N/A $26,800 N/A Cash Flows - Year 5 N/A $19,000 N/A Page 2 of 3 BMAL 530 Required Action: Part A: Prepare the year-end balance sheet for 2015. Be sure to use proper headings. Prepare budgets such that the pro-forma financial statements for the first quarter of 2016 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 31 budgeted inventory. Selling expense budget. General and administrative expense budget. Expected cash receipts from customers and the expected March 31 balance of accounts receivable. Expected cash payments for purchases and the expected March 31 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 3 projects. It is possible that ABC Company may not be able to complete all 3 projects. Therefore, advise ABC Company as to the order in which they should pursue the projects (i.e., 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 1 Excel document. This assignment is due by 11:59 p.m. (ET) on Friday of Module/Week 8. Page 3 of 3 \fInput data: ABC COMPANY Account 12/31/2015 Ending Balance $50,000 $175,000 $126,000 $480,000 $90,000 $156,000 $12,000 $200,000 $235,000 solve Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Accounts Payable Short-term Notes Payable Long-term Notes Payable Common Stock Retained Earnings December sales Each month's sales Selling price 10,000 5% $25 Each month's ending inventory December 31, 2015 inventory Purchase price 80% 8,400 $15 Sales representatives' commissions Sales manager's monthly salary (Januar Sales manager's monthly salary (After) 12.50% $3,500 $4,000 General and administrative expenses: Administrative salaries Depreciation Interest on the long-term note payable $8,000 $5,000 0.90% Cash sales Credit sales Collection of receivables Purchases Payment of purchases Minimum ending cash balance 30% 70% month following the sale Credit in the next month $50,000 Interest on short-term notes Dividends payment in February Income tax rate Purchase of equipment in March 1% $100,000 35% $55,000 | ABC Company Balance Sheet As of December 31, 2015 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Equipment Less: Depreciation Total Fixed Assets $50,000 $175,000 $126,000 $351,000 $480,000 $90,000 Total Assets Liabilities Current Liabilities Accounts payable Short term Notes Payable Total Current Liabilities Long Term Liabilities Long term Notes Payable Total Liabilities Owner's Equity Common Stock Retained Earnings Total Owner's Equity Liabilities & Owner's Equity Expected unit sales Unit selling price Total sales $390,000 $390,000 $741,000 $156,000 $12,000 $168,000 $200,000 $368,000 $235,000 $138,000 $373,000 $741,000 ABC Company Sales Budget January 10,500 $25 $262,500 ABC Company Purchases Budget February 11,025 $25 $275,625 March 11,576 $25 $289,406 Expected unit sales Add: Desired ending inventory Total inventory required Less: Beginning inventory Units required to be purchased Price per unit Total cost of purchases Cost of goods sold Cost of ending inventory January 10,500 8,820 19,320 8,400 10,920 $15 $163,800 $157,500 February 11,025 9,261 20,286 8,820 11,466 $15 $171,990 $165,375 March 11,576 9,724 21,300 9,261 12,039 $15 $180,590 $173,644 $145,861 ABC Company Selling Expense Budget January February $32,813 $34,453 $3,500 $4,000 $36,313 $38,453 March $36,176 $4,000 $40,176 ABC Company General and Administrative Expense Budget January February Administrative salaries $8,000 $8,000 Depreciation 5,000 5,000 Interest on the short-term note payable $120 $0 Interest on the long-term note payable $1,800 $1,800 Total general & administrative expense $14,920 $14,800 March $8,000 5,000 $0 $1,800 $14,800 ABC Company Expected Cash Receipt from Customers January February Cash sales $78,750 $82,688 Collection from credit sales $175,000 $183,750 Total cash receipt from customers $253,750 $266,438 Expected accounts receivable (March 31,2016) N/A N/A March $86,822 $192,938 $279,759 $202,584 Sales representatives' commissions Sales manager's salary Total selling expenses ABC Company Expected Cash Payment for Purchases Payment for purchases Expected accounts payable (March 31,2016) January $156,000 N/A February $163,800 N/A March $171,990 $180,590 January February March $253,750 $266,438 $279,759 $156,000 $36,313 $8,000 $1,800 $120 $163,800 $38,453 $8,000 $1,800 $171,990 $40,176 $8,000 $1,800 ABC Company Cash Budget Cash Inflows Cash receipt from customers Cash Outflows Payment for purchases Selling expenses Administrative salaries Interest on the long-term note payable Interest on the short-term note payable Payment of dividends Purchase of equipment Total cash outflows $100,000 $202,233 $312,053 $55,000 $276,966 Cash Flow Summary Cash at the start of month Net cash gain (loss) during month $50,000 $51,518 $89,518 ($45,616) $43,902 $2,794 Cash balance at end of month before financing $101,518 $43,902 $46,695 Less: Minimum cash balance desired Surplus cash (deficit) $50,000 $51,518 $50,000 ($6,098) $50,000 ($3,305) External Financing Summary External financing balance at start of month New financing required Financing repayments External financing balance at end of month $0 $0 $12,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cash balance at the end of month after financing $89,518 $43,902 $46,695 ABC Company Budgeted Income Statement For the quarter Ending March 31, 2016 Sales $827,531 Cost of goods sold $496,519 Gross margin Operating Expenses Selling Expense Sales representatives' commissions $103,441 Sales manager's salary $11,500 Total Selling Expense $114,941 General and Administrative Expense (G & A) Administrative salaries $24,000 Depreciation $15,000 Interest on the short-term note payable $120 Interest on the long-term note payable $5,400 Total general & administrative expense $44,520 Total Operating Expenses Operating Income Income Tax Expense Net income $331,013 $159,461 $171,551 $60,043 $111,508 Statement of Retained Earnings March 31, 2016 Opening Retained Earnings Add: Net Income Less: Dividends Retained Earnings, March 31, 2016 $138,000 $111,508 -$100,000 $149,508 ABC Company Budgeted Balance Sheet As At March 31,2016 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets $46,695 $202,584 $145,861 $395,141 Equipment Less: Depreciation Total Fixed Assets $535,000 $105,000 Total Assets Liabilities Current Liabilities Accounts payable Short-term Notes Payable Total Current Liabilities Long Term Liabilities Long-term Notes Payable Total Liabilities Owner's Equity Common Stock Retained Earnings Total Owner's Equity Liabilities & Owner's Equity $430,000 $430,000 $825,141 $180,590 $0 $180,590 $200,000 $380,590 $235,000 $149,508 $384,508 $765,098 April 12,155 $25 $303,877 Quarter 33,101 34,425 $516,380 $496,519 Quarter $103,441 $11,500 $114,941 Quarter 24,000 15,000 $0 $5,400 $44,400 Quarter $248,259 $551,688 $799,947 N/A Quarter $491,790 N/A Purchase Price Required Rate of Return Time Period Cash Flows Year 1 Cash Flows Year 2 Cash Flows Year 3 Cash Flows Year 4 Cash Flows Year 5 NPV Ranking Project 1 $80,000 6% 3 $48,000 $36,000 $22,000 N/A N/A Project 2 $175,000 8% 5 $85,000 $74,000 $38,000 $26,800 $19,000 Project 3 $22,700 12% 2 $15,000 $12,000 N/A N/A N/A $15,794.51 $29,942.28 $259.18 2 1 3