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INSTRUCTIONS: Please show excel formulas Using the 2 0 2 3 trial balance and additional information below, prepare the projected ( 2 0 2 4
INSTRUCTIONS:
Please show excel formulas
Using the trial balance and additional information below, prepare the projected
financial statements for Walnut Grove. The prior year data provided is the starting point for
your projections, and then each of the assumptions listed below will also be used.
Prepare an Excel workbook which contains the following information:
Tab : Trial Balance provided in this document
Tab : Projected Income Statement
Tab : Projected Balance Sheet
Tab : Projected Statement of Cash Flows Assumptions:
Sales will change as follows:
a Material & Supplies Sales will increase
b Small Tool Sales will increase
c Tool Rental Revenue will continue throughout the year. An average of
tools will be rented each week. The weekly rental per tool is $ Assume that
the average number of tools given will be rented for all weeks.
Cost of sales for materials and supplies and small tools will increase proportionately based
on their current percentage of sales, respectively. HINT: You will need to use vertical
analysis.
Small tools, including blades and other items, is expected to total $ in
Office supplies and postage are expected to increase by during
On January st the company will invest $ in new equipment for its custom cabinet
division.
a This equipment will have a year life and should be depreciated using the
straightline method. This purchase represents the only expected change to
property, plant, and equipment.
b The company will finance the equipment purchased with a year note at
interest. You will need to use an amortization schedule to find the principle and
interest payment amounts. The loan is paid monthly.
In relation to # above, the custom cabinet sales division begins operations in The
following assumptions must be used to project the impact on the financial statements.
Hint: You may need to add accounts to the trial balance.
a Walnut Grove anticipates that it will sell cabinets at an average selling price
of $
b Direct materials per cabinet are $ per unit.
c The direct labor per cabinet is hours, and Walnut Grove pays $hour for
this labor.
d Factory overhead is calculated at of direct labor.
The building is being depreciated over a year life, the computers and software are
being depreciated over a year life, and the furniture and fixtures are being depreciated
over a year life, all using straightline depreciation.
Because of the new cabinet division, annual insurance costs will increase to $
effective January The company prepaid years of this insurance and received a
discount for the year prepayment.
On January a new cabinet division manager will be hired at a cost of $ In
additional to the new cabinet division manager, new employees will be hired at an
average wage of $ per hour, employees work an average of hours per week.
Payroll taxes and benefits should be calculated at of wages.
With weeks remaining in the year, additional employees will be hired at a rate of
$ per hour, based on an average of hours per week.
The income tax rate is
At the end of the year, Walnut Grove will have $ in ending inventory.
In relation # purchases are made evenly throughout the year and are paid in full in the
month following purchase.
Sales are collected in full the month following the sale. During the month of December,
invoiced sales totaled $
The sales tax rate is
At the end of the year, Walnut Grove has received full payment for custom cabinet
orders that will be completed in January
Please show excel formulas
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