Part $1$: Assume ABC Company has asked you to prepare their $20$X$1$ year$-$end Balance Sheet

based upon the below information.

End of the year information:

Account $12/31/$X$1$

Ending Balance

Cash $50,000$

Accounts Receivable $175,000$

Inventory $126,000$

Equipment $480,000$

Accumulated Depreciation $90,000$

Accounts Payable $156,000$

Short$-$term Notes Payable $12,000$

Long$-$term Notes Payable $200,000$

Common Stock $235,000$

Retained Earnings solve

Part $2$: 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. Therefore, calculate the NPV for each, and place the projects in

the order in which they should be completed using NPV as the reasoning. 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$ $$85,000$ $$13,000$

ACCT $209$

Page $2$ of $2$

Cash Flows $$ Year $2$ $$36,000$ $$74,000$ $$13,000$

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

Required Action:

Part $1$:

$$ Prepare the year$-$end balance sheet for $20$X$1.$ Be sure to use proper headings and labels.

This should be done in Excel, using the first tab in the worksheet.

Part $2$:

$$ Using Excel formulas, calculate the NPV for each of the $3$ potential 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$).$

$$ This portion should be completed on a separate tab in Excel.

This assignment must be submitted as $1$ Excel document, with $2$ separate tabs$.$