Please see attached auto graded spreadsheet, you MUST not change any of the macros in any of the tabs.

Leo Company Balance Sheet As of December 31, 2015 ASSETS: Current Assets Cash Accounts Receivable Prepaid Insurance Inventory Total Currents Assets Property, Plant, & Equipment Land Equipment Accumulated Depreciation Total PPE Total Assets LIAB & STOCKHOLDERS EQUITY Current Liabilities Accounts Payable Commissions Payable Income Taxes Payable Dividends Payable Total Current Liabilities Long Term Debt Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total liab & SE $ $ $ $ $ $ $ $ $ $ $ $ 15,200 129,600 10,800 $ 155,600 $ $ 30,000 185,600 $ $ 22,928 140,000 $ $ 22,672 185,600 10,000 40,000 (20,000) 9,828 8,100 5,000 $-0- 10,000 12,672 January Expected Sales Units Unit Sales Price Expected Growth of Sales (monthly growth) Percentage of Cash Sales 2,400 $110 2% 40% Collections of Accounts Receivable Month of Sale Month following Sale 10% 90% Cost of Goods Sold percentage of sales 62% Inventory Purchase Information Purchases paid in current month Purchases paid in next month Purchases are all on credit Planned ending inventory as a percentage of next month's Cost of Goods Sold 80% 20% 10% Sales Commission Information Sales commissions as a percentage of sales Sales commissions are paid the month after they are incurred. Supplies Expense Fixed Cost portion Variable Rate Insurance policy Information # of months of insurance coverage paid for each year The policy period is from January 1 through December 31 each year The premium was paid on January 1 The premium will be recorded initially to prepaid insurance Other Selling & Admin Expenses Salaries Expense Rent Expense Advertising Expense Utilities Expense 5% $4,000 2% 12 $24,000 $12,000 $4,500 $3,000 $1,200 Selling and administrative expenses are paid in the month incurred Fixed Asset Information Purchase Land on January 31 Current Depreciation expense per month Long-Term Loan Interest Information The interest rate on the long-term debt per month is Interest is paid on the principle balance at the beginning of the month Minimum Cash Balance New borrowing must be in $1,000 increments 58,000 1,000 1% $15,000 Tax Information Income tax rate Taxes are paid in the month after they are incurred (expensed) Dividend Information Cash dividend declared in January Cash dividend paid in February 25% $10,000 of sales of sales Leo Company Sales Budget For the first quarter January February There is AT LEAST ONE ERROR on this sheet Percentage of this sheet that is correct: 0% Part 1: Sales Cash Sales Credit Sales Total Sales Part 2: Cash Receipts From Cash Sales From Credit Sales this month From Credit Sales last month Total Cash Receipts March April Leo Company Inventory Purchases Budget For the first quarter January Part 1: Inventory Purchases Cost of Sales Desired Ending Inventory Inventory Needs Less: Beginning Inventory Total Inventory Purchases Part 2: Cash Payments From inventory purchases this month From inventory purchases last month Total Cash Payments There is AT LEAST ONE ERROR on this sheet Percentage of this sheet that is correct: 0% February March April Leo Company Selling and Administrative Expense Budget For the first quarter January Part 1: Variable Selling & Admin Expenses Commissions Expense Supplies Expense Total Variable Selling & Admin Expenses Part 2: Fixed Selling & Admin Expenses Supplies Expense Salaries Expense Rent Expense Advertising Expense Depreciation Expense Utilities Expense Insurance Expense Total Fixed Selling & Admin Expenses Part 3: Cash Payments for Selling & Admin Expenses Commissions Expense Supplies Expense Salaries Expense Rent Expense Advertising Expense Depreciation Expense Utilities Expense Insurance Expense Total Cash Payments for Selling & Admin Expenses There is AT LEAST ONE ERROR on this sheet Percentage of this sheet that is correct: 8% February March Leo Company Cash Budget For the first quarter January Part 1: Cash Available Beginning Cash Cash Receipts Total Cash Available Part 2: Cash Payments For Inventory Purchases For Selling & Administrative Expenses For Land For Interest For Dividends For Taxes Total Cash Payments Part 3: Financing Cash Surplus (Cash Deficit) New Borrowing (Long Term Debt Repayments) Ending Cash Long-Term Debt Beginning Balance of Long-Term Debt New Borrowing Less: Repayments of Long-Term Debt Ending Balance Long Term Debt There is AT LEAST ONE ERROR on this sheet Percentage of this sheet that is correct: 14% February March Note: Sign (+/-) of these values matters. Leo Company Proforma Income Statement For the first quarter January Sales Less: Variable Costs Cost of Goods Sold Variable Selling & Admin Expenses Contribution Margin Less: Fixed Costs Fixed Selling & Admin Expenses Interest Expense Income Before Taxes Income Taxes Net Income There is AT LEAST ONE ERROR on this sheet Percentage of this sheet that is correct: 0% February March Leo Company Balance Sheet As of the end month January ASSETS: Current Assets Cash Accounts Receivable Prepaid Insurance Inventory Total Currents Assets Property, Plant, & Equipment Land Equipment Accumulated Depreciation Total PPE Total Assets $ - $ $ - LIAB & STOCKHOLDERS EQUITY Current Liabilities Accounts Payable Commissions Payable Income Taxes Payable Dividends Payable Total Current Liabilities Long Term Debt Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total liab & SE $ - $ $ - There is AT LEAST ONE ERROR on this sheet Percentage of this sheet that is correct: 4% February March $ - $ - $ $ - $ $ - $ - $ - $ $ - $ $ - Unit Sales Sales Cost of Sales Gross Profit Operating Expenses Commissions Expense Salaries Supplies Expense Rent Expense Advertising Expense Depreciation Expense Utilities Expense Insurance Expense Interest Expense Pretax Income Income Tax Expense Net Income Actual Results 2,125 $244,375 $144,500 $99,875 $9,775 $12,500 $11,331 $4,800 $2,000 $1,000 $1,300 $2,050 $1,400 $53,719 $4,000 $49,719 Units Sales Cost of Sales Gross Profit Operating Expenses Commissions Expense Salaries Supplies Expense Rent Expense Advertising Expense Depreciation Expense Utilities Expense Insurance Expense Interest Expense Pretax Income Income Tax Expense Net Income Planning Budget 2,400 There is AT LEAST one error on this sheet Percentage of this Sheet that is correct: Activity Variances 10.45% F/U Flexible Budget 2,125 Revenue/Spending Variances F/U Actual Results 2,125 $244,375 $144,500 $99,875 $9,775 $12,500 $11,331 $4,800 $2,000 $1,000 $1,300 $2,050 $1,400 $53,719 $4,000 $49,719 Planning Budget Sales Less: Variable Costs Cost of Goods Sold Commissions Supplies Contibution Margin Less: Fixed Costs Supplies Salaries Rent Advertising Depreciation Utilities Insurance Interest Income Before Taxes Income Tax Expense Net Income Contribution Margin Percentage (Ratio) Sales at Breakeven Point Dollar Margin of Safety Sales needed to achieve a $50,000 before tax income Sales needed to achieve a $50,000 after tax net income There is AT LEAST one error on this sheet Percentage of this Sheet that is correct: 0.00% Take-home Exam Grade Points on Take-Home Exam (out of 100) 7% 6.583072