Please see the images below for the instructions. Looking for what the final Excel sheets should look like for comparison. Thank you!

Project 4 instruction (1) (Protected View) - Word stay in Protected View Enable Editing x 1 .1. 2 3 4 . 5 . 6 . 7 .: Near the end of 2019, the management of Dicken Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. $ 711,000 DICKEN SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,000 Accounts receivable 525,000 Inventory 150,000 Total current assets Equipment 540,000 Less: Accumulated depreciation 67,500 Equipment, net Total assets Liabilities and Equity Accounts payable $ 360,000 Bank loan payable 15,000 Taxes payable (due 3/15/2020) 90,000 Total liabilities Common stock 472,500 Retained earnings 246,000 Total stockholders' equity Total liabilities and equity 472,500 $ 1,183,500 $ 465,000 718,500 $ 1,183,500 To prepare a master budget for January, February, and March of 2020, management gathers the following information. a. The company's single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,000 units on December 31, is more than management's desired level, which is 20% of the next month's expected sales in units). Expected sales are January, 7,000 units; February, 9,000 units; March, 11,000 units; and April, 10,000 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month after the month of sale. For the December 31, 2019, accounts receivable balance, $125,000 is collected in January 2020 and the remaining $400,000 is collected in February 2020. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2019, accounts payable balance, $80,000 is paid in January 2020 and the remaining $280,000 is paid in February 2020. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. Equipment reported in the December 31, 2019, balance sheet was purchased in January 2019. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $36,000; February, $96,000; and March, $28,800. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. Project 4 instruction (1) (Protected View) - Word stay in Protected View Enable Editing 1. . . 2.. .... 3.. ... 4... .. 5 6 7. g. The company plans to buy land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the month. h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $25,000 at the end of each month. i. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until April 15. Required: Using Excel file to prepare a master budget for each of the first three months of 2020; include the following component budgets: 1. Monthly sales budgets. 2. Monthly merchandise purchases budgets. 3. Monthly selling expense budgets. 4. Monthly general and administrative expense budgets. 5. Monthly capital expenditures budgets. 6. Monthly cash budgets. 7. Budgeted income statement for the entire first quarter (not for each month). 8. Budgeted balance sheet as of March 31, 2020. Excel Workbook requirement: 1. Set up your excel file name as "fall2019_firstname lastname_excel 4". 2. Each required budget will be set up in separate worksheet labeled as "sales", "purchase" etc. The first worksheet in your excel file should be "sale" budget. 3. All calculation need to be entered as formula. All numbers calculated from other budget components should be linked into other worksheets when needed. For example: the sales budget number from January to March should be linked into the merchandise purchase budget. Many of the cash budget numbers should be linked from other budget worksheet where the number come from. 5. All worksheet should be designed as professional presentation format. Make sure heading, centering, number format, alignment etc. You may choose to do color coding or other features as excel provides. 6. After your final budgeted income statements and balance sheet are completed based on the requirement 7 and 8 above, please use the chart to present your work book result. You may design what you would like to present and how to present. Chart can be on the same page of the balance sheet and income statement or you may set up a separate worksheet to present. (Hint: Pretending you are the accounting senior staff who complies and presents this budget during a meeting. What would interested parties (various department managers and some VPs) like to know?) Grading criteria: Completeness of each component of budget: max of 15 points Headingumber formatting/link between workbook and other excel function usage: 5 points Presentation: 5 points Project 4 instruction (1) (Protected View) - Word stay in Protected View Enable Editing x 1 .1. 2 3 4 . 5 . 6 . 7 .: Near the end of 2019, the management of Dicken Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. $ 711,000 DICKEN SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,000 Accounts receivable 525,000 Inventory 150,000 Total current assets Equipment 540,000 Less: Accumulated depreciation 67,500 Equipment, net Total assets Liabilities and Equity Accounts payable $ 360,000 Bank loan payable 15,000 Taxes payable (due 3/15/2020) 90,000 Total liabilities Common stock 472,500 Retained earnings 246,000 Total stockholders' equity Total liabilities and equity 472,500 $ 1,183,500 $ 465,000 718,500 $ 1,183,500 To prepare a master budget for January, February, and March of 2020, management gathers the following information. a. The company's single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,000 units on December 31, is more than management's desired level, which is 20% of the next month's expected sales in units). Expected sales are January, 7,000 units; February, 9,000 units; March, 11,000 units; and April, 10,000 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month after the month of sale. For the December 31, 2019, accounts receivable balance, $125,000 is collected in January 2020 and the remaining $400,000 is collected in February 2020. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2019, accounts payable balance, $80,000 is paid in January 2020 and the remaining $280,000 is paid in February 2020. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. Equipment reported in the December 31, 2019, balance sheet was purchased in January 2019. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $36,000; February, $96,000; and March, $28,800. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. Project 4 instruction (1) (Protected View) - Word stay in Protected View Enable Editing 1. . . 2.. .... 3.. ... 4... .. 5 6 7. g. The company plans to buy land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the month. h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $25,000 at the end of each month. i. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until April 15. Required: Using Excel file to prepare a master budget for each of the first three months of 2020; include the following component budgets: 1. Monthly sales budgets. 2. Monthly merchandise purchases budgets. 3. Monthly selling expense budgets. 4. Monthly general and administrative expense budgets. 5. Monthly capital expenditures budgets. 6. Monthly cash budgets. 7. Budgeted income statement for the entire first quarter (not for each month). 8. Budgeted balance sheet as of March 31, 2020. Excel Workbook requirement: 1. Set up your excel file name as "fall2019_firstname lastname_excel 4". 2. Each required budget will be set up in separate worksheet labeled as "sales", "purchase" etc. The first worksheet in your excel file should be "sale" budget. 3. All calculation need to be entered as formula. All numbers calculated from other budget components should be linked into other worksheets when needed. For example: the sales budget number from January to March should be linked into the merchandise purchase budget. Many of the cash budget numbers should be linked from other budget worksheet where the number come from. 5. All worksheet should be designed as professional presentation format. Make sure heading, centering, number format, alignment etc. You may choose to do color coding or other features as excel provides. 6. After your final budgeted income statements and balance sheet are completed based on the requirement 7 and 8 above, please use the chart to present your work book result. You may design what you would like to present and how to present. Chart can be on the same page of the balance sheet and income statement or you may set up a separate worksheet to present. (Hint: Pretending you are the accounting senior staff who complies and presents this budget during a meeting. What would interested parties (various department managers and some VPs) like to know?) Grading criteria: Completeness of each component of budget: max of 15 points Headingumber formatting/link between workbook and other excel function usage: 5 points Presentation: 5 points