Figmint Consulting And Sales Inc. Balance Sheet Accounting Help

Anonymous
timer Asked: Apr 10th, 2019
account_balance_wallet $10

Question Description

Need help with accounting homework. Please work on part two only of the attached file.

Unformatted Attachment Preview

PART 2 You must submit your total excel file with completed Bonds portion of the financining options tab, the bonds journal entries, the Bonds portion of the partial balance sheets completed. For example, if you do not complete and submit Part 1 of the project by the due date you will lose the points allocated to that part of the project. If you complete that part of the project and submit it before the final part 3 due date, you will have 50% reduction in points when grading and the same scenario for part 2. There is no late submission for part 3 of the project. This project is a continuation of Projects 1 & 2, FigMint Consulting and Sales Inc. A time machine has taken us 2 years into the future and you have been asked to make some recommendations to the company regarding financing for an upcoming major expansion. The company has been very successful but they will need a major inflow of cash to purchase the fixed assets they need for the expansion and hire additional employees. They believe they will need at least $2,000,000 and have asked for your recommendations as to how they should obtain the necessary funds. They have provided information about their available financing options and have asked you to evaluate them and provide some additional information. They have also asked for depreciation schedules for the new assets they plan to purchase. Finally they have asked for information about the cash inflows they can expect from each of the financing options and the expected annual cash outflow required for each financing option. They also request a calculation of several ratios under each of the financing alternatives. When you need information about Assets for any of the ratio calculations, remember that Assets = Liabilities + Equity. Also, assume the split between Current Assets and Long Term Assets is 35% current and 65% long term. The included post closing trial balance represents the year end information for December 31, 2022. (The company’s fiscal year is from January 1 - December 31). You have been asked to consider the company’s financing options and provide the company with additional information to help them as they decide which financing option to choose. The information about the various financing opportunities available is provided in this project information. You are also provided information regarding the plant asset purchases the company plans with the cash inflows. The following is a suggested series of steps for completing the project: RECOMMENDED STEPS FOR COMPLETION Complete the attached Depreciation Schedules for each of the planned asset purchases using the provided information regarding cost, useful life, and selected method. You should do only the first 4 years for the building and do the complete useful life depreciation schedules for all of the other assets. This is part of part 1 of the project. Copy the Depreciation calculations from the Depreciation tab to the Depreciation formulas tab. Highlight the entire area and press the "ctrl" key and the "~" key. This will cause the formulas used to display instead of the numbers. Save your file with the formulas displayed. This is part of part 1 of the project. Complete the worksheet for the various financing options using the information provided and providing all the detailed information requested that is used in the calculations for the various financing options. You will do the bond financing options first and submit them as part of part 2 of the project. Part 2 of the project also requires completing the bond journal entries tab. You will do the equity financing option second and submit that as part of part 3 of the project. Part 3 also requires completing the stock journal entry. In an effort to make what you need to submit clearer, on the financing options tabs we have highlighted the cells that need to have information input into them Complete the 3 “partial classified balance sheets”. These should include ONLY the Liabilities and Equities sections of the classified balance sheet. These must have all proper formatting but do NOT need to have headings. You will do the bond financing options partial balance sheets and submit them as part of part 2 of the project and do the equity financing option partial balance sheet next and submit it as part of part 3 of the project. Be sure you include the wording regarding par value and shares authorized, issued and outstanding on all of your partial balance sheets for Common Stock. See examples from class. Copy the Partial Balance Sheets from the Partial Balance Sheets tab to the Partial Balance Sheets formulas tab. Highlight the entire areas respectively and press the "ctrl" key and the "~" key. This will cause the formulas used to display instead of the numbers. Save your file with the formulas displayed. This will be done for part 2 of the project and then again for part 3 after you complete the equity financing options. Complete the Ratio Calculation worksheet . You are computing the ratios listed for each of the 3 financing considerations listed. You Net should show your work for potential full credit. Remember Assets = Liabilities + Equity. Also Current Assets is 35% of total assets. Income The projected Net Incomes for the year for the 3 alternatives are shown in the next columns Net Income Option 1 Option 2 325852 357465 Copy the Ratios from the Ratios tab to the Ratios formulas tab. Highlight the entire area and press the "ctrl" key and the "~" key. This will cause the formulas used to display instead of the numbers. Save your file with the formulas displayed. Each student must submit an ORIGINALEXCEL file (no Numbers, Google docs, Microsoft Online, etc.)to the appropriate project 3 assignment links in Canvas. While students are encouraged to work together, each student must process and format his/her own excel file. Duplicate submissions (format, not numbers) will result in the students receiving a 0 for the assignment. Just changing the font size or orientation/placement is not really an "original effort". You need to check your submission and make sure that the information is displayed properly - that numbers are displayed (not #####) when you submit your file. If numbers do not display this will result in a deduction Submissions will NOT be accepted via email attachment. Submission to other than the correct links on Canvas will result in a 10% deduction. NO LATE SUBMISSIONS OF PART 3 WILL BE ACCEPTED. Net Income Option 3 389468 FigMint Consulting and Sales Inc Post Closing Trial Balance December 31, 2022 Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Inventory Prepaid Insurance Land Building Accumulated Depr – Building Office Equipment Accumulated Depr – Office Equip Computer Equipment Accumulated Depr - Computer Equip Accounts Payable Utilities Payable Wages Payable Short Term Note Payable Long term Note Payable Mortgage Payable Common Stock ($1 par, 1,000,000, shares authorized, 400,000 issued and outstanding) Retained Earnings $ 198.600 75.580 $ 4.690 56.500 58.596 57.890 260.526 698.950 19.356 356.500 45.600 658.950 32.560 56.560 16.850 89.850 485.965 387.590 305.984 400.000 577.087 $ 2.422.092 $ 2.422.092 debt equity PLANNED ASSET ACQUISITIONS Reminder that the company’s fiscal year is January 1 - December 31. Asset Land Building Office Equipment Delivery Equipment Cost Useful life 500.000 545.000 365.500 N/A 25 3 405.900 4 Salvage Depreciation Purchase Date Value Method N/A N/A 1-Jan-23 50.000 Straight line 1-Jan-23 10.600 Straight line 1-Jul-23 5.900 production 1-Sep-23 Additional information related to the delivery equipment purchase is shown below: Total estimated mileage for the life of the vehicle 160000 To complete the depreciation schedule, PRESUME that the actual miles driven for its useful life are as indicated below. Year 1 Year 2 Year 3 Year 4 Total 19.650 56.850 54.598 46.850 177.948 Round depreciation expense per unit to the nearest penny and depreciation expense to the nearest dollar. ife are as indicated below. Building Depreciation Schedule Depreciation for the Year Date 1/1/2023 12/31/2023 12/31/2024 12/31/2025 12/31/2026 Asset Dep'ble Cost basis 545.000 545.000 495.000 495.000 545.000 495.000 545.000 495.000 545.000 Depreciation Expense 19.800 19.800 19.800 19.800 Accumulated Depreciation 19.800 39.600 59.400 79.200 Book Value 545.000 525.200 505.400 485.600 465.800 Office Equipment Depreciation Schedule Depreciation for the Year Date 7/1/2023 12/31/2023 12/31/2024 12/31/2025 12/31/2026 Date 9/1/2023 12/31/2023 12/31/2024 12/31/2025 12/31/2026 Asset Dep'ble Cost basis 365.500 365.500 354.900 365.500 354.900 365.500 354.900 365.500 354.900 Asset Cost 405.900 405.900 405.900 405.900 405.900 Depreciation Expense 59.150 118.300 118.300 59.150 Accumulated Depreciation 59.150 177.450 295.750 354.900 Book Value 365.500 306.350 188.050 69.750 10.600 Delivery Equipment Depreciation Schedule Depreciation for the Year Depreciation per unit Units of Depreciation Accumulated Production Expense Depreciation 2,50 2,50 2,50 2,50 19.650 56.850 54.598 46.850 177.948 49.125 142.125 136.495 72.255 49.125 191.250 327.745 400.000 Book Value 405.900 356.775 214.650 78.155 5.900 Financing Options OPTION 1 The company could issue $2,500,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The bond issues for 85. OPTION 2 The company could issue $2,000,000 of long-term bonds, due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. The bond issues for 110. OPTION 3 The company could issue 300,000 additional shares of $1 par value common stock for $7.50 per share The company will begin paying a dividend to ALL the common shareholders of $0.20 per share and this will continue into the future. FigMint Consulting and Sales Inc Cash Received/Annual Cash Payment Requirement OPTION 1 Cash Received Annual Cash Required Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate Bond price Discount OR Premium OPTION 2 Cash Received Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate Bond price Discount OR Premium Annual Cash Required FigMint Consulting and Sales Inc Cash Received/Annual Cash Payment Requirement OPTION 3 Cash Received number of existing shares number of new shares total shares at year end market price Dividend rate Dividend period PIC year end PIC > par year end Annual Cash Required nt Bond Journal Entries DATE ACCOUNT Stock Journal Entry DEBIT CREDIT OPTION 1 OPTION 2 OPTION 3 FigMint Consulting and Sales Inc Financial Ratios and Calculations Ratios Current Ratio Current Assets Current Liabilities Debt to Asset Ratio Total Debt Total Assets Return on Equity Net Income Total Equity Return on Assets Net Income OPTION 1 OPTION 2 OPTION 3 Total Assets Building Depreciation Schedule Depreciation fo Date Asset Dep'ble Cost basis Depreciation Expense =+'Asset aquisitions planned'!F7=+'Asset aquisitions planned'!B8 45291 =+'Asset aquisitions =B7-'Asset planned'!B8 aquisitions =C7/'Asset planned'!D8 aquisitions planne 45657 =B7 =C7 =C8/'Asset aquisitions planne 46022 =B8 =C8 =C9/'Asset aquisitions planne 46387 =B9 =C9 =C10/'Asset aquisitions plann Office Equipment Depreciation Schedul Depreciation fo Date Asset Dep'ble Cost basis Depreciation Expense =+'Asset aquisitions planned'!F9='Asset aquisitions planned'!B9 45291 =B18 =B19-'Asset aquisitions =(C19/'Asset planned'!D9 aquisitions plan 45657 =B19 =C19 =C20/'Asset aquisitions plann 46022 =B20 =C20 =C21/'Asset aquisitions plann 46387 =B21 =C21 =(C22/'Asset aquisitions plan Delivery Equipment Depreciatio Depre Depreciation Asset Date Cost per unit Units of Production =+'Asset aquisitions planned'!F10='Asset aquisitions planned'!B10 45291 =B30 =(B31-'Asset aquisitions ='Assetplanned'!D10)/'Asset aquisitions planned'!C a 45657 =B31 =C31 ='Asset aquisitions planned'!C 46022 =B32 =C32 ='Asset aquisitions planned'!C 46387 =B33 =C33 ='Asset aquisitions planned'!C =SUM(D31:D35) eciation Schedule Depreciation for the Year Accumulated Book Depreciation Value =D7 =D8+E7 =D9+E8 =D10+E9 =B6-E6 =F$6-E7 =F$6-E8 =F$6-E9 =F$6-E10 Depreciation Schedule Depreciation for the Year Accumulated Book Depreciation Value =D19 =D20+E19 =D21+E20 =D22+E21 =B18 =F$18-E19 =F$18-E20 =F$18-E21 =F$18-E22 quipment Depreciation Schedule Depreciation for the Year Depreciation Accumulated Book Expense Depreciation Value =B30 =D31*C31 =E31 =G30-F31 =D32*C32 =E32+F31 =G30-F32 =D33*C33 =E33+F32 =G30-F33 =(B34-'Asset aquisitions =E34+F33 planned'!D10-F33) =G30-F34 ...
Purchase answer to see full attachment

Tutor Answer

AccountsChamp
School: UCLA

Find the solution attached herewith.I have not entered the dates in Journal Entry, as was not sure of the dates.Please put in the dates from your side if required.

PART 2 You must submit your total excel file with completed Bonds portion of the financining options tab, the bonds journal entries,
the Bonds portion of the partial balance sheets completed.

For example, if you do not complete and submit Part 1 of the project by the due date you will lose the points allocated to that part of
the project. If you complete that part of the project and submit it before the final part 3 due date, you will have 50% reduction in
points when grading and the same scenario for part 2. There is no late submission for part 3 of the project.

This project is a continuation of Projects 1 & 2, FigMint Consulting and Sales Inc. A time machine has taken us 2 years into the future
and you have been asked to make some recommendations to the company regarding financing for an upcoming major expansion.
The company has been very successful but they will need a major inflow of cash to purchase the fixed assets they need for the
expansion and hire additional employees. They believe they will need at least $2,000,000 and have asked for your recommendations
as to how they should obtain the necessary funds. They have provided information about their available financing options and have
asked you to evaluate them and provide some additional information. They have also asked for depreciation schedules for the new
assets they plan to purchase. Finally they have asked for information about the cash inflows they can expect from each of the
financing options and the expected annual cash outflow required for each financing option. They also request a calculation of several
ratios under each of the financing alternatives. When you need information about Assets for any of the ratio calculations, remember
that Assets = Liabilities + Equity. Also, assume the split between Current Assets and Long Term Assets is 35% current and 65% long
term.

The included post closing trial balance represents the year end information for December 31, 2022. (The company’s fiscal year is
from January 1 - December 31). You have been asked to consider the company’s financing options and provide the company with
additional information to help them as they decide which financing option to choose. The information about the various financing
opportunities available is provided in this project information. You are also provided information regarding the plant asset purchases
the company plans with the cash inflows. The following is a suggested series of steps for completing the project:

RECOMMENDED STEPS FOR COMPLETION
Complete the attached Depreciation Schedules for each of the planned asset purchases using the provided ...

flag Report DMCA
Review

Anonymous
Thanks, good work

Similar Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors