strategic management

Excel Assignment.

Marks WangQiuxiang652675

1) Do income statements for 2014 8

2) Do Balance Sheets for 2014 8

3) Do a pro forma Income Statement for 2015 10

4) Do a pro forma Balance Sheet for 2015 10

5) Do Cash Flow Statement for 2014 10

6) Do ratios for 2013 2014 10

7) Do pro forma Ratios for 2015 10

8) Do a pro forma cash budget for 2015 14

9) Do breakeven questions for 2014 2015 10

10) Do the theory problem below 10

Total 100

Theory Problem

It is June 2015 You work at this company.

One of the owners would like to sell some of her shares so she can buy a cottage.

She is offering to sell you 100,000 shares for $3.50 each

Assume you have the money to buy them.

Do you buy them ?

Give me reasons for your answer based on such things as book value, return on

investment, trends, cash flow, SME Benchmarking and so on.

2014 Data

WangQiuxiang652675 2014 Other Info 2014 2013 2015

Accounts payable $980,882 Common Stock 400,000 shares 400,000 shares 400,000 shares

Accounts receivable $630,628

Amortization expense $38,000

Beginning Inventory $760,000 Notes Payable current

Cash $343,828 Sales on Credit 90% percent of net sales

Common stock $100,000

Ending Inventory $964,831 Share Price 2013 $1.60 per share Share Prices based on accounting department’s estimates.

Freight In $39,660 Share Price 2014 $2.75 per share

Interest expense $63,401

GIC’s $300,000 The directors have decided that no new shares will be issued/sold in 2015

Mortgage payable $911,115

Net Purchases $2,757,002

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Net Sales $5,717,665

Notes payable $200,000 Tax rate 40% Of Net Income Taxes on the year’s profits are paid in December

Prepaid expenses $42,089 Amortization Expense 4% declining balance

Plant and Equipment $3,900,000

Salaries $883,718

Utilities $2,879

Insurance $2,787

Transport $20,694

Repairs & Maintenance $9,585

Advertising $26,810

Misc. Expense $49,701

Direct Wages and Expenses $1,135,500

Comon Stock Dividends $60,000

2015 Projected Data

Net Sales 12% increase Mortgage payments for the year: 2014 2015 2016

Direct Wages & Expenses 11% increase Interest Principal Interest Principal Interest Principal

Salaries 1.00% increase 4,499.65 1,989.21 4,378.51 2,110.35 4,250.79 2,238.07

4,489.83 1,999.03 4,368.09 2,120.77 4,240.11 2,248.75

Utilities 2.50% increase 4,479.96 2,008.90 4,357.61 2,131.25 4,229.43 2,259.43

Insurance 3.00% increase 4,470.04 2,018.82 4,347.09 2,141.77 4,218.74 2,270.12

Transport 6.00% increase 4,460.06 2,028.80 4,336.51 2,152.35 4,208.06 2,280.80

R&M 2.00% increase 4,450.05 2,038.81 4,325.88 2,162.98 4,197.38 2,291.48

Advertising $4,000 decrease 4,439.98 2,048.88 4,315.20 2,173.66 4,186.70 2,302.16

Misc 2.00% decrease 4,429.86 2,059.00 4,304.46 2,184.40 4,176.01 2,312.85

Freight-in 10.00% increase 4,419.69 2,069.17 4,293.68 2,195.18 4,165.33 2,323.53

Net Purchases 11% increase 4,409.47 2,079.39 4,282.84 2,206.02 4,154.65 2,334.21

Common Stock Dividends $20,000 increase 4,399.20 2,089.66 4,271.94 2,216.92 4,143.96 2,344.90

Amortization Expense 4.00% declining balance 4,388.88 2,099.98 4,260.99 2,227.87 4,133.28 2,355.58

Capital purchases $30,000 new roof in June to be added to plant & equipment 53,336.67 24,529.65 51,842.80 26,023.52 50,304.45 27,561.87

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