ACC 3010 Project 3 Winter 2016
Question # 00252825
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Updated on: 04/18/2016 02:23 AM Due on: 04/18/2016
ACC 3010
Project 3
Winter 2016
DUE April 23, 2016– This project is due on April 23 before 8:00 pm. Additional hours for help with the project will be posted on the class Blackboard site. Your file must be named - "Your name (first and last) your TAs last name project 3" so that the TAs can do the initial grading. Failure to name the file correctly will result in a deduction in points.
This project is a continuation of Projects 1 & 2, FMoore 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 $3,000,000 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 make a recommendation as to which option they should pursue. 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 10% current and 90% long term.
The included post closing trial balance represents the year end information for October 31, 2018. (The company’s fiscal year is from November 1 to October 31). You have been asked to consider the company’s financing options and provide the company with a 2-3 paragraph recommendation as to which opportunity they should pursue. (a blank sample memo format is posted on the class Blackboard site under the Projects button with the 3rd project information) 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:
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.
Complete the worksheet for the various financing options using the information provided remembering that you must show your work on the worksheet not just as a formula used to compute the numbers on the worksheet. You must show how you arrived at the numbers in the body of the worksheet.
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. They should be labeled to indicate which financing option it represents.
Complete the Ratio Calculation worksheet . You are computing the ratios listed for each of the 3 financing considerations listed. You should show your work for potential full credit. Remember Assets = Liabilities + Equity. Also Current Assets is 10% of total assets.
Complete the memo with your recommendation to the company as to which financing option they should pursue and why you feel that is the appropriate option. In your recommendation please explain in words which option you are recommending. Do not just refer to the number of the option. This MUST be typed in Word and be in proper memo format . Your memo will be graded on grammar, structure, spelling, etc. as well as how you justify which option you choose to recommend to the company. To be considered for full credit for the memo you will need to include at least 3 different (unique) reasons for why you recommend a particular financing option. The TAs, Sandee, and I will not provide guidance on information related to your memo. The TAs, Sandee, and I also will not proofread your memo before its submission. You MUST prepare the memo on your own based on what you have read and what you know. The Word Document must be named the same as your excel file - Your Name and your TA's last name. Failure to do so will result in a deduction of points.
REQUIRED TO TURN IN:
Your memo (prepared in Word) to the final memo submission
Your excel file to the final excel submission
INCENTIVE POINTS FOR PROJECT 3 - to earn the incentive points you must submit your excel file with the items indicated below completed and correct.
April 6 by 9pm Incentive Point - You must submit your excel file with the Depreciation tables completed. You can receive an additional incentive point if you use primarily formulas to complete the depreciation tables.
April 13 by 9pm Incentive Point - You must submit your excel file with the financing options worksheet and the partial balance sheets for the first 2 financing options completed
Project 3
Winter 2016
DUE April 23, 2016– This project is due on April 23 before 8:00 pm. Additional hours for help with the project will be posted on the class Blackboard site. Your file must be named - "Your name (first and last) your TAs last name project 3" so that the TAs can do the initial grading. Failure to name the file correctly will result in a deduction in points.
This project is a continuation of Projects 1 & 2, FMoore 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 $3,000,000 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 make a recommendation as to which option they should pursue. 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 10% current and 90% long term.
The included post closing trial balance represents the year end information for October 31, 2018. (The company’s fiscal year is from November 1 to October 31). You have been asked to consider the company’s financing options and provide the company with a 2-3 paragraph recommendation as to which opportunity they should pursue. (a blank sample memo format is posted on the class Blackboard site under the Projects button with the 3rd project information) 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:
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.
Complete the worksheet for the various financing options using the information provided remembering that you must show your work on the worksheet not just as a formula used to compute the numbers on the worksheet. You must show how you arrived at the numbers in the body of the worksheet.
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. They should be labeled to indicate which financing option it represents.
Complete the Ratio Calculation worksheet . You are computing the ratios listed for each of the 3 financing considerations listed. You should show your work for potential full credit. Remember Assets = Liabilities + Equity. Also Current Assets is 10% of total assets.
Complete the memo with your recommendation to the company as to which financing option they should pursue and why you feel that is the appropriate option. In your recommendation please explain in words which option you are recommending. Do not just refer to the number of the option. This MUST be typed in Word and be in proper memo format . Your memo will be graded on grammar, structure, spelling, etc. as well as how you justify which option you choose to recommend to the company. To be considered for full credit for the memo you will need to include at least 3 different (unique) reasons for why you recommend a particular financing option. The TAs, Sandee, and I will not provide guidance on information related to your memo. The TAs, Sandee, and I also will not proofread your memo before its submission. You MUST prepare the memo on your own based on what you have read and what you know. The Word Document must be named the same as your excel file - Your Name and your TA's last name. Failure to do so will result in a deduction of points.
REQUIRED TO TURN IN:
Your memo (prepared in Word) to the final memo submission
Your excel file to the final excel submission
INCENTIVE POINTS FOR PROJECT 3 - to earn the incentive points you must submit your excel file with the items indicated below completed and correct.
April 6 by 9pm Incentive Point - You must submit your excel file with the Depreciation tables completed. You can receive an additional incentive point if you use primarily formulas to complete the depreciation tables.
April 13 by 9pm Incentive Point - You must submit your excel file with the financing options worksheet and the partial balance sheets for the first 2 financing options completed
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Rating:
/5
Solution: ACC 3010 Project 3 Winter 2016