Controllership BUS 650-(01&02)
Final Project â Part 1
Due before class final (Part2)
Please download the Excel file labeled âFinal Projectâ and follow the steps below.
1) Notice that some of the Balance Sheet and Income Statement lines and are not on the first tab of the excel sheet. The second tab shows the missing lines. Copy and paste the lines into the proper place on the balance sheet or income statement. If done properly, the X0 Balance Sheet column will balance.
2) Calculate and place the missing numbers for X1 in the proper place on the Balance Sheet and/or Income Statement using the following information. If done properly, the Balance Sheet and Cash Flow Statements will balance for X1.
a. The company paid out $100 in dividends in year X1.
b. During X1, the company purchased and paid for $1,350 in Advertising of which $750 will be used next year.
c. The company assembled the following information regarding Accounts Receivable and Bad Debts at the end of year X1. Use this information to increase the allowance account and record bad debt expense.
Balance
Balance
Historical Bad
Debt rate
Bad Debt Estimate
Current Amount
5,000
1.5%
30-60 Days Past Due
2,000
10%
Over 60 Days Past Due
700
25%
d. Interest Expense during X1 was $1,000.
e. In X1, the company purchased a new machine for $5,000. No other equipment was purchased or sold.
f. The company depreciates some of its assets using the straight line method and others using the double declining balance method. Depreciation should be calculated using the following information. As a rule, the company does not use a residual value for any of its assets. Assume a full year of depreciation on the new equipment item.
Item
Cost
Current
Book Value
Method
Life
Current
Depreciation
Land
1,000
1,000
None
N/A
Building
4,000
3,000
SL
40 yrs
Existing Equipment
17,000
13,500
DDB
15 yrs
New Equipment
5,000
5,000
DDB
10 yrs
Office Equipment
1,000
900
SL
20 yrs
Autos
2,000
1,800
SL
5 yrs
g. Inventory at the end of X1 had increased by $1,500.
h. Office wages paid during the year totaled $3,700. An additional $300 of office wages were earned during X1 but were paid in the following year.
i. During X1, the company paid off $1,000 of debt to the bank. However the company borrowed $4,000 to buy the new piece of equipment.
3) Calculate the ratios to the right of the Statement of Cash Flows. For all items except âWorking Capitalâ, if you place the numerator and denominator in the first column the second column will calculate the answer. The second column will calculate an answer no matter what values you use so careful to use the correct values.
