Complete the balance sheet and cash flow statement

Reference no: EM133491794

Part-1

it is Jan 1st, 2023 and unfortunately you are stuck at the office to satisfy your demanding CFO. Your task is to forecast the upcoming year's financials statements, for fiscal year-end 2023. Please refer to the base spreadsheet provided herewith where part of the work has already been completed for you.

You must now fill in the blanks to complete the Balance Sheet and Cash Flow Statement. For your reference, each cell that requires your attention has been highlighted in blue. These cells should be populated with formulas only. In other words, no hard-coding of any numerical
value is permitted! No hard-coded results will receive points, even if the numerical result(s) are accurate.

Hint: It is important that negative cash flows (and any negative numbers generally) are presented as negative numbers in your spreadsheet.

Historically, and for the near-to-medium term at least, the ratios below are expected to hold true:
Accounts Receivable are consistently 22% of sales in any given year.

Inventories are consistently 18% of Sales in any given year.

Accounts payable are consistently 14% of sales in any given year.

Part-2

After you have completed Part 1, make copy of your worksheet (a new tab within your Excel file), labeled "Financial Statements - Part 2". Make the necessary changes to the financial statements to assess the merits of a new proposal, described below.

Mary Barra, a senior marketing executive at Banana Computing, has an idea for an exciting new advertising campaign. She proposes that doubling 2022's fixed marketing expenses ($2.5 million total for 2023, instead of $1.25 million during 2022) should generate the following results for 2023:

1. Forecasted Revenues (total, firm-wide for 2023) shall be $15.0 million.

2. Forecasted Production Costs (total, firm-wide for 2023) shall be $5.0 million.

3. Forecasted Packaging and Shipping costs (total, firm-wide for 2023) shall be $600,000.

4. Forecasted General & Admin expenses (total, firm-wide for 2023) shall be $3.0 million.
a. *If you approve this proposal, it will be executed starting tomorrow (Jan 2, 2023).
b. **No changes to the established assumptions are expected, aside from those specifically described.

Reference no: EM133491794

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