You are the Controller for the Minnesota Vikings Sports Merchandise Company (MVSMC). You are honored to be the Controller of MVSMC, because the Minnesota Vikings are your favorite football team. The

MVSMC CFO has informed you that MVSMC is considering purchasing a 5,000 sq ft warehouse building in downtown Minnesota and asked for your assistance in evaluating the purchase of the building and the loan required to purchase the warehouse building. As the Controller, you are presented with Trial Balances as of 12/31/23 and 12/31/22 (see two Trial Balance tabs). You are responsible to prepare financial statements and calculate key ratios (see Ratio Analysis tab) to assist you with your evaluation, for MVSMC as of December 31, 2023 and December 31, 2022. The Financial Statements you are required to prepare will include; a) Balance Sheet (2023 & 2022), b) Income Statement (2023 & 2022) and c) Statement of Cash flows (2023 only). In addition, you will evaluate the financial information assumptions provided for MVSMC assuming the new warehouse building and corresponding loan is obtained. After preparing the financial statements, calculating the ratios and evaluating the new warehouse building with the financial assumptions, you will assist the CFO by preparing your recommendation, which includes your evaluation of the financial performance of MVSMC as of December 31, 2023, 2022 and new building assumptions. Your recommendation/evaluation should be completed preparing a Word document of at least two pages or a PowerPoint presentation of at least five slides. The presentation should utilize and reference information from the financial statements, ratios and new building assumptions. REQUIREMENTS: Utilizing the 2023 and 2022 Trial Balances tabs, prepare: 1. Prepare the 2023 and 202 Balance Sheets on the Balance Sheet tab. The balance sheets should included two years; as of December 31, 2023 and 2022. 2. Prepare the 2023 and 2022 Income Statements (multi-step format) on the Income Statement tab. The Income Statements should include the years ended December 31, 2023 and 2022. 3. Prepare a Statement of Cash Flows (utilizing the Indirect Method) on the Statement of Cash Flow tab. The Statement of Cash Flows should include the year ended December 31, 2023 (one period). 4. Calculate the 2023 ratios (one year) on the Ratio Analysis tab. The calculation must be labelled properly; i.e. percentage, number of days, times, etc. and utilize embedded Excel formulas. 5. Based on the completed financial statements, ratios and financial assumptions for the purchase of the new building, prepare a presentation to the CFO utilizing Word or PowerPoint, with you analysis of MVSMC; should MVSMC purchase the building and obtain the loan? Provide detailed analysis and support for your presentation. Your recommendation should be supported by financial analysis./nThe Financials Statements must be prepared in the proper form and format. Students are required to utilize (embed) Excel formulas for the financial statements and ratios, to received full credit. A loan amortization table is provided (see Amort Table). Students should use this tab for information, for your presentation only. Other Notes, New Warehouse Building and Loan Assumptions: The 5,000 sq ft warehouse is expected to cost $1,000,000 (loan amount). With the new warehouse building, sales revenue, net is expected to increase by 250% over 2023, gross profit percentage will remain the same as 2023, operating expenses are expected to increase by 30% over 2023 and the company's tax rate will remain at 10%. The loan will have an interest rate of 8.5%, monthly principal and interest of $12,399, with a 10 year term. All sales are credit sales (no cash sales) All financial statements must be properly formatted in Excel to received full credit. Balance sheets must be in balance. As a reminder: Assets = Liabilities + Owners' Equity Assets and Expenses increase with a Debit and Liabilities, Revenue and Owners' Equity increase with a Credit. Remember that the Financial Statements are linked with specific accounts; i.e. Cash on the Balance Sheet Links to Cash on the Statement of Cash Flows. Please verify the linked balances between the financial statements to verify the statements are in balance. Enter names of team members in the green cells above on this tab. The Financial Statement project is an individual assignment or an assignment for a team of two students. Students should not collaborate with students outside their team of two. Project (this Excel file and Presentation in Word or PowerPoint) must be emailed to Professor Klein at kklein2@twu.edu by 10P CST March 1, 2024. The email must include this Excel File with the completed Financial Statements, Ratios and a Word or PowerPoint File with you analysis of the financial performance of MVSMC for the year ended December 31, 2023, 2022 and new building financial assumptions. The files must be "readable files" attached to email; no links to files. I strongly recommend that you submit the files early, in case I have any issues opening the files. Per the syllabus, I will not accept the project after the deadline (March 31, 2024 at 10P CST).