ACC-561-Week-One-and-Week-Two-Assignment-recognize-the-significant-role-accounting-plays-in-providing-financial-information-to-management
ACC 561 WEEK ONE ASSSIGNMENT
Financial Statements
oDue Sep 03, 6:00 PM (PST)
oNot Submitted
oPOINTS 5
- Practice/Simulation/Homework/Game
- no new messages
Objectives:
- 1.1
- 1.2
- 1.3
Purpose of Assignment
This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability.
Assignment Steps
Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past.
Research the company on the Internet and download the Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and Statement of Cash Flows.
Develop a minimum 700-word examination of the financial statements and include the following:
Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year?
Explain the relevance of changes in net income to investors.
Determine the ending balance in shareholders’ equity. Why would organizations such as labor unions be interested in this?
Determine the total value of assets.
Discuss the relevance of the total value of assets to potential creditors and why this is important.
Compute the return on assets. Discuss the relative profitability of the company based on your results.
Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results.
Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company.
Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making?
Show your work in Microsoft® Word or Excel®.
Complete calculations/computations using Microsoft® Word or Excel®.
Include the four financial statements along with your assignment.
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment
ACC 561 WEEK TWO ASSIGNMENT
Accounting Methods
oDue Sep 10, 6:00 PM (PST)
oNot Submitted
oPOINTS 6
- Practice/Simulation/Homework/Game
- no new messages
Objectives:
- 2.1
- 2.2
- 2.3
Purpose of Assignment
This week’s activity illustrates the role a company’s accounting method plays in financial statement reporting. In this assignment, students evaluate the events occuring in a business setting and determine how to properly analyze those events to identify the impact on both cash and accrual accounting methods.
Assignment Steps
Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Scenario: BizCon, a consulting firm, has just completed its first year of operations. The company’s sales growth was explosive. To encourage clients to hire its services, BizCon offered 180-day financing – meaning its largest customers do not pay for nearly 6 months. Because BizCon is a new company, its equipment suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year, BizCon owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year.
As the senior accountant, the Chief Financial Officer has asked you to prepare a memo to be sent to management notifying them of the delayed wage payments.
Prepare the memo in a maximum 700 words including the following information to better outline the situation:
Explain how cash and accrual accounting differs for each of the events listed in the above scenario and describe the proper accrual accounting.
Assess how at the end of the year, BizCon reported a favorable net income, yet the company’s management is concerned because the company is very short of cash. Explain to management how BizCon could have positive net income and yet run out of cash.
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
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