ACC 307 Southern New Hampshire University Ratio Analysis Report Paper

  

Description

please see the attached rubric and requirements document and use the template for the assignment. also use the excel file as reference

ACC 307 Milestone Three Guidelines and Rubric
Overview: In your final project, you will assume the role of an accountant and complete the year-end adjustment process for your company using a provided
workbook. This workbook is the first deliverable (Part I) of your final project. In Part II, you will analyze the provided financials of the same company and create a
report documenting your findings.
For your third milestone, you will complete a draft of your ratio analysis report so that you can gain feedback and improve your work prior to the final
submission in Module Eight. Note that you do not need feedback from Milestone Two to successfully complete this assignment. You should use the provided
Final Project Part II template to structure your submission.
Prompt: Specifically, the following critical elements must be addressed:
I.
II.
III.
IV.
Abstract: Summarize the story of profitability and liquidity for your company. In other words, highlight the most important aspects of your report,
including your major conclusions.
Computations: Identify and describe your computations from the Financial Analysis tab of your workbook. Be sure to format your key results in a table
or graphical format, as appropriate. Explain why each cited figure was included in your report in terms of its importance for the organization.
Comparison: Evaluate the financials of the company by comparing current ratios to both historical and industry-average ratios. Clearly identify all
unexpected or aberrant figures.
Conclusion: Draw informed conclusions based on your computations and comparisons in the previous paragraphs. Be sure to justify your claims with
specific evidence and examples.
Rubric
Guidelines for Submission: Your ratio analysis report must be 2–3 pages in length (plus a cover page and references) and written in APA format. Use double
spacing, 12-point Times New Roman font, and one-inch margins. All references must be cited in APA format.
Critical Elements
Abstract
Exemplary (100%)
Meets “Proficient” criteria and
demonstrates sophisticated
ability to identify issues in
financial reporting using key
ratios and generally accepted
accounting principles
Proficient (85%)
Needs Improvement (55%)
Not Evident (0%)
Value
Summarizes the story of
profitability and liquidity for the
company by highlighting the
most important aspects of the
report, including the major
conclusions
Summarizes the story of
profitability and liquidity for the
company, but fails to fully or
logically highlight the most
important aspects of the report,
including the major conclusions
Does not summarize the story of
profitability and liquidity for the
company in an abstract
10
Critical Elements
Exemplary (100%)
Proficient (85%)
Needs Improvement (55%)
Not Evident (0%)
Value
Computations
Meets “Proficient” criteria and
demonstrates sophisticated
ability to identify issues in
financial reporting using key
ratios and generally accepted
accounting principles
Identifies, describes, and
appropriately displays
computations in table or
graphical format, and explains
why each figure is important for
the organization
Discusses computations, but fails Does not discuss the
to identify, describe, and
computations
appropriately display each figure
fully or logically, or fails to
explain why each figure is
important for the organization
25
Comparison
Meets “Proficient” criteria and
demonstrates sophisticated
ability to identify issues in
financial reporting using key
ratios and generally accepted
accounting principles
Evaluates the financials by
comparing current ratios to both
historical and industry-average
ratios, and clearly identifies all
unexpected or aberrant figures
Evaluates the financials, but fails Does not evaluate the financials
to fully or logically compare
current ratios to both historical
and industry-average ratios, or
fails to clearly identify all
unexpected or aberrant figures
25
Conclusion
Meets “Proficient” criteria and
demonstrates sophisticated
ability to identify issues in
financial reporting using key
ratios and generally accepted
accounting principles
Draws informed conclusions
based on previous computations
and comparisons, and justifies
claims with specific evidence and
examples
Draws conclusions, but not all
Does not draw conclusions
conclusions are informed or
consistent with previous
computations and comparisons,
or submission fails to justify
claims with specific evidence and
examples
30
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
10
Articulation of
Response
Submission is free of errors
Submission has no major errors
related to citations, grammar,
related to citations, grammar,
spelling, syntax, and organization spelling, syntax, or organization
and is presented in a
professional and easy-to-read
format
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
Total
100%
DELETE ALL TEXT IN ITALICS
Review the Final Project Guidelines and Rubric document to see how your paper will be
scored.
Be sure to follow APA format when providing references. If you have questions on APA
formatting, you can check the Purdue OWL website or seek help from the SNHU Writing Lab.
Notes on APA in a Formal Assignment
•
Use one-inch margins on all sides.
•
Use 12-point Times New Roman font with double spacing.
•
Paragraphs should be at least five to six sentences in length.
•
Do not include the headings “Introduction” and “Conclusion.” These are
included below to help you lay out your paper. APA format assumes that the
introduction begins the paper, the body continues the paper, and the conclusion
wraps up the paper, so those headings are not needed.
•
Indent the first line of every paragraph by 0.5”.
•
Be careful not to use personal pronouns such as “I.”
Make sure to delete headings such as Paragraph One, Paragraph Two, and so on.
Be sure to replace all of the text in italics with your own writing, which should not be in
italics. (This entire first page can be deleted after you review the guidelines. Your paper should
begin with the title page that follows.)
ACC 307 Final Project Part II: Ratio Analysis Report
[Your Name]
Southern New Hampshire University
REMEMBER: DELETE ALL TEXT IN ITALICS
Abstract (Delete this heading in your final paper)
In your opening paragraph, summarize the overall story of profitability and liquidity for
your company. In other words, highlight the most important aspects of your report, including
your major conclusions.
Paragraph One: Computations (Delete this heading in your final paper)
In your first body paragraph, complete the computations portion of your report: Identify
and describe your computations from the Financial Analysis tab of your workbook. Be sure to
format your key results in table or graphical format, as appropriate. Explain why each cited
figure was included in your report in terms of its importance for the organization.
Comparison Ratios:
2016
2015
Industry Standard
Quick Ratio
Gross Margin
Net Margin
Return on Sales
Return on Equity
Paragraph Two: Comparison (Delete this heading in your final paper)
In your second body paragraph, complete the comparison portion of your report:
Evaluate the financials of the company by comparing ratios to both historical and industryaverage ratios. Clearly identify all unexpected or aberrant figures.
Paragraph Three: Conclusions (Delete this heading in your final paper)
In your third body paragraph, draw informed conclusions based on your computations
and comparisons in the previous paragraphs. Be sure to justify your claims with specific
evidence and examples.
References
Wahlen, J. M., Jones, J. P., & Pagach, D. P. (2017). Intermediate accounting: Reporting and
analysis (2nd ed.). Boston, MA: Cengage Learning.
Make sure that you provide appropriate in-text citations in APA style with the author’s
name and year of publication (Author last name, year). The textbook is provided as an example
and should be kept in the references for your paper. Feel free to add other resources. To add
credibility to your paper, remember to cite ALL of the sources within the body of the paper, as
well as in the References list at the end. References should be in alphabetical order by the
author’s last name.
Asset Accounts
Acct #
Cash
Baking Supplies
Prepaid Rent
Prepaid Insurance
Baking Equipment
Office Supplies
Accounts Receivable
Accumulated Depreciation
Trademark
Leasehold Improvements
Accumulated Amortization
101
102
103
104
105
106
107
108
109
110
111
This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and
journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for
you.
Liability Accounts
Equity Accounts
Acct #
Notes Payable
Accounts Payable
Wages Payable
Interest Payable
Loans Payable
he appropriate accounts to record to as you are analyzing and
nothing to complete on this page; this is simply a resource for
you.
201 Common Stock
202 Dividends
203
204
205
Revenue Accounts
Bakery Sales
Merchandise Sales
Expense Accounts
Baking Cost of Goods Sold
Merchandise Cost of Goods Sold (FIFO)
Rent Expense
Insurance Expense
Misc. Expense
Business License Expense
Advertising Expense
Wages Expense
Telephone Expense
Interest Expense
Depreciation Expense
Amortization Expense
Office Supplies Expense
s
Acct #
301
302
ts
Acct #
401
402
ts
Acct #
501
502
503
504
505
506
507
508
509
510
511
512
513
Account
Cash
Baking Supplies
Merchandise Inventory (FIFO)
Prepaid Rent
Prepaid Insurance
Baking Equipment
Accumulated Depreciation
Leasehold Improvements
Accumulated Amortization
Trademark
Office Supplies
Accounts Receivable
Notes Payable
Interest Payable
Accounts Payable
Wages Payable
Loans Payable
Common Stock
Dividends
Bakery Sales
Merchandise Sales
Baking Cost of Goods Sold
Rent Expense
Interest Expense
Insurance Expense
Depreciation Expense
Amortization Expense
Misc. Expense
Office Supplies Expense
Business License Expense
Advertising Expense
Wages Expense
Telephone Expense
Merchandise COGS (FIFO)
Total
Peyton Approved
Trial Balance
2017
Unadjusted trial balance
Debit
Credit
64,713.72
165,250.00
25,750.00
7,500.00
2,400.00
17,000.00
3,285.72
10,000.00
2,000.00
2,300.00
1,600.00
30,401.00
10,000.00
27,325.00
21,000.00
30,000.00
20,000.00
335,675.00
35,200.00
90,000.00
2,780.00
375.00
5,200.00
3,456.00
15,760.00
464,485.72
464,485.72
Approved
Balance
017
Adjusting entries
Debit
Credit
–
–
Adjusted trial balance
Debit
Credit
64,713.72
165,250.00
25,750.00
7,500.00
2,400.00
17,000.00
3,285.72
10,000.00
2,000.00
2,300.00
1,600.00
30,401.00
10,000.00
27,325.00
21,000.00
30,000.00
20,000.00
335,675.00
35,200.00
90,000.00
2,780.00
375.00
5,200.00
3,456.00
15,760.00
464,485.72
464,485.72
Peyton Approved
Adjusting Journal Entries
2017
Date
Accounts
Debit
31-Dec Depreciation Expense
Accumulated depreciation
2,643.00
31-Dec Amortization Expense
Accumulated Amortization
2,000.00
31-Dec Interest Expense
Interest Payable
31-Dec Insurance Expense
Prepaid Insurance
31-Dec Baking Cost of Goods Sold
Baking Supplies
31-Dec Office Supplies Expense
Office Supplies
31-Dec Wages Expense
Wages Payable
Credit
2,643.00
2,000.00
269.00
269.00
2,000.00
2,000.00
137,400.00
137,400.00
1,350.00
1,350.00
22,800.00
168,462.00
22,800.00
168,462.00
Peyton Approved
Income Statement
For Year Ending 12/31/2017
Bakery Sales
Merchandise Sales
Total Revenues
Merchandise Cost of Goods Sold (FIFO)
Baking Cost of Goods Sold
Gross Profit
Operating Expenses:
Rent Expense
Interest Expense
Insurance Expense
Depreciation Expense
Amortization Expense
Misc. Expense
Office Supplies Expense
Business License Expense
Advertising Expense
Wages Expense
Telephone Expense
Total Operating Expenses:
Net Income
$ 335,675.00
$ 35,200.00
370,875.00
15,760.00
137,400.00
217,715.00
90,000.00
269.00
2,000.00
2,643.00
2,000.00
2,780.00
1,350.00
375.00
5,200.00
22,800.00
3,456.00
132,873.00
84,842.00
Peyton Approved
Closing Entries
For Year Ending 12/31/2017
Date
Accounts
Debit
31-Dec Bakery Sales
Merchandise Sales
Income Summary
335,675.00
35,200.00
31-Dec Income Summary
Baking Cost of Goods Sold
Rent Expense
Interest Expense
Insurance Expense
Depreciation Expense
Amortization Expense
Misc. Expense
Office Supplies Expense
Business License Expense
Advertising Expense
Wages Expense
Telephone Expense
Merchandise Cost of Goods Sold (FIFO)
31-Dec Income Summary
Retained Earnings
286,033.00
31-Dec Retained Earnings
Dividends
84,842.00
20,000.00
761,750.00
Credit
370,875.00
137,400.00
90,000.00
269.00
2,000.00
2,643.00
2,000.00
2,780.00
1,350.00
375.00
5,200.00
22,800.00
3,456.00
15,760.00
84,842.00
20,000.00
761,750.00
Peyton Approved
Statement of Retained Earnings
For Year Ending 12/31/2017
Beginning Balance:
plus Net Income
less Dividends:
Ending Balance:
84,842.00
20,000.00
64,842.00
Peyton Approved
Balance Sheet
As of December 31, 2017
Assets
Current Assets:
Cash
Baking Supplies
Merchandise Inventory (FIFO)
Prepaid Rent
Prepaid Insurance
Office Supplies
Accounts Receivable
Total Current Assets
Long Term/Fixed Assets:
Baking Equipment
Accumulated Depreciation
55,428.00
27,850.00
25,750.00
7,500.00
400.00
250.00
30,401.00
147,579.00
26,000.00
5,643.00
20,357.00
Leasehold Improvements
Accumulated Amortization
Trademark
Total Assets:
10,000.00
4,000.00
6,000.00
2,300.00
2,300.00
176,236.00
Peyton Approved
Balance Sheet
As of December 31, 2017
Liabilities and Owners’ Equity
Current Liabilities:
Accounts Payable
27,325.00
Wages Payable
22,800.00
Interest Payable
269.00
Total Current Liabilities
50,394.00
Long Term Liabilities:
Notes Payable
Loans Payable
Total Long Term Liabilities:
Total Liabilities:
31,000.00
81,394.00
Common Stock
Retained Earnings
Total Equity
Total Liabilities & Equity
10,000.00
21,000.00
30,000.00
64,842.00
94,842.00
176,236.00
2017
Quick Ratio
Gross Margin
Net Margin
Return on Equity
2016
2.2
0.55
0.22
0.9
2015 Industry Standard
2.8
1.75
0.7
0.7
0.32
0.24
0.78
0.8

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