Accounting 561

Anonymous
timer Asked: Dec 24th, 2018
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My assignment is due by tomorrow 5pm, pacific standard time. Needs to be original work and no plagarisim.

Financial Statements Grading Guide ACC/561 Version 7 Accounting Copyright Copyright © 2017 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Financial Statements Grading Guide ACC/561 Version 7 Individual Assignment: Financial Statements 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. Resources Required 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. Grading Guide Content Selected a publicly traded, U.S. corporation with which student is familiar or one where student currently works or has worked in the past. Researched the company on the Internet and downloaded the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows. Determined the net income for the current fiscal year (FY). Answered the following question:  Is this income up or down from the prior year? Explained the relevance of changes in net income to investors. Determined the ending balance in shareholders' equity. Answered the following question:  Why would organizations such as labor unions be interested in this? Determined the total value of assets. Discussed the relevance of the total value of assets to potential creditors and why this is important. Met Partially Met Not Met Comments: 2 Financial Statements Grading Guide ACC/561 Version 7 Met Content Partially Met Not Met Total Available Total Earned 4 #/4 Partially Met Not Met Total Available Total Earned Comments: Computed the return on assets. Discussed the relative profitability of the company based on student’s results. Computed the working capital and current ratio. Evaluated the relative liquidity of the company based on student’s results. Computed the debt to assets ratio and the free cash flow for student’s company. Analyzed the results and comment on the relative solvency of the company. Discussed how the financial statements are used in student’s current role or a position student would like to hold. Answered the following question:  How might these aid student in managerial decision making? ® ® Showed work in Microsoft Word or Excel . Completed calculations/computations using ® ® Microsoft Word or Excel . Included the four financial statements along with assignment. The examination is a minimum 700 words in length. Writing Guidelines Met The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Comments: 3 Financial Statements Grading Guide ACC/561 Version 7 Writing Guidelines Assignment Total Additional comments: Met # Partially Met Not Met 1 #/1 5 #/5 Comments: 4
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.

Tutor Answer

JesseCraig
School: UT Austin

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Running head: EVALUATION OF FINANCIAL STATEMENTS OF AMAZON

EVALUATION OF FINANCIAL STATEMENTS OF AMAZON
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EVALUATION OF FINANCIAL STATEMENTS OF AMAZON

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EVALUATION OF FINANCIAL STATEMENTS OF AMAZON
Amazon Inc. is one of the most publicly traded U.S. companies. From income statement,
the net income of Amazon for the year ending Dec 31, 2017 is $3.033 billion. The net income for
the prior year was $2.371 billion. This is much higher than that of the prior year by $0.662
billion, indicating an income of 27.92% in net income.
The changes in net income are very important to the investors because it indicates
whether the revenue being realized by the company is either increasing or decreasing. The trend
of the net income depicts the profitability of the company because the investors always want to
invest in a company whose profitability is increasing. For example, in this case, the net income
of Amazon has increased significantly throughout one year. This indicates that the investors will
realize increasing returns in the form of dividends of they invest in the company. Thus, a
company whose net income is declining over the years is not suitable for investment.
The ending balance of Amazon for the year ending December 31, 2017, is 27.71 billion.
The value of the ending balance helps the organizations like labor unions to evaluate the future
benefits and salaries that Amazon's employees should enjoy. The labor unions can make accurate
projections in collaboration with the company's management to ensure there is fairness regarding
payment ("Amazon.com Inc Shareholders Equity (Quarterly) (AMZN)", 2018).
From the Balance Sheet, total assets for the year ending December 31, 2017, is $131.310
billion. The total assets indicates the capability of the company to settle its short-term & longterm debts. When the assets’ value is more than that of liabilities, then the creditors would have a
surety that the company is capable of paying them (Rotan, 2005). This would attract many
potential creditors to lend money to the company. The risk of default in the payment of the loans
by the company is very low. For example, the total assets of Amazon exceeds its total liabilities
by $27.709 billion. This indicates that Amazon can pay its creditors because it can easily convert

EVALUATION OF FINANCIAL STATEMENTS OF AMAZON

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Anonymous
Thanks for the help.

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