Setting up a Financial Statement, Accounting homework help

Jan 16th, 2016
DotaCN
Category:
Accounting
Price: $20 USD

Question description

As a nonaccounting manager, you will examine your company’s financial statements as well as the financial statements of other companies. You must be able to recognize differences in these statements and have a general understanding of the various accounts listed on each statement.

In this assignment, you will determine the nature of various financial statement accounts, using the example of Compnet International.

Note: You will apply your learning from this assignment to calculate ratios for Compnet in the discussion for this week.

Tasks:

Consider the following scenario for this assignment: You are a manager at Compnet and your CEO has asked you to break down the financial statements into categories of accounts so that you can analyze trends within the company.

Part I: Computations

Select the links that follow to download and review the financial statements of Compnet International:

As you create the new Excel worksheet, use the prepared financial statements of Compnet.

Complete the following:

  • Create a horizontal trend analysis of the reported Compnet financial statements. This worksheet should list each financial statement (balance sheet and income statement in this order) on two Excel worksheets (one worksheet file).
  • In column A, you would list each account on the statement (make sure you show the various categories of accounts).
  • In column B and following, you would present the annual totals of each account with a monetary difference (absolute) column to compare one year to the next year and a percentage difference column.
  • Therefore, for each of the two years reported, you will have Y1, Y2, Difference, and Percentage Difference columns. Your trend analysis must include three historical years. Therefore you need to compare Y1 to Y2 and then Y2 to Y3 (fiscal years 2012–2014).

Part II: Summary

After completing the computations on each of the three financial statements, provide a 1-page summary of the trends that you have observed. Describe the material trends by the category of accounts. Did that category of account increase, decrease, and if so by what amount and percentage. Remember to only discuss the major or material trends that you have observed.

Submission Details:

Apply APA standards to citation of sources. Submit both parts 1 and 2 together and be sure to clearly label each part.

Use the following file naming convention: LastnameFirstInitial_M2_A1.doc. For example, if your name is John Smith, your document will be named SmithJ_M2_A1.doc.

By Week 2, Day 3, deliver your assignment to the M2: Assignment 1 Dropbox.

Assignment 1 Grading Criteria

Maximum Points

Provided an Excel Worksheet with details of years 2012, 2013, and 2014 compared to each other.

20

Computations included each account title as provided in the original financial statements, a difference column, and a percentage difference column. Worksheet is formatted correctly and all totals are accurate.

32

Developed a minimum of a 1-page financial summary of the major trends including discussion of inventories, intangible assets, deferred revenue, and retained earnings on the balance sheet; revenues, cost of sales, and impairment of goodwill on the income statements.

32

Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.

16

Total:

100


Tutor Answer

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