Rasmussen College Costco Balance Sheet and Income Statement Memo

User Generated

yvazra

Business Finance

Rasmussen University

Description

Competency

Interpret how the components of a balance sheet and income statement communicate the financial position of an organization.

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane. **I attached this**

Scenario

You are interested in a position managing the front-end operations of Costco, a publicly traded company. Whenever you interview for a new position, experts suggest you do research to make sure you understand all the components of the position, as well as the company. As part of the interview process you need to demonstrate competencies in both financial and managerial accounting. In order to prepare for your upcoming interview, you decide to demonstrate an understanding of the accounting components and uses of the balance sheet and income statement.

Instructions

In a written memo to the Human Resources department of Costco, demonstrate you researched the company by addressing the following:

  • Explain the different classifications of accounts contained in the balance sheet and the income statement and the process for the income to move from the income statement to the balance sheet.
  • Identify the different components on the balance sheet and income statement within the service, merchandising, and manufacturing industries, and which industry Costco would fall within.
  • Evaluate the different accounts on the balance sheet and the income statement as these relate to Costco.
  • Elaborate on whether Costco’s revenues are generated through providing a service, selling merchandise, or manufacturing operations or a combination of these processes.
  • Explain how the revenue and company operations in general affect various inventories on the balance sheet.
  • Analyze the financial position of Costco based on the 2018 financial statements.

Unformatted Attachment Preview

GRADING RUBRIC 1) Accurately and articulately explains the different classifications of accounts and processes. 2) Accurately and articulately identifies different components on the balance sheet and income statement and correctly identifies Costco’s industry, 3) Memo correctly evaluates different accounts on balance sheet and income statement. 4) Memo accurately assesses whether revenues are generated through service, sales, manufacture or combination. 5) Memo accurately explains how revenue and company operations affect various inventories on the balance sheet 6) Summative analysis of the organizations financial position is accurate, articulate, and well-supported.
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Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

Running Head: ACCOUNTING

1

Memo to address components of a balance sheet and income statement in communicating
the financial position of Costco
Student Name
Professor Name
Course
Date

ACCOUNTING

2
MEMO

To: the Human Resources department of Costco
From: Michael Johnson
Date: 8th April 2021
SUBJECT: Addressing components of a balance sheet and income statement in communicating
the financial position of Costco

I am writing in communicating the position of managing the front-end operations of
Costco. As required for the vacant position, I am competent and well versed in financial and
managerial accounting. Particularly, I have a comprehensive understanding of the accounting
components as well as the uses of the balance sheet and income statement.
Financial statements refer to the reports that provide an entity’s financial information
such as assets, equities, liabilities, incomes and expenses, cash flow and shareholder's
contribution ...


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