Produce a balance sheet for a company that distinguishes betweencurrent and non- current assets and liabilities.
Create a balance sheet from a trial balance.
Create a comparison of net income based on different methods ofinventory accounting.
Analyze a statement of cash flows and show where each line itemcan be found or
calculated from the other financial statements.
Prepare a full analysis of key financial ratios for a companyand state conclusions about
the financial strength of the company compared to industryratios.
PROJECT SUBMISSION PLAN
Project Part
Description/Requirements of Project Part
Evaluation Criteria
1
Title: Creating a Balance Sheet and Evaluating Inventory
You will be provided with financial information about a fictionalcompany. You will have to determine what information is relevantfor Project Parts 1 and 2.
Task 1: Create a balance sheet from a trial balance for a givenscenario. Make sure you classify the accounts appropriately ascurrent or non-current. Click here to download the trialbalance.
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AC1420: Project
Project Part
Description/Requirements of Project Part
Evaluation Criteria
Task 2: Perform inventory valuations using LIFO, FIFO, andweighted average methods based on the following information.Explain the impact of each method on the cost of goods sold andending inventory.
The company imports microwaves from a supplier in China for theUS market. At the end of the first quarter, 100 microwaves are instock. The company purchased a total of 400 microwaves during thequarter at various prices: January: 100 units @ $75
February: 250 units @ $83
March: 50 units @ $87
The company had no inventory at the beginning of the quarter.
Task 3: If the companyâs goal is to maximize net income, whichevaluation method will you use and why?
Project Part 1 -Task 2: Purchases Cost per Unit Total Cost January February March Ending Inventory = Value of Ending Inventory of100 Units Weighted AVG LIFO FIFO Cost of Goods Sold (300 UnitsSold) Weighted AVG LIFO FIFO Create a BalanceSheet from the trial balance: Debits Credits Classification Cash 300,000.00 Current asset Sales (10,000,000.00) Income statement Cost of Goods Sold 7,000,000.00 Income statement Selling Expenses 500,000.00 Income statement Other income (50,000.00) Income statement Administrative expenses 350,000.00 Income statement Interest Expenses 12,500.00 Income statement Land 300,000.00 non-current asset Building 2,000,000.00 non-current asset Long Term bond payable (550,000.00) non-current liability Accrued Liabilities (50,000.00) current- liability Accumulated Depreciation Buildings (250,000.00) non-current asset Equipment 750,000.00 non-current asset Receivables 100,000.00 current asset Allowance for doubtful accounts (7,500.00) current asset Accumulated depreciation equipment (125,000.00) non-current asset Common Stock (200,000.00) equity Payables (115,000.00) current Liability Inventories 200,000.00 current asset Prepaid Expenses 50,000.00 current asset Retained Earnings (215,000.00) equity 11,562,500.00 (11,562,500.00)
Assets Equity and Liabilities Current Assets Current Liabilities Total Current Assets - Total Current Liabilities - Total long term Liabilities - Total property plant andequipment - Total Equity - Total Assets - Total Equity and liabilities -
Produce a balance sheet for a company that distinguishes betweencurrent and non- current assets and liabilities.
Create a balance sheet from a trial balance.
Create a comparison of net income based on different methods ofinventory accounting.
Analyze a statement of cash flows and show where each line itemcan be found or
calculated from the other financial statements.
Prepare a full analysis of key financial ratios for a companyand state conclusions about
the financial strength of the company compared to industryratios.
PROJECT SUBMISSION PLAN
Project Part | Description/Requirements of Project Part | Evaluation Criteria |
1 | Title: Creating a Balance Sheet and Evaluating Inventory Task 1: Create a balance sheet from a trial balance for a givenscenario. Make sure you classify the accounts appropriately ascurrent or non-current. Click here to download the trialbalance. |
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AC1420: Project
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Task 2: Perform inventory valuations using LIFO, FIFO, andweighted average methods based on the following information.Explain the impact of each method on the cost of goods sold andending inventory. The company imports microwaves from a supplier in China for theUS market. At the end of the first quarter, 100 microwaves are instock. The company purchased a total of 400 microwaves during thequarter at various prices: January: 100 units @ $75 February: 250 units @ $83
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