MBA600– Comprehensive Financial Accounting Project

DUE: Sunday (the last day of the semester)

 

This project should be completed using Excel (with formulas and linked data).  The parameters of the project are below:

 

1. Prepare an Income Statement for the year ended 2014. This statement should be flexibly designed (formulas in cells).  This should be a multi-step income statement (see video and/or exhibit 4.1 on pg. 4-5).  To the right of your dollars in this statement, show common-sized percentages based on sales (vertical analysis).

 

2. Show journal entries, adjusting entries and closing entries for the below additional information…none of the journal entries have been posted to the ledger (many journal entries have been booked to get you started, however none of the entries for 2014 have been posted). You can add a transaction analysis (not required), however you must show actual journal entries that include debits and credits.

 

1. Prepare a Statement of Retained Earnings for the year ended 2014.  This statement should be flexibly designed.

 

1. Prepare a Balance Sheet dated Dec. 31, 2014.  Have the Balance Sheets for 12/31/13 and 12/31/14 on the same Excel sheet labeled Balance Sheets.  Again, a flexible design is required so any changes will automatically update the balance sheet.

 

1. Prepare a Statement of Cash Flows using the indirect method for the year ended 2014.  The Statement of Cash Flows (operating section) should automatically change when assumptions are changed.  The ending cash as shown on the statement of cash flows will then flow to the Balance Sheet.  Cash flow videos are still available in the classroom for your review and appendix B in your textbook contains additional information that you might find helpful.

 

1. Analysis:  on a separate sheet titled “Analysis” compute the following and show in a table (show your work below your table); your table should look similar to that on page 4-21:
   1. ROE for 2014
   2. ROA for 2014
   3. RNOA for 2014
   4. Stockholders’ Equity for 2013 and 2014
   5. Net Income for 2014
   6. NOPAT for 2014
   7. NOA for 2013 and 2014
   8. NOPM for 2014
   9. NOAT for 2014
   10. NNO for 2013 and 2014
   11. Current Ratio for 2013 and 2014
   12. Quick Ratio for 2013 and 2014
   13. Liabilities-to-Equity Ratio for 2013 and 2014

 

Your Name, Inc.

Balance Sheet

12/31/2013

 

 

Current Assets

Cash                                                    $17,000

Marketable Securities (Short-term)           2,000

Accounts Receivable                              14,000

Allowance for Bad Debt                     (2,000)

Inventory                                                15,000

Prepaid Insurance                                     5,000

Total Current Assets              $51,000

 

Property, Plant, and Equipment

Land                                                    $30,000

Building                                                150,000

Accumulated Dep. – Building              (45,000)

Equipment                                            100,000

Accumulated Dep. – Equipment          (20,000)

Total PPE                                          $215,000

 

Total Assets                                       $266,000

 

Current Liabilities

Accounts Payable                                     $9,000

Unearned Revenue                                     2,000

Income Taxes Payable                    3,000

Total Current Liabilities                        $14,000

 

Long-term Liabilities

Bonds, 10%, due in 2018                     $100,000

 

Equity

Common Stock                                     $ 50,000

(100,000 authorized, 50,000 issued)

Additional Pd.-in Capital                           80,000

Retained Earnings                                     22,000

Total Equity                                       $152,000

 

Total Liabilities & Equity                  $266,000

 

 

 

 

 

 

 

 

 

 

Additional Information (for all entries; please see the posted Excel spreadsheet with a few journal entries already provided):

1. Sales for 2014 are $310,000.  All sales are on credit.
2. Gross Margin ratio is 40 percent
3. Accounts Receivable:

1. $190,000 of the accounts receivable is paid by the end of the year (the remaining balance remains on the balance sheet).
2. $4,000 of A/R is written off during the year.

• 5% of Accounts Receivable (after write-off and collections) is considered to be uncollectible.

1. Inventory:

1. Inventory purchases are $180,000, all on credit.
2. All accounts payable is from inventory purchases; all but $12,000 of inventory purchased is paid by the end of the year.

1. Additional equipment is purchased on 4/1/14 for $20,000 cash.  All equipment when new, including the new purchase, has/had a five year life, no salvage value, and is depreciated using the straight-line method.
2. The building depreciates at $5,000 per year.
3. Half of the marketable securities were sold for $1,200. The FMV and cost of the other half of the securities are the same, so no adjustment to FMV is required.
4. Salaries are $2,200 per month (12 months of salaries expense must be booked).  It is expected that one-half month will be owed on 12/31/14 because of when payday falls (therefore, 11.5 months of salaries have been paid and ½ month is still owed to the employees at year end).
5. $55,000 in cash is borrowed on 9/30/14 by issuing a Note Payable. Interest is 8% per year.
6. The bonds were sold at face value last December and pay interest on Dec. 31, 2014.
7. 10,000 additional shares of stock were sold for $3 a share.
8. Insurance costing $18,000 was purchased on 6/1/14 (the same time in which the policy purchased in 2010 expired.  The new policy was for 12 months).
9. On Dec. 31, 1000 shares of stock are repurchased from the market at $2.90/share (treasury stock).
10. The tax rate is 30 percent.  Income taxes for the current year are due and therefore paid during the first two months of the next year (you will have complete an entry to pay the 2013 taxes, however the 2014 taxes will not be paid until the end of January 2015).
11. Dividends of $3,000 were paid during 2014.
12. The unearned revenue has been earned during the year (classified as other revenue on the multi-step income stmt.).

 

Required Labeled Sheets (all statements should be for 2014):

 

1. Data Sheet for Additional Data
2. Entries: Basic and Adjusting (you do not have to show closing entries, however keep in mind all temporary accounts are closed to retained earnings)
3. Adjusted Trial Balance for 2014 (includes the posted amounts of all entries and adjusting entries)
4. Multi-step Income Statement
5. Retained Earnings Statement
6. Classified Balance Sheet
7. Cash Flow Statement
8. Post-Close Trial Balance for 2014
9. Analysis

 

The Post-Close Trial Balance for 2013 is provided below (based on the above balance sheet).  This can be used as a starting point or you can use the above Balance Sheet; keep in mind all debits and credits ALWAYS equal AND Assets = Liabilities + Equity:

 

Your Name, Inc.
Post Close Trial Balance
31-Dec-13
	DEBITS	CREDITS
Cash	17,000
Marketable Securities	2,000
Accounts Rec.	14,000
Allowance for Bad Debt		2,000
Inventory	15,000
Prepaid Insurance	5,000
Land	30,000
Building	150,000
Accumulated Dep. – Building		45,000
Equipment	100,000
Accumulated Dep. – Equipment		20,000
Accounts Payable		9,000
Salaries Payable
Unearned Revenue		2,000
Interest Payable
Income Taxes Payable		3,000
Note Payable
Bonds		100,000
Common Stock		50,000
Additional Pd-in-Capital		80,000
Retained Earnings		22,000
	333,000	333,000

 

 

---

 

PLACE THIS ORDER OR A SIMILAR ORDER WITH MY ONLINE PROFESSOR TODAY AND GET AN AMAZING DISCOUNT

The post Prepare an Income Statement for the year ended 2014. appeared first on MY ONLINE PROFESSOR .

 

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.