Financial And Managerial Accounting Assignment

Financial And Managerial Accounting Assignment

Financial & Managerial Accounting
Assignment 1— Financial Statement Analysis

Part 1 – Financial Analysis

The condensed financial statements of Soule Company for the years 2013 and 2014 are presented below.

Text Box: Soule Company Balance Sheets December 31Text Box: Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Property, plant, and equipment Investments Intangibles and other assets Total assets Current liabilities Long-term liabilities Stoc kholders’ equity—co m mo n Total liabilities and stockholders’ equity

2014

2013

£ 330 470 430 120

£ 360 433 300 160

1.350

1,343

420

380

10

10

530

510

E2,310

£2,243

£ 900

£ 810

390

303

1,020

1.040

E2,310

£2,243

Soule Company
Income Statements
For the Years Ended December 31

Text Box: Sales revenue Costs and expenses Cost of goods sold Selling and ad ministrative expenses Interest expense Total costs and expenses In come before income taxes Income tax expense Net income

2014

201 3

L4,000

L’3,600

9.84

895

2,400

2.330

10

20

3.32e.

3.245

606

355

242

142

£ 364

£ 213

Financial & Managerial Accounting
Assignment 1— Financial Statement Analysis

Compute the following ratios for 2014 and 2013_

(a) Current ratio.

(b) Inventory turnover. (Inventory on 12/31112 was £326.)

(c) Profit margin ratio.

(d) Return on assets, (Assets on 12/31/12 were E2,100,)

(e) Return on common stockholders’ equity. (Stockholders’ equity on 12/31/12 was £960.)

(f) Debt to total assets ratio.

(g) Times interest earned.

Critically evaluate your ratio calculations and conclude on the current state of the company.

Word count 500 (+/- 10%)

Part 2 – Performance Evaluation

Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretical explanation of any ratio analysis. No need to recalculate ratios, often the financial reports provides these.

Attach the company financial statements as an appendix to your statement as reference to your work.

Present your findings in a Management Business Report wordage should be 1500 +0′- 10%.

Guidelines for assignment

· This is an individual assignment

· Ground your answer in relevant theory

· Plagiarism and reproduction of someone else’s work as your own will be penalized

· Make use of references, where appropriate — Use Harvard or APA referencing method.

· Late submission are not accepted

Financial & Managerial Accounting
Assignment 1— Financial Statement Analysis

· Structural elements should include an introduction, main body, and a conclusion

· Weight — 50%

· Word count guidance : part 1— N/A. Business report wordage should be 2000 +/-10%

· Type of assignment: Excel Assessed Work Folder and Business Report

· Start / Finish : Week 3 — 4

· Learning Outcome Assessed: 1,2,3,4

· Submit one single document and not lots of different files.