Week 6 – Final Project
Final Project
The final assignment for this course is a Final Project. The purpose of the Final Project is for you to culminate the learning achieved in the course. The Final Project represents 20% of the overall course grade.
Focus of the Final Project
You should begin working on elements of the Final Project in Week One. Each week, there is a recommended learning activity associated with helping you complete the Final Project. There are ungraded and graded practice exercises, which will allow you to practice applying accounting skills learned in class to different scenarios. Work through the problems, starting with Chapter 1, following the instructions in the textbook and Excel template.
Download and open the Excel file BUS591 Final Project Template. Review the instructions presented on the Instructions Tab in the Workbook and the weekly recommended learning activity. If you complete each part as recommended, you will have the complete Final Project finished by Week Six. Chapters 1, 2 and 3 are ungraded practice problems, while Chapters 4 and 13 are graded problems. Take your time and complete all requirements. Also, if you complete the practice problems from Chapter 3, completing the graded portion from Chapter 4 will be much easier.
Do not work ahead unless you read the corresponding chapters. For example, read Chapters 3 and 4 before completing the Continuing Cookie Chronicle problems from those chapters.
Week 6 – Learning Activity
Learning Activity
If you have not done so already, complete the requirements listed under “Instructions” for Chapter 4 using the Excel worksheet provided. In addition, complete the requirements listed under “Instructions” for Chapter 13 (pg. 744) using the Excel Worksheet provided. *These answers will be submitted and graded for your final assignment in Week 6.
“Instructions” for chpt. 13 (pg. 744)
744 chapter 13 Financial Analysis: The Big Picture
Problems: Set C
Visit the book’s companion website, at www.wiley.com/college/kimmel, and choose the Student Companion site to access Problem Set C.
Continuing Cookie Chronicle
(Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 12.)
CCC13 Natalie and Curtis have comparative balance sheets and income statements for Cookie & Coffee Creations Inc. They have been told that they can use these financial statements to prepare horizontal and vertical analyses, to calculate financial ratios, to analyze how their business is doing, and to make some decisions they have been considering.
Go to the book’s companion website, at www.wiley.com/college/kimmel, to find the com
Financial Reporting and Analysis
FINANCIAL REPORTING PROBLEM: Tootsie Roll Industries, Inc.
BYP13-1 Your parents are considering investing in Tootsie Roll Industries common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Fortunately, excerpts from a recent annual report of Tootsie Roll are presented in Appendix A of this textbook.
Instructions
(a) Make a 5-year trend analysis, using 2007 as the base year, of (1) net sales and (2) net earnings. Comment on the significance of the trend results.
(b) Compute for 2011 and 2010 the (1) debt to assets ratio and (2) times interest earned. (See Note 6 for interest expense.) How would you evaluate Tootsie Roll’s long-term solvency?
(c) Compute for 2011 and 2010 the (1) profit margin, (2) asset turnover, (3) return on assets, and (4) return on common stockholders’ equity. How would you evaluate Tootsie Roll’s profitabil- ity? Total assets at December 31, 2009, were $836,844,000, and total stockholders’ equity at December 31, 2009, was $654,244,000.
(d) What information outside the annual report may also be useful to your parents in making a decision about Tootsie Roll?
COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey BYP13-2 The financial statements of The Hershey Company are presented in Appendix B, follow-
ing the financial statements for Tootsie Roll Industries in Appendix A.
Instructions
(a) Based on the information in the financial statements, determine each of the following for each company:
(1) The percentage increase (i) in net sales and (ii) in net income from 2010 to 2011. (2) The percentage increase (i) in total assets and (ii) in total stockholders’ equity from 2010
to 2011. (3) The earnings per share for 2011.
(b) What conclusions concerning the two companies can be drawn from these data?
Kimmel, Paul D. Financial Accounting: Tools for Business Decision Making, 7th Edition. John Wiley & Sons, 09/2012. VitalBook file.
Attachment
COMPLETE requirements listed under “Instructions” for Chapter 13 (pg 744).
CHAPTER 13, PAGE 744:
FINANCIAL REPORTING PROBLEM: Tootsie Roll Industries, Inc.
BYP13-1 Your parents are considering investing in Tootsie Roll Industries common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Fortunately, excerpts from a recent annual report of Tootsie Roll are presented in Appendix A of this textbook.
Instructions
(a) Make a 5-year trend analysis, using 2007 as the base year, of (1) net sales and (2) net earnings. Comment on the significance of the trend results.
(b) Compute for 2011 and 2010 the (1) debt to assets ratio and (2) times interest earned. (See Note 6 for interest expense.) How would you evaluate Tootsie Roll’s long-term solvency?
(c) Compute for 2011 and 2010 the (1) profit margin, (2) asset turnover, (3) return on assets, and (4) return on common stockholders’ equity. How would you evaluate Tootsie Roll’s profitability? Total assets at December 31, 2009, were $836,844,000, and total stockholders’ equity at December 31, 2009, was $654,244,000.
(d) What information outside the annual report may also be useful to your parents in making a decision about Tootsie Roll?
COMPARATIVE ANALYSIS PROBLEM: Tootsie Roll vs. Hershey
BYP13-2 The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll Industries in Appendix A.
Instructions
(a) Based on the information in the financial statements, determine each of the following for each company:
(1) The percentage increase (i) in net sales and (ii) in net income from 2010 to 2011.
(2) The percentage increase (i) in total assets and (ii) in total stockholders’ equity from 2010
to 2011.
(3) The earnings per share for 2011.
(b) What conclusions concerning the two companies can be drawn from these data?
Attachment
WEEK 6 FINAL PROJECT – INSTRUCTIONS FOR CHAPTER 4 PAGE 219-220
Continuing Cookie Chronicle
(Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 3.)
CCC4 Cookie Creations is gearing up for the winter holiday season. During the month of December 2014, the following transactions occur.
Dec. 1 Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties. 5 Natalie teaches the class that was booked on November 25. The balance outstanding is received.
8 Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30.
9 Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December and January.
15 Pays the cell phone invoice outstanding at November 30.
16 Issues a check to Natalie’s brother for the amount owed for the design of the website. 19 Receives a deposit of $60 on a cookie class scheduled for early January.
23 Additional revenue during the month for cookie-making classes amounts to $4,000. (Natalie has not had time to account for each class individually.) $3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition to the December 5 and December 9 transactions.)
23 Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash.
23 Issues a check to Natalie’s assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23.
28 Pays a dividend of $500 to the common shareholder (Natalie).
As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided.
1. A count reveals that $45 of brochures and posters were used.
2. Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of 5 years. Assume that 2 months’ worth of depreciation is required. 3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1.
4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued
during November and December.) Round to the nearest dollar.
5. One month’s worth of insurance has expired.
6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood
community center on December 31. In early January, Cookie Creations sends an invoice for $450 to the community center.
7. A count reveals that $1,025 of baking supplies were used.
8. A cell phone invoice is received for $75. The invoice is for services provided during the
month of December and is due on January 15.
9. Because the unexpected cookie-making class on December 31 was for such a large
group of children, Natalie’s assistant helps out. Her assistant worked 7 hours at a
rate of $8 per hour.
10. An analysis of the Unearned Service Revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of December. The $60 deposit received on December 19 for another class also remains unearned.
Instructions
Using the information that you have gathered and the general ledger accounts that you have prepared through Chapter 3, plus the new information above, do the following.
(a) Journalize the above transactions.
(b) Post the December transactions. (Use the general ledger accounts prepared in Chapter 3.)
(c) Prepare a trial balance at December 31, 2014.
(d) Prepare and post adjusting journal entries for the month of December.
(e) Prepare an adjusted trial balance as of December 31, 2014.
(f) Prepare an income statement and a retained earnings statement for the 2-month period ending December 31, 2014, and a classified balance sheet as of December 31, 2014.
(g) Prepare and post closing entries as of December 31, 2014.
(h) Prepare a post-closing trial balance.
Jermaine Byrant
Nicole Johnson
OVER
RATING
YEARS
