Prior to beginning work on this discussion forum, read Chapter 5 in the course textbook Using Financial Accounting. After reading Chapter 5 in the textbook, address the following: Discus
Prior to beginning work on this discussion forum, read Chapter 5 in the course textbook Using Financial Accounting.
After reading Chapter 5 in the textbook, address the following:
- Discuss how management can control cash. Your discussion should include what tools management may use to control cash.
- Using the same company and annual financial statements that you chose for your Week 1 Reading and Using the Annual Report Case Study discussion forum, disclose the company’s cash balance, and discuss if you believe the company has too much or too little cash. Be sure to support your opinions with supporting facts from the financial statements.
- Discuss management’s responsibility to establish overall basic internal controls. Provide a real-life example from a work situation where you saw basic internal controls in place.
Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly or credible resource, in addition to the text. Cite your sources in APA Style with in-text citations and a reference list. The Writing Center’s APA: Citing Within Your PaperLinks to an external site. and APA: Formatting Your References ListLinks to an external site. provide instructions and examples.
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Financial Statement Analysis
Student name:
Affiliated Institution:
Course:
Instructor name:
Due Date:
QLP Enterprise
Balance Sheet as at June 30, 2023
|
Assets |
Liabilities |
||
|
Cash assets: |
$120,000 |
Current liabilities: |
$100,000 |
|
Petty cash: |
$20,000 |
Accounts payable: |
$150,000 |
|
Accounts receivable: |
$30,000 |
Notes payable: |
$65,000 |
|
Inventory value: |
$10,000 |
Long-term liabilities: |
$160,000 |
|
Investments: |
$140,000 |
Taxes (state): |
$20,000 |
|
Prepaid expenses: |
$30,000 |
Taxes (federal): |
$15,000 |
|
Land: |
$30,000 |
Taxes (property): |
$15,000 |
|
Land improvements: |
$10,000 |
Taxes (misc.): |
$10,000 |
|
Buildings: |
$50,000 |
Payroll/wages: |
$20,000 |
|
Vehicles: |
$25,000 |
Misc: |
$9,000 |
|
Equipment: |
$24,000 |
||
|
Furnishings: |
$40,000 |
||
|
Miscellaneous assets: |
$15,000 |
||
|
Intangible assets: |
$20,000 |
||
|
Total assets: |
$564,000 |
Total liabilities: |
$564,000 |
QLP Enterprise
Income Statement as at June 30, 2023
|
Revenue |
|||
|
Gross Sales |
650000 |
||
|
Less: Sales Returns and Allowances |
250000 |
||
|
Net Sales |
|||
|
Cost of Goods Sold |
|||
|
Beginning Inventory |
23000 |
||
|
Add: Purchases |
10000 |
||
|
Freight-in |
15000 |
||
|
Direct Labor |
20000 |
||
|
Indirect Expenses |
|
||
|
Inventory Available |
|||
|
Less: Ending Inventory |
|
||
|
Cost of Goods Sold |
|||
|
Gross Profit (Loss) |
|||
|
Expenses |
|||
|
Advertising |
1000 |
||
|
Total Expenses |
|||
|
Net Operating Income |
|||
|
Other Income |
|||
|
Gain (Loss) on Sale of Assets |
|
||
|
Interest Income |
|
||
|
Total Other Income |
|||
|
Net Income (Loss) |
|||
Reflection
In the assignment, an effective articulation and preparation of balance sheet and income statement provides significant information on practical financial analysis and data-driven decision-making within an organization. In financial analysis of an enterprise there is a vital analysis of firms’ financial information including balance sheet, and income statement, indicating statement of financial position and profit and loss reporting. Noteworthy, the exercise has identified balance as a financial statement, giving an overview of a company’s financial position at a specific time as income statement indicates revenue, cost of good, experiences and profit or loss of the Company.
In the Balance sheet exercise, accommodating a specific time period, provide a practical timeframe for a company’s financial position, supporting an effective performance and deliverability. Specifically, the exercise has explored and understood significant segment of a balances sheet including assets, liabilities and equity that underscores’ company’s financial position at a particular time. Assets denotes resource with economic value owned by a company , classified as current and non-current assets, whereby current assets describes cash , while non-current assets describes proprieties and plan. Consequently, the excise explored liabilities as company’s obligations as current and non-current liabilities. Finally, the prepared balance sheet for QLP Enterprise describes equity as residual interest in the company’s assets after liabilities deductions. Additionally, balance sheet preparation provided significant understanding on fundamental equations, such as assets is equivalent to liabilities plus equity, information on liquidity, solvency and fiscal health, and information for financial indicator for investors and stakeholders.
Consequently, the excise on income statement indicates vital information on revenue, cost of goods, experiences and profit and gain of the QLP Enterprise for the end year 2023. Furthermore, the excise explored critical articulation on components of income statement including revenue, expenses, gross profit, operating income, earning per share and metrics such as EBIDTA. Thus, the exercise provides an exceptional platform to understand financial statement analysis and data-driven decision on company’s profitability and financial positions.
References
Brodersen, S., & Pysh, P. (2014). Warren Buffett Accounting Book: Reading Financial Statements for Value Investing. Pylon Publishing;
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