Week 1 – Assignment
Week One Homework Problems
Complete P1-3B and P1-4B from Problems: Set B Chapter 1 and P2-7B from Problems: Set B Chapter 2. These problems are located under “Additional Exercises and Problems” on the Textbook Student Companion Site. Use the following Workbook Template Week One. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit.
Carefully review the Grading Rubric (Links to an external site.)Links to an external site. for the criteria that will be used to evaluate your assignment.
BUS591 – Financial Statement and Analysis
Week 1 Homework Assignment Templates
Instructions: Only enter data in the yellow boxes. The remaining areas are already completed for you.
Save the file as follows: lastnamewk1.docx
Submit to the assignment box before the due date.(Late assignments will receive a late penalty).
Grading Rubric:There are a total of 68 “questions” for you to answer (as determined by the yellow box). Each item is worth 0.06 points for a total of 4.00 points.
P1-3B, Prepare an income statement, retained earnings statement, and balance sheet; discuss results.
Instructions:
(a)Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31, 2014.
SHAW’S GARDEN
Income Statement
For the Month Ended May 31, 2014
Revenues
Account title
Amount
Expenses
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Total expenses
Amount
Net income
Amount
SHAW’S GARDEN
Retained Earnings Statement
For the Month Ended May 31, 2014
Retained earnings, May 1
Amount
Add:
Account title
Amount
Amount
Less:
Account title
Amount
Retained earnings, May 31
Amount
SHAW’S GARDEN
Balance Sheet
May 31, 2014
Assets
Account title
Amount
Account title
Amount
Account title
Amount
Total assets
Amount
Liabilities and Stockholders’ Equity
Liabilities
Account title
Amount
Account title
Amount
Total liabilities
Amount
Stockholders’ equity
Account title
Amount
Account title
Amount
Total stockholders’ equity
Amount
Total liabilities and stockholders’ equity
Amount
(b) Briefly discuss whether the company’s first month of operations was a success.
Enter text answer here.
(c) Discuss the company’s decision to distribute a dividend.
Enter text answer here.
P1-4B, Determine items to be included in a statement of cash flows, prepare a cash flow statement and discuss the results.
Instructions:
(a)Determine which items should be included in a statement of cash flows and then prepare the statement for Preacher Corporation.
Enter text answer here.
PREACHER CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Activity
Amount
Activity
Amount
Net cash provided by operating activities
Amount
Cash flows from investing activities
Activity
Amount
Activity
Amount
Net cash used by investing activities
Amount
Cash flows from financing activities
Activity
Amount
Activity
Amount
Net cash provided by financing activities
Amount
Net increase in cash
Amount
(b) Comment on the adequacy of net cash provided by operating activities to fund the company’s investing activities and dividend payments.
Enter text answer here.
(Continued)
P2-7B, Compute values and ratios for the following; discuss results.
Instructions:
(a)For each company, compute these values and ratios:
be sure to show your computations!
Home Depot
Lowe’s
Working Capital
Amount
Amount
Current ratio (round to two decimal places)
Amount
Amount
Debt to total assets ratio
Amount
Amount
Free cash flow
Amount
Amount
Earnings per share
Amount
Amount
(b) Compare the liquidity, profitability and solvency of the two companies.
Enter text answer here.
