The final project for this course is the creation of an accounting workbook, various notes to the financial statements, and a management analysis memo. In the
professional field, accountants are expected to perform accurate calculations and articulate how financial information impacts the company in a couple of key ways: First, an accountant is responsible for producing the financial information that will be reviewed in a year-end audit. It is important to not only record information correctly but also follow appropriate accounting reporting and recording methodologies.
Second, an accountant should be able to use financial information to evaluate a company’s financial health. This information is important to know so that management can make day-to-day operating decisions. In addition, the financial information that accountants provide is important for companies to be aware of as they consider pursuing other goals, such as expansion. In the management analysis memo, you will evaluate the company’s current performance and explain what the financial information that you presented means for the company.
The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three and Five. The final product will be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course competencies:
ACC-308-01: Apply accounting rules and methodologies in finalizing financial statements
ACC-308-02: Analyze basic financial statements to evaluate an organization’s financial performance
ACC-308-03: Generate financial records for various accounting situations
You will assume the role of a financial accountant responsible for preparing for a year-end audit. In addition, management would like a report of where the company stands currently, and how it stands in relation to meeting future goals for growth. To complete this project, review the Final Project Scenario document and use the accompanying workbook.
Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course competency (shown in brackets).
I. Accounting Workbook: Your accounting workbook must include appropriate calculations, ratios, and notes. Be sure to complete all tabs in the spreadsheet.
A. Create adjusting entries for financial statement preparation. [ACC-308-03]
B. Create an adjusted trial balance for financial statement preparation. [ACC-308-03]
C. Prepare financial statements for determining the company’s financial position. [ACC-308-03]
D. Calculate ratios for determining the company’s financial health. [ACC-308-03]
E. Create pro forma financial statements for predicting ability to meet future expansion goals. [ACC-308-03]
II. Notes to the Financial Statements: Your notes must contain the following:
A. Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory. [ACC-308-01] B. Create appropriate notes for long-term debt [ACC-308-01]
III. Management Analysis Memo: Your management analysis memo should explain financial information to management. Provide evidence from your accounting workbook to support your ideas.
A. Assess the company’s financial health based on ratio analyses presented in the accounting workbook. [ACC-308-02]
B. Compare ratio analysis to trends in financial ratios over time for illustrating their impact, providing examples to support your claims. [ACC-308-
C. Summarize the effects of different compounding periods and interest rates on future value of money. [ACC-308-02]
D. Discuss the impact of the pro forma financial statements for predicting ability to meet future expansion goals. [ACC-308-02] E. Identify potential issues in interpretation of financial information, providing examples to support your ideas. [ACC-308-02]
F. Explain how alignment to relevant regulations and ethical reporting influenced your accounting practices and notes, providing examples to
support your claims. [ACC-308-01]
G. Describe the implications of inventory costing, contingent liabilities, and revenue recognition. [ACC-308-02]