Category: Accounting

Overview
The statement of cash flows is one of the primary financial
statements that a company must prepare each year and involves the
company’s operating, investing, or financing activities. The statement
of cash flows can be analyzed and leveraged in making decisions
pertaining to lending and investing.
Directions
This assignment will use the statement of cash flows of The Coca-Cola
Company and PepsiCo, Inc. presented in Appendices C and D,
respectively, which are linked in the Supporting Materials Section. The
companies’ complete annual reports, including the notes to the financial
statements, are also available online and linked in the Supporting
Material section. You will use each company’s statement of cash flows to
perform calculations and explain your rationale behind these
calculations. Remember, you will need to look at both sets of financials
for each company and address the rubric criteria for both companies.
Specifically, you must address the following rubric criteria:
Operating Activities
Identify the method of computing net cash provided by operating activities for each company.
Calculate the amounts of cash provided by operating activities reported each company in 2020.
Explain the two companies’ trends in net cash provided by operating activities over the period 2018 to 2020 for each company.
Investing Activities
Identify the most significant item in the investing activities section reported by each company in 2020.
Financing Activities
Identify the most significant item in the financing activities section reported by each company in 2020.
Depreciation and Amortization
Identify what activity would depreciation and amortization be reported on in each company’s statement of cash flow using the indirect method.
Explain why each company reported on depreciation and amortization where they did in their statement of cash flows.
Identify the amount of depreciation and amortization for each company.
Statement of Cash Flows and Ratios
Compute the current cash debt coverage for each company.
Compute the cash debt coverage for each company.
Explain what conclusions can be drawn from the
current cash debt coverage ratio and the cash debt coverage ratio for
each company. Address the following questions in your response:
What conclusions can be drawn from the current cash debt coverage ratio?
What conclusions can be drawn from the cash debt coverage ratio
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If you do not already have Excel installed on your computer, please download it (for free) from the UMaine IT page here: https://umaine.edu/it/microsoft-office365/ . Please do NOT do the project in Numbers or Google Sheets. I cannot open them and will not grade them. Virtually no one in the business world uses either, so get used to it.
Download the FSA Spreadsheet from its folder in Brightspace (if you’re reading this, you’re already there) and open it.
Identify which two companies you will be comparing: Enter your first and last names in the boxes as indicated (D3 and K3). Use the first letter of your first and last names to select companies from columns R-AC (First name) and AE-in the appropriate cells (D5 and K5).
Copy the financial statements from 2020 for Company 1 and paste it in Column B. To do so, highlight the cells you want to copy (Rows 9 through 31 and Rows 35 to 48 – do these separately!) and use Ctrl-C. Then select cell B9 and use Ctrl-V to Paste. (You can also right-click and select copy and paste from the popup menu)
IMPORTANT NOTE: YOU SHOULD NOT TYPE ANY NUMBERS ANYWHERE IN THIS SPREADSHEET. ALL DATA CAN EITHER BE COPIED FROM ELSEWHERE WITHIN THE SHEET OR CALCULATED USING FORMULAS. UNDER NO CIRCUMSTANCES SHOULD YOU CALCULATE SOMETHING ON YOUR CALCULATOR AND THEN TYPE THE NUMBER INTO EXCEL. IF YOU DO SO I WILL TAKE POINTS OFF!
Repeat the process for 2019 for Company 1 and for 2020 and 2019 for Company 2 (pasting the numbers into columns D, I, and K).
Do you see a bunch of ####s? If so, that just means that the numbers are too big for the cell. You can click and drag the column borders up at the top of the worksheet to make them larger! Or you can doubleclick the column’s right border up top and it will auto-size the column for you.
Create Common Size Financial Statements for both companies and both years.
Divide all Balance Sheet accounts by Total Assets. 
Divide all Income Statement accounts by Total Revenue
See the following Excel Videos for help:
Mathematical formulas: divide, subtract (Chapter 2)
How to use Absolute Cell Referencing in Excel (Chapter 10)
This will allow you to copy and paste the formula from Cell C9 to the rest of the balance sheet accounts and Cell B35 to the rest of the income statement accounts
Note that you will need a new absolute reference for each year’s financial statements. Don’t divide 2020’s Cash by 2019’s Total Assets!
Highlight your common size calculations and click the % button within the “Number” section of the top menu ribbon (Under the Home tab). This will turn all those decimals into nice pretty %s.
Calculate % Change of All Balance Sheet and Income Statement accounts for both companies. 
To calculate the change in cash, enter =(B9 – D9)/D9 into cell G9.
Copy and paste that cell’s formula into Column G for the rest of the financial statement lines for Company 1
Repeat the process for Company 2 using a similar formula.
Use that little % button here too! No ugly decimals for us!
Perform Ratio Calculations with Excel formulas for Company 1 in Cells D50 to D63. Please note that I only want ratios for a single year.
Current Ratio: Total Current Assets / Total Current Liabilities
Working Capital: Total Current Assets – Total Current Liabilities
Accounts Receivable Turnover: Revenue / Average Accounts Receivable
Use the formula B35/(AVERAGE(B10, D10))
Make sure you have two )s at the end!
Assume that all revenues were Credit Sales. That’s how business typically works.
Average Collection Period: 365 / Accounts Receivable Turnover
Use the formula = 365/B52
For funsies, type a different number into B35 and see how both AR Turnover and Average Collection Period update!
Click the undo button to return Revenue to the correct number.
Inventory Turnover: Cost of Goods Sold / Average Inventory
Adapt the formula from c. above 
Don’t forget that this is COGS, not Sales!
Days inventory Held: 365 / Inventory Turnover
Adapt the formula from d above. 
Funsies again, if you wish, followed by undo.
Debt to Assets: Total Liabilities / Total Assets
Debt to Equity: Total Liabilities / Total Equity (note that this is different than Total Assets. If your number is the same as g above, you screwed up!)
Times Interest Earned: “Operating Income” / Interest Expense
Asset Turnover: Revenue / Average Total Assets
See c. above for how to do the average
Return on Assets: Net Income / Average Total Assets
See c. above for how to do the average
Return on Equity: Net Income / Average Total Equity (note that this is different than Total Assets)
See c. above for how to do the average
Let’s make these ratios pretty! 
For the two return ratios, use that % button again.
For all the others, click on the button that looks like 00->0 to the right of the % button. This will decrease the number of decimal places shown. We don’t need more than one, so turn that 2.353672346 into 2.4!
Verify that the numbers make sense. If a company has an AR turnover of 500, that means they are collecting 100% of their receivables more than once a day. This is, obviously, dumb. We have numbers from the examples in the text and the notes. If your calculation is a factor of 10 different from those, you’re probably wrong.
Copy the formulas from Column D to column K.
Highlight cells B50 toB63 and type Ctrl-C
Click in Cell I50
Type Ctrl-V
Look! Now you don’t have to type in all those formulas again! Or even redo the formatting! Yay Excel!
Analyze the data!
For each ratio, indicate which Company (1 or 2) has a better ratio in Column N.
Note that higher is not always better. Think about what each ratio means and whether you would like that number to be higher or lower. Review the notes or the text (or the internet) if necessary. This is part of the Big Payoff of making all MBS students take ACC 201.
Be consistent! Average Collection Period is just AR Turnover divided into 365. If company 1 is better for Turnover, it’s going to be better for Average Collection Period.
Do not enter anything in cells N57 or N58. Debt to Assets and Debt to Equity, being leverage ratios, are ambiguous without deeper analysis. That is, you can’t say that one company’s ratio is better or worse, just higher or lower.

It’s a group project about a chosen company and my groups chosen company is Bayerische Motoren Werke AG (BMW)
my role as a group member is to perform
Member 2: Data Collection & Analysis
Task: Handle the data collection and analysis portion.
Subtasks:
Gather financial reports of the chosen company and its competitors.
Perform cross-sectional and time-series analysis.
Focus on one aspect such as sales, cost, or fixed assets and provide a line-item breakdown.
Please read through and follow carefully these instructions as well as all the other documents that i have atahced because following is vital for me to do it correctly
Accounting 978 Spring 2024
The term project is a group project. Students should form groups of from three (3) to five (5) people and submit reports on Luiss Learn. Reports will be graded based on both their analysis (contents) and writing (presentation) from 0 to 10 points (no decimal) and count toward 20% of the course grade. All members of a group will receive the same grade for the project.
Each additional member beyond the cap (5) will result in two (2) points of penalty.
Eachmemberbelowtheminimumrequirement(3)willresultintwo(2)pointsofpenalty,
e.g., if you do the project solo, you will get at most 10 – (3 – 1) × 2 = 6 points. The group project aims to expose you to:
• teamwork,
• data collection,
• data analysis, and
• academic/business writing
Excellent report should show accomplishments in these aspects.
1 Requirements
Write a report about a listed company of your choice. The company of your choice should be a merchandiser or a manufacturer. There is no additional limitation such as where the company is listed, etc.
Your report should enhance the reader’s understanding of the company and help the reader to decide whether it is financially rewarding to invest in the company.
In so doing, your report must include cross-sectional (against competitors) and time series (against the company’s past) analysis. The number of competitors should be at least as many as the number of group members.1 Time series should be at least five (5) years and ending in 2023 the earliest.
Contents The analysis must be based on the company and its related companies’ financial reports. You do not need to cover all aspects of the company. Focus on just one aspect (sales, cost, fixed assets, etc.).
Your analysis must break down at least one line-item on either the income statement or the balance sheet (according to the aspect you are focusing on).
Line-itembreakdownisoftennotreadilyavailableonGoogle/Yahoo!Finance,etc.,which means you must consult the notes to the original financial reports.
You are allowed to use Google/Yahoo! Finance for other general-purpose analysis.
Not always possible, but performing a value-chain analysis (on suppliers and customers)
is a major plus.
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Hint: Competitors can be identified from proxy statements.
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Choice of subject Despite that there is almost no limitation on choice of subject (company you would cover), I strongly discourage crowding around a few star companies. I will rank reports covering the same subject, and no two reports on any subject will receive the same grade. Different aspects of the same company are considered as different subject.
• Suppose, in an extreme case, 11 groups decide to cover Apple’s sales, then the worst report will receive 0 point regardless of absolute report quality.
I encourage you to choose Italian and European subjects and test whether what you’ve learned in the course is applicable internationally. Smaller and more focused companies are often easier to analyze.
Submission You should submit either a Word or PDF file on Luiss Learn. Deadline is at 11:59PM on May 8, 2024, regardless of which final exam you are registered to. I will not grade before the deadline, so you may submit revisions. Regarding the document—
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The electronic document should be formatted on A4-sized pages, with page margin of 2–3 centimeters on each side, font size between 11 and 12, and text double-spaced.
The text should not exceed 10 pages. There is no minimum page limit. Tables, figures, and list of reference do not add toward the page count.
The file should not exceed 10 megabytes.
Recommended practice
The title Although not always easy, entitling your report with a catching phrase can help you communicate your findings and make a good impression before your reader gets to the text. That said, a plain title such as “Group project on Company X” is still better than no title.
Put your names immediately under the title. Do not withhold your names until the end or even forget to put them into the document. Do not include your professor’s name.
When submitting your report electronically, include your (last) names as part of the file name.
Text formatting Choose a conventional typeface with serif. If you cannot decide, use Times New Roman.
Once format choices are made (typeface, font size, page margin, and line spacing), use then throughout the entire documents.
Use bold fonts or italic shapes sparsely if at all.
It’s okay to center titles, section titles, and captions. But do not center blocks of text (para- graphs, even entire sections).
Tables and figures Use tables and figures when they communicate better than text. All tables and figures should have captions and short explanatory notes and be numbered consecutively. Tables and figures should occupy the full width of the page. Do not use a table and a figure to show the same set of information. Instead of inserting tables and figures into the text, consider putting all tables and figures at the end of your report.
In tables:
Format numbers in a suitable and consistent way within the table and align them to the
right side of each cell.
A single number should not run over one row no matter what.
Do not use vertical rules at all and use horizontal rules sparsely.
Do not copy-paste tables as images.
In figures:
• Always specify what are on the x- and y-axes in the notes.
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• Do not include random imagery in your report.
Screenshots The most common and offensive mistake is to bloat your report with screenshots. Do not use screenshots unless the screenshots per se are what you intend to show. (You don’t need to screenshot the financial reports to prove that you’ve consulted them.) Instead, extract and process the information from the source and re-tabulate the data properly; this is
part of the exercise.
Report structure Breaking your report into sections to highlight its structure helps you orga- nize your report in a logical way. You may find the following layout useful:
Introduction Provide basic information about the subject you chose (1 paragraph). This can
be extended if the subject is not a household name. Also explain why you are interested in the subject in the mode to convince your reader to share your view. Briefly summarize what you’ve done and what you’ve found.
Main body Describe your method and your finding in detail. Focus on what you do, (when necessary) justify your research choice, and most importantly, what you’ve found. You often need more than one sections here.
Conclusion The conclusion should be based on your work. No one can perform the most comprehensive analysis, so it is important you acknowledge the incompleteness of your report.
Reference An itemized list of sources you’ve consulted.
Reference Each item in the reference should contain at least the name of the author(s), the year in which the source is published, and the title of the source.
Sources can be journal articles, working papers, books, book chapters, news articles, maga- zine articles, web pages, etc.
You shall not list financial reports as your source. It suffices as long as you mention in the text that you used the financial reports. The same applies to websites, such as Google finance, SEC EDGAR, etc.
For online resource, you should provide the Uniform Resource Locator (URL). Check if URLs can be shortened and make sure they work after shortening.
Review your report Run your document through a grammar checker and review issues it raises. You don’t have to accept every change it suggests, but you need to have a reason not to accept a proposed change.
Manually proofread (read out) your report before submission.
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Please follow the instructions in the cover sheet and make sure to avoid plagiarism. Also, use APA style for references.

Greenbloom Garden Centers is a small, privately held corporation that has two stores in Orlando, Florida. The Greenbloom family owns 100 percent of the company’s stock, and family members manage the operations. Sales at the company’s stores have been growing rapidly, and there appears to be a market for the company’s sales concept—providing bulk garden equipment and supplies at low prices. The controller prepares the company’s financial statements, which are not audited. The company has no debt but is considering expanding to other cities in Florida. Such expansion may require long-term borrowings and is likely to reduce the family’s day-to-day involvement in all of the company’s operations. The family does not intend to sell stock in the company.
In your posting, address the following:
Discuss the factors that may make an audit necessary and potentially valuable for the company and other stakeholders.
Evaluate three benefits and three challenges associated with a financial statement audit for your current (or previous) organization.

Obtain the most recent annual report for the two companies that your group has chosen. The reports should contain at least three (3) years of income statement data and two (2) years of balance sheet data.
Analyze at least 3 (three) items on the income statement for each company that would be important to an investor and or user of the financial information, and discuss whether each company’s performance related to these items appeared to be improving, deteriorating, or remaining stable over the two years. Justify your answer.
Analyze at least 3 (three) items on the balance sheet for each company that would be important to an investor and or user of the financial information, and discuss whether each company’s performance related to these items appeared to be improving, deteriorating, or remaining stable over the two years. Justify your answer.
Analyze each company’s investing and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that each company appears to be employing.
Identify 2 (two) items not included in (or derived from) the financial statements that you think would be important to someone considering whether to invest in each company. Discuss your reasons for believing that these two items about the company would be important in making an investment decision. (Hint: you might want to consider items discussed in other business classes.)
Compare the results you obtained above for both companies. Based on the analysis done by your group on the financial statements, if you were making a decision to invest in one of the two companies, which company would you choose? Why? (Note: Your answer in this section must include some financial issues, but your answer need not be limited to a discussion of financial issues.)
Note:
You must submit the entire annual report for each company being discussed. (these can be submitted in electronic format)
Your analysis must include page references to relevant portions of the annual reports, and the relevant portions of the annual reports must be highlighted. Your report must also contain appropriate quotation marks for quoted material and appropriate references for material taken from sources outside the financial statements.
Your analysis (body of the report, excluding Title page, Table of Contents, References, and Attachments) is limited to 8 to 10 (eight to ten no more than fifteen, 15) pages and must be typed, one and one-half-spaced, and have at least a 12-point font. (This report should be submitted electronically via Canvas in Excel, Word or pdf format.)
The assignment is due on its due date (Submit the paper in electronic format via Canvas).

Overview
This assignment focuses on ratios, liabilities, and equity. Remember,
organizations use financial ratios to analyze balances from different
timeframes as well as against competitors. Using these ratios, investors
can gain insight into how the organization is performing.
Scenario
Bradburn Corporation was formed five years ago through a public
subscription of common stock. Daniel Brown, who owns 15% of the common
stock, was one of the organizers of Bradburn and is its current
president. The corporation has been successful, but it currently is
experiencing a shortage of funds. On June 10, 2026, Daniel Brown
approached the Topeka National Bank, asking for a 24-month extension on
two $35,000 notes, which are due on June 30, 2026, and September 30,
2026. Another note of $6,000 is due on March 31, 2027, but he expects no
difficulty in paying this note on its due date. Brown explained that
Bradburn’s cash flow problems are due primarily to the company’s desire
to finance a $300,000 plant expansion over the next two fiscal years
through internally generated funds.
The commercial loan officer of Topeka National Bank requested the
financial reports for the last two fiscal years. Please see the
Supporting Materials section.
Directions
This assignment will use the balance sheet and income statement
provided in the financial statement linked in the Supporting Materials
section. Use the financial statements to address the rubric criteria.
Remember to provide citations for the Financial Decisions and Factors
section.
Specifically, you must address the following rubric criteria:
Calculations
Calculate the current ratio for fiscal years 2025 and 2026.
Calculate the acid test (quick ratio) for fiscal years 2025 and 2026.
Calculate the inventory turnover for the fiscal year 2026.
Calculate the return on assets for fiscal years 2025 and 2026. (Assume that total assets were $1,688,500 at 3/31/24.)
Percentage Changes
Calculate the percentage change in sales from the fiscal year 2025 to 2026.
Calculate the percentage change in cost of goods sold from the fiscal year 2025 to 2026.
Calculate the percentage change in gross margin from the fiscal year 2025 to 2026.
Calculate the percentage change in net income after taxes from the fiscal year 2025 to 2026.
Financial Decisions and Factors
Describe at least one additional financial report or analysis
that might be helpful to the commercial loan officer of Topeka National
Bank in evaluating Daniel Brown’s request for a time extension on
Bradburn’s notes.
Explain whether Bradburn’s desire to finance the plant expansion
from internally generated funds is realistic. Assume that the
percentage changes experienced in fiscal year 2026 as compared with
fiscal year 2025 for sales, cost of goods sold, and operating expenses
will be repeated in each of the next two years (2027 and 2028). Consider
the following questions to guide your response:
What will the percentage changes for sales, cost of goods sold, and operating expenses look like in each of the next two years?
How does the percentage change for sales, cost of goods sold, and
operating expenses affect Bradburn’s ability to finance the plant
expansion from internally generated funds?
Explain whether Topeka National Bank should grant the extension
on Bradburn’s notes considering Daniel Brown’s statement about
financing the plant expansion through internally generated funds.
Consider the following questions to guide your response:
Should Topeka National Bank grant the loan? Why or why not?
Will Bradburn’s projected operations for 2027 generate an adequate
amount of cash to finance the plant expansion and repay the loan?
Does Bradburn need the 24-month extension? Why or why not?
What do the financial ratios indicate about Bradburn’s financial structure?
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complete the following cases which shows the types of disclosures of leases made by public companies, and to show the impact of capitalizing leases on the financial statements. Answer thoroughly with explanations. Tip based on grade given. No plagiarism.

Chapter 6-Journal Entries. Answer all the following Journals: 1. Explain the importance of similarities, proximity, complementarity, social exchange theory, and reciprocity in the development of friendships. 2. Describe Sternberg’s theory of love and explain the seven types of love described in Sternberg’s model. 3. What is a codependent relationship?

Competency
In this project, you will demonstrate your mastery of the following competency:
Apply accounting principles and methods to a variety of financial reporting situations
Overview
It is important for a company to disclose the quantitative
information as well as the qualitative information. Transactions often
occur over the period that may not have a direct financial impact,
however, are still important to disclose to stakeholders.
Directions
For this assignment, you will choose to review the 10-K for either
The Coca-Cola Company or PepsiCo, Inc., and use that company for this
entire project. As you work through this project, you will be
considering the necessity of full disclosures.
Specifically, you must address the following rubric criteria:
Disclosure
Explain the importance of the full disclosure principle.
Provide a rationale for disclosing financial information to stakeholders in a variety of financial reporting situations.
Specific Financials of a Given Company
Use the
financials of either The Coca-Cola Company or PepsiCo, Inc. The company
you choose should be used to address the following:
Explain the disclosure requirements for related-party transactions. Include the following details in your response:
Cite the codification section applicable in your answer.
Identify the type of information that is required or important to disclose for these types of common transactions.
Explain the disclosure requirements for contingent liabilities. Include the following details in your response:
Cite the codification section applicable in your answer.
Identify the type of information that is required or important to disclose for these types of common transactions.
Explain the disclosure requirements for subsequent events. Include the following details in your response:
Cite the codification section applicable in your answer.
Identify the type of information that is required or important to disclose for these types of common transactions.
Explain the disclosure requirements for major business segments. Include the following details in your response:
Cite the codification section applicable in your answer.
Identify the type of information that is required or important to disclose for these types of common transactions.
Explain the disclosure requirements for interim reporting. Include the following details in your response:
Cite the codification section applicable in your answer.
Identify the type of information that is required or important to disclose for these types of common transactions.
Accounting Change and Error Correction
Use the financials of either The Coca-Cola Company or Pepsi Co, Inc. The company you choose should be to address the following:
Determine the impact on a company for an accounting change. Consider the following question to guide your response:
How do companies account for accounting changes? For example, if the
company changed from one GAAP method to another (e.g., LIFO to FIFO for
inventory valuation).
Determine the impact that an error correction can have on a company. Consider the following questions to guide your response:
What are the effects of errors on the financial statements?
If there was an Excel calculation error in a spreadsheet calculating
the depreciation expense for all the property, plant and equipment that
resulted in $3 million less expense, how would this be corrected?
What to Submit
Submit your project as a 3- to 5-page Microsoft Word document with
double spacing, 12-point Times New Roman font, and one-inch margins.
Sources should be cited according to APA style. WILL NEED SCHOOL LOGIN FOR LINKS>