ACCT504 Full Course Latest 2019 June

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 1 Discussion

FINANCIAL REPORTING ENVIRONMENT, FINANCIAL STATEMENTS, AND RATIOS

What is the purpose of accounting? Who are the users of accounting information?

What about the purpose and composition of the balance sheet, the income statement, the statement of retained earnings and the statement of cash flows? How about earnings per share, the current ratio and the debt to total assets ratio?

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 2 Discussion

ACCOUNTING EQUATION, ACCOUNTING CYCLE, AND ACCRUAL ACCOUNTING

In this area, we will discuss the significance of the accounting equation, the rules of debit and credit, and the steps in the accounting cycle. We will talk about recording of transactions, normal balances, and the creation of the trial balance.

Let’s begin by asking this question: What is the role of the accounting equation in the analysis of business transactions?

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 3 Discussion

ACCRUAL ACCOUNTING, ADJUSTING ENTRIES & THE ACCOUNTING CYCLE

During the week, we will explore the differences between cash-basis and accrual-basis accounting, and learn the steps required to complete the accounting cycle. With that in mind, let’s begin by discussing the following question:

Why do companies make adjusting entries? When are adjusting entries made and at what point in the accounting process?

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 4 Discussion

MERCHANDISING OPERATIONS, INCOME STATEMENTS, AND INVENTORY COST-FLOW ASSUMPTIONS

In this area, we will discuss the accounting-for-inventory transactions of merchandising companies, the two formats of preparing the income statement, and how to evaluate the profitability of a merchandising company. We will also discuss how companies determine the year-end inventory value and cost of goods sold using one of the cost-flow assumptions. Finally, we will examine the impact of choosing a certain cost-flow assumption on the tax liability and other financial statement numbers of a company. Let’s begin with this question: How is the income statement of a merchandising company different from that of a service company?

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 5 Discussion

INTERNAL CONTROL, REPORTING CASH, AND ACCOUNTING FOR RECEIVABLES

In this area, we will talk about the importance of internal control in a business organization and the reporting of cash on the balance sheet as well as managing receivables and estimating uncollectible accounts. What is internal control, and what are the objectives of a well-designed internal control structure in an organization?

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 6 Discussion

PLANT ASSETS, INTANGIBLES, AND ACCOUNTING FOR LIABILITIES

Companies have a significant amount of investment in long-lived assets, which include property, plant, and equipment (commonly referred to as plant assets); and intangible assets. We will also discuss different types of liabilities and understand how to account for and report those liabilities.

Let’s begin by talking about plant assets. Can you tell us what kind of plant assets are used in your company or place of business? Do you have an estimate of the amount invested in those plant assets?

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 7 Discussion

ACCOUNTING FOR AND REPORTING EQUITY AND THE STATEMENT OF CASH FLOWS

Stockholders’ equity is an important heading in a corporate balance sheet. Let’s begin the discussion of stockholders’ equity by asking a question: How is the Stockholders’ Equity section of a corporate balance sheet different from that in a single-owner business?

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 8 Discussion

DIFFERENT TOOLS OF FINANCIAL ANALYSIS

There are different tools for analyzing the financial statements of a company, such as horizontal analysis, vertical analysis, ratios for measuring financial health and profitability, and so forth. But before we begin using these tools, it is important to know the purpose of each tool.

Why do we need different tools for analyzing financial statements? Don’t the numbers in the financial statements speak for themselves?

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 4 Case Study  

CASE STUDY – THE COMPLETE ACCOUNTING CYCLE         

Name: ___________________________________   

This Case Study is worth 100 points, or 10% of your final course grade.   

This Case Study relates to TCOs E and F, and Chapters 2 and 3.   

MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.        

There are 10 sheets in the Workbook, including this one.             

All of the information that you need for the project is located in this Workbook.               

Requirements   Sheet in Workbook

Requirement 1—Prepare the Journal Entries in the General Journal        Journal Entries

Requirement 2—Post Journal Entries to the General Ledger        General Ledger

Requirement 3—Prepare a Trial Balance               Trial Balance

Requirement 4—Prepare the Adjusting Entries Adjusting Entries

Requirement 5—Post Adjusting Entries to the General Ledger   General Ledger

Requirement 6—Prepare an Adjusted Trial Balance         Adjusted Trial Balance

Requirement 7—Prepare the Financial Statements          Financial Statements

Requirement 8—Prepare the Closing Entries      Closing Entries

Requirement 9—Post Closing Entries to the General Ledger        General Ledger

Requirement 10—Prepare the Post Closing Trial Balance               Post-Closing Trial Balance

Hint for success: Review the Week 2 Lesson prior to starting this project.             

There are also hints contained within certain cells on some of the Worksheet tabs.         

You can hover over the red pointer at the top right-hand corner of the cell to read the hint.       

Hints are provided for the following balances:   

1) The debits for the journal entries are on the Journal Entries tab.         

2) The credits for the journal entries are on the Journal Entries tab.        

3) The cash balance is on the General Ledger tab.            

4) The debits for the trial balance are on the Trial Balance tab.   

5) The credits for the trial balance are on the Trial Balance tab.  

6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab.             

7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab.            

8) Net income for the income statement is on the Financial Statements tab.       

9) Retained earnings as of July 31 are on the Financial Statements tab.  

10) Total assets for the balance sheet are on the Financial Statements tab.          

11) Total liabilities and shareholders’ equity for the balance sheet are on the Financial Statements tab.  

12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab.              

13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab.             

 

ACCT504 Accounting and Finance: Managerial Use and Analysis

Week 8 Signature Assignment

Signature Assignment Overview

Group Course Project: A Financial Statement Analysis – A Comparative Analysis of Celgene Corporation and Gilead Sciences, Inc

Description

This course contains a Course Project, where you will be required to submit one draft of the project at the end of Week 6, and the final completed project at the end of Week 8. Using the financial statements for Celgene Corporation and Gilead Sciences, Inc., respectively, you will calculate and compare the financial ratios listed further down this document and prepare your comments about the two companies’ performances based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in Week 8, and one grade will be assigned for the entire project.

Groups

The students will be assigned to work in teams of two no later than Week 3. The teams will be required to collaborate at least three weeks on the project using a collaboration tool, such as Big Blue Button, or similar technology, and provide evidence of use of the tool. It is recommended that the students begin their project no later than week 6, when the draft is due, and continue through the end of week 8, when the final project is to be delivered.

Financial Statements

Below is the link for the financial statements for Celgene Corporation for the fiscal year ending 2016.

http://ir.celgene.com/sec.cfm?view=all (Links to an external site.)

When you arrive at this website, please do the following.

First, under View, select Annual Filings using the drop-down arrow labeled All Filings and then select 2017, using the drop-down arrow labeled Year,

You should select the 10k dated 2/10/2017 and choose to download in PDF, HTML, or Excel format. The PDF format is the best format for searching.

Below is the link for the financial statements for Gilead Sciences, Inc. for the fiscal year ending 2017.

http://investors.gilead.com/phoenix.zhtml?c=69964&p=irol-sec (Links to an external site.)

First, select 2017 under the Year filter using the drop-down arrow labeled All Years and then select Annual filings under the Groupings filter using the drop-down arrow labeled All Forms. Press the large Search button to access the requested annual filing for 2016.

You should select the 10k dated 2/27/2017, and choose to download it in PDF, Word, or Excel format. The PDF format is the best format for searching.

A sample project template (Links to an external site.) is available for download. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2014 financial statements of Tootsie Roll and Hershey provided at their websites.

Overall Requirements

For the Final Submission:

Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this project.

A Completed Worksheet Title Page tab, which is really a cover sheet with your name, the course, the date, your instructor’s name, and the title for the project.

A Completed Worksheet Profiles tab which contains a one-paragraph description regarding each company with information about their history, what products they sell, where they are located, and so forth.

All 16 ratios for each company with the supporting calculations and commentary on your Worksheet Ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios. You need to specifically state which company performed better for each ratio.

The Summary and Conclusions Worksheet tab is an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 12 of your textbook. A nice way to conclude is to state which company you think is the better investment and why.

The Bibliography Worksheet tab must contain at least your textbook as a reference. Any other information that you use to profile the companies should also be cited as a reference.

Required Ratios for Final Project Submission

Earnings per Share of Common Stock

Current Ratio

Gross (Profit) Margin Percentage

Rate of Return (Net Profit Margin) on Sales

Inventory Turnover

Days’ Inventory Outstanding (DIO)

Accounts Receivable Turnover

Days’ Sales Outstanding (DSO)

Asset Turnover

Rate of Return on Total Assets (ROA)

Debt Ratio

Times-Interest-Earned Ratio

Dividend Yield [For the purposes of this ratio, use Yahoo Finance to look up current dividend per share and stock price; just note the date that you looked up this information.]

Rate of Return on Common Stockholders’ Equity (ROE)

Free cash flow

Price-Earnings Ratio (Multiple) [For the purpose of this ratio, look up the market price per share as of December 30, 2016 for Celgene Corporation and for Gilead Sciences, Inc..]

Note: The Excel files uploaded as the assignment submission should not include any unnecessary numbers or information (such as previous years’ ratios, ratios that were not specifically asked for in the project, etc.).

Please upload your final submission to the Week 8 Assignments page by the Saturday ending Week 8.

For the Draft:

Create an Excel spreadsheet or use the project template to show your computations for the first 10 ratios listed above. The more you can complete regarding the other requirements, the closer you will be to completion when Week 8 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file.

Please upload your draft submission to the Week 6 Assignments page by the Sunday at the end of Week 6.

Other Helpful Information:

If you feel uncomfortable with Excel, you can find many helpful tutorials on Excel by performing a Google search.

Chapter 12 contains ratio calculations and comparison comments related to Apple and Dell, so you will likely find this information helpful.

BigCharts.com (Links to an external site.) provides historical stock quotes.

Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Plagiarism link, which can be accessed through the Syllabus.