Trident BUS500 All Modules CASEs & SLPs Latest 2020 February

BUS500 Financial Intelligence

Module 1 Case

FINANCIAL INTELLIGENCE

Case Assignment

The main question of this case is: Why does financial intelligence matter and what does it mean?

Use the background material and do additional research as needed. Write an essay to address the following questions.

What are the benefits from some rudimentary knowledge in these areas?

How can the understanding of the type of information be helpful if you are not working in finance, accounting, or economics?

List ten potential uses of this knowledge in your professional career and a planned career/endeavor.

What does financial intelligence mean to you?

What is financial statement analysis?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

 

 

 

BUS500 Financial Intelligence

Module 1 SLP

FINANCIAL INTELLIGENCE

In an effort to create your own definition of financial intelligence, review background information and perform research as needed to complete the tasks listed below.

Prepare a table showing

Definitions for finance, financial accounting, managerial accounting, and managerial economics.

Describe how the disciplines are connected.

All information, including explanations, should be presented in the table.

SLP Assignment Expectations

Use Excel to create an easy-to-read table with headings and colors or shading where appropriate. The content is most important, but a professional-looking format matters too. Assume that this table will be part of a formal presentation.

If you do not have a lot of experience with Excel, the site below offers brief and free tutorials.

Video Tutorials

 

BUS500 Financial Intelligence

Module 2 Case

BALANCE SHEET

Assignment Overview

The main purpose of this module is to review the balance sheet in more detail. Go to http://www.starbucks.com and click on the investor relations link. Locate the annual reports for the past two years. Review Starbucks’ financial report, review background material, and do additional research as needed to write an essay where you incorporate answers to the questions below.

IBISWorld is a proprietary database providing industry research. It is accessible via the Trident Online Library, Additional Library Resources. The database is found under additional library resources and offers a lot of interesting industry information including financial information.

Case Assignment

Questions

Go to the IBIS database and find information for coffee store franchises in the US Specialized Industry iExpert Summaries. Add three facts about the industry and comment on the information relative to Starbucks.

Distinguish between an expense (expired cost) and an asset.

Distinguish between short-term and long-term assets.

Distinguish between short-term and long-term liabilities.

Review Starbucks’ balance sheet and provide two examples of each of the above categories (short-term assets, long-term assets, short-term liabilities, and long-term liabilities).

How much debt does Starbucks have? Is the amount of debt high? How do we know if it is considered high? (Hint: Find financial information in IBIS World.)

Discuss retained earnings and how income or loss and dividends affect this account. Review Starbucks’ retained earnings account and explain how it changed during the past two years. Show details.

What is the difference between an annual report and a 10-k? Do companies have to publish both reports? Does Starbucks publish both?

Who were the auditors for the financial statements?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

 

BUS500 Financial Intelligence

Module 2 SLP

BALANCE SHEET

Below find a balance sheet for VWV Company.

VWV Company

VWV Company

Balance Sheet

December 31, 20XX

Assets

Liabilities

Current assets

Current liabilities

Cash

$72,000

Accounts payable

$32,000

Accounts receivable

28,000

Interest payable

8,000

Interest receivable

1,000

Inventory

66,000

Total current assets

$167,000

Total current liabilities

$40,000

Long-term assets

Long-term liabilities

Equipment (net of depreciation)

$128,000

Note payable

100,000

Total long-term assets

$128,000

Total long-term liabilities

$100,000

Equity

Common stock

10,000

Paid-in capital

50,000

Retained earnings

95,000

Total equity

$155,000

Total assets

295,000

Total liabilities and equity

$295,000

 

                                                                                                                                                                                                 

Required:

Recreate the balance sheet in an Excel spreadsheet. Use cell formulae to add and subtract numbers. Add a column next to the balance sheet for answers to the questions listed below.

Questions:

Is accounts payable larger or smaller than accounts receivable? What is the difference? What do the numbers indicate? Explain.

What does “equipment net of depreciation” mean?

Are payables short-term or long-term?

Determine total liabilities.

Determine net short-term assets or liabilities.

Determine the total amount owed by VWV at the end of the year.

How do we know that the above is a corporate (not a sole proprietor) balance sheet?

SLP Assignment Expectations

Submit the Excel spreadsheet. All information should be part of the spreadsheet. Written comments should be brief and refer to the balance sheet. Both content and presentation matter.

 

BUS500 Financial Intelligence

Module 3 Case

INCOME STATEMENT

Assignment Overview

Use the same annual statements for Starbucks as for the prior module. The Starbucks income statements should be used for the first two questions. Do additional research as necessary for the last question.

IBISWorld is a proprietary database providing industry research. It is accessible via the Trident library. The database is found under additional library resources and offers a lot of interesting industry information, including financial information.

Case Assignment

Locate the income statement for the past two years. Prepare a table in good format comparing at least ten revenue and expense items for the two years. Did the numbers increase or decrease? What can we learn from this information?

Comment on the changes from one year to another. Is the company doing better or worse? Did revenues and expenses increase or decrease? Are revenues and expenses moving in the same direction?

How is Starbucks doing vis-à-vis the industry? Use IBISWorld to answer this question.

Investors emphasize earnings per share. Why is this number so important and what are some of the shortcomings of this number?

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. Incorporate the required table into the Word document. Do not submit a separate spreadsheet. The suggested length is five to seven pages, including the table.

 

BUS500 Financial Intelligence

Module 3 SLP

INCOME STATEMENT

We reviewed the balance sheet for VWV in the prior module. This time we are examining the income statement for the same entity.

VWV Company
Income Statement
For the Period Ending December 31, 20XX
Revenues		$540,000
Cost of goods sold		200,000
Gross profit		$340,000
Operating expenses
	Salaries	$120,000
	Lease for office	30,000
	Advertising and promotion	24,000
	Utilities	9,700
	Property taxes	18,000
	Payroll taxes	11,500
	Insurance	8,000
	Depreciation	19,922
	Miscellaneous expenses	9,000
Total operating expenses		$250,122
Operating income		$89,878
Interest income		$2,500
Interest expense		12,000
Net interest expense		$9,500
Net income		$80,378

 

Use the above income statement to answer the questions below.

Is VWV a manufacturer/reseller or a service company?

Explain the term cost of goods sold in your own words. Why is this item significant?

Does the company have employees?

Does the company own some type of property? Can we tell from looking at the income statement alone or do we need to look at the balance sheet too?

Are earnings per share important information for VWV Company?

How is depreciation computed and what is the purpose of including depreciation expense?

How do the dividends affect the income statement?

How do we know that VWV Company is using the accrual basis of accounting? Hint: Do not forget to look at the balance sheet from the prior module.

Why is the company using the accrual basis of accounting rather than the cash basis?

Comment on operating income versus net income.

 

 

BUS500 Financial Intelligence

Module 4 Case

ACCOUNTING STANDARDS AND FINANCIAL STATEMENT ANALYSIS

Assignment Overview

Use the latest financial statements from Starbucks to compute ratios for the categories listed below. Use the formulae shown in the segment on “tools for financial statement analysis.”

IBISWorld is a proprietary database providing industry research. It is accessible via the Trident library. The database is found under additional library resources and offers a lot of interesting industry information, including financial information.

Case Assignment

Part I

Compute two ratios for each of the following categories.

Liquidity ratios

Debt service ratios

Profitability ratios

Compare the ratios computed with industry ratios. Use IBISWorld.

Below is a brief introduction to financial ratios using IBISWorld:

Show the computations and summarize the information in an easy to read table.

Part II

Write a three-paragraph memo to comment on the ratios computed and how the company is doing relative to its industry.

Paragraph 1: What is the purpose of computing the ratios?

Paragraph 2: What did you learn?

Paragraph 3: Conclusion/summary of the information.

Address the memo to your instructor. Follow APA format. See sample at the following link: https://owl.english.purdue.edu/owl/resource/590/04/

Assignment Expectations

Incorporate responses to the questions above in an organized format. Start with an introduction and end with a conclusion/summary. Use headings and subheadings to organize the essay. Do not forget to include references in APA format. The suggested length is five to seven pages.

 

BUS500 Financial Intelligence

Module 4 SLP

ACCOUNTING STANDARDS AND FINANCIAL STATEMENT ANALYSIS

It is not always easy to read and understand financial statements. Format and standards are important for comparisons across companies and over time. To conclude the series of assignments for this course we will look at the agencies creating and enforcing the standards and some related concepts.

Search the course background information, the Internet and/or the Trident Online Library in addition to the Starbucks annual reports. Discuss the terms listed below. Explain why the following concepts/governing agencies are important to financial statements in general and to Starbucks.

Financial Accounting Standards Board (FASB)

Generally Accepted Accounting Principles (US GAAP)

American Institute of Certified Public Accountants (AICPA)

International Accounting Standards Board (IASB)

International Financial Reporting Standards (IFRS)

Securities and Exchange Commission (SEC)

Public Company Accounting Oversight Board (PCAOB)

Annual report; and

10-K, 10-Q, and 8-K

SLP Assignment Expectations

Use Word and respond in a question and answer format. There is no need to use Excel for this particular SLP.