ACC 205 Week 5 Complete

ACC 205 Week 5 Complete

DQ1.From Chapter 9, Fraud Case 9-1. Complete all parts of the case and respond to at least two of your classmates’ postings. 

When a business sells a fully depreciated asset for its salvage value, is a gain or loss recognized?

How do businesses determine what salvage values to use for their various assets? Are there “hard and fast” rules for salvage values?

How would an organization prevent the kind of fraud depicted here?

DQ2.There are two types of current liabilities that must be estimated.  Describe them and explain why they must be estimated.  How are the financial statements affected if they are not estimated?  Respond to at least two of your classmates’ postings.

ACC 205 Week 5 Individual Assignment Financial Ratios

1.  Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:

Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?

2.  Computation and evaluation of activity ratios. The following data relate to Alaska Products, Inc:

Compute the accounts receivable and inventory turnover ratios for 19X5. Alaska rounds all calculations to two decimal places.

3.  Profitability ratios, trading on the equity. Digital Relay has both preferred and common stock outstanding. The com­pany reported the following information for 19X7:

Compute the gross profit margin ratio, the return on equity and the return on assets, rounding calculations to two decimal places. Does the firm have positive or negative financial leverage? Briefly ex­plain.

4.  Horizontal analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow.

Prepare a horizontal analysis for 20X1 and 20X2. Briefly comment on the results of your work.

5.  Vertical analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow.

Prepare a vertical analysis for 20X1 and 20X2. Briefly comment on the results of your work.

6. Ratio computation. The financial statements of the Lone Pine Company follow.

LONE PINE COMPANY

Statement of Income and Retained Earnings

Instructions

Compute the following items for Lone Pine Company for 20X2, rounding all calcu­lations to two decimal places when necessary:

a. Quick ratio

b. Current ratio

c. Inventory-turnover ratio

d. Accounts-receivable-turnover ratio

e. Return-on-assets ratio

f. Net-profit-margin ratio

g. Return-on-common-stockholders’ equity

h. Debt-to-total assets

i. Number of times that interest is earned

j. Dividend payout rate

ACC 205 Week 5 Learning Team Assignment Final Paper

Focus of the Final Paper

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center.  In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors.  Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions.

Here is a breakdown of the sections within the body of the assignment:
Company Overview 

Provide a brief overview of your company (one to two paragraphs at most).  What industry is it in?  What are its main products or services?  Who are its competitors?
Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company.  Discuss the importance and meaning of horizontal analysis.  Discuss both the positive and negative trends presented in your company.
Ratio Analysis

Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period.  Discuss and interpret the ratios that you calculated.  Discuss potential liquidity issues based on your calculations of the current and quick ratios.  Are there any factors that could be erroneously influencing the results of the ratios?  Discuss liquidity issues of competitive companies within the same industry.
Recommendation
Based on your analysis would you recommend an individual invest in this company?  What strengths do you see?  What risks do you see?  It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Writing the Final Paper

1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:

a. Title of paper

b. Student’s name

c. Course name and number

d. Instructor’s name

e. Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

To download the complete paper click ACC 205 Week 5 Complete

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ACC 205 Week 4 DQ 1

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ACC 205 Week 5 DQ 1

ACC 205 Week 5 DQ 2

ACC 205 Week 5 Learning Team Assignment Final Paper

ACC 205 Week 5 Individual Assignment Financial Ratios

ACC 205 Week 5 Complete

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