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Jun 21, 2024
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Project One Analysis
Charlotte De La Cruz
Southern New Hampshire University
ACC 317: Intermediate Accounting
July 29, 2023
Project One Analysis
The financial components included in the current assets and current liabilities are located on the Batters Up Balance sheet. Current assets of Batters Up include cash, accounts receivable, prepaid rent, prepaid insurance and merchandise inventory. Current liabilities include accounts payable, wages payable and interest payable. Current assets are resources that a business owns that are expected to be used or converted into within a year. Current liabilities are short term financial obligations that are due within one year. The ratio of current assets and liability is a liquidity ratio that measures the ability to pay debt obligations. The balance sheet is arranged a manner that provides a clear picture of a
company’s financial position. The assets are listed on the left in order of liquidity. The current liabilities are listed in order of maturity, with the shortest-term liabilities listed first followed by long term debt. The same asset or liability can have both short term and long-term components. An example would be a company’s building and equipment that are used for their operations. The building and equipment are considered as long-term assets because they are expected to be held for greater than a year. The land on which the building and equipment are located can be considered as a short-term asset and sold within a year. Another example is inventory. Some inventory can be considered short term and other inventory can be considered long-term depending on what sort of shelf life it has. Current assets and current liabilities can be used as tools to measure variances in data. One method is to use trend analysis which includes analyzing the historical data for a company and identifying any changes in financial statements over time. Variances in data can also be analyzed by comparing the financial data of a company to similar
companies in the same industry. This is called comparative analysis. Comparative analysis can also compare statements from different time periods in order to determine the profitability of the business. Another way to detect variances in data is ratio analysis. By calculating different ratios like liquidity and debt to equity you can compare these ratios against the companies’ historical data or industry averages to compare a company’s
financial position quarterly or annually. Lastly, variances can be detected by evaluating the cashflows for a company and identifying any abnormal patterns. Business intelligence
software can collect, process and compare asset and liability data and assist in analyzing trends or variances over time. Footnotes for current assets and liabilities provide additional information about the data provided. Data doesn’t paint the entire financial picture, and footnotes provide explanation about the nature and timing of the items listed under assets and liabilities. Footnotes allow investors and stakeholders to make more informed decisions based on the company’s financial health. Some examples of additional context that footnotes provide are the age of an account receivable or the terms of a loan. The First in First out (FIFO) inventory method is a valuation method where the assets produced or acquired first are the first to be sold, used or disposed of. FIFO is appropriate for this inventory because it matches the natural flow of goods, it’s also a method to also calculate the cost of goods sold and accurately price inventory. The oldest goods and oldest costs are expensed first and when you purchase more goods for your inventory, you’ll use the most recent inventory cost as a basis for pricing. By selling the oldest costs first, this helps prevent inaccurate inventory pricing and makes reporting more accurate.
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The following items are listed in the FASB codification under the referenced sections.
The applicable FASB codification section for cash and cash equivalents is Section 305.
The applicable FASB codification section for inventory is Section 330.
The applicable FASB codification section for receivables is Section 310.
References
Financial Accounting Standards Board (FASB). (2010).
Accounting standards codification.
Retrieved from
http://asc.fasb.org/
Related Questions
Question Content Area
Use the information provided for Harding Company to answer the question that follow.
Harding Company
Accounts payable $31,654
Accounts receivable 69,987
Accrued liabilities 6,524
Cash 16,364
Intangible assets 38,210
Inventory 80,832
Long-term investments 90,451
Long-term liabilities 73,398
Notes payable (short-term) 26,425
Property, plant, and equipment 659,739
Prepaid expenses 1,697
Temporary investments 38,252
Based on the data for Harding Company, what is the amount of quick assets?
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Answer the questions in the attached image
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Question Content Area
Use the information provided for Harding Company to answer the question that follow.
Harding Company
Accounts payable
$33,234
Accounts receivable
67,995
Accrued liabilities
6,510
Cash
22,738
Intangible assets
35,347
Inventory
83,390
Long-term investments
101,069
Long-term liabilities
79,156
Notes payable (short-term)
27,161
Property, plant, and equipment
689,074
Prepaid expenses
2,037
Temporary investments
30,842
Based on the data for Harding Company, what is the quick ratio (rounded to one decimal place)?
a.3.1
b.0.8
c.1.8
d.15.4
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Please help me with show all calculation thanku
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PROBLEM I
The current asset section of the statement of financial position prepared by the accountant of
II Company as of December 31, 2024 as follows:
Current Assets:
Cash
Financial asset at fair value through profit or loss
Accounts receivable
Inventory
Other current assets
TOTAL CURRENT ASSETS
536,000
500,000
3,285,000
3,500,000
140,000
P7,961,000
The company determines its inventory at year-end by physical count. An examination of the accounts
showed the following:
a. On December 31, 2024, the company issued and recorded a check payable to a vendor dated
January 15, 2025 in the amount of P80,000.
b. The financial assets were purchased during the year 2024 for P500,000. Fair value at December
31 was P550,000.
c. Accounts receivable includes selling price of goods invoiced to a customer on December 27,
2024. The goods cost P120,000 and were billed at 150% of cost. The goods were shipped
FOB destination on December 27, 2024 and were received by the customer on January 5,
2025.
d.…
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Balance Sheet. Use Table 3.2 on page 82 as a guide to create a monthly balance sheet
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Using the balance sheets provided above for The Enchanted Forest Boutique, the amount that should be
included in box L of the vertical analysis above is: Group of answer choices A. 100% B. 0% C. 4.41% D
. 23.76%
The Enchanted Forest Boutique
Balance Sheets
As of December 31, 2018 and December 31, 2019
Cash
Accounts receivable
Inventory
Prepaid insurance
Total current assets
Equipment
Less: Accumulated depreciation
Net fixed assets
Total assets
Accounts payable
Wages and payroll taxes payable
Short-term portion of mortgage payable
Total current liabilities
Mortgage payable
Total liabilities
Owner's equity
c
Total liabilities and owner's equity
2018
Minimize global navigation
19,541
40.285
1.258
67,405
127,300
21.150
106,150
$173,555
$ 16,996
6.647
7.800
31,443
45,000
76.443
97,112
2019
$173.555
17,555
20,145
39,552
1.313
68.565
131,300
23.150
108,150
$176,715
$ 17,113
7,916
7,800
32.829
37.200
70.029
106.686
$176,715
Vertical
Analysis
2019
A
BCDE
с
Ε
F
G
H
I
J
K
L
M
N
P
Q
R
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solve yellow blanks
thank you!
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PLEASE DO PART D AND E, THANK YOU.
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ME12
Accounts with normal credit balances include:
a) Assets and liabilities
b) Revenues and expenses
c) Liabilities and revenues
d) Revenues and assets
ME13
The chart of accounts lists a company's accounts in what order?
a) Assets, liabilities, revenues, expenses, stockholders' equity
b) Assets, revenues, expenses, liabilities, stockholders' equity
c) Assets, liabilities, stockholders' equity, expenses, revenue
d) Assets, liabilities, stockholders’ equity, revenues, expenses
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Answer the following requirements on these financial accounting question
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Problem 1 Requirements:
1. The carrying value of investment in King Inc. shares in 2019 is?
2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments?
Problem 2 requirements:
Compute for the adjusted balance of the following:
1. Cash
2. Accounts Receivable
3. Investments
4. Property and Equipment.
5. Current Assets
Thank you so much! Please answer complete
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Please use this information to prepare a statement of financial position
1. assets
2.liabilities and shareholders equity
please need your best help and solve this problem with work and steps answer in text
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Need Help with this Question with this Question with this Question
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1. Prepare Vertical Analysis for both the income statement and the balance sheet.
2. Examine the company's Assets, Liabilities and Stockholder's Equity.
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SEE MORE QUESTIONS
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Related Questions
- Question Content Area Use the information provided for Harding Company to answer the question that follow. Harding Company Accounts payable $31,654 Accounts receivable 69,987 Accrued liabilities 6,524 Cash 16,364 Intangible assets 38,210 Inventory 80,832 Long-term investments 90,451 Long-term liabilities 73,398 Notes payable (short-term) 26,425 Property, plant, and equipment 659,739 Prepaid expenses 1,697 Temporary investments 38,252 Based on the data for Harding Company, what is the amount of quick assets?arrow_forwardAnswer the questions in the attached imagearrow_forwardQuestion Content Area Use the information provided for Harding Company to answer the question that follow. Harding Company Accounts payable $33,234 Accounts receivable 67,995 Accrued liabilities 6,510 Cash 22,738 Intangible assets 35,347 Inventory 83,390 Long-term investments 101,069 Long-term liabilities 79,156 Notes payable (short-term) 27,161 Property, plant, and equipment 689,074 Prepaid expenses 2,037 Temporary investments 30,842 Based on the data for Harding Company, what is the quick ratio (rounded to one decimal place)? a.3.1 b.0.8 c.1.8 d.15.4arrow_forward
- Please help me with show all calculation thankuarrow_forwardPROBLEM I The current asset section of the statement of financial position prepared by the accountant of II Company as of December 31, 2024 as follows: Current Assets: Cash Financial asset at fair value through profit or loss Accounts receivable Inventory Other current assets TOTAL CURRENT ASSETS 536,000 500,000 3,285,000 3,500,000 140,000 P7,961,000 The company determines its inventory at year-end by physical count. An examination of the accounts showed the following: a. On December 31, 2024, the company issued and recorded a check payable to a vendor dated January 15, 2025 in the amount of P80,000. b. The financial assets were purchased during the year 2024 for P500,000. Fair value at December 31 was P550,000. c. Accounts receivable includes selling price of goods invoiced to a customer on December 27, 2024. The goods cost P120,000 and were billed at 150% of cost. The goods were shipped FOB destination on December 27, 2024 and were received by the customer on January 5, 2025. d.…arrow_forwardBalance Sheet. Use Table 3.2 on page 82 as a guide to create a monthly balance sheetarrow_forward
- Using the balance sheets provided above for The Enchanted Forest Boutique, the amount that should be included in box L of the vertical analysis above is: Group of answer choices A. 100% B. 0% C. 4.41% D . 23.76% The Enchanted Forest Boutique Balance Sheets As of December 31, 2018 and December 31, 2019 Cash Accounts receivable Inventory Prepaid insurance Total current assets Equipment Less: Accumulated depreciation Net fixed assets Total assets Accounts payable Wages and payroll taxes payable Short-term portion of mortgage payable Total current liabilities Mortgage payable Total liabilities Owner's equity c Total liabilities and owner's equity 2018 Minimize global navigation 19,541 40.285 1.258 67,405 127,300 21.150 106,150 $173,555 $ 16,996 6.647 7.800 31,443 45,000 76.443 97,112 2019 $173.555 17,555 20,145 39,552 1.313 68.565 131,300 23.150 108,150 $176,715 $ 17,113 7,916 7,800 32.829 37.200 70.029 106.686 $176,715 Vertical Analysis 2019 A BCDE с Ε F G H I J K L M N P Q Rarrow_forwardsolve yellow blanks thank you!arrow_forwardPLEASE DO PART D AND E, THANK YOU.arrow_forward
- ME12 Accounts with normal credit balances include: a) Assets and liabilities b) Revenues and expenses c) Liabilities and revenues d) Revenues and assets ME13 The chart of accounts lists a company's accounts in what order? a) Assets, liabilities, revenues, expenses, stockholders' equity b) Assets, revenues, expenses, liabilities, stockholders' equity c) Assets, liabilities, stockholders' equity, expenses, revenue d) Assets, liabilities, stockholders’ equity, revenues, expensesarrow_forwardAnswer the following requirements on these financial accounting questionarrow_forwardProblem 1 Requirements: 1. The carrying value of investment in King Inc. shares in 2019 is? 2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments? Problem 2 requirements: Compute for the adjusted balance of the following: 1. Cash 2. Accounts Receivable 3. Investments 4. Property and Equipment. 5. Current Assets Thank you so much! Please answer completearrow_forward
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