Capstone 460 Indivual Project

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School

Colorado Technical University *

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Course

460

Subject

Accounting

Date

Nov 24, 2024

Type

docx

Pages

3

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Student’s Name: Josephine Hall Class Name: Accounting Capstone: ACCT460 Instructor’s Name: Murugan Venkatachalama Date: 11/4 Our company has been involved in a number of important initiatives this year that have had a big impact on our financial performance and forecast for the future. Our main
priorities have been growing our line of products and consolidating our position in the industry. A larger consumer base and higher sales were the results of this expansion, which also involved the successful introduction of new items. We made significant investments in R&D to sustain our long-term growth and maintain our competitiveness in our fast-paced sector. Our business has shown a remarkable ability to pay short-term obligations and fund both operations and capital expenditures in spite of the rapid expansion. This has been made possible by our careful money management, upkeep of a sizable cash reserve, and acquisition of an adaptable credit line. Our dedication to increasing our production capacity and efficiency is demonstrated by the successful construction of a state-of-the-art production facility. Our operations this year have produced very positive outcomes. A significant increase in operating income has been attributed to increased sales and improved cost control. The success of our strategic efforts and our flexibility in responding to market changes are reflected in our net profit for the year. We have significantly improved our liquidity, profitability, and solvency indicators in terms of financial ratios. The strengthening of our current and quick ratios indicates our capacity to fulfill short-term commitments and meet urgent financial demands. Both return on equity (ROE) and return on assets (ROA) have increased, pointing to increasing profitability and effective asset use. Our consistent debt-to- equity ratio reflects a well-balanced capital structure and sound financial standing. In terms of federal tax liabilities, the organization of our business is crucial. We profit from pass-through taxation as an LLC since it lowers the owners' overall tax obligation and offers flexibility in how the business is run. We would be subject to corporate income tax if we were organized as a C Corporation, which would affect our tax liabilities but also possibly present more chances for tax preparation.
Assets are protected and accurate financial reporting is guaranteed because of the strength of our current internal controls. We continuously assess and improve these controls in order to reduce the possibility of financial misstatements. In the upcoming year, we advise continuing to prioritize developing new products, growing our market share, and allocating funds for R&D (Jabeen et al., 2019). This will guarantee sustainable growth while allowing us to maintain our competitiveness, look for new growth prospects, and keep providing value to our stakeholders. References Jabeen, F., Faisal, M. N., Al Matroushi, H., & Farouk, S. (2019). Determinants of innovation decisions among Emirati female-owned small and medium enterprises. International Journal of Gender and Entrepreneurship, 11(4), 408-434.
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