Capstone 460 Indivual Project
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Colorado Technical University *
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460
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Accounting
Date
Nov 24, 2024
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docx
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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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