30 Dec Address the memo

Module 1 case

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.

Module 2 slp

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

Module 2 case

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.

Questions

Provide a brief introduction to the company and include a link to the company’s website.

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

Distinguish between current and long-term assets.

Distinguish between current and long-term liabilities.

Review Starbuck’s balance sheet and provide two examples of each of the above categories.

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

How much debt does Starbucks have? Is the amount of debt high? How do we know if it is considered high?

What is the difference between an annual report and a 10-k?

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 includereferences in APA format. The suggested length is five to seven pages

Module 2 – SLP

Balance Sheet

Below find a balance sheet for VWV Company.

VWV Company

Balance Sheet

December 31, 20XX

Assets

Liabilities

Current assets

Current liabilities

Cash

$72,000

Accounts payable

$12,000

Accounts receivable

18,000

Interest payable

12,000

Interest receivable

1,000

Inventory

60,000

Total current assets

$151,000

Total current liabilities

$24,000

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

279,000

Total liabilities and equity

$279,000

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 in this case.

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 owed at the end of the year.

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

Both content and presentation matter.

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.

Module 3 case

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.

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?

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.

Module 3 slp

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

$100,000

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

$230,122

Operating income

$109,878

Interest income

$250

Interest expense

12,000

Net interest expense

$11,750

Net income

$98,128

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 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 the cash basis?

Comment on operating income versus net income.

SLP Assignment Expectations

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

Module 4 case

t is not always easy to read and understand financial statements. Format and standards are important for comparisons across companies and over time. It is now time to look closer at the agencies creating and enforcing the standards.

Search the course background information, the Internet and/or the Cyber 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

What accounting standards are followed by Starbucks?

Which public accounting firm audits Starbucks?

What is the purpose of an external audit?

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

Module 4 slp

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”.

Part I

Compute two ratios for each of the following categories.

Liquidity ratios

Debt service ratios

Turnover ratios

Profitability ratios

Other indicators

Part II

Write a three-paragraph memo to comment on the ratios.

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/

SLP Assignment Expectations

Use Excel to compute and show the ratios.

Use Word for the memo. Submit two separate documents