ACC 290 Week 4

Individual Week Four Problem

Resource: Ch. 4 of Financial Accounting

Complete Problem 4-8A.

Submit as either a Microsoft Excel or Word document.

Learning Team Learning Team Reflection

Discuss the objectives for Week Three. How do they relate to the practice of accounting and its uses in business?

Prepare closing entries, reversing entries, and a post-closing trial balance.

Prepare a financial statement worksheet.

Prepare a classified income statement, retained earnings statement, and balance sheet.

Write a 350- to 500-word summary of your Learning Teams discussion.

Learning Team Financial Reporting Problem, Part 1

Browse the Internet to acquire a copy of the most recent annual report for a publicly traded company.

Analyze the information contained in the companys balance sheet and income statement to answer the following questions:

What are the companys total assets at the end of its most recent annual reporting period? Why is this important?

What are the total assets at the end of the previous annual reporting period?

How much cash and cash equivalents did the company have at the end of its most recent annual reporting period?

What amount of accounts payable did the company have at the end of its most recent annual reporting period?

What amount of accounts payable did the company have at the end of the previous annual reporting period?

What are the companys net revenues for the last three annual reporting periods?

What is the change in dollars in the companys net income from its most recent annual reporting period to the previous annual reporting period?

What are the companys total current assets at the end of its most recent annual reporting period?

What are the total current assets at the end of the previous annual reporting period?

What in the information above would be important to a potential investor, employee, and so on?

Summarize the analysis in a 1,050-1,400 word paper in a Microsoft Word document.

Include a copy of the companys balance sheet and income statement.

Format your paper consistent with APA guidelines.

Discussion Questions

What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise? How would these transactions differ with a periodic versus a perpetual inventory system?

Why are perpetual inventory systems so much more popular today than back in the early 1960s and earlier? Why would a company employing a perpetual inventory system still take a physical inventory periodically?

In a period of increasing prices, why would the company tax accountant prefer the last in, first out method while the CEO would prefer first in, first out? Why is this important?