Week 1 - Assignment 

Week One Homework Problems

Complete P1-3B and P1-4B from Problems: Set B Chapter 1 and P2-7B from Problems: Set B  Chapter 2. These problems are located under “Additional Exercises and Problems” on the Textbook Student Companion Site. Use the following Workbook Template Week OnePreview the document. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit.

Carefully review the Grading Rubric (Links to an external site.)Links to an external site. for the criteria that will be used to evaluate your assignment.

BUS591 – Financial Statement and Analysis

Week 1 Homework Assignment Templates

Instructions: Only enter data in the yellow boxes. The remaining areas are already completed for you. 

Save the file as follows:  lastnamewk1.docx

Submit to the assignment box before the due date.(Late assignments will receive a late penalty).

Grading Rubric:There are a total of 68 “questions” for you to answer (as determined by the yellow box). Each item is worth 0.06 points for a total of 4.00 points.

  

P1-3B, Prepare an income   statement, retained earnings statement, and balance sheet; discuss results.

 

 

Instructions:

 

(a)Prepare an income statement   and a retained earnings statement for the month of May and a balance sheet at   May 31, 2014.

 

SHAW’S   GARDEN

 

Income   Statement

 

For   the Month Ended May 31, 2014

 

Revenues

 

Account title


Amount

 

Expenses

 

Account   title


Amount


 

Account   title


Amount


 

Account   title


Amount


 

Account   title


Amount


 

Total   expenses


Amount

 

Net income


Amount

 

 

SHAW’S   GARDEN

 

Retained   Earnings Statement

 

For   the Month Ended May 31, 2014

 

Retained earnings, May 1


Amount

 

Add:


Account title


Amount

 


Amount

 

Less:


Account title


Amount

 

Retained earnings, May 31


Amount

       

  

  

SHAW’S   GARDEN

 

Balance   Sheet

 

May   31, 2014

 

Assets

 

Account title


Amount

 

Account title


Amount

 

Account title


Amount

 

Total   assets


Amount

 

 

Liabilities   and Stockholders' Equity

 

Liabilities

 

Account   title


Amount

 

Account   title


Amount

 

Total liabilities


Amount

 

Stockholders' equity

 

Account   title


Amount


 

Account   title


Amount


 

Total   stockholders' equity


Amount

 

Total liabilities and stockholders' equity


Amount

 

 

(b) Briefly   discuss whether the company’s first month of operations was a success.

 

Enter text answer here.

                

 

(c) Discuss   the company’s decision to distribute a dividend.

 

Enter text answer here.

                              

  

P1-4B, Determine items to   be included in a statement of cash flows, prepare a cash flow statement and   discuss the results.

 

 

Instructions:

 

(a)Determine which items   should be included in a statement of cash flows and then prepare the   statement for Preacher Corporation.

 

Enter text answer here.






  

PREACHER   CORPORATION

 

Statement   of Cash Flows

 

For   the Year Ended December 31, 2014

 

Cash flows from operating activities

 

Activity


Amount


 

Activity


Amount


 

Net   cash provided by operating activities


Amount

 

Cash flows from investing activities

 

Activity


Amount


 

Activity


Amount


 

Net   cash used by investing activities


Amount

 

Cash flows from financing activities

 

Activity


Amount


 

Activity


Amount


 

Net   cash provided by financing activities


Amount

 

Net increase in cash


Amount

 

 

(b) Comment   on the adequacy of net cash provided by operating activities to fund the   company’s investing activities and dividend payments.

 

Enter text answer here.

               

(Continued)
 

  

P2-7B, Compute values and   ratios for the following; discuss results.

 

 

Instructions:

 

(a)For each company, compute   these values and ratios:
be   sure to show your computations!

 


Home Depot


Lowe’s

 

Working   Capital


Amount


Amount

 

Current   ratio (round to two decimal places)


Amount


Amount

 

Debt   to total assets ratio


Amount


Amount

 

Free   cash flow


Amount


Amount

 

Earnings   per share


Amount


Amount

 

 

(b) Compare   the liquidity, profitability and solvency of the two companies.

 

Enter text answer here.

                    

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