ACC 640 Module Four Working Paper

In this activity, you will analyze the financial information of Rocky, Inc., to assess where inaccuracies exist for the client. You will then provide the client with accurate data analysis to help the company correct the issues.

Directions

Review the Working Trial Balance, Financial Statements, and Ratios tabs in the Working Paper

Specifically, you must address the following rubric criteria:

1. Recalculate the ratios using columns G and K in the Ratios tab.
2. Classify financial statement accounts in column O in the Ratios tab.
3. Provide reasons for unexpected account balances in column Q in the Ratios tab.

= L ' a e n Ref. Mo. Rocky, Inc. Prepared by Analytical Procedures Ratios Date For the Years Ended December 31 EXCEL Current ratio Days sales in average accounts receivable Allowance for doubtful accounts/accounts receivable Bad debt expenseset sales Total liabilities to net worth Return on total assets Return on net worth Return on net sales Gross profitet sales Selling, operating and admin. expenseet sales Times interest eamed Formula 20X5 20X4 Current Assets / Current Liabilities numbers provided 37.0 332 Allowance for Doubtful Accounts / Trade Receivables Bad Debt (Expense) / Net Sales Total Liabilities / Stockholders' Equity Met Income / Total Assets Met Income / Stockholders' Equity Met Income / Net Sales Gross Profit / Net Sales Selling, Operating & Admin Expense / Net Sales Cperating Income / Interest Expense Industry 13 370 29 9.0% 29.0% 2.3% 24.0% 23.9% 55 " U Plan-1 s " 111076 Relevant F/S Reasons for unexpected balances