Financial Accounting Assignment Guidelines

Individual Assignment Excel based

Objective: In this assignment, you are required to analyze the financial aspects of a chosen

business over a two$-$year period, comprising $24$ transactions. The assignment aims to assess your understanding of fundamental accounting concepts, financial statement preparation, and financial ratio calculation.

Instructions:

$1.$Business Identification and Transactions: Select a business and identify $24$ transactions that span across two years. These transactions will serve as the foundation for your analysis.

$2.$Accounting Equation: Apply the accounting equation $($Assets $=$ Liabilities $+$ Equity$)$ to demonstrate the balance between a company's resources, financing, and ownership interests.

$3.$Financial Statements Preparation: Prepare the following financial statements for each year:

oIncome Statement $($IS$)$: Present the business's revenues, expenses, and resulting net income or loss for both years.

oBalance Sheet $($BS$)$: Present the company's assets, liabilities, and equity at the end of each year.

oCash Flow Statement $($CFS$)$: Prepare both the Direct and Indirect methods of the cash flow statement for each year, showcasing the inflows and outflows of cash.

$4.$Financial Ratio Calculation: Calculate relevant financial ratios for the second year. Compute all possible financial ratios that are applicable to the provided financial data. These ratios should include liquidity, solvency, profitability, and efficiency ratios, among others.

$5.$Documentation: Ensure your assignment is well$-$organized and clearly presented.

$6.$Referencing: You may refer to the provided document $"$FA INDIVIDUAL Assignment dummy" as an example for structuring your assignment.

Submission Guidelines:

$1)$Your assignment should be submitted in an excel file format.

$2)$Include appropriate headings and subheadings to distinguish between different sections of your analysis.

$3)$Clearly label each financial statement and ratio calculation with appropriate titles.

$4)$Ensure accuracy in your calculations and analysis.