Financial statement analysis, or simply financial analysis, refers to an examination of the viability, stability and profitability of a business enterprise as a whole, or a particular project that it has undertaken. It is performed by expert professionals who prepare reports using the information taken from the company’s financial records. These reports are usually presented to the top management and are used as a primary tool in making business decisions. Because of these factors, financial statement analysis has immense value in academics and the business world.

This assignment is designed to assess your ability to evaluate the performance of Accounting Solutions, LLC through a critical analysis of its available financial statements over a specific period. Please structure your opinion(s) and justify your arguments about Accounting Solutions, LLC’s financial performance.

Structure an opinion/argument/evaluation about performance based on your analysis of the following three factors:

• Profitability (gross margin ratio, profit margin ratio, return on capital)
• Balance Sheet ratios (working capital, current ratio, and debt to equity ratio)
• Free Cash Flow.

Present a clear, well-structured report using appropriate style and language. (Do your best to write it as though you were an accounting professional.) This paper should be approximately 3-4 pages (excluding tables). Double-space. Please use Arial font 12 and submit via D2L under "Final Paper: Financial Statement Analysis".

  

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Accounting Solutions LLC BALANCE SHEET As of December 31, 2021 TOTAL ASSETS Current Assets Bank Accounts Cash on hand 27,454.38 Checking Total Bank Accounts 38.188.00 $65,642.38 Accounts Receivable Accounts Receivable (A/R) Total Accounts Receivable 1,000.00 $1,000.00 Total Current Assets $66,642.38 TOTAL ASSETS $66,642.38 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable (A/P) 457.00 Total Accounts Payable $457.00 Other Current Liabilities Payroll Liabilities -3,128.85 CEGNA Health 335.00 CEGNA Vision 50.00 DENTA Plus 59.00 Federal Taxes (941/944) 886.61 Federal Unemployment (940) 23.23 FL Unemployment Tax 0.00 Live Long 127.50 Total Payroll Liabilities -1,647.51 Total Other Current Liabilitles $-1,647.51 Total Current Liabilities $-1,190.51 Total Liabilities $-1,190.51 Equity Opening Balance Equity Retained Earnings 50,700.00 17,132.89 Net Income Total Equlty $67,832.89 TOTAL LIABILITIES AND EQUITY $66,642.38 Accounting Solutions LLC BALANCE SHEET As of December 31, 2021 TOTAL ASSETS Current Assets Bank Accounts Cash on hand 27,454.38 Checking Total Bank Accounts 38.188.00 $65,642.38 Accounts Receivable Accounts Receivable (A/R) Total Accounts Receivable 1,000.00 $1,000.00 Total Current Assets $66,642.38 TOTAL ASSETS $66,642.38 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable (A/P) 457.00 Total Accounts Payable $457.00 Other Current Liabilities Payroll Liabilities -3,128.85 CEGNA Health 335.00 CEGNA Vision 50.00 DENTA Plus 59.00 Federal Taxes (941/944) 886.61 Federal Unemployment (940) 23.23 FL Unemployment Tax 0.00 Live Long 127.50 Total Payroll Liabilities -1,647.51 Total Other Current Liabilitles $-1,647.51 Total Current Liabilities $-1,190.51 Total Liabilities $-1,190.51 Equity Opening Balance Equity Retained Earnings 50,700.00 17,132.89 Net Income Total Equlty $67,832.89 TOTAL LIABILITIES AND EQUITY $66,642.38

Answer rating: 100% (QA)

Q1Who are the main users for Accounting Information Answer There are different users of the accounting information that is provided by the different financial statements The first user is the organiza... View the full answer