URGENT HELP NEEDED TUTOR

HIGH ACCURACY NEEEDED IN THI TASK

Description Your knowledge will be tested on the content of week 8, 9, 10 and week 11 or the course. Format This activity must meet the following formatting requirements:

Font size 12

Harvard Referencing System

Goal(s) To apply the accounting Terminology of chapter 12

Classifying the Statement of Cash Flows

Compute percentage changes

Compute profitability ratios

Define and understand ROI Due date Date: Monday 10 May 2021

Time: 14:00 CET

Weight towards final grade This activity has a weight of 50% towards the final grade.

Learning outcomes Outcome One: Income and Changes in Retained Earnings

Outcome Two: Statement of Cash Flows

Outcome Three: Financial Ratios Assessment criteria Answers should be clear and well presented (Provide spacing between paragraphs, number your questions correctly)

Remember to in-text reference and provide your referencing at the end.

Referencing should be Harvard Style

Show all calculations

Questions:

QUESTION 1 (14 MARKS)

Accounting terminology

Listed below are technical accounting terms introduced in this chapter:

Cash Dividend Comprehensive Income Extraordinary Item P/E Ratio Unusual or Infrequent Item

Stock Dividend Additional Paid-In Capital Treasury Stock Discontinued Operations Consistency Rule

Prior Period Adjustment Stock Split Basic Earnings Per Share Income from Continuing Operations Revenue Recognition Principle

Each of the following statements may (or may not) describe one of these technical terms. In the space provided beside each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.

1.1. A financial statement showing the revenue, expenses, and net earnings of a corporation during the current accounting period = _

1.2. A distribution of cash to stockholders = _

1.3. A distribution to stockholders of additional shares of stock, accompanied by a proportionate reduction in the par value per share = ___ _

1.4. The market price of a share of preferred stock, divided by the net income of the corporation = _

1.5. A correction in the amount of net income reported in an earlier accountingperiod = _

1.6. An event that is material in dollar amount, unusual in nature, and not expected to recur in the foreseeable future = _

1.7. A subtotal sometimes included in an income statement to assist investors in forecasting the income of future accounting periods = _

QUESTION 2 (6 MARKS)

2.1. Explain why you would use a statement of cash flows.

QUESTION 3 (20 MARKS)

Classification of cash flows

Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: O = operating activities, I = investing activities, and F = financing activities

Assume use of the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X.

3.1. Paid an account payable for inventory purchased in a prior accounting period = _

3.2. On December 28, made a large credit sale; terms, 2/10, n/30 = _ _

3.3. Received a dividend from an investment in IBM common stock = _ _

3.4. Paid a dividend to stockholders = _

3.5. Paid the interest on a note payable to First Bank = _

3.6. Paid the principal amount due on the note payable to First Bank = _

3.7. Transferred cash from a checking account into a money market fund = _

3.8. Made an adjusting entry to record accrued wages payable at the end of the period= _ _

3.9. Recorded depreciation expense for the current year = __ _

3.10. Purchased plant assets for cash = _

QUESTION 4 (30 MARKS)

Selected information from the financial statements of Cake Co. appears below:

2015 2014

Net Sales $ 1,692,000 $1,600,000

Total Expenses $1,470,000 $1,520,000

Net Income $222,000 $80,000

4.1. Compute the percentage change in each of the above items from 2014 to 2015. Use a + or - to indicate increase or decrease. (Show all calculations)

Percentage change from 2014 to 2015

Net Sales %

Total Expenses %

Net Income %

4.2. Compute net income as a percentage of net sales in each year. (Round to the nearest one-tenth of 1%) (Show all calculations)

net income as a percentage of net sales for 2014 = _ %

net income as a percentage of net sales for 2015 = _ %

QUESTION 5 (20 MARKS)

Profitability measures

Shown below is a recent income statement for Heidi's Hairdressing.

Heidi's Hairdressing Income statement

For the year ended January 31, 2020

Assume that comparative balance sheets for Heidi's Hairdressing indicate average total assets for the year of $2,500,000, and average total equity of $2,050,000.

Define each term and Compute the following (Show all calculations):

5.1. Gross Profit Rate = %

5.2. Return on Assets = %

5.3. Return on Equity =

QUESTION 6 (10 MARKS)

6. In general terms, what "ROI" ratios measure? Why are such computations useful?

Rubric: written assignment

Criteria Accomplished (A) Proficient (B) Partially proficient (C) Borderline (D) Fail (F)

Problem identification The business issue has been correctly identified, with a competent and comprehensive explanation of key driving forces and considerations.

Impact on company operations has been correctly identified.

Thorough analysis of the issue is presented. The student correctly identified the issue(s), taking into account a variety of environmental and contextual drivers. Key case information has been identified and analyzed. The student correctly identified the case (issues), considering obvious environmental/contextual drivers. There is evidence of analysis, but it lacks depth. The student correctly identified the issue(s) but analysis was weak. An absence of context - the work is basically descriptive with little analysis. The student failed to correctly identify the issue(s); analysis was incorrect or too superficial to be of use; information was misinterpreted.

Information gathering The student showed skill in gathering information and analyzing it for the purposes of filling the information gaps identified. Comprehensive and relevant. Relevant information gaps were identified and additional relevant information was found to fill them. At least two different types of sources were used.

The student demonstrates coherent criteria for selecting

information but needs greater depth. The student correctly identified at least one information gap and found relevant information, but which was limited in scope. Some evidence of sound criteria for selecting information but not consistent throughout. Needs expansion. An information gap was identified and the student found additional information to fill it. However, this was limited in scope. Weak criteria for the selection of necessary information. Information was taken at face value with no questioning of its relevance or value. Gaps in the information were not identified or were incorrect.

Conclusions The student evaluated, analyzed, synthesized all information provided to perceptive set of conclusions to support the decisions and

solutions. The student evaluated, analyzed and synthesized to a conclusion(s) which support decisions and solutions. The student reached conclusions, but they were limited and provided minimal direction for decision-making and solutions. The conclusion was reasonable but lacked depth and would not be a basis for suitable strategy development. The student formed a conclusion, but it was not reasonable. It was either unjustified, incorrect or unrelated to the case in hand.

Solutions The student used problem solving techniques to make thoughtful, justified decisions about difficult and conflicting issues. A realistic solution was chosen which would provide maximum benefit to the

company. Alternative solutions were explored and ruled out. The student used problem solving techniques to make appropriate decisions about complex issues. Relevant questions were asked and answered. A realistic solution was chosen. Alternatives were

identified, explored and ruled out. The student used problem- solving techniques to make appropriate decisions about simpler issues. The solution has limited benefit but does show understanding of implications of the decision.

Alternatives were mentioned but not explored. The student used problem solving techniques to make decisions about simpler issues but disregarded more complex issues. Implications of the decision were not considered. Alternatives were not offered. The student formed a conclusion, but it was not reasonable. It was either unjustified, incorrect or unrelated to the case in hand.