After completing your Pro Forma Income Statement, you will compose a final report to management in Word. Discuss the anticipated results of the company in 2012.

BRYANT & STRATTON COLLEGE ACCT220 - FINANCIAL ANALYSIS PORTFOLIO PROJECT Introduction Page Click Below to Access the spreadsheet you are looking for: Week 4 This spreadsheet will give you the account balances for Week 4. Week 5 The Ratios to calculate in Week 5. Week 6 The management assumptions to use to complete the Pro Forma income statemen o Forma income statement in Week 6. BRYANT & STRATTON COLLEGE ACCT220 FINANCIAL ANALYSIS PORTFOLIO PROJECT Click here to get back to the Introduction Page WEEK 4 ARRANGE THE FOLLOWING FINANCIAL INFORMATION INTO THE FOLLOWING: 1) Comparative Balance Sheets for 2010 vs. 2011. 2) Comparative Income Statements for 2010 vs. 2011. 3) Construct the 2011 Statement of Cash Flows using items 1 and 2. 2010 BALANCE Selling and Adminstrative Expenses Interest Expense Accounts Receivable (net) Taxes Notes Payable Capital paid in excess of par Cost of Goods Sold Cash Common Stock, $1 par value Sales Plant and Equipment Accumulated Depreciation Depreciation Expense Retained Earnings Bonds Payable, 2016 Accounts Payable Operating Income Accrued Expenses Investments Inventory Prepaid Expenses 650,000 54,000 350,000 91,000 200,000 500,000 2,300,000 120,000 250,000 3,600,000 2,500,000 850,000 90,000 665,000 700,000 375,000 560,000 80,000 150,000 450,000 50,000 2011 BALANCE 600,000 52,000 425,000 58,000 175,000 ### 2,250,000 95,000 ### 3,300,000 2,800,000 950,000 100,000 905,000 ### 475,000 350,000 60,000 100,000 550,000 45,000 BRYANT & STRATTON COLLEGE ACCT220 FINANCIAL ANALYSIS PORTFOLIO PROJECT Click here to get back to the Introduction Page WEEK 5 Calculate the 5 Financial Ratios below for BOTH 2010 AND 2011. 1) 2) 3) 4) 5) Word Report on Financial Statements and Ratios Profit Margin 2010 2011 36% 32% Current Ratio 2010 2011 1.5 1.6 Receivables Turnover 2010 2011 10 8.5 Inventory Turnover 2010 2011 5 4.5 Return on Assets 2010 2011 15% 8% Write a minimum of a 300 word report on your findings. Discuss the trends you see on the Financial Statements. What do you see happening with Sales, Profits, Inventory, Cash, and Receivables from 2010 to 2011. When you compare the 2010 vs. 2011 financial ratios above, which ones are trending up, and which ones are trending down? You may be creative with this report. BRYANT & STRATTON COLLEGE ACCT220 FINANCIAL ANALYSIS PORTFOLIO PROJECT Click here to get back to the Introduction Page WEEK 6 You will need your final 2011 Income Statement from Week 4 for this assignment. Use your 2011 Income Statement as your base, and then make the adjustments listed below in order to construct a 2012 Pro Forma Income Statement. Pro Forma Income Statement for 2012 includes the following Management assumptions. 1) Sales for existing business will remain at $3,300,000, but add $500,000 for new clothing line. Pro Forma Income 2) Cost of Goods Sold for existing business will remain at $2,250,000. Add $300,000 Statement to Cost of Goods Sold for new clothing line. 3) Selling and Administrative Expenses will increase by 15% with new line. 4) Assume Interest will be $50,000 in 2012. 5) Assume Taxes will be 30% of Earnings Before Taxes for 2012. Write a minimum of a 300 word report on your findings. Discuss the trends you see on the 2011 vs. 2012 Income Statements. How much does profits increase as a result of adding the assumed clothing line sales. Does it all seem worth it? What risks do you see with the company if sales that management is assuming here are not achieved? You may be creative with this report. Write a minimum of a 300 word Reflection telling me what you learned from this 3 week assignment. Word Reflection on Are financial statements easier to create and interpret as a result of this assignment? Portfolio Project Can you better see how financial ratios can illustrate the financial condition of the company? For th