ASAP
USE EXCEL
ACCT 2023 PROJECT 1 2 Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales. 3. The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020. SOLAR SOLUTIONS Adjusted Trial Balance 12/31/2020 Account Title ###### 35,000 6,000 15,600 47,000 21,000 (16,000) ###### Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Advertising Expense Depreciation Expense Interest Expense Income Tax Expense 2020 2019 Adjusted Trial Balance Post-Closing Trial Balance Debit Credit Debit Credit $ 122,200 $ 125,600 55,000 35,000 5,000 6,000 46,000 15,600 63,000 47,000 59,000 21,000 $ 21,000 16,000 11,200 16,800 2,600 2,700 2,000 4,000 31,000 22,100 240,000 160,000 28,600 28,600 10,000 235,000 127,600 20,000 36,000 11,800 6,000 5,000 1,800 3,000 $ 571,400 $ 571,400 $ 250,200 250,200 Page 1 Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.) Use Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting. 1. Using examples from your textbook, or online research, prepare the Solar Solutions multi-step income statement for the year ended December 31, 2020. Include the EPS at the bottom. Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.) 2. Prepare the Solar Solutions balance sheet for December 31, 2020. Include a vertical analysis column at the right and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) 3. Prepare the Solar Solutions statement of cash flows for the year ended December 31, 2020. Use the indirect method. Your textbook has examples of this. 4. Complete the analysis of the financial statements as directed on the Analysis sheet. Use percentage format where appropriate with 2 decimal places. 5. Complete the analyis of the investment options between this company and EBUY (ratios given). Also use the chart from the attached article, and any other source to analyze the impact of using GAAP vs. IFRS> Write short response (15-30 sentences) on your analysis. A B D E F G H Using the information provided in the instructions and the financial statements you have created in the previous requirements perform the following analysis (5 Requirements): Current Ratio Working Capital Debt-to- Equity Ratio Cash Ratio Debt Ratio Requirement 1. Compute these ratios: Round ratios to two decimal places or format as percentages or currency as appropriate. Accounts Days Sales Inventory Days Sales in Gross Profit Receivable in Turnover Inventory Percentage Turnover Receivables 2019 Total Assets = Rate of Return on Total Assets Asset Turnover Ratio Rate of Return on Stockholder Earnings s' Equity Per Share 2019 SHE = Price/ Earnings Ratio *Current Stock Price is $10.00 per share Dividend Dividend Payout Dividend per share= Page 1 Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term). Refer to at least 3 specific ratios in your analysis. A H 2019 SHE = *Current Stock Price is $10.00 per share Price/ Earnings Ratio* Dividend Yield Dividend Payout Dividend per share Page 1 Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term). Refer to at least 3 specific ratios in your analysis. Requirement 3: Based on the ratios computed above, analyze the company's management of inventory. Refer to at least 2 specific ratios in your analysis. Requirement 4: Based on the ratios computed above, analyze the company's management of receivables. Refer to at least 2 specific ratios in your analysis. ACCT 2023 PROJECT 1 2 Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales. 3. The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020. SOLAR SOLUTIONS Adjusted Trial Balance 12/31/2020 Account Title ###### 35,000 6,000 15,600 47,000 21,000 (16,000) ###### Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Advertising Expense Depreciation Expense Interest Expense Income Tax Expense 2020 2019 Adjusted Trial Balance Post-Closing Trial Balance Debit Credit Debit Credit $ 122,200 $ 125,600 55,000 35,000 5,000 6,000 46,000 15,600 63,000 47,000 59,000 21,000 $ 21,000 16,000 11,200 16,800 2,600 2,700 2,000 4,000 31,000 22,100 240,000 160,000 28,600 28,600 10,000 235,000 127,600 20,000 36,000 11,800 6,000 5,000 1,800 3,000 $ 571,400 $ 571,400 $ 250,200 250,200 Page 1 Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.) Use Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting. 1. Using examples from your textbook, or online research, prepare the Solar Solutions multi-step income statement for the year ended December 31, 2020. Include the EPS at the bottom. Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.) 2. Prepare the Solar Solutions balance sheet for December 31, 2020. Include a vertical analysis column at the right and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) 3. Prepare the Solar Solutions statement of cash flows for the year ended December 31, 2020. Use the indirect method. Your textbook has examples of this. 4. Complete the analysis of the financial statements as directed on the Analysis sheet. Use percentage format where appropriate with 2 decimal places. 5. Complete the analyis of the investment options between this company and EBUY (ratios given). Also use the chart from the attached article, and any other source to analyze the impact of using GAAP vs. IFRS> Write short response (15-30 sentences) on your analysis. A B D E F G H Using the information provided in the instructions and the financial statements you have created in the previous requirements perform the following analysis (5 Requirements): Current Ratio Working Capital Debt-to- Equity Ratio Cash Ratio Debt Ratio Requirement 1. Compute these ratios: Round ratios to two decimal places or format as percentages or currency as appropriate. Accounts Days Sales Inventory Days Sales in Gross Profit Receivable in Turnover Inventory Percentage Turnover Receivables 2019 Total Assets = Rate of Return on Total Assets Asset Turnover Ratio Rate of Return on Stockholder Earnings s' Equity Per Share 2019 SHE = Price/ Earnings Ratio *Current Stock Price is $10.00 per share Dividend Dividend Payout Dividend per share= Page 1 Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term). Refer to at least 3 specific ratios in your analysis. A H 2019 SHE = *Current Stock Price is $10.00 per share Price/ Earnings Ratio* Dividend Yield Dividend Payout Dividend per share Page 1 Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term). Refer to at least 3 specific ratios in your analysis. Requirement 3: Based on the ratios computed above, analyze the company's management of inventory. Refer to at least 2 specific ratios in your analysis. Requirement 4: Based on the ratios computed above, analyze the company's management of receivables. Refer to at least 2 specific ratios in your analysis
