I would like you to knock out the question in the attached file. and these two questions: In 200 words I need you to answer the following questions. If you have a background in accounting there should not be much reason for resurch. Just answer them off the cuff. Not graded exactly for accuracy. Just need to be in the ball park. 1. Jack McClintock, president of McClintock Industries, wishes to issue a press release to bolster his company?s image and maybe even its stock price, which has been gradually falling. As controller, you have been asked to provide a list of twenty financial ratios along with some other operating statistics relative to McClintock Industries? first quarter financials and operations. Two days after you provide the ratios and data requested, Jeremy Phelps, the public relations director of McClintock, asks you to prove the accuracy of the financial and operating data contained in the press release written by the president and edited by Jeremy. In the press release, the president highlights the sales increase of 25% over last year?s first quarter and the positive change in the current ratio from 1.5:1 last year to 3:1 this year. He also emphasizes that production was up 50% over the prior year?s first quarter. You note that the press release contains only positive or improved ratios and none of the negative or deteriorated ratios. For instance, no mention is made that the debt to total assets ratio has increased from 35% to 55%, that inventories are up 89%, and that while the current ratio improved, the acid-test ratio fell from 1:1 to .5:1. Nor is there any mention that the reported profit for the quarter would have been a loss had not the estimated lives of McClintock?s plant and machinery been increased by 30%. Jeremy emphasized, ?The prez wants this release by early this afternoon.? Who are the stakeholders in this situation? Is there anything unethical in president McClintock?s actions? Should you as controller remain silent? Does Jeremy have any responsibility? 2. What is the purpose of financial statement analysis? What are some of the tools that we can use to analyze financial performance? What should we use to benchmark our performance? Why? What are the different types of financial ratios used to analyze financial performance? Are some ratios more important than others? Why? Which ratios are important to creditors? Which to investors? Which to managers? Why?

Name: Course: Date: Week 4 Individual Assignment - Complete the worksheet, prepare financial statements from worksheet, journalize and post closing entries and prepare a post closing trial balance. The adjusted trial balance columns of the worksheet for Goodall & Sons Company are as follows: Cash Accounts Receivable Prepaid Rent Equipment Accum Dep - Equip Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense Interest Expense Interest Payable Subtotal Net income Totals GOODALL & SONS COMPANY Work Sheet (Partial) For the Month Ended July 31, 2009 Adjusted Trial Balance Income Statement Debit Credit Debit Credit 16,850 9,570 2,290 29,800 7,335 6,770 7,730 29,000 8,110 5,435 19,720 13,035 840 828 86 69 $78,734 $78,734 $0 $0 $0 $0 Balance Sheet Debit Credit $0 $0 $0 $0 Assignment #1 Instructions: Complete the worksheet, above. Assignment #2 Instructions: (a) Prepare an Income Statement based on data from the above worksheet GOODALL & SONS COMPANY Income Statement For the Month Ended July 31, 2009 Revenues Service revenue Amount Title Account title Amount Account title Amount Account title Amount Account title Amount Title Formula Net income Formula (b) Prepare a Retained Earnings Statement based on data from the above worksheet GOODALL & SONS COMPANY Retained Earnings Statement For the Month Ended July 31, 2009 Retained Earnings, July 1 Amount Title Amount Formula Title Amount Title Formula (c) Prepare a Classified Balance Sheet based on data from the above worksheet (note: for part c), the Classified Balance Sheet format should look similar to what is reflected on Page 162 in Chapter 4 of the textbook) GOODALL & SONS COMPANY Balance Sheet July 31, 2009 Assets Title Account title Account title Account title Title Title Account title Account title Title Amount Amount Amount Formula Amount Amount Formula Formula Liabilities and Stockholders' Equity Current liabilities Account title Amount Account title Amount Account title Amount Title Formula Title Account title Amount Account title Amount Title Formula Title Formula Assignment #3 Instructions: (a) Journalize the closing entries at July 31, 2009 (1) Date Account title Account title Amount (2) Date Account title Account title Account title Account title Account title Amount Amount Amount Amount Amount Amount (3) Date Account title Account title Amount (4) Date Account title Account title Amount Amount Amount (b) Post the closing entries to Income Summary and Retained Earnings, using the following T-accounts: (2) (3) Income Summary Amount (1) Amount Formula Amount Formula (4) Retained Earnings Amount Balance Amount Amount (3) Formula (c) Prepare a post-closing trial balance at July 31, 2009 GOODALL & SONS COMPANY Post-Closing Trial Balance July 31, 2009 Debit Credit Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Formula Formula Name: Course: Date: Week 4 Learning Team Assignment - Complete the worksheet, Prepare financial statements, closing entries, and post-closing trial balance. LT Assignment #1 - The adjusted trial balance columns of the worksheet for Lee & Grant Company are as follows: Account Name Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accum Dep - Office Equip Notes Payable Accounts Payable Salaries Payable Interest Payable Common Stock Retained Earnings Dividends Service Revenue Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Salaries Expense Interest Expense Subtotals Net income Grand Totals LEE & GRANT COMPANY Work Sheet (Partial) For the Year Ending December 31, 2008 Adjusted Trial Balance Income Statement Debit Credit Debit Credit 22,550 14,240 3,765 6,020 60,460 30,140 19,275 8,700 3,170 1,440 34,850 7,390 12,460 89,440 13,290 4,595 9,080 4,540 42,505 900 $194,405 $194,405 $0 $0 Acct. # 101 112 126 130 151 152 200 201 212 230 311 320 332 400 610 631 711 722 726 728 $0 Balance Sheet Debit Credit $0 $0 $0 $0 $0 LT Assignment #1a Instructions: Complete the above worksheet LT Assignment #1-b Instructions: Prepare an Income Statement, a Retained Earnings Statements, and a Classified Balance Sheet based on data from the above worksheet. $8,000 of the Notes Payable will become due in 2009 (note: the Classified Balance Sheet format should look similar to what is reflected on Page 162 in Chapter 4 of the class materials) LEE & GRANT COMPANY Income Statement For the Year Ended December 31, 2008 Revenues Service revenue Amount Title Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Title Formula Net income Formula LEE & GRANT COMPANY Retained Earnings Statement For the Year Ended December 31, 2008 Retained Earnings, January 1 Amount Title Amount Formula Title Amount Title Formula LEE & GRANT COMPANY Balance Sheet December 31, 2008 Assets Title Account title Account title Account title Account title Title Title Account title Account title Title Amount Amount Amount Amount Formula Amount Amount Formula Formula Liabilities and Stockholders' Equity Title Account title Account title Account title Account title Title Title Account title Title Title Account title Account title Title Title Amount Amount Amount Amount Formula Amount Formula Amount Amount Formula Formula LT Assignment #1-c Instructions: Prepare (journalize) the closing entries. Use J14 as the General Journal page. General Journal "J##" Date Date Account Title/Explanation Account title Account title Ref Debit Amount Date Account title Account title Account title Account title Account title Account title Account title Amount Date Account title Account title Amount Date Account title Account title Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount LT Assignment #1-e Instructions: Prepare a post-closing trial balance Account title Account title Account title Account title Account title Account title Account title Account title Account title Account title Account title Account title Credit LEE & GRANT COMPANY Post-Closing Trial Balance December 31, 2008 Debit Amount Amount Amount Amount Amount Formula Credit Amount Amount Amount Amount Amount Amount Amount Formula LT Course: Date: Week 4 Learning Team Assignment - Complete the worksheet, Prepare financial statements, closing entries, and post-closing trial balance. LT Assignment #1-d Instructions: Post the closing entries to the General Ledger using the three-column form of the account. Income Summary is account No. 350 (note: 1) the 3-column format should look similar to what is reflected on Page 156 in Chapter 4 of the textbook, 2) The following is a sample list of accounts to be completed. Feel free to add or remove accounts as required, 3) Reflect all accounts with balances regardless of activity) ***Enter Account Name*** Date Explanation Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance Ref. Debit Credit Balance ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation ***Enter Account Name*** Date Explanation