Kamal, you helped me with my other ACC201 question and you told me if I need you again just hit you up, well I do, this one follows what you helped me with. Attached are the files the first one will be the problem the second one will be the SLP I did before that you helped me on. They are both linked, I will also send you the excel that you sent me to refresh your memory. Please and thank you, the sooner this is done the better! Module 3 SLP file is what I did after you helped me the last time and will help you with Module 4 SLP. Thank you so much.

Trident University International Cassandra Merritt ACC201 - Financial Accounting Module 3 - SLP Assignment Professor Lori White December 12, 2016 Balance Sheet Nybrostrand Company Balance Sheet As of December 31, 2014 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets $30,000 $36,500 $34,000 $100,500 Liabilities Current Liabilities Accounts payable $78,000 Long Term Liabilities Long-term debt $127,000 Fixed Assets Equipment Land $415,000 Owners' Equity Retained earnings $250,500 Common Stock $10,000 Paid-in capital $50,000 Total Owners' Equity $310,500 Total Assets $515,500 Total Liabilities and Owners' Equity Retained Earnings was found by: $78,000 + $127,000 + $10,000 + $50,000 = $265,000 Then, $515,500 - $265,000 = $250,500. $515,500 (Figure 1) The Balance Sheet shown above is from SLP1's calculations. The computations that were made to the Balance Sheet in SLP2 will be shown in the corrected Balance Sheet later. The calculations that will be made over the course of the paper will include all the corrections that were made from module 1, 2 and 3. The paper will show the results to the account titles to show the changes. The calculations will be provided to show how the final answer was achieved. Changes. The adjustments that were made to SLP3 were: $180,000 raised, $150,000 Paid-in Capital raised, $15,00 paid in dividends, $400,000 for land, $40,000 for down payment, and the rest was taken oversight by a note to the bank. Nybrostrand Company Adjusting Journal Entries As of December 31, 2014 Account Titles DR $180,00 Cash 0 Common stock Paid-in Capital CR $30,000 $150,00 0 $400,00 0 Land Cash $40,000 $360,00 0 Note Payable The above chart are the calculations that are needed to correct the Balance Sheet. (Figure 2) The above chart will be used in the next few calculations to get the current Balance Sheet, I will call this chart Figure 2 if I refer to it. The highlighted numbers in the corrected Balance Sheet below are the accounts that will change from the original amount from Figure 1, aside from the \"total\" amounts. The total amounts are a given that will change in the end but the accounts will only change if there is cash flow in or out to change the final amount. Nybrostrand Company Balance Sheet (Corrected) As of December 31, 2014 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Equipment Land $155,000 $36,500 $76,500 $268,000 $415,000 $400,000 Liabilities Current Liabilities Accounts payable Total Current Liabilities Long Term Liabilities Long-term debt Note Payable Total Long-Term Liabilities Total Liabilities $63,000 $63,000 $127,000 $360,000 $487,000 $550,000 Owners' Equity Ending Retained earnings $293,000 Total Fixed Assets $815,000 Total Assets $1,083,000 Common Stock Paid-in capital Total Owners' Equity $40,000 $200,000 $533,000 Total Liabilities and Owners' Equity $1,083,000 (Figure 3) Analysis The cash cost was calculated by taking the original cost of $30,000, adding the $180,000 that was raised, subtracting the $40,000 that was placed as a down payment on the land, and subtracting $15,000 that was paid as a dividend, this price equaled to be $155,000. $30,000 + $180,000 - $40,000 - $15,000 = $155,000 = Cash Inventory was calculated by taking the original $34,000 that was already in the account and adding $42,500 worth of units that were left at the end of the year that the bookkeeper forgot to adjust, this equals to $76,500. $34,000 + $42,500 = $76,500 = Inventory Accounts Payable was calculated by taking the original amount of $78,000 and adding $15,000 to it since the company paid the dividend already, which is added since it was paid and taken out of cash, this sums to be $63,000. The reason that the amount is less than what it was originally is because the $78,000 was a credit and when the company paid the $15,000 they subtracted the amount out of the credit to decrease the bill. -$78,000 + $15,000 = $63,000 = Accounts Payable To show the computations for Retained Earnings and the Owners' Equity I created a chart of the calculations made to simplify the process, which can be seen in figure 4 below. Nybrostrand Company Statement of Shareholder equity For the year ended December 31, 2014 Total Common Stock ($1 par) $10,000 Add Issue of Common stock $30,000 $40,000 Paid -in-Capital $50,000 Add Paid-in -capital $150,000 $200,000 Beginning Retained Earnings $131,850 Add: Net Income $161,150 Ending Retained earnings $293,000 Total Stockholder equity $533,000 The totals are in bold to show the adding process. (Figure 4) The \"note\" that is labeled in the corrected Balance Sheet was gathered by the information given in the assignment stating that the cost of the land was $400,000 and the down payment was $40,000. The rest was going to be covered by the bank so, $400,000 - $40,000 = $360,000. Common Stock is shown in the figure 4 above it went from $10,000 to $40,000. This increase was caused when the company made the secondary offering of stock to the public. Since the company raised $180,000 though the offering, $150,000 was paid in capital and $30,000 was the face value which was added to the common stock. So, $10,000 + $30,000 = $40,000. The Paid in Capital began at $50,000 and was increased when the $150,000 was paid in capital after the company made a secondary offer. $50,000 + $150,000 = $200,000. Conclusion Throughout the course of the paper I explained how I calculated the Balance Sheet for the company, the changes were made for both SLP 2 and SLP3. The company paid the dividend, which decreased the credit amount in the Amounts Payable account and decreased the Cash amount. The total Assets, Liabilities, and Equities increased to $1,083,000 from the increase in amount raised, amount paid, and amount invested. We're continuing to analyze the same company as in Modules 1, 2, and 3. Based on additional information added in Modules 2 and 3, please use the information below to make a statement of cash flows. The beginning cash balance is $30,000. Use the Net Income from Module 2. Use depreciation expense of Module 1. During the year 14, Inventory increases by $42,500. During the year 14, Land increases by $400,000. During the year 14, Long-Term Debts increase by $360,000. During the year 14, the company made a secondary offering of stock and raised an additional $180,000, which includes $150,000 of Paid-in Capital. During the year 14, the company had paid $15,000 in dividends. Using the Indirect Method, prepare a statement of cash flows for the company in good format and compare two financial statements between the income statement and statement of cash flows. You do not need to include the income statement or balance sheet. This is a Signature Assignment Expectation for ACC201 Module SLP There are 2 specific learning outcomes: 1) apply business theories, models, and concepts to guide analysis of problems and situations and 2) utilize data driven analysis in making business decisions. In this SLP assignment, our emphasis will be on understanding the statement of cash flows. You will be summarizing all of what you learned the in the Cases, SLPs and Discussions. Assignment Expectations Create a statement of cash flows and compare cash flows with net income. Write 2- to 4-pages, showing computations and discussing the results. List supporting references and cite sources. Use appropriate writing style (organization, grammar, & spelling - see Writing Guidelines). Nybrostrand Company Adjusting Journal Entries For the Year Ended December 31, 2014 Account Titles 1 2 DR Cash Common stock Paid-in Capital $180,000 Land Cash Note Payable $400,000 CR $30,000 $150,000 $40,000 $360,000 A 1 2 3 4 5 Account Title B C D E Nybrostrand Company End of Period Worksheet For the Year Ended December 31, 2014 Unadjusted Trial Balance Adjustments 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 DR Accounts payable Accounts receivable Cash Common stock Depreciation expense Cost of goods sold Equipment (net of depreciation) Insurance Inventory Land Long-term debt Marketing Note Payable Paid-in capital Property taxes Rent Retained earnings Revenues Salaries Utilities CR $78,000 $36,500 30,000 DR $15,000 CR $180,000 $55,000 $30,000 10,000 24,350 307,000 415,000 1,400 34,000 $42,500 $42,500 $400,000 F G Adjusted Trial Balance DR $36,500 $155,000 $40,000 $24,350 $264,500 $415,000 $1,400 $76,500 $400,000 127,000 $127,000 4,500 $4,500 $360,000 $150,000 50,000 16,900 28,000 $360,000 $200,000 $16,900 $28,000 131,850 586,000 $131,850 $586,000 78,500 6,700 $ 982,850 $ $ CR $63,000 $78,500 $6,700 982,850 $ - 637,500 $ 637,500 $ 1,507,850 $ 1,507,850 Nybrostrand Company Income Statement (Corrected) For the year ended December 31, 2014 Account Debit Credit Revenue 586,000 Cost of goods sold $264,500 Gross Profit $321,500 Expenses Marketing Depreciation Expense Insurance Property taxes Rent Salaries Utilities Total Expenses Net Profit $4,500 $24,350 $1,400 $16,900 $28,000 $78,500 $6,700 $160,350 $161,150 Nybrostrand Company Statement of Shareholder equity For the year ended December 31, 2014 Common Stock ($1 par) Add Issue of Common stock Paid -in-Capital Addl Paid-in -capital Beginning Retained Earnings Add: Net Income Ending Retained earnings Total Stockholder equity $10,000 $30,000 $50,000 $150,000 $131,850 $161,150 $40,000 $200,000 $293,000 $533,000 Nybrostrand Company Balance sheet As on December 31, 201 Assets Current Assets Cash Accounts receivable Inventory Total Current Assets Property, Plant & Equipment : Land Equipment (net of depreciation) Property, Plant & Equipment-Net Total Assets $155,000 $36,500 $76,500 $268,000 $400,000 $415,000 $815,000 $1,083,000 ostrand Company Balance sheet n December 31, 201 Liabilities and Stockholder Equity Current Liabilities Accounts payable Total Current Liabilities Long Term Liabilities : Long-term debt Note Payable Total Long Term Liabilities Total Liabilities Stockholder Equity Common Stock ($1 par) Paid -in-Capital Ending Retained earnings Total Stockholder Equity Total Liability & Stockholder Equity $63,000 $63,000 $127,000 $360,000 $487,000 $550,000 $40,000 $200,000 $293,000 $533,000 $1,083,000 Trident University International Cassandra Merritt ACC201 - Financial Accounting Module 1 - SLP Assignment Professor Lori White October 31, 2016 Account Revenue Cost of goods sold Gross Profit Expenses Marketing Depreciation Expense Insurance Property taxes Rent Salaries Utilities Nybrostrand Company Income Statement For the year ended December 31, 2014 Debit Credit $586,000 $307,000 $279,000 $4,500 $24,350 $1,400 $16,900 $28,000 $78,500 $6,700 Total Expenses Net Profit $160,350 $118,650 The Gross Profit was found by: $586,000 - $307,000 = $279,00. The total Expenses was found by: $4,500 + $24,350 + $1,400 + 16,900 + $28,000 + $78,500 + $6,700 = $118,650. The Net Profit was found by: $279,000 - $160,350 = $118,650. Nybrostrand Company Balance Sheet As of December 31, 2014 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets $30,000 $36,500 $34,000 $100,500 Liabilities Current Liabilities Accounts payable $78,000 Long Term Liabilities Long-term debt $127,000 Fixed Assets Equipment Land $415,000 Owners' Equity Retained earnings $250,500 Common Stock $10,000 Paid-in capital $50,000 Total Owners' Equity $310,500 Total Assets $515,500 Total Liabilities and Owners' Equity Retained Earnings was found by: $78,000 + $127,000 + $10,000 + $50,000 = $265,000 Then, $515,500 - $265,000 = $250,500. $515,500 The success of Nybrostrand Company looks to be profitable. The company has a Net Income of $118,650 which means that the company is making a good amount of profit and knows how to manage its credit and loans. Through some calculations I found that the company has a current ratio of 1.28:1 which shows that the company can pay off current liabilities with its current assets. This can be found by the formula below: Current Ratio = Current Assets :1 Current Liabilities If I were to plug the correct numbers into this formula, the equation would look like this: $ 100,500 :1 = 1.28846154:1 = 1.28:1 $ 78,000 Using the income statement and balance sheet, the numbers are placed in the correct spots to find the equations for different formulas to see if the company is successful or not. There are a few equations that could be worked out to find where the company stands in being profitable or not and to find if the return ratios, financial leverage, and liquidity of a company are in good standing. The quick ratio tells a person if the company that is being looked at has enough assets to pay off its current liabilities quickly without having to sell some of its long-term assets to cover the total current liabilities. With the calculations that were conducted on this company, the quick ratio is 0.85:1, which means that the company is just short of being able to pay off its current liabilities quickly. This company must sell some of its long-term assets just to pay off its current liabilities in a quick fashion. The formula that was used is: Quick Ratio = Current AssetsInventory :1 Current Liabilities If I were to plug the correct numbers into this formula, the equation would look like this: $ 100,500$ 34,000 :1 = 0.8525641:1 = 0.85:1 $ 78,000 The company's gross profit margin is 47.61% approximately. This means that the company has 47.61% of its revenue left over after the company paid the costs of goods. This means that the company still has $279,000 of its revenue left over that can be used for the operating expenses, interest, taxes, payouts and more. This percentage was found by using the gross profit margin formula: Gross Profit Margin = Gross Income Sales If I were to plug the correct numbers into this formula, the equation would look like this: $ 279,000 $ 586,000 = 0.47610922 = 0.4761 = 47.61% The company has a net profit margin of 20.25% which means that there is 20.25% of the revenue that is left over. This is left over after all the company's operating expenses, interest, taxes, stock dividends have been deducted from the total revenue of the company. Since this percentage is a low number, it reveals that the company is insufficient on converting revenue into actual profit. Net Profit Margin = Net Income Sales If I were to plug the correct numbers into this formula, the equation would look like this: $ 118,650 $ 586,000 = 0.2024744 = 0.2025 = 20.25% The company has a long - term debt to assets ratio of 24.64%. This means that the company has about 24 cents of long - term debt for each dollar it has in assets. This is looked at by investors for comparable firms and for historical changes. Long - Term Debt to Assets Ratio = Longterm debt Total Assets If I were to plug the correct numbers into this formula, the equation would look like this: $ 127,000 $ 515,500 = 0.24636275= 0.2464 = 24.64% The return on assets for the company is 23.02%. The return on assets for a company is how effectively that company can earn its return on its investment in assets. This means that the company has inefficient use of its assets. The reason for this is because the return of assets is a lower number, if the percentage were higher than it would show that the company is earning more money on its assets. Return on Assets = Net Income Total Assets If I were to plug the correct numbers into this formula, the equation would look like this: $ 118,650 $ 515,500 = 0.23016489= 0.2302 = 23.02% The return on equity is 41.43%. This shows that for every dollar of shareholder's equity the company generates about 41 cents, which gives the return on equity 41.43%. If the return on equity goes up than the company is gaining the ability to generate profit without the need of much capital. Now, if the return on equity falls, then there is a problem within the company and something is happening. Return on Equity = Net Income Shareholder s ' Equity If I were to plug the correct numbers into this formula, the equation would look like this: $ 128,650 $ 310,500 = 0.41433172= 0.4143 = 41.43% References C.C.D Consultants Inc. (2015). Probability Ratios. Retrieved October 22, 2016, from http://www.ccdconsultants.com/calculators/financial-ratios/profitability-ratiosindex Drake, P. P. (N.D.). Financial ratio formulas [PDF Document]. Retrieved from http://educ.jmu.edu//~drakepp/principles/module2/fin_formulas.pdf InvestingAnswers. (2016). Net Profit Margin Definition & Example. Retrieved October 22, 2016, from http://www.investinganswers.com/financialdictionary/financial-statement-analysiset-profit-margin-2233 InvestingAnswers. (2016). Gross Profit Margin Definition & Example. Retrieved October 22, 2016, from http://www.investinganswers.com/financialdictionary/ratio-analysis/gross-profit-margin-2076 Investopedia. (2016). Long Term Debt to Total Assets Ratio Definition. Retrieved October 22, 2016, from http://www.investopedia.com/terms/l/long-termdebt-to-total-assets-ratio.asp Keynote Support. (N.D.). Accounting Basics: The Income Statement and Balance Sheet. Retrieved October 21, 2016, from http://www.keynotesupport.com/accounting/accounting-balance-sheet-incomestatement.shtml Trident University International Cassandra Merritt ACC201 - Financial Accounting Module 2 - SLP Assignment Professor Lori White November 21, 2016 Income Statement Account Revenue Cost of goods sold Gross Profit Expenses Marketing Depreciation Expense Insurance Property taxes Rent Salaries Utilities Total Expenses Net Profit Nybrostrand Company Income Statement For the year ended December 31, 2014 Debit Credit $586,000 $307,000 $279,000 $4,500 $24,350 $1,400 $16,900 $28,000 $78,500 $6,700 $160,350 $118,650 The Gross Profit was found by: $586,000 - $307,000 = $279,000. The Total Expenses was found by: $4,500 + $24,350 + $1,400 + 16,900 + $28,000 + $78,500 + $6,700 = $160,350. The Net Profit was found by: $279,000 - $160,350 = $118,650. Before Correction The success of Nybrostrand Company looks to be profitable from the first table that is shown, yet, this is before the correction was made from the bookkeeper's misreporting of the $42,500 to the cost of goods sold. The company currently has a Net Income of $118,650 which, means that the company is making a good amount of profit and knows how to manage its credit and loans. The calculations to this table was calculated in the last module to show the gross profit margin and the net profit margin. Below will be a refresher on what those profits are and what they mean for the company. The Nybrostrand company has a gross profit margin of 47.61% approximately. This means that the company has 47.61% of its revenue left over after the company paid the costs of goods. Which means that the company still has $279,000 of its revenue left over that can be used for the operating expenses, interest, taxes, payouts and more. This percentage was found by using the gross profit margin formula: Gross Profit Margin = Gross Income Sales If I were to plug the correct numbers into this formula, the equation would look like this: $ 279,000 $ 586,000 = 0.47610922 = 0.4761 = 47.61% The company has a net profit margin of 20.25% which means that there is 20.25% of the revenue that is left over. This is left over after all the company's operating expenses, interest, taxes, stock dividends have been deducted from the total revenue of the company. Since this percentage is a low number, it reveals that the company is insufficient on converting revenue into actual profit. Net Profit Margin = Net Income Sales If I were to plug the correct numbers into this formula, the equation would look like this: $ 118,650 $ 586,000 = 0.2024744 = 0.2025 = 20.25% Account Revenue Cost of goods sold Gross Profit Expenses Marketing Depreciation Expense Insurance Property taxes Rent Salaries Utilities Total Expenses Net Profit Nybrostrand Company Income Statement (Corrected) For the year ended December 31, 2014 Debit Credit 586,000 $264,500 $321,500 $4,500 $24,350 $1,400 $16,900 $28,000 $78,500 $6,700 $160,350 $161,150 The Gross Profit was found by: $586,000 - $264,500 = $321,500. The Total Expenses was found by: $4,500 + $24,350 + $1,400 + 16,900 + $28,000 + $78,500 + $6,700 = $160,350. The Net Profit was found by: $321,500 - $160,350 = $161,150. Comparison The corrections were made to the Nybrostrand Company's income statement, with the corrections made the company looks more profitable than it did previously. The company now has a Net Income of $161,150 which, is where the $42,500 is shown to have affected the company. This means that the company is making a good amount of profit and knows how to manage its credit and loans better than they did with the last income statement that was provided. The calculations to this table is calculated under the table to show how the numbers were obtained. The company's gross profit margin is 54.68% approximately. This means that the company has 54.68% of its revenue left over after the company paid the costs of goods. This percentage is 7.07% more than the previous statement, this was found by: 54.68 - 47.61 = 7.07. The new calculations mean that the company now has $321,500 of its revenue left over instead, of $279,000 that was presented with the previous income statement. The revenue that is left over can be used for the operating expenses, interest, taxes, payouts and more. This percentage was found by using the gross profit margin formula: Gross Profit Margin = Gross Income Sales If I were to plug the correct numbers into this formula, the equation would look like this: $ 321 , 500 $ 586,000 = 0.54863481 = 0.5486 = 54.68% The new calculations leave the company having a net profit margin of 27.5%. This gives the company a gain of 7.25% this means that there is 27.5% of the revenue that is left over; the calculation of the difference was found by: 27.5 - 20.25 = 7.25%. This is left over after all the company's operating expenses, interest, taxes, stock dividends have been deducted from the total revenue of the company. Since this percentage is still a lower number after the corrections made, it still shows that the company is insufficient on converting revenue into actual profit. The calculations can be found by using this formula that was used in the previous module: Net Profit Margin = Net Income Sales If I were to plug the correct numbers into this formula, the equation would look like this: $ 161,1 50 $ 586,000 = 0.275 = 0.275 = 27.5% Matching Concept The matching concept as it relates to this subject of misreporting information, is that each time revenue is recognized and reported than the expenses that brought in that revenue are to be reported at the same time. The reason the expenses that brought the revenue in is to be reported at the same time is so there are no overstated or understated profits in that accounting period. In this case, it would be so that there is no misreporting of revenue, since the customer did not actually buy the product yet, so it should not be reported until the company buys the product. When that product is bought, that is when the bookkeeper can report the new revenue in that accounting period. This concept can be recognized in the Generally Accepted Accounting Principles (US GAAP) that was discussed in the previous module and the Financial Accounting Standards Board (FASB). The importance of the matching concept is so that a company's financial statements are not jeopardized due to wrong information reported. Having corrupted financial statements can provide and unfair representation of the financial position of a business. Provided are two examples of the matching concept: If an expense is recognized too early than it could result in a lower net income, this would make the company look less profitable. A second example would be if an expense were to be recognized too late, then the net income would prove to be higher because the expense was not calculated due to the nonrecognition. Conclusion The demonstration that was shown above, shows that if there is a miscalculation or a misreporting, then an income statement can read completely differently, even if it's just one mistake. The mistake that the bookkeeper made didn't seem like much, until the calculations were shown and the percentages were proven to have a large difference. Although the net profit margin did not show an increase above the lower percentage tile, it still showed a 7%+ difference. 7% is a large increase and can make a huge difference. If the use of the matching concept were obeyed and used correctly than this mistake should not happen again supposedly and should result in accurate numbers to show the company's true financial position. References Edwards, J.D. & Hermanson, R.H. (2007) Accounting Principles: A Business Perspective. First Global Text Edition, Volume 1. Financial Accounting, pp. 250 - 271. Retrieved from http://dl.dropbox.com/u/31779972/Accounting%20Principles%20Vol.%201.pdf Gangwar, Sharda & Gangwar, D.K. (2009). Fundamental Principles of Accounting, Global Media (read chapter 8), from library portal. Murthy, Guruprasad (2009). Financial Accounting, Global Media (read Module 2), from library portal. Walther, L.M. (2010). Principles of Accounting: A Complete Online Text, chapter 3. Retrieved from http://www.principlesofaccounting.com/ Module 1 - SLP FINANCIAL STATEMENTS Below, find the trial balance for Nybrostrand Company. Prepare an income statement and balance sheet, in good format, based on Formats of Financial Statements (Presentations). After you have completed the two statements, comment on the success of the company. Support your answer with information from the financial statements you just prepared. Nybrostrand Company 31-Dec-14 Trial Balance (accounts in alphabetical order) Debit Accounts payable $ 78,000 Accounts receivable $ 36,500 Cash 30,000 Common stock 10,000 Depreciation expense 24,350 Cost of goods sold 307,000 Equipment (net of depreciation) 415,000 Insurance 1,400 Inventory 34,000 Long-term debt Marketing 127,000 4,500 Paid-in capital Property taxes Credit 50,000 16,900 Rent 28,000 Retained earnings ? Revenues 586,000 Salaries 78,500 Utilities 6,700 Total 982,850 982,850 SLP Assignment Expectations The submission should be 2- to 4-pages and needs to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format Module 2 - SLP INCOME STATEMENT We are using the same company as in the first Module. However, you need to consider some additional information. One client indicated that they were interested in purchasing $42,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase. The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2014 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count. Nybrostrand Company 31-Dec-14 Trial Balance (accounts in alphabetical order) Debit Credit Accounts payable $ 78,000 Accounts receivable $ 36,500 Cash 30,000 Common stock 10,000 Depreciation expense 24,350 Cost of goods sold 307,000 Equipment (net of depreciation) 415,000 Insurance 1,400 Inventory 34,000 Long-term debt Marketing 127,000 4,500 Paid-in capital 50,000 Property taxes 16,900 Rent 28,000 Retained earnings ? Revenues 586,000 Salaries 78,500 Utilities 6,700 Total 982,850 982,850 SLP Assignment Expectations Prepare an income statement for the company in good format. Always include the name of the company and the period covered in the title. Don't forget dollar signs where appropriate. You do not need to include the balance sheet. Consequently, you will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept. The submission should be 2- to 4-pages and needs to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format. Module 3 - SLP BALANCE SHEET We're continuing to analyze the same company as in Modules 1 and 2. Additional information added in Module 2 One client indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase. The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2014 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count. Additional information for Module 3 The company made a secondary offering of stock and raised an additional $180,000 which includes $150,000 of Paid-in Capital. The company had already paid $15,000 in dividends before deciding on the offering. The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the down payment is $40,000 and a note to the bank covers the rest. Nybrostrand Company 31-Dec-14 Trial Balance (accounts in alphabetical order) Debit Credit Accounts payable $ 78,000 Accounts receivable $ 36,500 Cash 30,000 Common stock 10,000 Depreciation expense 24,350 Cost of goods sold 307,000 Equipment (net of depreciation) 415,000 Insurance 1,400 Inventory 34,000 Long-term debt Marketing 127,000 4,500 Paid-in capital 50,000 Property taxes 16,900 Rent 28,000 Retained earnings ? Revenues 586,000 Salaries 78,500 Utilities 6,700 Total 982,850 982,850 SLP Assignment Expectations Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in Module 2 and also consider the effect of paying the dividend. You do not need to include the income statement. The submission should be 2- to 4-pages and need to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format. Module 4 - SLP ( Current one you are working on) STATEMENT OF CASH FLOWS We're continuing to analyze the same company as in Modules 1, 2, and 3. Based on additional information added in Modules 2 and 3, please use the information below to make a statement of cash flows. The beginning cash balance is $30,000. Use the Net Income from Module 2. Use depreciation expense of Module 1. During the year 14, Inventory increases by $42,500. During the year 14, Land increases by $400,000. During the year 14, Long-Term Debts increase by $360,000. During the year 14, the company made a secondary offering of stock and raised an additional $180,000, which includes $150,000 of Paid-in Capital. During the year 14, the company had paid $15,000 in dividends. Using the Indirect Method, prepare a statement of cash flows for the company in good format and compare two financial statements between the income statement and statement of cash flows. You do not need to include the income statement or balance sheet. This is a Signature Assignment Expectation for ACC201 Module 4 SLP There are 2 specific learning outcomes: 1) apply business theories, models, and concepts to guide analysis of problems and situations and 2) utilize data driven analysis in making business decisions. In this SLP assignment for Module 4, our emphasis will be on understanding the statement of cash flows. You will be summarizing all of what you learned the in the Cases, SLPs and Discussions. The grading rubric below has been developed to measure student success in meeting the ACC201 Module 4 SLP expectations related to applying your knowledge of the statement of cash flows and income statement on making business decisions. SLP Assignment Expectations Create a statement of cash flows and compare cash flows with net income. Write 2- to 4-pages, showing computations and discussing the results. List supporting references and cite sources. Use appropriate writing style (organization, grammar, & spelling - see Writing Guidelines). Cash flow statement has Net income as a line item in the Cash Flow from Operating activities section of the cash flow statement. Net cash flow from operating activities is calculated by starting with Net income and then making adjustments for noncash expenses like depreciation and changes in working capital like increase in Inventory. Here Net income was $161,150 and was adjusted for Depreciation of $24,350 and Increase in Inventory of $42,500. Increase in Inventory which is an Asset uses cash and hence it has a negative sign. Thus Net Cash flow from Operating activities is $143,000. Net income is calculated by subtracting cost of goods sold, operational expenses, depreciation, amortization, interest and taxes from total revenue. Net Income is thus expressed on the income statement along with all revenues and expenses. Net income from the income statement is usually the first item of the cash flow statement and is $161,150. Thus Cash flows from operating activities include certain items that are treated differently in the income statement. Noncash expenses such as depreciation must be included in Income statement to calculate net profit, but such costs do not reduce the amount of cash a company generates in a given period. Hence these expenses are added back to net income on the cash flow statement. Cash flow from operating activities also reflects changes to certain current assets and liabilities from the balance sheet. Increases of current assets such as inventories is uses cash and thus reduce cash flow. Cash flow statement has Net income as a line item in the Cash Flow from Operating activities section of the cash flow statement. Net cash flow from operating activities is calculated by starting with Net income and then making adjustments for noncash expenses like depreciation and changes in working capital like increase in Inventory. Here Net income was $161,150 and was adjusted for Depreciation of $24,350 and Increase in Inventory of $42,500. Increase in Inventory which is an Asset uses cash and hence it has a negative sign. Thus Net Cash flow from Operating activities is $143,000. Net income is calculated by subtracting cost of goods sold, operational expenses, depreciation, amortization, interest and taxes from total revenue. Net Income is thus expressed on the income statement along with all revenues and expenses. Net income from the income statement is usually the first item of the cash flow statement and is $161,150. Thus Cash flows from operating activities include certain items that are treated differently in the income statement. Noncash expenses such as depreciation must be included in Income statement to calculate net profit, but such costs do not reduce the amount of cash a company generates in a given period. Hence these expenses are added back to net income on the cash flow statement. Cash flow from operating activities also reflects changes to certain current assets and liabilities from the balance sheet. Increases of current assets such as inventories is uses cash and thus reduce cash flow