Produce a balance sheet for a company that distinguishes between current and non- current assets and liabilities.

Create a balance sheet from a trial balance.

Create a comparison of net income based on different methods of inventory accounting.

Analyze a statement of cash flows and show where each line item can be found or

calculated from the other financial statements.

Prepare a full analysis of key financial ratios for a company and state conclusions about

the financial strength of the company compared to industry ratios.

PROJECT SUBMISSION PLAN

Project Part	Description/Requirements of Project Part	Evaluation Criteria
1	Title: Creating a Balance Sheet and Evaluating Inventory You will be provided with financial information about a fictional company. You will have to determine what information is relevant for Project Parts 1 and 2. Task 1: Create a balance sheet from a trial balance for a given scenario. Make sure you classify the accounts appropriately as current or non-current. Click here to download the trial balance.

Page 1

AC1420: Project

Project Part

Description/Requirements of Project Part

Evaluation Criteria

Task 2: Perform inventory valuations using LIFO, FIFO, and weighted average methods based on the following information. Explain the impact of each method on the cost of goods sold and ending inventory.

The company imports microwaves from a supplier in China for the US market. At the end of the first quarter, 100 microwaves are in stock. The company purchased a total of 400 microwaves during the quarter at various prices: January: 100 units @ $75

February: 250 units @ $83 March: 50 units @ $87 The company had no inventory at the beginning of the quarter. Task 3: If the companys goal is to maximize net income, which evaluation method will you use and why?

Project Part 1 - Task 2:

Purchases

Cost per Unit

Total Cost

January

February

March

Ending Inventory =

Value of Ending Inventory of 100 Units

Weighted AVG

LIFO

FIFO

Cost of Goods Sold (300 Units Sold)

Weighted AVG

LIFO

FIFO

Create a Balance Sheet from the trial balance:
		Debits	Credits	Classification
	Cash	300,000.00		Current asset
	Sales		(10,000,000.00)	Income statement
	Cost of Goods Sold	7,000,000.00		Income statement
	Selling Expenses	500,000.00		Income statement
	Other income		(50,000.00)	Income statement
	Administrative expenses	350,000.00		Income statement
	Interest Expenses	12,500.00		Income statement
	Land	300,000.00		non-current asset
	Building	2,000,000.00		non-current asset
	Long Term bond payable		(550,000.00)	non-current liability
	Accrued Liabilities		(50,000.00)	current- liability
	Accumulated Depreciation Buildings		(250,000.00)	non-current asset
	Equipment	750,000.00		non-current asset
	Receivables	100,000.00		current asset
	Allowance for doubtful accounts		(7,500.00)	current asset
	Accumulated depreciation equipment		(125,000.00)	non-current asset
	Common Stock		(200,000.00)	equity
	Payables		(115,000.00)	current Liability
	Inventories	200,000.00		current asset
	Prepaid Expenses	50,000.00		current asset
	Retained Earnings		(215,000.00)	equity
		11,562,500.00	(11,562,500.00)

Assets						Equity and Liabilities
Current Assets						Current Liabilities
Total Current Assets			-			Total Current Liabilities			-
						Total long term Liabilities			-
Total property plant and equipment			-
						Total Equity			-
Total Assets			-			Total Equity and liabilities			-