Strength or Weakness

Working Capital measures the ability of a company to meet its short$-$term obligations with current

assets. Coke is performing a little better since their current assets exceed their current liabilities

contrasted with Pepsi's negative working capital.

Requirements for Each Group

The vertical analysis prepared in $4$ A above.

All of your computations for the financial analysis. $(4$ B through $4$ H $)$

Identification of strengths and weaknesses. $($Include a definition of each financial

measure, a description of which company is doing better in each financial measure

including the vertical analysis and explain why$)$

All group members must submit the Report Project Team Assessment

If the requirements above are not met, points will be deducted from Parts of the group

projects.

Enter all requirements on the Group Project Problem $4$ Tab.

Submit one set of answers per group for all four problems. Make sure to include each group members

name at the top of each spreadsheet.

Each group member should download the Group Team Assessment and evaluate themselves and

everyone else in their group. This evaluation should be submitted anonymously. Problem $3(40$ points$)$

Read the following instructions and enter and submit all information on the Group Project Excel

spreadsheet Problem $3$ parts $2-6$ tab and Problem $3$ part $7-8$ tab.

Open the following selected accounts recording the opening balances as of January $1$ of the

current year. In the $($Group Project Excel Spreadsheet Problem $3$ Parts $2-6$ tab$).$

Record the following transactions in general journal form in the Group Project Excel

Spreadsheet Problem $3$ Parts $2-6$ tab.

Post these transactions to the three selected accounts above and to Accounts receivable in the

Group Project Excel Spreadsheet Problem $3$ parts $2-6$ tab.

Enter the ending balances in the three accounts above and enter the ending balance in the

Accounts Receivable account. Enter those balances in the Group Project Excel Spreadsheet

Problem $3$ parts $2-6$ tab.

Determine the net accounts receivable $($the amount Summer expects to collect as of December

$31$ and enter in the Group Project Spreadsheet Problem $3$ Parts $2-6$ tab$).$

Compute the accounts receivable turnover and the day's sales in receivables for the year.

Assume that there were $$1,800,000$ sales account. $($You will need to refer to the Group Project

Excel Spreadsheet Problem $3$ part $7-8$ tab$).$

How is Summer Company doing with collection of their accounts receivable compared to the

industry? Assume the industry average for the accounts receivable turnover is $11$ and the

industry average for the day's sales in receivables is $37$ days? $($Enter in the Group Project

Excel Spreadsheet Problem $3$ part $7-8$ tab$).$

Submit one set of answers per group for all four problems. Make sure to include each group members

name at the top of each spreadsheet.