The financial information for the past two years (2018 and 2017) is provided. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below and round to two decimals. Do the ratios for both years unless the ratio needs an average then only do it for the current year: a. Current Ratio b. Quick ratio c. Accounts Receivable Turnover d. Days Sales in Receivables e. Inventory Turnover f. Days Sales in Inventory g. Working Capital h. Liabilities to Stockholders' Equity i. Earnings Per Share The financial statements provided in this practice set can also be downloaded from blackboard. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and prepare an analysis of the company's financial position. Identify two strengths and two weaknesses in the company. Make two recommendations to improve the company's financial position. Be specific in each of the recommendations and use the ratios to support your analysis. The company has a credit policy of 1/10,n/30 and uses this as part of its evaluation. The length should be no more than one page. If there are any grammatical or spelling errors you will not receive credit for the memo. 6. Please have the following information complete before entering your answers onto blackboard: a. Statement of Cash Flows b. Balance Sheet with horizontal analysis c. Income Statement with vertical analysis d. Worksheet showing your ratios e. Memo analyzing the company's strengths and weaknesses with two recommendations Comparative Balance Sheet Comparative Income Statement Statement of Retained Earnings Using a spreadsheet and based on the information provided in the next section, complete the following requirements: 1. Determine the started and completed units by using the following formula: Started Ending = Completed and Transferred Out Beginning 2. Prepare an equivalent units schedule. The schedule should follow the format below; you may add additional information if you would like. (Remember that the schedule is for units of cars, not aluminum and wheels.) 3. Calculate the total cost and the cost per equivalent unit for the direct materials aluminum. If the number is not exact round to the nearest cent. 4. Calculate the total cost and the cost per equivalent unit for the direct materials wheels. If the number is not exact round to the nearest cent. 5. Calculate the predetermined overhead rate. If the number is not exact round to the nearest cent. 6. Determine the total conversion cost by using the predetermined rate and the direct labor cost and the cost per equivalent unit for the conversion cost per car. If the number is not exact round to the nearest cent. 7. Determine the unit cost per car. 8. Prepare a Cost of Production report rounding to the nearest cent. This report should show all costs transferred into Work-in-Process and the costs transferred to Finished Goods by using the Equivalent Units Schedule. This process uses FIFO costing. 9. Determine the amounts for the following before entering your answers onto blackboard. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Show and calculate an Income Statement f) Gross Profit g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period and use the account numbers as listed below instead of account names. 11. Chart of Accounts Example: Sales on Account would be Debit 11000, Credit 40000. a. In the first journal entry record the purchase of the aluminum and the wheels using cash. b. Record the materials transferred to WIP. Again use one journal entry to record the transfer of the aluminum and the wheels. c. Record the direct labor into WIP using wages payable. d. Record the applied FOH. e. Record the actual FOH using cash. f. Record the over or under applied FOH. g. Record the sale of the goods on account along with the cost of the inventory that was sold. Combine both into one journal entry showing the sale first and inventory second. All sales were made on account, aluminum and wheels and wages were paid on account. The actual FOH was paid using cash. Make sure all numbers are rounded to the nearest cent. 12. Use an Excel spreadsheet to calculate your answers before you enter your answers onto blackboard. Make sure to follow all the examples on blackboard when entering your answers and enter your answers exactly as given to you on blackboard. The financial information for the past two years (2018 and 2017) is provided. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below and round to two decimals. Do the ratios for both years unless the ratio needs an average then only do it for the current year: a. Current Ratio b. Quick ratio c. Accounts Receivable Turnover d. Days Sales in Receivables e. Inventory Turnover f. Days Sales in Inventory g. Working Capital h. Liabilities to Stockholders' Equity i. Earnings Per Share The financial statements provided in this practice set can also be downloaded from blackboard. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and prepare an analysis of the company's financial position. Identify two strengths and two weaknesses in the company. Make two recommendations to improve the company's financial position. Be specific in each of the recommendations and use the ratios to support your analysis. The company has a credit policy of 1/10,n/30 and uses this as part of its evaluation. The length should be no more than one page. If there are any grammatical or spelling errors you will not receive credit for the memo. 6. Please have the following information complete before entering your answers onto blackboard: a. Statement of Cash Flows b. Balance Sheet with horizontal analysis c. Income Statement with vertical analysis d. Worksheet showing your ratios e. Memo analyzing the company's strengths and weaknesses with two recommendations Comparative Balance Sheet Comparative Income Statement Statement of Retained Earnings Using a spreadsheet and based on the information provided in the next section, complete the following requirements: 1. Determine the started and completed units by using the following formula: Started Ending = Completed and Transferred Out Beginning 2. Prepare an equivalent units schedule. The schedule should follow the format below; you may add additional information if you would like. (Remember that the schedule is for units of cars, not aluminum and wheels.) 3. Calculate the total cost and the cost per equivalent unit for the direct materials aluminum. If the number is not exact round to the nearest cent. 4. Calculate the total cost and the cost per equivalent unit for the direct materials wheels. If the number is not exact round to the nearest cent. 5. Calculate the predetermined overhead rate. If the number is not exact round to the nearest cent. 6. Determine the total conversion cost by using the predetermined rate and the direct labor cost and the cost per equivalent unit for the conversion cost per car. If the number is not exact round to the nearest cent. 7. Determine the unit cost per car. 8. Prepare a Cost of Production report rounding to the nearest cent. This report should show all costs transferred into Work-in-Process and the costs transferred to Finished Goods by using the Equivalent Units Schedule. This process uses FIFO costing. 9. Determine the amounts for the following before entering your answers onto blackboard. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Show and calculate an Income Statement f) Gross Profit g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period and use the account numbers as listed below instead of account names. 11. Chart of Accounts Example: Sales on Account would be Debit 11000, Credit 40000. a. In the first journal entry record the purchase of the aluminum and the wheels using cash. b. Record the materials transferred to WIP. Again use one journal entry to record the transfer of the aluminum and the wheels. c. Record the direct labor into WIP using wages payable. d. Record the applied FOH. e. Record the actual FOH using cash. f. Record the over or under applied FOH. g. Record the sale of the goods on account along with the cost of the inventory that was sold. Combine both into one journal entry showing the sale first and inventory second. All sales were made on account, aluminum and wheels and wages were paid on account. The actual FOH was paid using cash. Make sure all numbers are rounded to the nearest cent. 12. Use an Excel spreadsheet to calculate your answers before you enter your answers onto blackboard. Make sure to follow all the examples on blackboard when entering your answers and enter your answers exactly as given to you on blackboard