course material

1. Note – I will Attach the completed financial statement—All i need is a
report
Note – I will Attach the completed financial statement—All i need is a report following the
rubric. I will also attach the word template that needs to be usedSummary Report-After you
have finished preparing all the financial statements, analyze the statements and write a
short report summarizing your findings. Use the template provided in the What to Submit
section to complete your report. There is also a Final Project Walkthrough video available in
Supporting Materials that will provide guidance for completing your template. In addition
to the financial statement results, the owners have requested that you provide them with
additional information as further growth is anticipated. They would like more input from
you to support the best possible decisions for the business.In addition, the owners are
requesting that you provide them with some suggestions on simple internal controls they
can integrate to ensure protection of company assets, and accuracy in the company’s
financial data. The owners are also considering acquiring more long-term/fixed assets, such
as vehicles, equipment, buildings, and so on. They would like your input on the different
options available for depreciation of these costs. Adding sales of product is also a
consideration for expansion. The owners want to know what accounting considerations will
be involved with this change.Summary: Write a summary of what the financial statements
indicate about the company’s financial health and performance.Purpose: Discuss the
accounting process and the resulting financial statements as they relate to meeting the
informational needs of the user.Process: Explain the process used to produce accurate
account balances and financial statements from the individual transaction data.Consider
what is being communicated through each of the financial statements you prepared (income
statement, statement of equity and balance sheet) and how this information will be used in
business decision making and planning.Analysis: Explain the company’s cash position, its
net income as a percentage of sales, and its current liabilities to current assets
position.Results: Discuss the results regarding profitability of the first month of
operations.Consider how well the company is positioned to meet current liabilities.Be sure
to include the percentage of revenues that result in profit/net income and the current ratio
when discussing profitability and liquidity based on the recorded month’s results.Consider
key points in your observations of results: is the company operating profitably (what
percent of revenues result in profit/net income)? How well-poised are they to meet
liabilities (discuss liquidity and current ratio)?Recommendations: Recommend a simple

2. system of controls that can be implemented to ensure protection of company assets and the
accuracy and integrity of their financial data as they anticipate further growth.Consider
additional controls that will support the potential for adding merchandise and additional
assets with business growth/expansion.Asset Valuation: Discuss the treatment of current
and long-term assets on the balance sheet.Discuss at least two different methods of
depreciation. Consider how the methods of depreciation will be determined.Discuss how
LIFO, FIFO, and average methods will differ and provide examples of types of applicable
merchandising.Consider how accounting will change with the addition of merchandise
inventory.