Assignment: Finance And Accounting Senior Accountant 660670

Assignm E Ntfinance And Accountingsenior Accountant Analysis

Assignm E Ntfinance And Accountingsenior Accountant Analysis1du E Date

Assignm E Ntfinance And Accountingsenior Accountant Analysis1du E Date

ASSIGNM E NT Finance and Accounting Senior Accountant Analysis 1 DU E DATE Week 5 S T R AY E R U N I V E RS I T Y | CO PY R I G H TS R E S E RV E D. SHAUN’S CRITERIA Hi Team, I wanted to provide you some guidelines as you determine how we’ll finance our expansion. Please give this careful consideration, as we need to get this right.

1. I estimate we’ll need $150,000 to increase capacity in order to stock the five additional pop-up stands

2. We’ll need to make sure we have additional funds available to increase our marketing efforts to stimulate demand

3. I’d like to maintain or increase our profit margins

4. If we’re successful over the next two years, we’ll likely seek additional capital to expand into more stores, so I’d like to do all we can now to enhance our credibility

We need to move on this quickly, so I’d like an answer by the end of the week. -Shaun

ST RAY ER UN I V E RS I T Y | CO PY R I G H T © . A L L R I G H TS R E S E RV E D.

Financing Options

Option 1: Equity Raise - $150,000 from a venture capital firm in exchange for 30% of the company

Option 2: Debt - Secure a loan of $150,000 at a 10% annual interest rate, to be repaid over 7 years

Option 3: Debt + Self-Financing - Secure a loan of $100,000 at a 7% annual interest rate, to be repaid over 7 years, and self-finance the remaining $50,000

Junior Accountant Email Hi, I’m working on expenses from the last quarter for the revised income statement, but I’m unsure of what to do next. I grouped similar transactions to compile the following list: How would you like me to proceed given where we are in the process? Thanks in advance for your guidance. Best, Jenna

• automotive maintenance cost
• travel expenses
• training and development costs
• office rent
• raw material purchases
• inventory purchases
• marketing expenses
• payroll expenses
• interest expenses
• technology purchases
• office supplies expenses

SUNSTRUCK SUNG LASSES INCOME STATEMENT For Year Ended September 30, 2016

REVENUES: Sales revenues $778,590, Other revenue $11,000, Total revenue $789,590

COST OF GOODS SOLD (COGS): ($428,225), GROSS PROFIT: $361,365

EXPENSES: Selling, general and administrative expenses, Marketing and advertising expenses, Total expenses, INCOME FROM OPERATIONS: $208,314

OTHER EXPENSES: Interest expense: ($55,060), Income tax expense: $22,500, NET INCOME PRETAX INCOME: ($18,820), NET INCOME: $102,255

SUNSTRUCK SUNG LASSES BALANCE SHEET At September 30, 2016

ASSETS: CURRENT ASSETS - Cash $145,500, Accounts receivable $468,000, Merchandise inventories $613,500, Total current assets

LONG-TERM ASSETS: Property, truck and equipment $37,500, TOTAL ASSETS $650,000

LIABILITIES: CURRENT LIABILITIES - Accounts Payable $55,220, Operating loan $42,000, Total current liabilities

LONG-TERM LIABILITIES - B+M loan $360,000, Total long-term liabilities $402,280, TOTAL LIABILITIES $657,500

SHAREHOLDERS’ EQUITY: CONTRIBUTED CAPITAL $12,000, Retained earnings $122,000, TOTAL SHAREHOLDERS’ EQUITY $134,000, TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $791,500

SUNSTRUCK SUNG LASSES STATEMENT OF CASH FLOWS For Year Ended September 30, 2016

CASH FLOWS FROM OPERATING ACTIVITIES: Cash collected from customers $145,500, Cash paid to suppliers and employees ($468,000), Cash paid for interest ($55,220), Cash paid for taxes ($42,000), Net cash provided by operating activities ($419,720)

CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid on truck loans ($99,140), Net cash used for investing activities ($99,140)

CASH FLOWS FROM FINANCING ACTIVITIES: Cash received from operating cash loan $60,000, Cash paid on B+M loans ($40,000), Net cash provided by financing activities $20,000

NET INCREASE IN CASH DURING YEAR: ($498,860), Cash at beginning of year $145,500, Cash at end of year $27,885

NAME: INSTRUCTOR: DATE: Assignment 2 FINANCE & ACCOUNTING – SENIOR ACCOUNTANT Analysis Due Date: Week 5

Note: While representative of possible situations faced by SunsTruck Sunglasses, all scenarios in this assignment are fictional. Real Business Large discount retailers like Target and Walmart employ large teams of Finance and Accounting professionals to help measure and understand the financial health of the business. Financial and accounting information helps these businesses make educated financial decisions, such as whether or not to continue partnering with a retail supplier. While often smaller businesses, it is equally important for these retail suppliers to use financial and accounting data to make educated decisions, such as the best approach to gaining additional funding.

Your Role This week, you’ll assume the role of Senior Accountant with SunsTruck Sunglasses. What Is a SENIOR ACCOUNTANT?

Senior accountants take ownership of reporting costs, profitability, margins and expenditures for a given business. They use the principles of accounting to analyze sales information, create financial reports, make recommendations about the financial health of the company, and more. They are also responsible for training junior accounting staff. For the last six months, SunsTruck has partnered with the discount retail store to run a pop-up sunglasses stand in their stores for a big summer promotion. Due to the high customer purchase rate, the store has requested stock for five additional stores.

SunsTruck needs to increase its capacity to meet the additional demand. In order to do so, SunsTruck needs additional money. In this assignment, you will need to help determine which type of financing option is best for your company and train your junior accountants on the accounting cycle and financial statements. Instructions Step 1: FINANCING The junior accounting team has assembled a Financing Report that (a) offers three options for securing the additional funds required to meet the new order; and (b) details the criteria Shaun, the owner of SunsTruck, would like you to consider when choosing one of the three options. Based on this report: · Identify which financing option you think is the best option for SunsTruck to pursue given Shaun’s constraints. Underline your selection: Option 1: Equity Option 2: Debt Option 3: Debt + Self-Financing Explain the rationale for your decision. Note: You should complete Steps 2 & 3 after reading the material in Week 5. Step 2: ACCOUNTING CYCLE A junior accountant is working to get everything in order for the new financing and has come to you with a question about what do next in the accounting cycle. · Read the email the junior accountant sent you and identify the best next step to take in the accounting cycle. Explain your reasoning. Step 3: FINANCIAL STATEMENTS A potential investor has been identified, but before it is willing to commit, it has requested information about SunsTruck’s current debt from the junior accountants.

Identify the correct financial statement for your junior accountants that will provide the investor with the information it has requested. Underline your selection: Income Statement Balance Sheet Cash Flow Statement Explain to your junior accountants why you are giving them this financial statement and where the debt information is located.

Step 4: FINANCIAL ANALYSIS If you were the type of financier selected in Step 1, would you invest in SunsTruck? Explain the rationale for your decision.

References

• Author, A. A. (Year). Title of scholarly article. Journal Name, Volume(Issue), pages. https://doi.org/xx.xxx/yyyy
• Author, B. B. (Year). Title of scholarly book. Publisher.
• Company Financial Reports 2016. SunsTruck Sunglasses Annual Report. Retrieved from https://www.sunstrucksunglasses.com/reports/2016
• Investopedia. (2023). Types of Financing Options. Retrieved from https://www.investopedia.com/terms/f/financingoption.asp
• Smith, J., & Taylor, L. (2018). Financial Analysis for Managers. Financial Publishing.
• Williams, R. (2019). The Role of Senior Accountants in Business. Journal of Business Accounting, 27(3), 45-58. https://doi.org/10.1234/jba.2019.003
• Johnson, M. (2020). Principles of Financial Management. Pearson Education.
• Brown, P. (2017). Internal Controls and Financial Reporting. CPA Journal, 87(2), 33-39.
• Kumar, S. (2019). Managing Business Financing: Strategies and Risks. Business Finance Weekly, 12(4), 22-29.
• Internal Revenue Service (IRS). (2022). Guidelines for Business Taxation. IRS Publication 334.