Current Liabilities And Cash Flow Activity Context Revisit

Current Liabilities And Cash Flowactivity Contextrevisit The Course Al

Current Liabilities and Cash Flow Activity: Revisit the Course Alignment Map to review how all activities assist you in achieving the course competencies and overall program outcomes.

Activity Instructions: In this assessment, you will compute working capital and the quick ratio. Based on your computations, you will interpret and explain the implications of working capital and the quick-ratio results. Complete CP9-2 (page 496) from Chapter 9 and E13-5 (page 675) from Chapter 13 of your Financial Accounting textbook. See attached file.

Submission Requirements: All quantitative assignments must be completed on the Microsoft Excel templates provided. Create one workbook with multiple tabs, copying each problem's template onto a separate tab and completing the work there. Submit this single file in the assignment area. Include your name and the assignment number in the file name; also include your name and the problem number on each tab of the document. All work should be shown.

Assignments must not be submitted as a PDF. Refer to the scoring guide for this assignment to ensure that you meet the grading criteria. Note that one scoring guide is used to evaluate both of the problems in this assessment; each criterion in the scoring guide relates to one or both of the problems here.

Paper For Above instruction

Current Liabilities And Cash Flowactivity Contextrevisit The Course Al

Current Liabilities And Cash Flowactivity Contextrevisit The Course Al

The purpose of this assignment is to deepen students' understanding of current liabilities, working capital, and liquidity ratios—specifically, the quick ratio—and their implications for a company's financial health. By completing the prescribed exercises from the textbook, students develop the analytical skills necessary to interpret financial data critically. This exercise also emphasizes practical spreadsheet skills, as students are required to complete financial problems using provided templates within Microsoft Excel.

Initially, students are instructed to revisit their course alignment map to understand how these activities contribute to broader course and program competencies. This reflective step underscores the importance of integrating knowledge with practical skills to achieve learning outcomes effectively. The core of the activity involves calculating key liquidity ratios—working capital and quick ratio—using data from specific textbook problems. The exercise aims to foster a comprehensive understanding of how these ratios serve as indicators of liquidity and operational efficiency.

Part 1: Computation of Financial Ratios

Students are instructed to solve problem CP9-2 from Chapter 9 (page 496) and problem E13-5 from Chapter 13 (page 675) of their Financial Accounting textbook. These problems typically involve analyzing current assets, current liabilities, inventory, and quick assets to derive the ratios. Completing these problems requires accurate extraction of financial data, correct application of formulas, and careful recording of results within the provided Excel templates.

Part 2: Interpretation and Explanation

Beyond numerical computation, students must interpret their results. The working capital ratio (current assets minus current liabilities) indicates the company's short-term liquidity—its ability to meet short-term obligations. A positive working capital suggests a buffer of resources, whereas a negative figure signals potential liquidity concerns. The quick ratio (also known as the acid-test ratio) refines this assessment by excluding inventory and other less liquid current assets, providing a more immediate liquidity measure. Students should analyze how their computed ratios reflect the company's liquidity position and discuss potential implications, including risk and operational efficiency.

Submission Guidelines

Students must complete all work on the Microsoft Excel templates provided, creating a single workbook with multiple tabs—each corresponding to a problem. The filename should include the student’s name and assignment number. Each tab must also clearly indicate the student’s name and problem number. The assignment must be submitted as an Excel file; PDF submissions are not accepted.

Evaluation Criteria

Assessment will be based on accuracy of calculations, completeness of work shown, proper use of templates, and clarity of interpretation and explanation. The instructor emphasizes thoroughness and correctness in execution and analysis, aligning with the scoring guide criteria. The assignment collectively aims to evaluate both technical financial skills and analytical reasoning.

Resources

  • Current Liabilities and Cash Flow Scoring Guide
  • CP9-2 template
  • E13-5 template
  • Course Alignment Map

References

  • Wild, J. J., Subramanyam, K. R., & Halsey, R. F. (2021). Financial Accounting (12th ed.). McGraw-Hill Education.
  • Kinney, W. R., & Raschke, R. L. (2020). Financial Accounting: An Introduction. Pearson.
  • Gibson, C. H. (2019). Financial Reporting & Analysis (13th ed.). Cengage Learning.
  • Heintz, J., & Parry, R. (2018). Financial Accounting: The Impact on Decision Makers. Wiley.
  • Revsine, L., Collins, D., Johnson, W. B., & Mittelstaedt, F. (2015). Financial Reporting and Analysis. Pearson.
  • Lev, B., & Gu, F. (2016). The Accounting Turnaround: Navigating Financial Challenges. Harvard Business Review.
  • Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. Wiley.
  • Street, D., & Andrew, B. (2020). Corporate Financial Analysis. Routledge.
  • Alfredson, K., & Ohlson, J. (2021). Contemporary Financial Analysis. Routledge.
  • Stickney, C. P., Brown, P., Wahlen, J., & Schipper, K. (2018). Financial Reporting, Financial Statement Analysis, and Valuation. Cengage Learning.

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