Module 1 case
The main question of this case is: Why does financial
intelligence matter and what does it mean?
Use the background material and do additional research as
needed. Write an essay to address the following questions.
What are the benefits from some rudimentary knowledge in
these areas?
How can the understanding of the type of information be
helpful if you are not working in finance, accounting, or economics?
List ten potential uses of this knowledge in your
professional career and a planned career/endeavor.
What does financial intelligence mean to you?
What is financial statement analysis?
Assignment Expectations
Incorporate responses to the questions above in an organized
format. Start with an introduction and end with a conclusion/summary. Use
headings and subheadings to organize the essay. Do not forget to include
references in APA format. The suggested length is five to seven pages.
Module 2 slp
In an effort to create your own definition of financial
intelligence, review background information and perform research as needed to complete
the tasks listed below.
Prepare a table showing
Definitions for finance, financial accounting, managerial
accounting, and managerial economics.
Describe how the disciplines are connected.
All information, including explanations, should be presented
in the table.
SLP Assignment Expectations
Use Excel to create an easy-to-read table with headings and
colors or shading where appropriate. The content is most important, but a
professional-looking format matters too. Assume that this table will be part of
a formal presentation.
If you do not have a lot of experience with Excel, the site
below offers brief and free tutorials.
Module 2 case
The main purpose of this module is to review the balance
sheet in more detail. Go to http://www.starbucks.com and click on the investor
relations link. Locate the annual reports for the past two years. Review
Starbucks’ financial report, review background material, and do additional
research as needed to write an essay where you incorporate answers to the
questions below.
Questions
Provide a brief introduction to the company and include a
link to the company’s website.
Distinguish between an expense (expired cost) and an asset.
Distinguish between current and long-term assets.
Distinguish between current and long-term liabilities.
Review Starbuck’s balance sheet and provide two examples of
each of the above categories.
Discuss retained earnings and how income or loss and
dividends affect this account. Review Starbucks’s retained earnings account and
explain how it changed during the past two years.
How much debt does Starbucks have? Is the amount of debt
high? How do we know if it is considered high?
What is the difference between an annual report and a 10-k?
Assignment Expectations
Incorporate responses to the questions above in an organized
format. Start with an introduction and end with a conclusion/summary. Use
headings and subheadings to organize the essay. Do not forget to
includereferences in APA format. The suggested length is five to seven pages
Module 2 – SLP
Balance Sheet
Below find a balance sheet for VWV Company.
VWV Company
Balance Sheet
December 31, 20XX
Assets
Liabilities
Current assets
Current liabilities
Cash
$72,000
Accounts payable
$12,000
Accounts receivable
18,000
Interest payable
12,000
Interest receivable
1,000
Inventory
60,000
Total current assets
$151,000
Total current liabilities
$24,000
Long-term assets
Long-term liabilities
Equipment (net of depreciation)
$128,000
Note payable
100,000
Total long-term assets
$128,000
Total long-term liabilities
$100,000
Equity
Common stock
10,000
Paid-in capital
50,000
Retained earnings
95,000
Total equity
$155,000
Total assets
279,000
Total liabilities and equity
$279,000
Required:
Recreate the balance sheet in an Excel spreadsheet. Use cell
formulae to add and subtract numbers. Add a column next to the balance sheet
for answers to the questions in this case.
Is accounts payable larger or smaller than accounts
receivable? What is the difference? What do the numbers indicate? Explain.
What does equipment net of depreciation mean?
Are payables short-term or long-term?
Determine total liabilities.
Determine net short-term assets or liabilities.
Determine the total amount owed by VWV owed at the end of
the year.
How do we know that the above is a corporate (not a sole
proprietor) balance sheet?
Both content and presentation matter.
SLP Assignment Expectations
Submit the Excel spreadsheet. All information should be part
of the spreadsheet. Written comments should be brief and refer to the balance
sheet.
Module 3 case
Use the same annual statements for Starbucks as for the
prior module. The Starbucks income statements should be used for the first two
questions. Do additional research as necessary for the last question.
Locate the income statement for the past two years. Prepare
a table in good format comparing at least ten revenue and expense items for the
two years. Did the numbers increase or decrease? What can we learn from this
information?
Comment on the changes from one year to another. Is the company
doing better or worse? Did revenues and expenses increase or decrease? Are
revenues and expenses moving in the same direction?
Investors emphasize earnings per share. Why is this number
so important and what are some of the shortcomings of this number?
Assignment Expectations
Incorporate responses to the questions above in an organized
format. Start with an introduction and end with a conclusion/summary. Use
headings and subheadings to organize the essay. Do not forget to include
references in APA format. Incorporate the required table into the Word
document. Do not submit a separate spreadsheet. The suggested length is five to
seven pages, including the table.
Module 3 slp
We reviewed the balance sheet for VWV in the prior module.
This time we are examining the income statement for the same entity.
VWV Company
Income Statement
For the Period Ending December 31, 20XX
Revenues
$540,000
Cost of goods sold
200,000
Gross profit
$340,000
Operating expenses
Salaries
$100,000
Lease for office
30,000
Advertising and promotion
24,000
Utilities
9,700
Property taxes
18,000
Payroll taxes
11,500
Insurance
8,000
Depreciation
19,922
Miscellaneous expenses
9,000
Total operating expenses
$230,122
Operating income
$109,878
Interest income
$250
Interest expense
12,000
Net interest expense
$11,750
Net income
$98,128
Use the above income statement to answer the questions
below.
Is VWV a manufacturer/reseller or a service company?
Explain the term cost of goods sold in your own words. Why
is this item significant?
Does the company have employees?
Does the company own some type of property? Can we tell from
looking at the income statement alone or do we need to look at the balance
sheet too?
Are earnings per share important information for VWV
Company?
How do the dividends affect the income statement?
How do we know that VWV Company is using the accrual basis
of accounting? Hint: Do not forget to look at the balance sheet from the prior
module.
Why is the company using the accrual basis of accounting
rather the cash basis?
Comment on operating income versus net income.
SLP Assignment Expectations
Use Word and respond in a question and answer format. There
is no need to use Excel for this particular SLP.
Module 4 case
t is not always easy to read and understand financial
statements. Format and standards are important for comparisons across companies
and over time. It is now time to look closer at the agencies creating and
enforcing the standards.
Search the course background information, the Internet
and/or the Cyber Library in addition to the Starbucks annual reports. Discuss
the terms listed below. Explain why the following concepts/ governing agencies
are important to financial statements in general and to Starbucks.
Financial Accounting Standards Board (FASB)
Generally Accepted Accounting Principles (US GAAP)
American Institute of Certified Public Accountants (AICPA)
International Accounting Standards Board (IASB)
International Financial Reporting Standards (IFRS)
Securities and Exchange Commission (SEC)
Public Company Accounting Oversight Board (PCAOB)
Annual report; and
10-K, 10-Q, and 8-K
What accounting standards are followed by Starbucks?
Which public accounting firm audits Starbucks?
What is the purpose of an external audit?
Assignment Expectations
Incorporate responses to the questions above in an organized
format. Start with an introduction and end with a conclusion/summary. Use
headings and subheadings to organize the essay. Do not forget to include
references in APA format. The suggested length is five to seven pages
Module 4 slp
Use the latest financial statements from Starbucks to compute
ratios for the categories listed below. Use the formulae shown in the segment
on “tools for financial statement analysis”.
Part I
Compute two ratios for each of the following categories.
Liquidity ratios
Debt service ratios
Turnover ratios
Profitability ratios
Other indicators
Part II
Write a three-paragraph memo to comment on the ratios.
Paragraph 1: What is the purpose of computing the ratios?
Paragraph 2: What did you learn?
Paragraph 3: Conclusion/summary of the information.
Address the memo to your instructor. Follow APA format. See
sample at the following link: https://owl.english.purdue.edu/owl/resource/590/04/
SLP Assignment Expectations
Use Excel to compute and show the ratios.
Use Word for the memo. Submit two separate documents
