MBA600 Articulation of Statements Project #2

MBA600

Articulation of Statements

Project #2

The ledger of AISExperts Inc. showed the following balances after adjustment, but before closing, on December 31, 2015, the end of the current year:

Supplies	1000
Accounts payable	78000
Accounts receivable	102000
Accumulated depreciation – equipment	27000
Depreciation expense	1200
Interest revenue	1025
Cash	80500
Common stock (10,00 0 shares outstanding)	100000
Cost of merchandise sold	634550
Dividend declared	19100
Equipment	139450
General expenses	114250
Dividend revenue	5000
Interest expense	5600
Merchandise inventory	154250
Supplies expense	1300
Prepaid insurance	11225
Retained earnings	?
Salaries Payable	14550
Sales	960250
Selling expenses	140700

The president of AISExperts Inc., has asked you to develop a flexible financial statement package (call the file yourlastnameyourfirstnameFinState15), using Excel that includes:

·         a data entry sheet (should include the information above)

·         a trial balance (link to the data entry sheet),

·         a single-step income statement,

·         a multi-step income statement,

·         a statement of retained earnings, 

·         a classified balance sheet, and

·         a post-close trial balance (a trial balance with only accounts not “closed”)

Each statement must be on one sheet in the file and this file should allow the financial statements to be prepared quickly by entering account balances in the appropriate cells on the first sheet of the file (book) – data entry sheet. 

Include percentages in the Income Statement (vertical analysis) i.e., gross profit percentage, % of selling expenses to sales, etc. (common sizing and vertical analysis are basically the same analysis techniques – every number in the multi-step income statement is divided by sales). 

Your file must contain documentation with comments (Excel commands: REVIEW, NEW COMMENT).  The comments should be included where you think explanation is required i.e., earnings per share on the bottom of the income statement should probably be explained or retained earnings (beginning and ending balances) might require some additional comments.

Use the financial information above as input for your statements.  Only formulas/cell references should appear on all sheets except your data entry sheet (except titles and dates) – no hard coded numbers in the financial statements.  When grading your project, I will include different data in your data entry sheet to see if every statement in your file will update correctly.

Arriving at the correct solution using appropriate formulas and the correct format for financial statements will allow you to keep your current position (with a score of 85).  The presentation of the financials (i.e., underlining, bold, font, $ [used sparingly], etc.) will potentially enable you to secure a promotion (an additional 15 points).  Good Luck.

Deliverable:       

·       Post your file to the Assignment Link under Projects in the classroom

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MBA 600 September 25, 2014