Accounting Project: Denim Products

Accounting Project: Denim Products

Project Description

Read Denim Products Incorporated: Creating and Using a Master Budget. Complete the highlighted tabs found in the workbook, link provided below, which includes a budgeted balance sheet, income statement, and cash flow statement, and then briefly analyze the results providing financial recommendations for improvements.

Below are the steps to guide you in the completion of this assignment:

The main component of this case study is the workbook you prepare with the provided information to successfully create the three pro forma financial statements (Balance Sheet, Income Statement, and Cash Flow Statement).

Begin by making a copy of the template provideded. As you start editing the sheet, you will notice that certain cells have been shaded to guide you as to which require your input to successfully complete the assignment. The shading will be explained in further detail below.

When you open the template, you should start by examining the data input tab. This tab of the Denim Products Incorporated (DPI) template has amounts and information that you would have accumulated by speaking with various department heads, the controller, and so on. Do not move or change the amounts provided to you in this tab.

There are two sections in the data input tab that are gold-shaded. The first one is the mortgage interest for each quarter. The second area is the ending principal for each quarter. You will need to complete the mortgage schedule before completing the rest of the workbook.

The next tab in the workbook, entitled Budget Data provides additional information for you to complete the assignment. Again, do not move or change the amounts provided to you in this tab.

Now look through the rest of the workbook; the tabs that are highlighted are required to be completed. These tabs will have designated cells that you will need to populate with data in completing your project.

Within these tabs, cells that are required for you to complete will also be highlighted. These highlighted cells must be populated with a formula or a link to bring in information from prior tabs.

Only if a cell is highlighted in blue may you hardcode a number instead of populating it with a formula.

Cells that are not highlighted should not be populated with data.

You will also notice, as you go through the template, that we provide hints, tips, and check figures to further guide you as you progress through the tabs. (These cells are typically shaded pale green.)

Progress through the tabs systematically from left to right as previous tab information is needed for subsequent tabs.

It is relatively simple for a small mistake to lead to very significant differences between your work and the correct solution, which can then make it difficult or even impossible to complete later parts of the assignment. The check figures provided along the way are meant to minimize this and to guide you.

Have the spreadsheet show most dollar amounts as whole dollars (in some cases, however, use judgment). Similarly, use judgment on how many decimals to display and what format to use (i.e., $ or %) in each cell. Remember that the calculations will still be accurate, as the workbook uses the decimal part of the number even if it is only showing two decimals.

DO NOT type in numbers in your cells except where indicated, link everything to previous tabs, for example, from the Data Input sheet. Flow through is important and considered as part of your grade, and if you have hard coded numbers, it may affect your grade.

For the Income Statement and the Balance Sheet, have numbers shown as absolute numbers unless told otherwise. For example, Accumulated Depreciation should have parentheses around the amount reflected on the Balance Sheet.

For the Cash Flow Statement, be sure to designate a cash inflow as a positive number and a cash outflow as a negative number.

The discussion section should be completed in the designated box in the Conclusion tab, and should be limited to:

Recommendations you are making to improve the financial health of the company.

Financial ratio analyses you performed.

Feel free to expand the designated box, if needed, and you may use other parts of the Conclusion tab to calculate ratios, etc., however, keep the designated box for your narrative.

To submit this project, ensure that link sharing is turned on and email the link to your finalized workbook Be sure to complete the Cover Page tab of the file which should contain the number of the team (group), and all names and emails of team members.

Please note that if you are working in a group, your feedback will be emailed back to your entire group. If you do not wish to reveal your email to the rest of your group, email us to let us know.

Learning Outcomes

When completed successfully, this project will enable you to:

Use your accounting knowledge to prepare a balance sheet, income statement, and cash flow statement.

Understand the steps involved in forecasting financials and the importance of monitoring a companys cash balance.

Gain practical experience in using a multi-tab workbook and learning the importance of flow-through of data. Linking data throughout a workbook is a powerful tool used to minimize error when inputs are changed in decision-making for a companys future.

Analyze and critique financial statements and use financial ratio analysis to propose recommendations to improve the financial health of a business.

Plagiarism Policy

Here , we believe that learning is best accomplished by doingthis ethos underpinned the design of our active learning platform, and it likewise informs our approach to the completion of projects and presentations for our degree programs. We expect that all of our graduates will be able to deploy the concepts and skills theyve learned over the course of their degree, whether in the workplace or in pursuit of personal goals, and so it is in our students best interest that these assignments be completed solely through their own efforts with academic integrity.

views the use of ChatGPT and other large language models as one acceptable tool in the research and writing process; however, the text produced through the use of such tools should not replace the substance of your assignment. There are known issues with AI-generated text, including inaccuracies and uncited plagiarism of online sources, and the student will bear the responsibility for errors or code of conduct violations within submitted works. requires that all text generated by ChatGPT or another LLM be cited properly using these conventions.

takes academic integrity very seriouslywe define plagiarism as: Knowingly representing the work of others as ones own, engaging in any acts of plagiarism, or referencing the works of others without appropriate citation. This includes both misusing or not using proper citations for the works referenced, and submitting someone elses work as your own. Quantic monitors all submissions for instances of plagiarism and all plagiarism, even unintentional, is considered a conduct violation. If youre still not sure about what constitutes plagiarism, check out this two-minute presentation by our librarian, Kristina.

Accounting Project Rubric

Scores 2 and above are considered passing. Students who receive a 1 or 0 will not receive credit for the assignment and must revise and resubmit to receive a passing grade. As a reminder, the required financial statements are the balance sheet, income statement, and cash flow statement.

Score Description

5 Clearly addresses the case study prompt.

Includes all financial statements. They are accurate and intelligible.

The workbook has no more than 1 minor error*.

Figures flow through and are not hardcoded except where indicated.

Explores suggestions for improving the firms financial health.

4 Clearly addresses the case study prompt.

Includes all financial statements. They are accurate and intelligible.

The workbook has no more than 3 minor errors*.

Figures flow through and are not hardcoded except where indicated.

Lists suggestions for improving the firms financial health.

3 Clearly addresses the case study prompt.

Includes all financial statements. They are accurate and intelligible.

The workbook has no more than

1 major error with up to 3 minor errors*; or 6 minor errors*.

Lists suggestions for improving the firms financial health.

2 Clearly addresses the case study prompt.

Includes all financial statements.

The workbook is missing a few pieces of information or contains no more than:

2 major errors with up to 3 minor errors*; 1 major error with up to 6 minor errors*; or 9 minor errors*.

Lists suggestions for improving the firms financial health.

1

Barely addresses the case study prompt.

Workbook is missing many pieces of information and riddled with errors.

Cells do not contain formulas but have hardcoded numbers. (Hardcoded numbers are only allowed where indicated.)

At least one of the following disqualifying errors*:

Not submitting any of the three financial statements (Balance Sheet, Income Statement, or Cash Flows statement).

The Balance Sheet does not balance.

0 The assignment is plagiarized, not turned in, or completely fails to address the case study prompt.

*The following list provides examples of the three categories of errors:

Minor errors include, but are not limited to

Miscalculations of the balance of any account. For example, miscalculation of the cash balance, revenues, COGS, inventory, interest expense, or mortgage payable. Including incorrect formulas or links.

Appropriate formats are not used most of the time (i.e., accounting, number, percent), for example, gross and net profit margin ratios are typically expressed as a percentage or decimal. Any other formatting would be incorrect.

Miscalculated ratios.

Major errors include, but are not limited to:

Retained earnings are not correctly reflected as an accumulation of earnings less dividends.

Ending cash in the Cash Flow Statement does not agree with the cash balance on the Balance Sheet.

Hardcoding numbers in cells, except where allowed.

Workbook is missing major sections of information, for example, not completing the cash budget tab or sell/admin tab.

The following are disqualifying errors resulting in an automatic failure:

Not completing any of the three financial statements (Balance Sheet, Income Statement, or Cash Flows statement).

The Balance Sheet does not balance (regardless of whether the total of each side of the Balance Sheet is correct or not).

Accounting Project: Highland Malt

Project Description

Read Highland Malt: Accounting Policy Choices in Financial Statements. Prepare balance sheets, income statements, and cash flow statements for the Years 2018 and 2019 only, and then briefly discuss Highland Malts financial health and make recommendations for improvements. Note that the main component of this case study is the successful creation of the three financial statements (Balance Sheet, Income Statement, and Cash Flows Statement).

This task will require you to make certain assumptions about the firms business operations, and to prepare all required journal entries and T-accounts (you do not need to submit journal entries and T-accounts).

The discussion section should be no more than one, single-spaced page, and should be limited to:

Key assumptions you made

Financial ratio analyses you performed

Recommendations you are making to improve the financial health of the company.

You are required to show your calculations for the following: Cash, Inventory, Retained Earnings, Sales Revenues, COGS, and Operating Expenses. Additionally, you are required to show how you calculated the financial ratios. You may show your calculations in a separate part at the end of your project. This proof is not to be counted as part of the one page discussion requirement.

Submit the project as a single PDF file to. Be sure to include a title pagea template for this can be found here. The title page should contain the number of the team (group), and all names and emails of team members. If you are submitting your Accounting project as a group, you must also submit the final page of the Group Project Agreement signed by all group members in order to receive credit for the project (attached as a PDF to your submission email).

Learning Outcomes

When completed successfully, this project will enable you to:

Prepare journal entries, T-accounts, multi-year balance sheets, income statements, and cash flow statements.

Analyze and critique financial statements, and use financial ratio analysis to propose recommendations to improve the financial health of a business.

Assumptions

When preparing the financial statements, add the following assumptions to your own:

Revenue recognition. Treat sales of whisky as revenue (not deferred revenue nor any other liability).

Inventory/production costing methods. Inventory production began in 2018, but no sales took place in 2018. Use the first-in, first out method (FIFO) when calculating the Cost of Goods Sold (COGS). Do not include any of the expenses in Exhibit 4 in COGS.

Income taxes. On the income statement, ignore taxes. Reflect the bank loan interest for 2018 and 2019. Present EBI (Earnings Before Interest). Then, present net income or net loss.

Expense categories. Include all costs listed in Exhibit 4 as fixed costs and as operating expenses that fall under Selling, General and Administrative expenses (SG&A).

Bank Loan. Assume the loan was obtained on Jan. 1, 2018 and since the case states it was extended in 2019, assume the full amount of the principal will be repaid on January 1, 2020.

Plagiarism Policy

Quantic takes academic integrity very seriouslywe define plagiarism as: Knowingly representing the work of others as ones own, engaging in any acts of plagiarism, or referencing the works of others without appropriate citation. This includes both misusing or not using proper citations for the works referenced, and submitting someone elses work as your own. Quantic monitors all submissions for instances of plagiarism and all plagiarism, even unintentional, is considered a conduct violation. If youre still not sure about what constitutes plagiarism, check out this two-minute presentation by our librarian, Kristina. It is important to be conscientious when citing your sources.

When in doubt, cite! Kristina outlines the basics of best citation practices in this one-minute video. You can also find more about our plagiarism policy here.

Accounting Project Rubric

Scores 2 and above are considered passing. Students who receive a 1 or 0 will not receive credit for the assignment, and must revise and resubmit to receive a passing grade. As a reminder, the required financial statements are the balance sheet, income statement, and cash flow statement.

Score Description

5 Clearly addresses the case study prompt.

Includes all financial statements. They are accurate and intelligible.

Balance sheet balances and statements have no more than 1 minor error*.

Clearly states assumptions.

Explores suggestions for improving the firms financial health.

4 Clearly addresses the case study prompt.

Includes all financial statements. They are accurate and intelligible.

Balance sheet balances and statements have no more than 3 minor errors*.

Clearly states assumptions.

Lists suggestions for improving the firms financial health.

3 Clearly addresses the case study prompt.

Includes all financial statements. They are accurate and intelligible.

Financial statements have no more than

1 major error with up to 3 minor errors*; or 6 minor errors*.

Clearly states assumptions.

Lists suggestions for improving the firms financial health.

2 Clearly addresses the case study prompt.

Includes all financial statements.

Financial statements have no more than

2 major errors with up to 3 minor errors*; 1 major error with up to 6 minor errors*; or 9 minor errors*.

Lists suggestions for improving the firms financial health.

1 At least one of the following disqualifying errors*:

The cash account has a credit balance.

Not submitting any of the three financial statements (Balance Sheet, Income Statement, or Cash Flows statement).

The Balance Sheet does not balance regardless of whether the total of each side of the Balance Sheet is correct or not.

0 Doesnt turn in a case study or completely fails to address the case study prompt.

*The following list provides examples of the three categories of errors:

Minor errors include, but are not limited to:

Miscalculations of the balance of any account. For example, miscalculation of the cash balance, revenues, operating expenses, inventory, interest expense, accounts receivables, bank loan, or COGS. The sections in the Balance Sheet are out of order. Cash Flows Statement does not have all sections Miscalculated ratios.

Major errors include, but are not limited to:

Misclassification of accounts, such as recording bank loans as equity, or recording accounts receivables as a non-current asset.

Ending cash in the Cash Flows Statement does not agree with the cash balance in the Balance Sheet (regardless of whether the figure is correct or not).

The following are disqualifying errors resulting in an automatic failure:

The cash account has a credit balance.

Not submitting any of the three financial statements (Balance Sheet, Income Statement, or Cash Flows statement).

The Balance Sheet does not balance (regardless of whether the total of each side of the Balance Sheet is correct or not).