project
December 31, 2032 ALORE INCORPORATED ALORE Incorporated ACCOUNTING 3600 GROUP PROJECT – VERSION XYZ *EXAMPLE OF PROPER FORMAT * December 31, 2032 ALORE INCORPORATED 1 Table of Contents Company Overview ................................ ................................ ................................ ................................ ...... X Financial Statements ................................ ................................ ................................ ................................ .... X Income Statement (20 30-20 32) ................................ ................................ ................................ ............ X Balance Sheet (20 30 – 20 32 ) ................................ ................................ ................................ ................ X Statement of Cash Flows 20 32 ................................ ................................ ................................ ............. X Statement of Cash Flows 20 31 ................................ ................................ ................................ ............. X Ratio Analysis ................................ ................................ ................................ ................................ ............... X Earnings per Share ................................ ................................ ................................ ................................ .... X Price Earnings Ratio ................................ ................................ ................................ ................................ .. X Return on Equity ................................ ................................ ................................ ................................ ....... X Working Capital ................................ ................................ ................................ ................................ ......... X Current Ratio ................................ ................................ ................................ ................................ ............. X Quick Ratio ................................ ................................ ................................ ................................ ................ X A/R Turnover Ratio ................................ ................................ ................................ ................................ ... X Inventory Turnover Ratio ................................ ................................ ................................ .......................... X Gross Profit ................................ ................................ ................................ ................................ ............... X Gross Profit Ratio ................................ ................................ ................................ ................................ ...... X Operating Income ................................ ................................ ................................ ................................ ..... X Operating Margin ................................ ................................ ................................ ................................ ...... X Debt -to-Equity Ratio ................................ ................................ ................................ ................................ . X Book Value per Share ................................ ................................ ................................ ................................ X Business Analysis ................................ ................................ ................................ ................................ .......... X Projected Income Statement ................................ ................................ ................................ ....................... X Earnings per Share Evaluation ................................ ................................ ................................ ..................... X Supporting Documentation ................................ ................................ ................................ ......................... X Journal Entries ................................ ................................ ................................ ................................ ........... X T-Accounts ................................ ................................ ................................ ................................ ................ X Inventory Schedule ................................ ................................ ................................ ................................ ... X Depreciation Schedule s (full truck and office furniture schedules) ................................ .......................... X Amortization Schedule s ( full patent and bond schedules) ................................ ................................ ...... X Vertical Analysis/Horizontal Analysis ................................ ................................ ................................ ........ X December 31, 2032 ALORE INCORPORATED 2 COMPANY OVERVIEW December 31, 2032 ALORE INCORPORATED 3 INSTRUCTIONS FOR THIS SECTION: Company Introduction and Overview Give me quick overview of your company. What is your company’s name? What products and services do you sell? December 31, 2032 ALORE INCORPORATED 4 FINANCIAL STATEMENTS December 31, 2032 ALORE INCORPORATED 5 For the Year Ended Dec 31, 2032 Dec 31, 2031 Dec 31, 2030 Total Revenue - $ - $ - $ Cost of Goods Sold - - - Gross Profit - $ - $ - $ Operating Expenses Bad debt expense - - - Wages expense - - - Rent expense - - - Insurance expense - - - Utility expense - - - Fuel expense - - - Depreciation expense - - - Advertising expense - - - Office supplies expense - - - Total Operating Expenses - $ - $ - $ Operating Income or Loss - $ - $ - $ Income/Expenses from Continuing Operations Gain on sale - - - Unreal hold gain - - - Interest income - - - Amortization expense - - - Interest expense - - - Bond interest expense - - - Loss on sale - - - Net Income From Continuing Ops - $ - $ - $ Net Income - $ - $ - $ ALORE Incorporated Income Statement December 31, 2032 ALORE INCORPORATED 6 At Dec 31, 2032 Dec 31, 2031 Dec 31, 2030 Assets Current Assets Cash - $ - $ - $ Marketable Securities - - - Accounts Receivable - - - Allowance for Bad Debt - - - Interest Receivable - - - Office Supplies - - - Prepaid Advertising - - - Prepaid Rent - - - Prepaid Insurance - - - Inventory - - - Total Current Assets - $ - $ - $ Non-Current Assets Office furniture - $ - $ - $ Accumulated Depreciation - - - Equipment - - - Accumulated Depreciation - - - LT Notes Receivable - - - Patent - - - Land - - - Total Non-Current Assets - $ - $ - $ Total Assets - $ - $ - $ Liabilities Current Liabilities Accounts Payable - $ - $ - $ Wages Payable - - - Interest Payable - - - ST Notes Payable - - - Deferred Revenue - - - Dividends Payable - - - Bond Interest Payable - - - Total Current Liabilities - $ - $ - $ Non-Current Liabilities LT Notes Payable - $ - $ - $ Bonds Payable - - - Discount on Bonds Payable - - - Total Non-Current Liabilities - $ - $ - $ Total Liabilities - $ - $ - $ Stockholders' Equity Common Stock - $ - $ - $ Additional Paid-in-Capital - - - Treasury Stock - - - Contributed Capital - - - Retained Earnings - - - Total Stockholders' Equity - $ - $ - $ Total Liabilities & Stockholders' Equity - $ - $ - $ ALORE Incorporated Balance Sheet December 31, 2032 ALORE INCORPORATED 7 Net Income - $ Operating Activities, Cash Flows Provided By or Used In Adjustments to Net Income: - - - - Changes in Current Assets/Current Liabilities: - - - - - - - Net Cash Provided by/Used in Operating Activities - $ Investing Activities, Cash Flows Provided By or Used In - - - - - - - Net Cash Provided by/Used in Investing Activities - $ Financing Activities, Cash Flows Provided By or Used In - - - - - - - Net Cash Provided by/Used in Financing Activities - $ Net Increase / (Decrease) in Cash - $ Cash and Cash Equivalents, 1/01/2032 - $ Cash and Cash Equivalents, 12/31/2032 - $ ALORE Incorporated Statement of Cash Flows For the Year Ended December 31, 2032 December 31, 2032 ALORE INCORPORATED 8 Net Income - $ Operating Activities, Cash Flows Provided By or Used In Adjustments to Net Income: - - - - Changes in Current Assets/Current Liabilities: - - - - - - - Net Cash Provided by/Used in Operating Activities - $ Investing Activities, Cash Flows Provided By or Used In - - - - - - - Net Cash Provided by/Used in Investing Activities - $ Financing Activities, Cash Flows Provided By or Used In - - - - - - - Net Cash Provided by/Used in Financing Activities - $ Net Increase / (Decrease) in Cash - $ Cash and Cash Equivalents, 1/01/2031 - $ Cash and Cash Equivalents, 12/31/2031 - $ ALORE Incorporated Statement of Cash Flows For the Year Ended December 31, 2031 December 31, 2032 ALORE INCORPORATED 9 RATIO ANALYSIS December 31, 2032 ALORE INCORPORATED 10 INSTRUCTIONS FOR THIS SECTION: Ratio Analysis (ALL THREE YEARS) Compute the following ratios using the information from the financial stat ements you have produced for 2032 . Show all calculation work for the ratios (3 years) . Explain what every calculation means, in other words, define the ratio (explain the answer in non -book language). Provide graphs which show the three year trends of each ratio . Earnings per Share ratio Price -earnings ratio Return on Equity Working Capital Current ratio Quick ratio A/R Turnover ratio Inventory Turnover ratio Gross Profit Gross Profit ratio Operating Income Operating Margin Debt -to-equity ratio Book Value per Share *A POSSIBLE FORMAT EXAMPLE IS PROVIDED ON THE NEXT PAGE * December 31, 2032 ALORE INCORPORATED 11 Earnings p er Share (EPS) Earnings per share is… (explain/define the ratio here ) Earnings per S hare is calc ulated using the following formula: ( − ) ℎ ⁄ Describe the three year trend for your company here … $- $0.05 $0.10 $0.15 $0.20 $0.25 2030 2031 2032 $0.12 $0.16 $0.19 Earnings Per Share 2032 : $000,000 / 0 ,000,000 = $0.12 2031: $000,000 / 0,000,000 = $0.16 2030: $000,000 / 0,000,000 = $0.19 December 31, 2032 ALORE INCORPORATED 12 BUSINESS ANALYSIS December 31, 2032 ALORE INCORPORATED 13 INSTRUCTIONS FOR THIS SECTION: Business Analysis *** THIS SECTION IS COMPLETELY SEPARATE FROM YOUR RATIO ANAYSIS – DO NOT RELIST OR RESTATE ALL THE RATIOS & COMPANY’S TRENDS IN THIS SECTION! *** Perform an analysis of your business using your results from the re quired calculations listed in the previous section and any other trend information yo u deem to be relevant. Use the ratio calculations to determine h ow the company is doing overall. Assume that you are the CEO of the company when preparing your response to this question . Consider creating graphs/ta bles to support your conclusions similar to what was created for the ratio analysis. *NOTE : A strong analysis is g enerally a minimum of 2 -3 pages. You will want to discuss the most relevant financial matters from the com pany’s performance for the year – the good and the bad. December 31, 2032 ALORE INCORPORATED 14 PROJECTED INCOME STATEMENT December 31, 2032 ALORE INCORPORATED 15 INSTRUCTIONS FOR THIS SECTION: Pr ojected Income Statement for 20 33: Build a projected income statement for next year based on forecasted sales that equal $3,500,000 (do not use a different amount than the $3,500,000 provided ). Use the results of the analysis you performed in the preceding section and any other information you deem to be relevant to build this income statement (i.e., vertical analys is) . *** Provide a n individual (per account) explanation for each account of the method(s) your group used to determine the projected number s.*** December 31, 2032 ALORE INCORPORATED 16 EARNINGS PER SHARE EVALUATION December 31, 2032 ALORE INCORPORATED 17 INSTRUCTIONS FOR THIS SECTION: Actual vs. Predicted Earnings Per Share Evaluation Analysts predicted earnings per share (EPS) for your comp any to be $0. XX at the close of 20 XX . How does this compare to actual EPS for 20 XX ? If actual EPS is higher tha n the analysts’ prediction, what fac tors contributed to the success? If actual EPS is lower than the prediction, how will you explain the shortfall to your investors ? Is there anything you did or could have done to meet /exceed the prediction? Assume that you are the CEO of the company when preparing your response to this question. *NOTE: A strong analysis provides a d etailed explanation between predicted EPS and the actual EPS along with the factors which contributed to it , and is g enerally half to a full page . December 31, 2032 ALORE INCORPORATED 18 INSTRUCTIONS FOR FINAL SUBMISSION: SUBMIT THE FOLLOWING The package you submit must be in the following order : 1. Company Introduction and Overview – Indicate student names, UIDs, and project version 2. Financial Statements (in the following order ): Income Statement Balance Sheet Statement of Cash Flows for 20 XX and 20 XX 3. Ratio Analysis 4. Business A nalysis 5. Pr ojected Income Statement for 20 XX - Remember to include a discussion of the methods used by your group to create this income statement 6. Actual vs. Predicted Earnings Per Share Evaluation 7. Include the following supporting documentation: Journal Entry List, Chart of T-Accounts, Inventory Tracking Schedule, Depreciation Schedules, Patent Amortization Schedule, Bond Amortization Schedule, and any other relevant items – such as Vertical or Horizontal Analysis , etc. The package t hat you turn in should be professional in every way. Your project wil l be compared to your classmate s’ projects.
