Answer & Explanation:The Assignment will consist of two parts; your review requirement
will be only one part. This is a collaborated assignment, one classmate presented a company and another reviewed it. The paper to be reviewed will be submitted later.The company: Home DepotPlease see example format attached…
wk_7___accounting_assignment.docx
presentation_example__boston_beer_company___by_michael_j._motes__cpa.pdf
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ECA – Weeks 7 & 8 – Parts 3 & 4 Presentations & Reviews
This topic is a presentation of what is required to complete both parts 3 & 4 of
Corporate America project. Ask any general questions about this process by
replying to the demonstration thread & response that I post within this topic.
Be sure that you read all of the following instructions before you begin any of your
work.
Part 3 (due October 10th) is the Corporate America reporting event. Each student
must present three slides of exact information that they have discovered about their
chosen company. See my demonstration for exact details.
Required Action: prepare & attach in one document, three slides (in landscape
format), either in PowerPoint or as an Adobe Acrobat PDF file. “Start a New
Thread” and attach the completed presentation. The subject line & the file
document must be the name of your company (abbreviated company name is
acceptable) followed by your name.
Use only black & blue text font and a white background for the slides. Do not
present any graphics of clip art of any type. Be sure that your presentation is a
professionally prepared document. It must be able to be printed and readable as
presentation slides. Small print, wide margins are therefore discouraged.
Absolutely be brief with any written notes provided. Remember, you are part of a
two-person team and teamwork is critical in any company. Present the following
information (note, present only the required information, resist going off on a
tangent): (Note: use my presentation example as a guide to how your slides should
be formatted and look.)
•
Header (required on slide 1 only): “Corporation Name followed by Your
Name”
•
Slides 1: Present, horizontally, the following ratios for the most current four
years:
>> Profit Margin (Net Profit on Sales)
>> Gross Profit Margin
>> Current Ratio
>> Quick Ratio
>> Working Capital
>> Accounts Receivable Turnover
>> Accounts Receivable Days Outstanding
>> Inventory Turnover (ITO)
>> Days of Inventory =
ITO/ 365 days
>> Operating Cycle
•
Slides 2: Identify and provide a brief written review of one (and only one)
significant financial event that is reflected in a significant change or trend
exhibited by four year ratio trend presented in slide 1. Include any
consolidated or brief footnote evidence/information that discusses/explains
this significant event. Note: Be brief, you must use bullet format in your
presentation. Ensure that all information is properly documented using in
text citations. Caution, you are to provide your own analysis. Therefore, do
not consult any online analysis that may have been written, about this
financial event. This team, not the Wall Street Journal or outside online
analytical gang is responsible for making their own observation to the senior
partner.
•
Slide 3: The bibliographic information must be on the last of the three
slides.
Part 4 WILL BE PROVIDED AFTER 3 IS COMPLETED
Part 4 (due October 13th) is the review process. Each student must review one
other classmate’s (and only one classmate’s) presentation for accuracy. This
review is the collaborative portion of the event. Again, see my demonstration for
exact details.
Keep in mind; you are reviewing another classmate’s presentation. Be sure to
conform to common courtesy. If there are errors, then state so, and document them
accordingly. When there are no errors then present any notes and complement
accordingly. Be sure to review again content Course Admin Notes & Policies Module >> Course Ground Rules.
Boston Beer Company – by Michael J. Motes, CPA
Ratios
2015
2014
2013
2012
Profit Margin
10.3%
10.0%
9.5%
10.2%
Gross Profit Margin
47.7%
48.5%
47.9%
45.7%
Current Ratio
2.0
1.9
1.6
1.8
Quick Ratio
1.2
1.0
0.9
1.2
$112,443
$97,292
$59,901
$73,448
Accounts Receivable Turnover (times per year)
25.3
22.9
20.1
21.2
Accounts Receivable Days Outstanding (days)
14.4
15.9
18.1
17.2
Inventory Turnover (times per year)
8.5
8.1
7.0
6.8
Days of Inventory (days)
42.9
44.9
51.9
54.0
Operating Cycle (days)
57.3
60.8
70.1
71.2
(Note 1)
(Note 2)
(Note 2)
(Note 3)
Working Capital (dollars in thousands)
Note 1: 2015, p39, 40, 41 & 42
Note 2: 2014, p37, 38, 39 & 40
Note 3: 2012, p38, 39, 40 & 41
Significant Observation:
The operating cycle dropped significantly from 2013 to 2014.
Cause of Significant Observations:
• Both inventories & Accounts Receivable significantly decreased between 2013 & 2014.
(2014 p37 & 47)
• Net Sales & Cost of Goods Sold both increased between 2013 & 2014. However, sales
at a higher rate. (2014 p36)
• Management presents that per barrel gross profit has increased annually due to
increase revenue pre barrel. (2014, p27 and 2015, p27)
• Management presents that per barrel costs have also increased annually due to cost of
raw materials. (2014, p27 and 2015, p27)
• Management presents that there was a spike in cost of goods sold for 2013 due to
inefficiencies in operations from higher than expected growth. (2014, p27)
Conclusion:
• Management has been aware of the effect of inventory, receivables, cost of goods sold
and sales as they impact the operating cycle.
Bibliography
2015 Boston Beer Company Annual Report (2015 SEC 10K). (SEC Filing Date: 2/18/2016).
http://www.sec.gov/Archives/edgar/data/949870/000119312516468386/d101022d10k.htm Access date
May 8, 2016.
2014 Boston Beer Company Annual Report (2014 SEC 10K). (SEC Filing Date: 2/24/2015).
http://www.sec.gov/Archives/edgar/data/949870/000119312515060122/d851668d10k.htm Access date
March 16, 2015.
2012 Boston Beer Company Annual Report (2012 SEC 10K). (SEC Filing Date: 2/20/2013).
http://www.sec.gov/Archives/edgar/data/949870/000119312513067288/d441934d10k.htm Access date
March 31, 2013.
…
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