Scribd Logo
Upload

Welcome to Scribd!

  • 11 views

    BUS 5110 01 Written Assignment 1

    Uploaded by

    R Singh

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    BUS 5110 01 Written Assignment 1

    Uploaded by

    R Singh
    11 views4 pages

    Original Title

    BUS 5110 01 written assignment 1

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    11 views4 pages

    BUS 5110 01 Written Assignment 1

    Uploaded by

    R Singh

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    BUSINESS ADMINISTRATION MASTERS

    PROGRAM

    BUS 5110-01 MANAGERIAL ACCOUNTING

    BALANCE SHEET ANALYSIS OF

    POLLY PET SHOP

    By

    Ricky Singh

    21/11/2023

    1|Page
    Introduction

    Based on the provided financial statements of Polly's Pet Products, I will discuss the

    process of determining the values for blank lines in these statements and their implications.

    Balance Sheet Analysis

    Financial Statement: The balance sheet represents a company's financial position at a

    specific point in time, detailing its assets, liabilities, and stockholders' equity.

    Valuing Accounts:

    Assets: The balance sheet shows Total Current Assets of $275,000 and Fixed Assets of

    $75,000, totaling $350,000 in Assets.

    Liabilities and Equity: Current Liabilities sum up to $123,500, and Long-Term Liabilities

    are $38,000, totaling $161,500. The Stockholders' Equity section lists Common Stock

    ($5,000), Additional Paid-in Capital ($15,000), and Retained Earnings ($168,500), totaling

    $188,500. The Total Liabilities and Stockholders' Equity also tally to $350,000, confirming

    the balance sheet's accuracy.

    Relationship to Financial Data:

    Each account on the balance sheet is interconnected. For example, the sum of all liabilities

    and stockholders' equity must equal the total assets, maintaining the fundamental

    accounting equation: Assets = Liabilities + Stockholders' Equity.

    2|Page
    Income Statement Analysis

    Financial Statement: The income statement depicts the company's financial performance

    over a period, showing revenues, expenses, and net income.

    Valuing Accounts:

    Revenue and Expenses: The statement begins with Revenues of $650,000, followed by

    various expenses. The Net Income, calculated as Revenues minus Expenses, is crucial for

    understanding profitability.

    Relationship to Financial Data: The income statement's bottom line (Net Income) impacts

    the balance sheet's Retained Earnings, underlining the connection between profitability and

    financial health.

    Statement of Cash Flows Analysis

    Financial Statement: This statement shows how changes in the balance sheet and income

    statement affect cash and cash equivalents.

    Valuing Accounts:

    Operating Activities: Includes cash received from customers, cash paid to suppliers, and

    other cash paid. The net cash from operating activities is calculated.

    Investing and Financing Activities: These sections detail cash flows from investment and

    financing activities, affecting the company's cash position.

    Relationship to Financial Data: The statement of cash flows links the income statement and

    balance sheet by showing how income and balance sheet changes impact cash.

    3|Page
    Conclusion

    It is essential to comprehend these financial statements in order to evaluate the

    performance and health of a business. Such comments, in my opinion, can be examined to

    learn more about a company's future potential, financial stability, and operational

    effectiveness. This study is essential for internal management to make well-informed

    strategic decisions as well as for investors.

    The precision and coherence of these financial accounts underscore the significance of

    rigorous financial administration and documentation for the prosperity and legitimacy of

    an organization.

    References

    Walther, L. M. (2013). Financial accounting (2013 edition, 1–1 online resource (415

    pages: color illustrations). Principlesofaccounting.com San Bernardino, CA; WorldCat.

    https://archive.org/details/financialaccount0000walt

    4|Page

    You might also like