I am submitting two assignment which are both financial related for for management class and other one is for business
Assignment 1 Financial Statements 1 This is the only simulation-associated weekly assignment that you will be required to complete as an individual, not as a team. When you start to work with your team, each one of you will put on and take off a variety of management hats—sometimes wearing more than one at the same time. However, the one hat that you must always wear, whether you want to or not, is the one marked “financial manager”. In fact, once you have a system that produces “timely and accurate” (accounting lingo) financial statements, one of your primary business management functions begins: Understanding and interpreting the data that you actually have. The process of analyzing your financial information is thankless and unattractive. The best way to start—in fact, the only way to start—is to dive right in. You need to follow three steps in this process: 1. Understand how your statements are formulated. What is their structure? What is their composition? How do they work together? 2. Use your information to perform calculations. 3. Use those calculations to perform an analysis that takes the “temperature” of your business. For this week, we are going to start with Step #1. The following information represents the first period of my GoVentureCEO business, AirPro. These are the primary financial statements (i.e., Balance Sheet and Income Statement) that were calculated after my saved decision-making activities. As you can see, I didn’t do anything during Period 1—I was keeping an eye on you. Also notice that they are VERY simplistic, as indicated in the Finance section of the simulation. AirPro, Inc. Balance Sheet Period “1” Financial Information ($ Thousands) Assets Current Assets Cash $975 Inventory 0 Total current assets 1,000 Property, Plant, and Equipment 50 Net plant and equipment 50 Total Assets $1,025 Liabilities Current liabilities $0 Total current liabilities 0 Long-term liabilities 0 Total long-term liabilities 0 Total liabilities $0 Equity Retained Earnings (Net Profit) ($25) Capital from shares sold 0 Startup Capital 1,050 Total liabilities and equity $1,025 Assignment 1 Financial Statements 2 AirPro, Inc. Income Statement Period “1” Financial Information Revenue $0 Cost of goods Sold 0 Other Income 0 Subtotal $0 Operating Expenses General and Administrative $25,000 $25,000 Human Resources 0 Manufacturing 0 Sales & Marketing 0 Operations 0 Management 0 Benefits and Programs 0 Hiring Costs 0 Severance Costs 0 Training Costs 0 Turnover Costs 0 Expired Units 0 Loan Interest Payments 0 Sales & Marketing Advertising-Brand 0 Advertising-Price Discount 0 Sales Promotion 0 Research & Development Taste 0 Health 0 Change costs to Update Inventory 0 Other Expansion to other territories 0 Market Research Reports 0 Miscellaneous Expenses 0 Legal 0 Subtotal $25,000 Net Profit (Loss) ($25,000) Assignment 1 Financial Statements 3 Of course, your numbers will vary from mine (you will have decisions that produce different numbers), but the format and processes are the same: The Income Statement provides information on net profit or net loss; the Balance Sheet provides information on the company’s financial position. There is a third statement called the Cash Flow Statement, which is very important because it references the uses and sources of your cash. However, the simulation Cash Flow Statement provides summary information, which is not relevant to this assignment. For the moment, just know that the Cash Flow Statement tells you how your company specifically spent and received its cash over the past financial period. Assignment 1: Your assignment is to create a set of two financial statements—Balance Sheet and Income Statement—based on the information you have generated at the end of your individual/solo practice or team practice simulation. Although the simulation has ended, you will still be able to access the financial statement information. Sounds simple, right? Maybe. But this assignment has a couple of extra requirements. DO NOT copy and paste information from GoVentureCEO! Read the first requirement to know why. Your final assignment product should have the following requirements: 1. Two financial statements based on the information you produced for your week of solo practice. I expect the statements to be presented in good form, as is shown in the readings. If, after you have completed the readings, you still aren’t sure of what that means, do some research and find out or ask questions. Remember, you are now in charge of a business, and your financial statements should look professional. 2. This simulation puts everything on a Cash basis, and I think that’s too easy. For this assignment, I want you to divide your Cash in half, and place one of those halves into an account called Accounts Receivable. Leave the other half in Cash. You will need to create the account called Accounts Receivable on your assignment—check Course Materials for proper format. This will make #3 more interesting. 3. In a maximum of two paragraphs, tells me what these two financial statements are saying to you. Single out specific Income Statement accounts, both revenue and expense, to explain the activity in your solo practice from week one. The same thing is required for your Balance Sheet. Since you don’t have a lot of activity yet, you should be able to fit your comments into a couple of paragraphs. BE THOROUGH! It’s your job to convince me that you know what you are talking about. As a reminder, do not ignore my requirement for #2—there is a reason I put it there. Take the time to thoroughly review your completed financial statements; I am looking for specific things in your response. Submit your completed assignment in word format to the Canvas upload link. As a reminder, this is an individual, not team, assignment. Your information must be based on your solo or team practice information, which you are still able to access. Exercise 3: Component Percentages and Financial Ratios Name Date BSG Footwear Company – Year 10Your Company – Year 11 Income Statement ( 000’s )Income Statement ( 000’s ) $ % $ % Sales: Internet1,103,017 Pr. @ 81.88 90,31520.88 Wholesale6,247,142 Pr. @ 50.38314,73172.75 Pvt. Label 800,000 Pr. @ 34.50 27,600 6.38 Total Sales8,150,159 Pr. @ 53.08 avg.432,646 100.00 Cost of Pairs Sold228,05352.71 Gross Margin204,59347.29 Expenses: Warehouse41,330 9.55 Marketing80,944 18.71 Admin.15,002 3.47 Total Expenses 137,276 31.73137,27631.73 Operating Profit< loss=""> 67,31715.56 Interest Income< expense=""> < 10,174=""> 2.35 Other Income< expense=""> 0 0 Pre-Tax Profit< loss=""> 57,14313.21 Income Taxes 17,143 3.96 Net Profit< loss=""> 40,000 9.25 Other Information Shares Outstanding20,000,000 Earnings Per Share2.00 Dividends Per Share1.00 BSG Footwear Company – Year 10Your Company – Year 11 Balance Sheet ( 000’s )Balance Sheet ( 000’s ) $ % $ % Assets Cash 6,074 1.77 Accounts Receivable 85,58324.99 Inventory 6,121 1.79 Total Current Assets 97,77828.55 Net Plant Investment244,71071.45 Construction in Progress 0 0 Production Improvement Options on Order 0 0 Total Fixed Assets244,710 71.45 Total Assets342,488 100.00 Liabilities Accounts Payable 19,388 5.66 1 Year Bank Loan Payable 0 0 Current Portion L.T. Loan 15,900 4.64 Overdraft Loan Payable 0 0 Total Current Liabilities 35,288 10.30 Long Term Loan 97,200 28.38 Total Liabilities132,488 38.68 Shareholder Equity Common Stock 20,000 5.84 Additional Capital110,000 32.12 Retained Earnings 80,000 23.36 Total Shareholder Equity210,000 61.32 Total Liabilities and Equity342,488 100.00 BSG Footwear Company – Year 10Your Company – Year 11 Cash Flow Statement ( 000’s )Cash Flow Statement ( 000’s ) Beginning Cash Balance 400 Cash Inflows Receipts from Sales421,433 Bank Loan 1 Year 0 Bank Loan 5 Year