Prepare an income statement and balance sheet.
Microsoft Word - SA 3 Financial Reporting_20150909.docx Financial Reporting Summative Assessment: Outline & Rubric Summative Assessment Outline Financial Reporting Purpose of this Assessment The final assessment for this competency is to analyze an annual report and audit reports, and to prepare financial statements for a selected company, including an income statement, balance sheet, and statement of cash flows. Items Required for Submission In order to demonstrate mastery of your competency, you will submit: 1. A one- to two-page analysis of a selected Annual Report and audit reports 2. An income statement 3. A balance sheet 4. A statement of cash flows 5. A reflection on what the numbers in the statements mean Competency Name: Financial Reporting Competency Statement: Demonstrate an understanding of financial reports and their use by decision-makers. Summative Assessment Submission Title: Preparing Financial Reports Competency Objectives: 1. Demonstrate the ability to read and comprehend an annual report. 2. Understand the different types of audit reports (e.g., ISO, GAAP, SOX). 3. Prepare an income statement and balance sheet. 4. Demonstrate an understanding of the Statement of Cash Flows and how they are used for operating, investing, and financial decisions. Program Learning Outcome(s): N/A Institutional Learning Outcome(s): N/A Financial Reporting Summative Assessment: Outline & Rubric Step ONE: Analysis of Annual Report 1) Select a business from the provided list and analyze their latest annual report (either on the company website under investor relations or on finance.yahoo.com). Company Stock Symbol Amazon AMZN Apple AAPL Bank of America BAC Best Buy BBY Citigroup C Continental Airlines CAL Chipotle CMG Costco Wholesale COST Chevron CVX Dell DELL eBay EBAY Edison International EIX FedEx FDX General Electric GE Google GOOGL Harley Davidson HOG Hershey HSY Intel INTC Jet Blue JBLU Johnson & Johnson JNJ Financial Reporting Summative Assessment: Outline & Rubric KB Homes KBH Kraft Foods KFT Microsoft MSFT Pepsi PEP Proctor and Gamble PG Rubio’s RUBO Starbucks SBUX Verizon Communications VZ Wal-Mart WMT Exxon Mobil XOM Taco Bell, YUM YUM 2) Complete the following steps for the selected company’s Annual Report. You can use information from the footnotes to answer these questions but make sure to reference from where the information came. Look at the balance sheet for the last two years. What caused the changes in the balance sheet from last year to this year? Use account names and numbers for both years to explain your answer. Look at the Income Statement (sometimes called Statements of Operations) for the last two years. What caused the changes in the Income Statement from last year to this year? Use account names and numbers for both years to explain your answer. What type of audit opinion did the external auditors give? What accounting standards did they use? Where are each of these components found? Put together a one page response to answer the questions above, and include the Annual report used with your submission as an attachment. Step TWO: Create the Financial Statements Use the adjusted trial balance examples and templates provided to create an income statement, statement of retained earnings, balance sheet, and statement of cash flows (note: use first four spreadsheet tabs for this step). Financial Reporting Summative Assessment: Outline & Rubric Step THREE: Reflection Analyze the statements you have created and use them to answer the following questions (note: use the reflection questions tab in the same template for your financial statements): 1. Is Wells Mobile Apps paying too much out in dividends? Why or why not? Explain your reasoning. 2. For Scenic Industries, there was an increase in cash from the first year to the next. What was the single biggest event that caused this? Explain your reasoning. Step FOUR: Complete Checklist for Submission Before you submit, check to see if you believe you have met the criteria noted below. Did you…. Provide a comprehensive and accurate analysis of a firm’s annual report, addressing all questions posed, including a discussion of the income statement, balance sheet, audit report, and use of accounting standards? Did you accurately account names and numbers to meaningfully support your explanations and reasoning? Correctly place account titles and correctly place and calculate all numbers in the income statement? Correctly place account titles and correctly place and calculate all numbers in the balance sheet? Correctly place account titles and correctly place and calculate all numbers in the statement of cash flows? Clearly and completely address all the questions posed in the Reflection and use the financial statements you created to meaningfully and accurately support your reasoning? Financial Reporting Summative Problem.x Financial Reporting Summative Assessment: Outline & Rubric Step FIVE: Submit Your Work Your completed final assessment documents should be submitted through the Final Assessment page of your competency. Scoring Rubric for Summative Assessment Criterion EMERGING (1) DEVELOPING (2) PROFICIENT (3) EXEMPLARY (4) Analysis of Annual Report Provides a limited analysis of a firm’s annual report, addressing some questions posed, including a discussion of the income statement, balance sheet, audit report, and use of accounting standards. Provides a partially accurate analysis of a firm’s annual report, addressing all questions posed, including a discussion of the income statement, balance sheet, audit report, and use of accounting standards. Provides an accurate analysis of a firm’s annual report, addressing all questions posed, including a discussion of the income statement, balance sheet, audit report, and use of accounting standards. Provides a comprehensive and accurate analysis of a firm’s annual report, addressing all questions posed, including a discussion of the income statement, balance sheet, audit report, and use of accounting standards. Income Statement Account titles and numbers in the Income Statement are almost never correctly placed and calculated. Account titles and numbers in the Income Statement are rarely correctly placed and calculated. Account titles and numbers in the Income Statement are usually correctly placed and calculated. Almost all account titles and numbers in the Income Statement are correctly placed and calculated. Balance Sheet Account titles and numbers in the Balance Sheet are Account titles and numbers in the Balance Sheet are Account titles and numbers in the Balance Sheet are Almost all account titles and numbers in the Balance almost never correctly rarely correctly placed and usually correctly placed Sheet are correctly placed placed and calculated. calculated. and calculated. and calculated. Financial Reporting Summative Assessment: Outline & Rubric and calculated. and calculated. and calculated. calculated. Statement of Cash Flows Account titles and numbers in the Statement of Cash Flows are almost never correctly placed and calculated. Account titles and numbers in the Statement of Cash Flows are rarely correctly placed and calculated. Account titles and numbers in the Statement of Cash Flows are usually correctly placed and calculated. Almost all account titles and numbers in the Statement of Cash Flows are correctly placed and calculated. Reflection The reflection poorly addresses the questions posed and does not use the financial statements created to accurately support the student’s reasoning. The reflection partially addresses the questions posed and uses the financial statements created to support the student’s reasoning. The reflection adequately addresses the questions posed and uses the financial statements created to accurately support the student’s reasoning. The reflection clearly and completely addresses the questions posed and uses the financial statements created to meaningfully and accurately support the student’s reasoning. Financial Reporting Final Assessment STEP THREE Reflection: Analyze the statements you have created and use them to answer the following questions. Your reasoning should reference the numbers and accounts. Use no less than 30 and no more than 200 words for each of the questions. 1. Is Wells Mobile Apps paying too much out in dividends? Why or why not? Explain your reasoning. 2. For Scenic Industries, there was an increase in Cash from the first year to the next., What was the single biggest event that caused this? Explain your reasoning.