This assignment is a "capstone" type of assignment, bringing together many of the concepts
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covered in the course. The assignment requires you to reflect on the financial statements you
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prepared in the second assignment and to use the skills in this module to undertake a financial
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analysis exercise. This is an individual assignment worth 20% of your course mark. Review
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the grading rubric for the assignment, noting that you will be assessed on your ability to apply
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the concepts, obtain correct answers and organize and present your work in a professional
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manner.
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Stratford House
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Part 1: Prepare the year end Statement of Comprehensive Income for the period ending June 30, 2016.
Stratford House has been in operation for one year now. You can assume that the financial statements you prepared for Assignment 2 (from July 1 to Sept.30) were for the first quarter of the operating year and that the financial information for the remaining three quarters of the operating year are provided below. You can assume that the information below is correct and that no additional adjustments to the financial information is required. Add together the account balances from the Statement of Comprehensive Income you prepared in Assignment #2 and the account balances from the additional three Statements of Comprehensive Income (provided below) for the remainder of the year to prepare the annual Statement of Comprehensive Income for the period of July 1, 2015 to June 30, 2016.
Part 2: Financial Analysis of the Statement of Comprehensive Income
Using the annual Statement of Comprehensive Income prepared in Part 1 of this assignment, undertake a financial analysis of Stratford House. Your financial analysis should include a vertical and horizontal analysis of the annual Statement of Comprehensive Income.
Part 3: Financial Analysis of the Statement of Financial Position
Stratford House’s Statement of Financial Position as at June 30, 2016 is provided below. You can assume that the information below is correct and that no additional adjustments to the financial information is required. Using the Statement of Financial Position provided below, undertake a financial ratio analysis of the organization.
Part 4: Report to the Board
Using the information from your financial analysis in Parts #2 and #3 of this assignment, prepare a report to the board of directors on the financial health of the organization as assessed over the first year of operations.
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Stratford House
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Statement of Comprehensive Income
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Beginning of Year
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Remaining Portion of Year
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July 1 to Sept. 30
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Oct.1 to Dec.31
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Jan.1 to Mar.31
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Apr.1 to June 30
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Income
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Fee Income
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37650
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$40,662
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$36,596
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$40,987
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Donations Income
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15280
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$16,044
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$13,637
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$15,410
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Grant Income
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35000
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$35,000
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$30,000
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$25,000
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Total Revenue
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Expenses
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Wages
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13308.6
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$15,970
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$19,838
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$20,830
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Rent
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21000
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$21,000
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$21,000
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$21,000
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Utilities
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8500
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$9,350
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$8,228
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$7,405
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Supplies
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7332.75
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$7,699
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$7,314
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$8,412
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Insurance
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6000
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$6,000
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$6,000
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$6,000
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Vehicle
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1960
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$2,156
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$1,940
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$2,328
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Dep. - Vehicle
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1098.4375
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$1,098
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$1,098
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$1,098
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Dep. - Equipment
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483.3333333
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$483
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$483
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$483
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Uncollectible Pledges
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0
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$0
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$250
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$125
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Taxes
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5700
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$5,700
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$5,700
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$5,700
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Total Expenses
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Stratford House
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Statement of Financial Position
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As at June 30, 2016
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Assets
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Cash
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$56,320.70
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A/R - Fees
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$27,936.00
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A/R - Pledges
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$6,057.72
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A/R - Grants
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$-
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Equipment
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$29,000.00
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Accum. Dep. - Equip.
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$(1,933.33)
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Vehicle
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$37,000.00
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Accum. Dep. - Vehicle
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$(4,393.75)
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Prepaid Rent
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$-
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Prepaid Insurance
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$-
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Supplies
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$2,903.77
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Total Assets
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$152,891.10
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Liabilities
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Accounts Payable
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$9,318.38
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Wages Payable
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$12,872.89
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Taxes Payable
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$4,320.77
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Unearned Income
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$7,920.00
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Total Liabilities
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$34,432.04
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Equity
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$118,394.00
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Total Liabilities & Equity
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$152,826.04
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