Explain the financial ratios by detailing the relevancy

Assignment Help Financial Accounting

Reference no: EM131191558

Write a financial report for Soda Pop Organic, Inc. Annual Report provided and excel sheet to correct.

COURSE OBJECTIVES

Upon successful completion of this course project, the student will be able to:

- Explain the principles and concepts of accounting
- Create accurate financial statements and worksheets
- Manage financial statements by finding and correcting errors and adjusting entries
- Record business transactions for an organization
- Evaluate financial statements for accuracy

CASE DESCRIPTION (OR BACKGROUND INFORMATION)

For this project, you will interpret and analyze the financial statements for a fictional organization, Soda Pop Organics, Inc. You will analyze the organization's statement of cash flow, balance sheet, and income statement. In order to do this, we have provided you with an Excel spreadsheet that includes the company's financial statements. We have also included a PowerPoint presentation outlining the company's annual report. You must download these two files in order to complete this project.

PROJECT INSTRUCTIONS

In a formatted financial report, you will describe in detail the financial statements and current financial position of Soda Pop Organics, Inc. As you complete this assignment, be sure to include relevant information about Soda Pop Organics, Inc. such as background, mission, and products relative to their financial health and future projections.

Your report will include the following sections:

Section I: Cover page, table of contents, and report objective

• In a formatted financial report, the following sections must be included: a cover page that includes the company name and year reported (excluding your name), the content contained in your report (i.e. the table of contents, which should identify all major sections 2-6 listed below), and one paragraph detailing the purpose of the report (i.e. the objective, explaining the purpose and ratio data to be analyzed).

Section II: Provide a summary of the organization's background, mission, and product lines

• The summary section of the report asks you to describe Soda Pop Organics, Inc. You will explain the ratio data to be presented as well as the industry and product variety sold by Soda Pop Organics, Inc. To complete this summary, you will use the spreadsheet and PowerPoint presentation provided to you.

Section III: Provide a summary of the organization's outlook and future investments

• The summary of the organization's future outlook should identify products in development, the organizational strategy for future growth, and any new markets or acquisition of factories, farms, etc. that the organization has in development and which are identified in the PowerPoint presentation.

Section IV: Provide a summary of revenue, assets, liabilities, and shareholder's equity

• Using the supplied financial reports, create a one-page summary of total revenue, assets, liabilities, and shareholder's equity. This information should be presented with a short explanation of each category and what the numbers mean from the perspective of major stakeholders such as investors, shareholders, and senior management.

Section V: Calculate the liquidity ratios, financial leverage ratios, and profitability ratios

• Use the financial statements Excel file in order to calculate the following ratios

Liquidity Ratios: Financial Leverage Ratios: Profitability Ratios:

- Current Ratio - Debt Ratio -Gross Profit Margin
- Quick Ratio - Debt-to-Equity Ratio - Return on Assets
- Cash Ratio - Return on Equity

Section VI: Provide an observations section that addresses the following three content areas

1. Explain the financial ratios by detailing the relevancy, interpretation, and what each ratio means relative to the financial health, investor perspective, and stakeholder perspective.

2. How does Soda Pop Organic, Inc. financial strategy encourage future growth? Discuss any issues or challenges in the organization's financial health and how this might impact future growth.

3. What recommendations would you make to Soda Pop Organics, Inc. for the future? What information would encourage or discourage investment from outside sources?

PROJECT SUBMISSION

1. A title page is not required for project submissions. Because evaluators do not see student names when reviewing student work, it is important that students not include any personal identifiers in their project submissions.

2. If your project requires a video, you should post the video to a free video hosting site like www.youtube.com, www.photobucket.com, or another free web hosting site. The following website maintains a list of video hosting sites: https://www.videohostings.com. In the written materials that you submit as part of the assignment, you should include the title of the video and a link for the evaluator to use to grade your submission. Please make sure that the privacy settings on your video are set to allow third parties to view it.

3. When you are ready, click on the Upload Files button in the Project tab of your course to submit your assignment. Your project should be graded within 7 days. Please contact your instructor if this is not the case.

4. Your assignment will not be returned to you, so keep a copy for your files.

Attachment:- Attachments.rar

Reference no: EM131191558

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