ACC201 Final Project Part II Guidelines and Rubric || Complete Solution

Question: #8395

ACC 201 Final Project Part II Guidelines and Rubric
Overview
One of the measures of success in any business is profitability. All successful managers and business owners must have an understanding of how to assess the
profitability of a company. This is done through the use of accounting.
By working through the accounting cycle, you will understand how money flows through a company and what other components are included in the assessment
of profitability and financial stability. Using this information can also help you determine whether or not the organization can afford to stay open employing
current practices. The accounting information helps you determine what types of changes might need to be made to allow the organization to become profitable
if it is currently struggling financially. This process also helps you understand the level of commitment to attention to detail that is required in a successful
business venture.
In the ratio analysis and memo, you will use course-provided information to 1) demonstrate the purpose and importance of the ratios used, and 2) communicate
the results of operations to stakeholders and/or interested parties.
This assessment addresses the following course outcomes:
 Apply the accounting cycle to business transactions for communicating financial data
 Interpret financial statements for informing business decisions
 Analyze the importance of industry standards and regulations in the implementation of the accounting cycle in supporting responsible practices
Prompt
Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are all-natural
and hypo-allergenic. Over the past year, you have been making and selling these treats out of your home and have been quite successful. You now have an
opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company “Peyton Approved.”
During the first part of this final project, you were asked to follow the business transactions for a six-month period from that initial stage of analysis and
recording through the reporting process. Now, you will use this information to compose a memorandum to the bank detailing the results of operations as
communicated in the financial statements you have produced based on the business transactions for the period.
Use your completed workbooks to prepare your ratio analysis and memo, which will include an overview of the company’s accounting system, discussion of the
results of operations and what those results mean, and a discussion on what changes in operations might need to be made to make the company more
profitable. This memo will be used as part of a loan package to request additional funding for potential expansion in year two.
Specifically, the following critical elements must be addressed:
1. Ratio Analysis
a) Create a ratio analysis. Be sure to include all relevant ratios.
b) Discuss each ratio. What does the ratio tell you?
c) Why is ratio information useful? What decisions will you make based on the ratio?
2. Prepare a Memo to a Bank
a) Provide an overview of the company’s accounting system. What basis of accounting is used? Why?
b) What strategies is the business using to ensure responsible accounting practices? Why have these strategies been selected?
c) Describe the overall accounting process. For example, when are entries made, how often are statements produced and reviewed, and why?
Describe the internal controls for cash that are in place.
d) Analyze the results of operations. What do these results tell a business?
e) What do the statements themselves tell about the strengths and weaknesses of the company’s financial position? What does the ratio analysis
tell someone about the strengths and weaknesses in the company’s financial position?
f) Discuss the changes in operations that might need to be made to make the company more profitable. Justify why each change may be
necessary.
g) What are the company’s financial strengths and weaknesses? What specific changes can be made to alleviate the weaknesses?
h) What opportunities can the company explore because of its strengths? How would these be beneficial?
Final Project Part II Rubric
Guidelines for Submission: The submission for Final Project Part II will include your ratio analysis and a memo to the bank. Your accounting memo should be 5–7
pages, double-spaced, with one-inch margins, 12-point Times New Roman font, and APA format.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements Exemplary Proficient Needs Improvement Not Evident Value
Ratio Analysis: Ratio
Analysis
Creates a ratio analysis including
all relevant ratios
(100%)
Creates a ratio analysis, but does
not include all relevant ratios
(55%)
Does not create a ratio analysis
(0%)
4.6
Ratio Analysis:
Discuss
Discusses each ratio and
describes what each ratio
informs
(100%)
Discusses each ratio, but does
not describe what each ratio
informs
(55%)
Does not annotate each ratio
(0%)
32
Ratio Analysis:
Decisions
Meets “Proficient” criteria, and
decisions are well supported and
appropriate
(100%)
Explains what ratio information is
useful and determines decisions
to be made based on the ratios
(85%)
Explains what ratio information is
useful, but does not determine
what decisions will be made
based on the ratios
(55%)
Does not explain why ratio
information is useful
(0%)
4.6
Prepare a Memo:
Accounting System
Meets “Proficient” criteria and
demonstrates knowledge of
different bases of accounting
(100%)
Provides an overview of the
company’s accounting system,
identifies the basis of accounting
used, and addresses why basis is
used
(85%)
Provides an overview of the
company’s accounting system
and identifies the basis of
accounting used, but does not
address why basis is used
(55%)
Does not provide an overview of
the company’s accounting
system
(0%)
10.6
Prepare a Memo:
Strategies
Meets “Proficient” criteria and
demonstrates awareness of
strategies and their implications
on accounting practices
(100%)
Identifies strategies being used
to ensure responsible accounting
practices and describes why
strategies have been selected
(85%)
Identifies strategies being used
to ensure responsible accounting
practices, but does not describe
why strategies have been
selected
(55%)
Does not identify strategies being
used to ensure responsible
accounting practices
(0%)
10.6
Prepare a Memo:
Internal Controls
Meets “Proficient” criteria, and
description is exceptionally clear
and contextualized
(100%)
Describes the overall accounting
process and describes the types
of internal controls for cash that
are in place
(85%)
Describes the overall accounting
process, but does not describe
the types of internal controls for
cash that are in place
(55%)
Does not describe the overall
accounting process
(0%)
10.6
Prepare a Memo:
Operations
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
(100%)
Analyzes the results of
operations and describes what
the results tell a business
(85%)
Analyzes the results of
operations, but does not describe
what the results tell a business
(55%)
Does not analyze the results of
operations
(0%)
4.6
Prepare a Memo:
Strengths and
Weaknesses
Meets “Proficient” criteria, and
description is exceptionally clear
and contextualized
(100%)
Describes what statements and
ratio analysis tell about the
strengths and weaknesses of the
company’s financial position
(85%)
Describes what statements or
ratio analysis tell about the
strengths and weaknesses of the
company’s financial position
(55%)
Does not describe what
statements and ratio analysis tell
about the strengths and
weaknesses of the company’s
financial position
(0%)
4.6
Prepare a Memo:
Changes in
Operations
Meets “Proficient” criteria and
demonstrates awareness of what
makes a company profitable
(100%)
Discusses the changes in
operations that may need to be
made and justifies changes
(85%)
Discusses changes in operations
that may need to be made, but
does not justify changes
(55%)
Does not discuss changes in
operations that may need to be
made
(0%)
4.6
Prepare a Memo:
Financial Strengths
and Weaknesses
Meets “Proficient” criteria and
offers insight into why changes
will alleviate weaknesses
(100%)
Identifies the company’s financial
strengths and weaknesses and
determines changes to alleviate
the weaknesses
(85%)
Identifies the company’s financial
strengths and weaknesses, but
does not determine changes to
alleviate the weaknesses
(55%)
Does not identify the company’s
strengths and weaknesses
(0%)
4.6
Prepare a Memo:
Opportunities
Meets “Proficient” criteria and
demonstrates awareness of the
business climate
(100%)
Identifies opportunities that the
company can explore due to its
strengths and describes how the
opportunities could be beneficial
(85%)
Identifies opportunities that the
company can explore due to its
strengths, but does not describe
how the opportunities could be
beneficial
(55%)
Does not identify opportunities
that the company can explore
(0%)
4.6
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a professional
and easy-to-read format
(100%)
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
(85%)
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
(55%)
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
(0%)
4
Earned Total 100%