Acct 301 week 5 homework

The primary reading material source is http://www.principlesofaccounting.com/

(For additional information, use the OpenStax textbook available within LEO as a secondary resource.)

SCENARIO: You are a new hire for a major corporation completing your eight-week rotation related to accounting, financial reporting, budgeting, cost control, and profit maximization. As part of your rotation you are learning about the accounting process and how to use accounting information to make managerial decisions.

Read the assigned chapters to learn the accounting concepts, then submit a written report in the LEO assignment folder summarizing your knowledge of the week’s concepts. You should create this report to provide documentation/evidence of your assigned chapter readings and self-assessment exercises (Fill in the Blanks, and Multiple Choice questions at end of each chapter). (A series of projects focused on your SEC10K corporation will be completed and submitted separately.)

REQUIREMENT: As described above, upon completion of the readings and quizzes (the week’s assigned chapters are detailed below) write a report as a Word document and upload it to this week's Homework assignment folder. Summarize what you learned through your readings and practice quizzes. Demonstrate an understanding of the week’s concepts. The more detailed writeups documenting a solid understanding of the material will earn the highest homework points.

Week 5:

A. Read and complete the self-graded questions for ch 9, 13, 15, & 16 including statement of cash flows (indirect method only; ignore the direct method of preparing the statement of cash flows) at (http://www.principlesofaccounting.com/).

B. Review your SEC 10-K company’s statement of cash flows. There are three main sections to the statement of cash flows: Cash flows from Operating Activities, Cash flows from Investing Activities, and Cash Flows from Financing Activities.

The balance sheet and income statement provide important information used to prepare the statement of cash flows. The relationship between these two financial reports with the statement of cash flows may be summarized as follows: 1. Net income (from the income statement) is a measure of operating activities but the income statement reports net income based on financial accounting, not based on cash flows. Thus, net income is adjusted from a financial accounting measure back to a cash flow by adding back expenses that do not affect cash (such as depreciation), subtracting non cash gains on sale of assets, adding back non cash losses from sales of assets, and adjusting for changes in current assets and current liabilities (information from the balance sheet). 2. Cash flows from the sale and purchase of long term assets are reported in the investing activities section. 3. Cash flows from changes in long term liabilities and owners’ equity are reported in the financing activities section.

Reviewing your corporation’s statement of cash flows: what do you learn about your SEC 10-K company as you view the four financial statements together? Do you see net income from the income statement on your statement of cash flows? Can you recalculate the amounts reflected as changes in current assets and current liabilities from your balance sheet(s)?

What is the main source of cash? Operating, financing, or investing activities? Is this a financially healthy way for the corporation to obtain cash flows? What type of activities provide the healthiest source of cash flows (i.e., operating, investing, or financing activities)?

Additionally, provide a summary of the accounting concepts learned through the readings and practice quizzes for this week. Demonstrate your understanding of the week's concepts. If you need ideas regarding topics to discuss, see ideas below. The more detailed your write-up documenting your understanding the higher it will be graded. (See Rubric for details.)

Complete the report below as a Word document and submit in the Assignment Folder for week 1 Homework.

Additionally, here are some topics to consider:

· How does the intent of management (as to length of time) impact how investments are reported?

· What are bonds, and how does issuing bonds above or below their par value affect the amount of interest expense recorded each accounting period?

· What are the key assumptions upon which accounting depends?

· What topic(s) gave you trouble this week (if any)?/What topic(s) do you feel you were able to grasp? Post questions in the homework discussion thread!

The most important aspect of this write-up is to document your understanding of the week's concepts!

Remember all submissions and postings in our class must be in your own words. Deliverables are to be single spaced with double spacing between paragraphs. These are business reports, thus proper spelling, grammar, and professional writing is expected. Your report submission serves as your new hire eight-week rotation report to your supervisor regarding the knowledge learned for this week’s material related to accounting and financial reporting.