PROJECT DESCRIPTION
In order to assess your knowledge of the fundamentals of financial and managerial accounting, two projects have been included in the course. These chapters will give you an opportunity to apply your knowledge and improve your proficiency in performing routine accounting procedures and managerial tasks. The project aims at simulating the main managerial accounting concepts, principles, and procedures covered in the prescribed text and encountered in practice.
Project Part 1 Introduction:
You need to research two corporations using the ITT Tech Virtual Library. Once you have identified the two corporations, you will have to find the financial statements, income statement, balance sheet, and statement of cash flows. You will then identify from thestatement of cash flows if the corporation uses the indirect or direct method. You will also identify how much cash was generated from operations, financing, and investing. You should also specify how much free cash flow each corporation has generated. You should thencalculate the current ratio, inventory turnover, gross profit percentage days' sales in receivables, and debt ratio. You must choose which corporation you would invest in and why.
Project Part 2 Introduction:
You will be given a set of transactions for a company, based on which you will have to prepare journal entries, open T-accounts, and post the journal entries to the accounts. You will then prepare a trial balance for the end of the month. Using the work-in-process T-account, you will repare a schedule for cost of goods sold manufactured for the month. You will also prepare anincome statement for the month and post any corrections that may be needed for under/overallocated manufacturing overhead.
Course Objectives Tested:
1. Identify characteristics of a corporation, record issuance of stock, and illustrate retained earnings transactions.
2. Prepare and analyze the income statement, balance sheet, and statement of cash flows.
3. Distinguish between managerial accounting and financial accounting and apply ethical standards to decision making.
4. Differentiate between job order costing and process costing.
5. Perform Cost-Volume-Profit (CVP) analysis and calculate break-even point; describe a Just-In-Time production system and develop activity-based costs (ABC).
6. Examine relevant factors for making short-term special business decisions.
Please refer to the Project Submission Plan for project details.