ASSIGNMENT 2 – Weeks 4 & 5
Finance & Accounting: Senior Accountant Analysis
Due Date: Week 5
Note: While representative of possible situations faced by SunsTruck Sunglasses, all scenarios in this assignment are fictional.
Real Business
Large discount retailers like Target and Walmart employ large teams of Finance and Accounting professionals to help measure and understand the financial health of the business. Financial and accounting information helps these businesses make educated financial decisions, such as whether or not to continue partnering with a retail supplier. While often smaller businesses, it is equally important for these retail suppliers to use financial and accounting data to make educated decisions, such as the best approach to gaining additional funding.
Your Role
This week, you’ll assume the role of Senior Accountant with SunsTruck Sunglasses.
What is a Senior Accountant?
Senior Accountants take ownership of reporting costs, profitability, margins and expenditures for a given business. They use the principles of accounting to analyze sales information, create financial reports, make recommendations about the financial health of the company, and more. They are also responsible for training junior accounting staff. |
For the last six months, SunsTruck has partnered with the discount retail store to run pop-up sunglasses stands in their stores for a big summer promotion. Due to the high customer purchase rate, the store has requested stock for five additional stores. SunsTruck needs to increase its production to meet the additional demand. In order to increase production, SunsTruck needs additional money.
In this assignment, you will need to help determine which type of financing option is best for your company and train your junior accountants on the accounting cycle and financial statements.
Instructions
Step 1: Financing
The junior accounting team has assembled a Financing Report that (a) offers three options for securing the additional funds required to meet the new order; and (b) details the criteria Shaun, the owner of SunsTruck, would like you to consider when choosing one of the options. Based on this report:
- Identify which financing option you think is the best option for SunsTruck to pursue given Shaun’s constraints. Explain the rationale for your decision.
Note: You should complete Steps 2 & 3 after reading the material in Week 5.
Step 2: Accounting Cycle
A junior accountant is working to get everything in order for the new financing and has come to you with a question about what do next in the accounting cycle.
- Read the email the junior accountant sent you and identify the best next step to take in the accounting cycle. Explain your reasoning.
Step 3: Financial Statements
A potential investor has been identified, but before it is willing to commit, it has requested information about SunsTruck’s current debt from the junior accountants.
- Identify the correct financial statement for your junior accountants that will provide the investor with the information it has requested. Explain to your junior accountants why you are giving them this financial statement and where the debt information is located.
Step 4: Financial Analysis
If you were the type of financier selected in Step 1, would you invest in SunsTruck? Explain the rationale for your decision.
Points: 110 |
Assignment: Finance & Accounting – Senior Accountant Analysis |
Criteria |
Unacceptable
Below 70% F |
Fair
70-79% C |
Proficient
80-89% B |
Exemplary
90-100% A |
1. Identify the best financing option and explain your reasoning.
Weight: 30% |
Does not accurately identify financing option; explanation lacks logic and supporting information.
Demonstrates inadequate understanding of finance.
|
Accurately identifies financing option; minimally supports answer with logical explanation and information from the Financing Report and/or course material;
OR
Does not accurately identify financing option; adequately supports answers with information from the Financing Report and/or course material.
Demonstrates adequate understanding of finance.
|
Accurately identifies financing option; adequately supports answer with logical explanation and information from the Financing Report and/or course material.
Demonstrates good understanding of finance. |
Accurately identifies financing option; thoroughly supports answer with logical explanation and specific information from the Financing Report and course material.
Demonstrates excellent understanding of finance. |
2. Identify the next step in the accounting cycle for the junior accountant to complete and explain your reasoning.
Weight: 20% |
Does not accurately identify accounting cycle step; explanation is missing or lacks logic and supporting information.
Demonstrates inadequate understanding of accounting. |
Accurately identifies accounting cycle step; minimally supports answer with logical explanation and information from course material;
OR
Does not accurately identify financing option; adequately supports answers with information from course material.
Demonstrates adequate understanding of accounting. |
Accurately identifies accounting cycle step; adequately supports answer with logical explanation and information from course material.
Demonstrates good understanding of accounting. |
Accurately identifies accounting cycle step; thoroughly supports answer with logical explanation and specific information from course material.
Demonstrates excellent understanding of accounting. |
3. Identify the best financial statement to provide to the potential investor and explain your reasoning.
Weight: 20% |
Does not accurately identify financial statement and/or explanation is missing or lacks logic and supporting information.
Demonstrates inadequate understanding of financial statements. |
Accurately identifies financial statement; minimally supports answer with logical explanation and information from financial statements and/or course material;
OR
Does not accurately identify financial statement; adequately supports answers with information from financial statements and/or course material.
Demonstrates adequate understanding of financial statements. |
Accurately identifies the financial statement; adequately supports answer with logical explanation and information from financial statements and course material.
Demonstrates good understanding of financial statements. |
Accurately identifies financial statement; thoroughly supports answer with logical explanation and specific information from financial statements and course material.
Demonstrates excellent understanding of financial statements. |
4. Recommend whether or not, you as the financier, should invest in SunsTruck and explain reasoning.
Weight: 20%
|
Makes no recommendation and/or does not provide supporting explanation or information.
Demonstrates inadequate understanding of financial analysis.
|
Makes a recommendation; minimally supports answer with logical explanation and information from financial statements and/or course material.
Demonstrates adequate understanding of financial analysis.
|
Makes a recommendation; adequately supports answer with logical explanation and information from financial statements and course material.
Demonstrates good understanding of financial analysis.
|
Makes a recommendation; thoroughly supports answer with logical explanation and specific information from financial statements and course material.
Demonstrates excellent understanding of financial analysis.
|
5. Write in a professional manner using correct grammar and spelling and appropriate citations.
Weight: 10% |
Writing does not meet minimal standards.
Tone is not professional.
Lacking in logic, clarity, and/or consistent formatting. Contains many spelling and/or grammatical errors. Does not include citations or they do not allow the reader to locate the source. |
Writing is satisfactory.
Professional tone is developing.
Shows moderate logic, clarity, and/or consistent formatting.
May contain more than 2-4 spelling and/or grammatical errors. Includes citations but they may be inconsistently formatted or they do not easily allow the reader to locate the source. |
Writing is mostly good.
Tone is professional.
Shows logic, clarity, and consistent formatting.
May contain few or no spelling and/or grammatical errors. Includes citations that allow the reader to locate the source. |
Writing is excellent.
Tone is professional and sophisticated. Shows logic, clarity, and consistent formatting.
Contains no spelling or grammatical errors and work is cited consistently so that the reader can locate the work cited. |