Template Personal Balance SheetYour NameBalance SheetDateASSETSLIA.docx

Template Personal Balance SheetYour NameBalance
SheetDateASSETSLIABILITIESCurrent Assets:Current
Liabilities:Cash/Checking AccountMortage (current
portion)(due in 12 months)Savings AccountsCar Loan(due in 12
months)StocksStudent Loan (due in 12 months)Credit CardTotal
Current Assets$ - 0Total Current Liabilities$ - 0Long Term
LiabilitiesLong Term Assets:MortgageHouseCar
LoanCarStudent Loan401kBondsTotal Long-Term Liabilities$
- 0Total Long Term Assets$ - 0Owners Equity$ - 0Total
Assets$ - 0Total Liabilities and Owners Equity$ - 0
Balance Sheet
A personal balance sheet is a statement of net worth and
consists of three main parts:
Assets = What we own
Liabilities = What we owe
Net Worth = Assets – Liabilities
There are two different kinds of assets.
Current assets = Those we expect to use up within
a year or can easily be converted to cash within 12
months.
Long-term assets = Those that we expect to have
for over a year.
Many people think they don’t have many assets
because they think of these things as items like
cash, securities, vehicles, or a home. However, all
your clothes, jewelry, linens, dishes, pots and

pans, furniture, exercise equipment, hobby
components, and other personal belongings are
assets. It is important to insure all your assets.
Protecting what we own is one of the steps you
can take to move closer to financial
independence.
You can begin to build your balance sheet by
taking an inventory of your assets. Don’t forget to
include any 401K or IRA you have set up for
retirement in your assets.
There are also two different kinds of liabilities.
Current liabilities = Those we expect to pay the
balance on within 12 months.
Long term liabilities = Those we expect to pay the
balance on more than 12 months from
the balance sheet date.
Once you know your assets and liabilities you can calculate
your net worth by subtracting liabilities from
assets.
Taking a physical inventory…
Take a few minutes and imagine you are
looking at one room in your home. Without
looking, can you make a complete listing of
what is in that room? Now how about the
garage, the basement, or the attic? Any idea
what items are in each of these locations? It
is essential to have a complete inventory of
the items in your home in order to be sure
you can be fairly compensated should you
have to report a casualty loss.

For insurance purposes many individuals are
now beginning to video the contents of each
room in their homes so they have a record of
all their assets in case of a loss.
Liquid assets explained…
Assets can have various states of liquidity.
The most liquid assets can be converted to
cash within 12 months or less, while the least
liquid assets would need a period longer than
12 months converted to be converted into
cash.
Here is a sample balance sheet for review.
ASSETS
Current Assets:
Cash $2,800 $10,000
Stocks $30,000 $15,000
$12,000
Total Current Assets $32,800 $37,000
Long Term Assets: $88,000
Auto $50,000
House $450,000 $88,000
401k $60,000
Savings $35,000
Total Long Term
Assets $595,000 $502,800
Total Assets $627,800

LIABILITIES
Current Liabilities
Credit Card
Auto Loan (due in 12 months)
Mortgage (due in 12 months)
Total Current Liabilities
Long Term Liabilities
Mortgage
Total L/T Liabilities
Owner’s Equity
Total Liabilities and Owner’s Equity $627,800
A Balance Sheet template has been provided for your use.
Calculate your own net worth and see how it
stacks up to what you expected your equity to be at this point in
your life. Is it what you expected?
Resources
Anderson, T. (2016, June 2). How to benchmark your net worth
in 3 easy steps. Retrieved from
https://www.forbes.com/sites/tomanderson/2016/06/02/how-to-
benchmark-your-net-worth/#
aefcf20e10f2
• A better way to measure wealth than just your investment
portfolio performance is your net
worth, which is simply your assets minus your liabilities. This
site aids you in calculating your
net worth.

Bankrate. (n.d.). Net worth calculator. Retrieved from
https://www.bankrate.com/calculators/
smart-spending/personal-net-worth-calculator.aspx
• Net worth is the value of all assets, minus the total of all
liabilities. Put another way, net
worth is what is owned minus what is owed. This net worth
calculator helps determine your
net worth. It also estimates how your net worth could grow or
decline over the next 10 years.
CNN Money. (n.d.) What are you worth? Retrieved from
http://cgi.money.cnn.com/tools/networth/
networth.html
• This link takes you to a compact and easy to use online net
worth calculator.
https://www.forbes.com/sites/tomanderson/2016/06/02/how-to-
benchmark-your-net-worth/#2208f5e13435
https://www.bankrate.com/calculators/smart-spending/personal-
net-worth-calculator.aspx
http://cgi.money.cnn.com/tools/networth/networth.html
Income Statement TemplateThe template allows you to input
your monthly income and expenses and will calculate your net
income. The last column will show your yearly amounts.Your
NameIncome StatementYear-To-
DateJanFebMarAprMayJuneJulyAugustSeptOctNovDecTotalInc
ome:Earned Income$ 10.00$ - 0$ - 0$ - 0$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0$ 10.00Other Income$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0Total Income$ 10.00$ - 0$ - 0$

- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
10.00Expenses:Mortage Payment$ 5.00$ - 0$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 5.00Credit Card
Payment$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0Student Loan Payment$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0Auto
Loan Payment$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0Utilities$ - 0$ - 0$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0TGroceries$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0Insurance$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0Entertainment$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0Total expenses$ 5.00$ - 0$
- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
5.00Net Income$ 5.00$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ 5.00
BUS 627 Week 1 – Journal
Required Resource
Text
Porter, G., & Norton, C. (2018). Using financial accounting
information: The alternative to debits and credits (10th ed.).
Retrieved from https://www.cengage.com
· Chapter 1: Accounting as a Form of Communication

· Chapter 2: Financial Statements and the Annual Report
Recommended Resources
Book
Piper, M. (2010). Accounting made simple: Accounting
explained in 100 pages or less (Links to an external site.).
Retrieved from
https://www.academia.edu/35733742/Accounting_made_simple_
pdf
· This book is a quick read and provides a brief simple
introduction to the fundamentals of accounting, illustrating how
to read the most important financial statements and draw a
conclusion about the numbers. The book may be useful to you if
you have little to no accounting background and need additional
explanations of accounting in a simple manner beyond our
required textbook. The book may be helpful in your overall
understanding of accounting, which would aid in all the
assignments this week.
Articles
Dennis , D., & Seery, A. (2016, December). Annual reports:
How to tell your story clearly. Accountancy Ireland, 38(6), 40–
42. Retrieved from
https://www.charteredaccountants.ie/Accountancy-Ireland/Home
· The full-text version of this article is available through the
ProQuest database in the Ashford University Library. This
article discusses how a company should complete its annual
report and gives an interesting perspective from the company’s
side. This allows the potential investor to better understand the
annual report, the advantages of preferred stock, and why this
may make a wise investment choice. This article will expand
your knowledge regarding the annual report and may assist you
in your Reading and Using the Annual Report Case Study
discussion forum, Week 1 Quiz, and Week 1 CNow Homework
Problems assignment this week.
Jules, D., & Erskine, R. (2018, September 12). The international

code of ethics for professional accountants: Key areas of focus
for SMEs and SMPs (Links to an external site.). International
Federation of Accountants. Retrieved from
https://www.ifac.org/global-knowledge-
gateway/ethics/discussion/international-code-ethics-
professional-accountants-key
· This article provides the new ethical codes established for
international business. It offers an excellent perspective on the
similarities and differences between the US and international
ethical standards. This will give you foundational accounting
information and may assist you in your Accountant’s Lingo
Interactive learning activity this week.
Accessibility Statement does not exist.
Privacy Policy (Links to an external site.)
Lopez , K. J., & Perry, S. M., Ph.D. (2018). The importance of
virtue ethics and the role of salience in the accounting
profession. Southern Journal of Business and Ethics, 10, 86–96.
Retrieved from https://salsb.wildapricot.org/sjbe
article provides a deep look at the importance of ethics in the
accounting profession. The article covers why there may be
conflict with ethics in the normal course of business for
accountants. Additionally, the article concludes the importance
of continuing education for certified public accountants (CPAs).
The article will give you a deeper knowledge regarding ethics
and may assist you with your Post Your Introduction discussion
forum, Week 1 Quiz, and Week 1 CNow Homework Problems
assignment this week.
Melé , D., Rosanas, J. M., & Fontrodona, J. (2017). Ethics in
finance and accounting: Editorial introduction. Journal of
Business Ethics, 140(4), 609–613.
https://doi.org/10.1007/s10551-016-3328-y
article looks at efficiency versus ethics in both accounting and

finance. The article discusses how to motivate employees to be
more ethical, and draws conclusions between ethical rules and
personal values, as well. This article will give you a deeper
knowledge regarding ethics and may assist you with your Post
Your Introduction discussion forum, Week 1 Quiz, and Week 1
CNow Homework Problems assignment this week.
Mintz , S. (2018). Accounting in the public interest: An
historical perspective on professional ethics. CPA Journal,
88(3), 22. Retrieved from https://www.cpajournal.com/
EBSCOhost database in the Ashford University Library. This is
a very interesting article explaining the history of ethics in
accounting and all the changes that have taken place. The article
also provides a great overview and rationale of the Sarbanes-
Oxley Act (SOX), and points out the inherent ethical issues
embedded within an accountant’s role in business, and the
obligation to follow the American Institute of Certified Public
Accountants (AICPA) Code of Professional Conduct. The article
will give you a deeper knowledge regarding ethics and may
assist you with your Post Your Introduction discussion forum,
Week 1 Quiz, and Week 1 CNow Homework Problems
Nathan, N. (2017, June). Annual report can reveal the secrets a
company wants to hide: Here’s how to uncover. The Economic
Times. Retrieved from https://economictimes.indiatimes.com/
Business Insights: Global database in the Ashford University
Library. This article provides additional insight, beyond your
textbook, in reading and understanding a company’s annual
report. The article gives tips on how to compare certain
numbers to gain a better perspective and may assist you with
your Reading and Using the Annual Report Case Study
discussion forum this week.
Multimedia
Kloza, B. (Executive Producer), & Granberry, R. (Producer).

(2014). Accounting fundamentals [Streaming video]. Retrieved
from the Films On Demand database.
· The full version of this video is available through the Films
On Demand database in the Ashford University Library. This is
a four-part series on accounting fundamentals, which includes
videos on the purpose of accounting, financial reporting,
income statements, and balance sheets. These videos will aid
the visual learner and reinforce concepts presented in your
textbook, and they may assist you in your Week 1 Quiz and
Week 1 CNow Homework Problems assignment this week.
These videos have closed captioning and transcript.
Link Media. (2015, June 9). How to read annual report (Links to
an external site.) [Video file]. Retrieved from
https://youtu.be/0GTJ-NeFI3Q
· This video provides a basic yet comprehensive overview of
financial statements and how to read them. This video will
assist more visual learners and help reinforce the concepts in
your textbook, and may assist you in your Reading and Using
the Annual Report Case Study discussion forum, Week 1 Quiz,
and Week 1 CNow Homework Problems assignment this week.
This video has closed captioning and a transcript.
Accessibility Statement (Links to an external site.)Privacy
Policy (Links to an external site.)
Web Page
U.S. Securities and Exchange Commission. (2007, February
5). Beginners’ guide to financial statement. Retrieved from
https://www.sec.gov/reportspubs/investor-
publications/investorpubsbegfinstmtguidehtm.html
· This web page goes deeper in the U.S. Securities and
Exchange Commission website and provides a review on how to
read an annual report, including financial statements, footnotes,
and other parts. This is an excellent resource, which may assist
you with your Reading and Understanding the Annual Report
Case Study discussion this week.

Websites
American Institute of Certified Public Accountants (Links to an
external site.). (https://www.aicpa.org/)
· This website provides detailed information about the American
Institute of Certified Public Accountants (AICPA). The AICPA
is the professional organization of certified public accountants,
overseeing the profession, setting ethical standards, and
auditing standards for U.S. companies. This website will give
you foundational accounting information and may assist you in
your Accountant’s Lingo Interactive learning activity this week.
Financial Accounting Standards Board (Links to an external
site.). (https://www.fasb.org/home)
· This website provides detailed information about the Financial
Accounting Standards Board (FASB). FASB is an independent
nonprofit organization that has the authority to set and interpret
Generally Accepted Accounting Principles (GAAP). This
website will give you foundational accounting information and
may assist you in your Accountant’s Lingo Interactive learning
activity this week.
International Accounting Standards Board (Links to an external
site.). (https://www.iasplus.com/)
· This website provides detailed information about the
International Accounting Standards Board (IASB). IASB has the
authority to set and interpret International Financial Reporting
Standards (IFRS). This website provides foundational
accounting information and may assist you in your Accountant’s
Lingo Interactive learning activity this week.
Sarbanes-Oxley Act 2002 (Links to an external site.).
(http://www.soxlaw.com/)
Sarbanes-Oxley Act (SOX). SOX is the most important current
piece of legislation to impact the accounting field. Congress
passed the act in 2002 to bring reform and accountability to
financial statement reporting. Enron and WorldCom, among

other corporations, had huge accounting irregularities and fraud
that brought about the need for this act. This website will give
U.S Securities and Exchange Commission (Links to an external
site.). (https://www.sec.gov/)
Securities and Exchange Commission (SEC). The SEC is a
federal agency that enforces securities laws, and has the
ultimate authority to determine the rules for preparing
statements for companies whose stock is sold to the public. This
activity this week.
Instruction
Prior to beginning work on this journal,
· Read Chapters 1 and 2 in the course textbook, Using Financial
Accounting Information: The Alternative to Debits and Credit.
· Review the Balance Sheet Resource and Income Statement
Resource documents.
For this journal, complete a personal balance sheet and income
statement. The Balance Sheet Template and Income Statement
Template will help you get started. You may modify the line
items as necessary in the templates. You may complete the
templates using your own personal financial data, which will
make the activity more meaningful, or you may use hypothetical
numbers. Then, reflect on your completed Balance Sheet and
Income Statement Templates. Discuss the most important

concepts and facts you have learned.
Your reflection should be a minimum of 350 words. Submit
both your completed templates and your reflection to Waypoint.
BUS 627 Week 2 - Discussion Forum 2
Required Resources
Text
Brodersen, S., & Pysh, P. (2014). Warren Buffett
accounting book: Reading financial statements for value
investing. Retrieved from https://www.vitalsource.com
· Chapter 6: Income Statement in Detail
· Chapter 3: Processing Accounting Information
· Chapter 4: Income Measurement and Accrual Accounting
· Chapter 5: Inventories and Cost of Goods Sold
Books
Brodersen, S., & Pysh, P. (2014). Warren Buffett accounting
book: Reading financial statements for value investing.
Retrieved from https://www.vitalsource.com
· This book provides information about financial statements,
including the income statement, balance sheet, and statement of
cash flows, as well as financial ratios and financial statement
analysis. It may assist you with your Current Assets and Current
Liabilities Analysis Case Study and Inventory Turnover
Analysis Case Study discussion forums, and the Week 2 CNow
Homework Problems assignment this week.
Retrieved from

pdf
· This book provides a high-level overview of accounting,
including the accounting equation, income statement, balance
sheet, statement of cash flows, financial ratios, GAAP, cash
versus accrual accounting, inventory, and cost of goods sold,
and it may assist you with your Current Assets and Current
Articles
Calculating cost of goods sold. (2011). In J. Law, Business:
The ultimate resource (3rd ed.). Retrieved from
https://www.bloomsbury.com/us/
Credo Reference database in the Ashford University Library.
This article provides a discussion on how to calculate cost of
goods sold with examples, and it may assist you with your
Current Assets and Current Liabilities Analysis Case Study and
Inventory Turnover Analysis Case Study discussion forums, as
well as your Week 2 CNow Homework Problems assignment
this week.
Calculating current ratio. (2011). In J. Law, Business: The
ultimate resource (3rd ed.). Retrieved from
This article provides a concise tutorial on how to calculate the
current ratio, and may assist you with your Current Assets and
Current Liabilities Analysis Case Study and Inventory Turnover
Analysis Case Study discussion forums, as well as your Week 2
Efficiency and operating ratios. (2014). In QFinance: The
ultimate resource (5th ed.). Retrieved from

This article provides a concise tutorial on how to calculate
efficiency ratios including inventory turnover ratio and may
assist you with your Current Assets and Current Liabilities
Analysis Case Study and Inventory Turnover Analysis Case
Study discussion forums, as well as your Week 2 CNow
Gross profit margin ratio. (2014). In QFinance: The ultimate
resource (5th ed.). Retrieved from
Credo database in the Ashford University Library. This article
provides a concise discussion of the gross profit margin ratio,
including how to calculate it and why it is important, and it may
Johnston , L. A. (2017, April). Considering cash: Advantages
and availability of the cash method of accounting. Tax
Adviser, 6–7. Retrieved from https://www.thetaxadviser.com
EBSCOhost database in the Ashford University Library. This
article provides an in-depth discussion of the differences
between cash basis and accrual basis accounting, with a specific
focus on the advantages of cash basis accounting for businesses
that are not required to use accrual basis accounting for tax
purposes. It may assist you with your Week 2 CNow Homework
Multimedia
Edspira. (2013, July 12). Gross profit margin ratio, defined and
explained (Links to an external site.) [Video file]. Retrieved
from https://youtu.be/bPXNgnbRsfw
· This video discusses and demonstrates how to calculate the
gross profit margin ratio and may assist you with your Current

Assets and Current Liabilities Analysis Case Study discussion
forum and Week 2 CNow Homework Problems assignment this
week. This video has closed captioning and a transcript.
Edspira. (2013, July 15). How to calculate inventory
turnover (Links to an external site.) [Video file]. Retrieved from
https://youtu.be/Ophz0_bkUAg
inventory turnover ratio and may assist you with your Inventory
Turnover Analysis Case Study discussion forum and Week 2
CNow Homework Problems assignment this week. This video
has closed captioning and a transcript.
Edspira. (2014, August 31). Average cost inventory
method (Links to an external site.) [Video file]. Retrieved from
https://youtu.be/qAWVVw-dC5A
· This video discusses and demonstrates how to calculate ending
inventory using the average cost method and may assist you
with your Week 2 CNow Homework Problems assignment this
Edspira. (2014, August 31). FIFO inventory method (Links to an
external site.) [Video file]. Retrieved from
https://youtu.be/Wa83L8TvoaM
inventory using the FIFO method and may assist you with your
Week 2 CNow Homework Problems assignment this week. This
video has closed captioning and a transcript.
Edspira. (2014, August 31). LIFO inventory method (Links to
https://youtu.be/zLAvpS6o25E

inventory using the LIFO method and may assist you with your
Week 2 CNow Homework problems assignment this week. This
Khan Academy. (2011, March 30). Comparing accrual and cash
accounting | Finance & capital markets | Khan Academy (Links
to an external site.) [Video file].
https://youtu.be/LU_6amWC6H8
· This video discusses the difference between accrual and cash
accounting, and it may assist you with your Week 2 CNow
Homework Problems assignment this week. This video has
closed captioning and a transcript.
Kloza, B., & Walko, D. S. (Executive Producers), & Dimoff , D.
(Producer). (2015). Ratio analysis: Business finance
essentials [Series episode]. In Business finance
essentials [Streaming video]. Retrieved from the Films On
Demand database.
On Demand database in the Ashford University Library. This
video covers the ratios most commonly used to analyze a
business and summarizes ratio analysis, quick ratio, inventory
turnover ratio, debt-to-equity ratio, return-on-equity ratio, and
net profit margin ratio. This video may assist you with your
this week. This video has closed captioning and a transcript.
Kloza, B., & Walko, D. S. (Executive Producers), & , R.
(Producer). (2014). Basic accounting terms [Segment]. In
Accounting basics and definitions: Accounting fundamentals
[Series episode]. In B. Kloza (Executive Producer), & R.
Granberry (Producer), Accounting fundamentals [Streaming

video]. Retrieved from Films On Demand database.
video provides an overview of accounting fundamentals,
including importance of accurate accounting, basic accounting
terms, financial reporting, income statements, balance sheets
(assets), balance sheets (liabilities), and owner equity and
statements of cash flows. This video may assist you with your
Web Page
Boundless. (n.d.). Differences between accrual-basis and cash-
basis accounting (Links to an external site.). Retrieved from
http://oer2go.org/mods/en-
boundless/www.boundless.com/accounting/textbooks/boundless-
accounting-textbook/detailed-review-of-the-income-statement-
13/revenue-recognition-85/differences-between-accrual-basis-
and-cash-basis-accounting-390-7238/index.html
· This web page provides a concise overview of the differences
between cash basis and accrual basis accounting, and it may
assist you with your Week 2 CNow Homework Problems
Accessibility Statement doesn't exist.
Privacy Policy doesn't exist.
Instruction
Prior to beginning work on this discussion forum, read Chapter
5 in the course textbook, Using Financial Accounting
Information: The Alternative to Debits and Credits.
You may consider using the same company and annual reports
that you chose in your Week 1 – Discussion Forum, Reading
and Using the Annual Report Case Study. This choice will only
work if the company generates the bulk of its revenue from the

sale of goods and maintains inventory. If not, then you will
need to select another company for this analysis. Choose a
company that a fellow student has not already posted.
Address the following:
· Calculate the inventory turnover ratio and number of days’
sales in inventory for the company for the latest two years.
Obtain the industry averages for these ratios and any other
pertinent information from IBISWorld, and analyze the results.
· Discuss what each of these ratios tells you about the
company’s efficiency in managing its inventory, and how they
compare to the industry average.
· Identify the major causes of any changes in these ratios, and
discuss your assessment of the company based on these changes.
· If you are an investor, explain whether or not you are satisfied
with the company’s inventory management.
Your initial response should be a minimum of 200 words.
Graduate school students learn to assess the perspectives of
several scholars. Support your response with at least one
scholarly and/or credible resource, in addition to the text.
BUS 627 Week 2 - Discussion Forum 1
Required Resources
Text
Brodersen, S., & Pysh, P. (2014). Warren Buffett
accounting book: Reading financial statements for value
investing. Retrieved from https://www.vitalsource.com
· Chapter 6: Income Statement in Detail
· Chapter 3: Processing Accounting Information
· Chapter 4: Income Measurement and Accrual Accounting
· Chapter 5: Inventories and Cost of Goods Sold

Books
Brodersen, S., & Pysh, P. (2014). Warren Buffett accounting
book: Reading financial statements for value investing.
Retrieved from https://www.vitalsource.com
· This book provides information about financial statements,
including the income statement, balance sheet, and statement of
cash flows, as well as financial ratios and financial statement
analysis. It may assist you with your Current Assets and Current
Retrieved from
pdf
· This book provides a high-level overview of accounting,
including the accounting equation, income statement, balance
sheet, statement of cash flows, financial ratios, GAAP, cash
versus accrual accounting, inventory, and cost of goods sold,
and it may assist you with your Current Assets and Current
Articles
Calculating cost of goods sold. (2011). In J. Law, Business:
The ultimate resource (3rd ed.). Retrieved from
This article provides a discussion on how to calculate cost of
goods sold with examples, and it may assist you with your

this week.
Calculating current ratio. (2011). In J. Law, Business: The
ultimate resource (3rd ed.). Retrieved from
This article provides a concise tutorial on how to calculate the
current ratio, and may assist you with your Current Assets and
Current Liabilities Analysis Case Study and Inventory Turnover
Analysis Case Study discussion forums, as well as your Week 2
Efficiency and operating ratios. (2014). In QFinance: The
ultimate resource (5th ed.). Retrieved from
This article provides a concise tutorial on how to calculate
efficiency ratios including inventory turnover ratio and may
Gross profit margin ratio. (2014). In QFinance: The ultimate
resource (5th ed.). Retrieved from
Credo database in the Ashford University Library. This article
provides a concise discussion of the gross profit margin ratio,
including how to calculate it and why it is important, and it may
Johnston , L. A. (2017, April). Considering cash: Advantages
and availability of the cash method of accounting. Tax

Adviser, 6–7. Retrieved from https://www.thetaxadviser.com
EBSCOhost database in the Ashford University Library. This
article provides an in-depth discussion of the differences
between cash basis and accrual basis accounting, with a specific
focus on the advantages of cash basis accounting for businesses
that are not required to use accrual basis accounting for tax
purposes. It may assist you with your Week 2 CNow Homework
Multimedia
Edspira. (2013, July 12). Gross profit margin ratio, defined and
explained (Links to an external site.) [Video file]. Retrieved
from https://youtu.be/bPXNgnbRsfw
gross profit margin ratio and may assist you with your Current
Assets and Current Liabilities Analysis Case Study discussion
forum and Week 2 CNow Homework Problems assignment this
Edspira. (2013, July 15). How to calculate inventory
turnover (Links to an external site.) [Video file]. Retrieved from
https://youtu.be/Ophz0_bkUAg
inventory turnover ratio and may assist you with your Inventory
Turnover Analysis Case Study discussion forum and Week 2
CNow Homework Problems assignment this week. This video
has closed captioning and a transcript.
Edspira. (2014, August 31). Average cost inventory
method (Links to an external site.) [Video file]. Retrieved from
https://youtu.be/qAWVVw-dC5A
inventory using the average cost method and may assist you

with your Week 2 CNow Homework Problems assignment this
Edspira. (2014, August 31). FIFO inventory method (Links to an
external site.) [Video file]. Retrieved from
https://youtu.be/Wa83L8TvoaM
inventory using the FIFO method and may assist you with your
Week 2 CNow Homework Problems assignment this week. This
Edspira. (2014, August 31). LIFO inventory method (Links to
https://youtu.be/zLAvpS6o25E
inventory using the LIFO method and may assist you with your
Week 2 CNow Homework problems assignment this week. This
Khan Academy. (2011, March 30). Comparing accrual and cash
accounting | Finance & capital markets | Khan Academy (Links
to an external site.) [Video file].
https://youtu.be/LU_6amWC6H8
· This video discusses the difference between accrual and cash
accounting, and it may assist you with your Week 2 CNow
Homework Problems assignment this week. This video has
closed captioning and a transcript.
Kloza, B., & Walko, D. S. (Executive Producers), & Dimoff , D.
(Producer). (2015). Ratio analysis: Business finance
essentials [Series episode]. In Business finance
essentials [Streaming video]. Retrieved from the Films On

Demand database.
video covers the ratios most commonly used to analyze a
business and summarizes ratio analysis, quick ratio, inventory
turnover ratio, debt-to-equity ratio, return-on-equity ratio, and
net profit margin ratio. This video may assist you with your
Kloza, B., & Walko, D. S. (Executive Producers), & , R.
(Producer). (2014). Basic accounting terms [Segment]. In
Accounting basics and definitions: Accounting fundamentals
[Series episode]. In B. Kloza (Executive Producer), & R.
Granberry (Producer), Accounting fundamentals [Streaming
video]. Retrieved from Films On Demand database.
video provides an overview of accounting fundamentals,
including importance of accurate accounting, basic accounting
terms, financial reporting, income statements, balance sheets
(assets), balance sheets (liabilities), and owner equity and
statements of cash flows. This video may assist you with your
Web Page
Boundless. (n.d.). Differences between accrual-basis and cash-
basis accounting (Links to an external site.). Retrieved from
http://oer2go.org/mods/en-
boundless/www.boundless.com/accounting/textbooks/boundless-
accounting-textbook/detailed-review-of-the-income-statement-
13/revenue-recognition-85/differences-between-accrual-basis-

and-cash-basis-accounting-390-7238/index.html
· This web page provides a concise overview of the differences
between cash basis and accrual basis accounting, and it may
assist you with your Week 2 CNow Homework Problems
Accessibility Statement doesn't exist.
Privacy Policy doesn't exist.
Instruction
Prior to beginning work on this discussion forum , read
Chapters 3, 4, and 5 in the course textbook, Using Financial
Accounting Information: The Alternative to Debits and
Credits, and Chapter 6 in the course textbook, Warren Buffett
AccountingBook: Reading Financial Statements for Value
Investing.
Using the same company and annual reports that you chose in
your Week 1 - Discussion Forum, Reading and Using the
Annual Report Case Study, address the following:
· Calculate the gross profit ratio, operating margin ratio, and net
income margin ratio for the latest two years, and obtain the
industry average ratios (if available) from IBISWorld.
· Analyze these ratios and discuss what each of these ratios tells
you about the company’s profitability, and how it compares to
the industry averages.
· Note any trends in these ratios from year-to-year, and discuss
your assessment of the company based on these changes.
· If you were an investor, explain why you would or would not
buy stock in the company.
BUS 627 Week 1 - Discussion Forum

Required Resource
Text
· Chapter 1: Accounting as a Form of Communication
· Chapter 2: Financial Statements and the Annual Report
Book
Retrieved from
pdf
· This book is a quick read and provides a brief simple
introduction to the fundamentals of accounting, illustrating how
to read the most important financial statements and draw a
conclusion about the numbers. The book may be useful to you if
you have little to no accounting background and need additional
explanations of accounting in a simple manner beyond our
required textbook. The book may be helpful in your overall
understanding of accounting, which would aid in all the
assignments this week.
Articles
Dennis , D., & Seery, A. (2016, December). Annual reports:
How to tell your story clearly. Accountancy Ireland, 38(6), 40–
42. Retrieved from
https://www.charteredaccountants.ie/Accountancy-Ireland/Home
article discusses how a company should complete its annual
report and gives an interesting perspective from the company’s
side. This allows the potential investor to better understand the

annual report, the advantages of preferred stock, and why this
may make a wise investment choice. This article will expand
your knowledge regarding the annual report and may assist you
in your Reading and Using the Annual Report Case Study
discussion forum, Week 1 Quiz, and Week 1 CNow Homework
Jules, D., & Erskine, R. (2018, September 12). The international
code of ethics for professional accountants: Key areas of focus
for SMEs and SMPs (Links to an external site.). International
Federation of Accountants. Retrieved from
https://www.ifac.org/global-knowledge-
gateway/ethics/discussion/international-code-ethics-
professional-accountants-key
· This article provides the new ethical codes established for
international business. It offers an excellent perspective on the
similarities and differences between the US and international
ethical standards. This will give you foundational accounting
information and may assist you in your Accountant’s Lingo
Interactive learning activity this week.
Accessibility Statement does not exist.
Privacy Policy (Links to an external site.)
Lopez , K. J., & Perry, S. M., Ph.D. (2018). The importance of
virtue ethics and the role of salience in the accounting
profession. Southern Journal of Business and Ethics, 10, 86–96.
Retrieved from https://salsb.wildapricot.org/sjbe
article provides a deep look at the importance of ethics in the
accounting profession. The article covers why there may be
conflict with ethics in the normal course of business for
accountants. Additionally, the article concludes the importance
of continuing education for certified public accountants (CPAs).
The article will give you a deeper knowledge regarding ethics
and may assist you with your Post Your Introduction discussion
forum, Week 1 Quiz, and Week 1 CNow Homework Problems

Melé , D., Rosanas, J. M., & Fontrodona, J. (2017). Ethics in
finance and accounting: Editorial introduction. Journal of
Business Ethics, 140(4), 609–613.
https://doi.org/10.1007/s10551-016-3328-y
article looks at efficiency versus ethics in both accounting and
finance. The article discusses how to motivate employees to be
more ethical, and draws conclusions between ethical rules and
personal values, as well. This article will give you a deeper
knowledge regarding ethics and may assist you with your Post
Your Introduction discussion forum, Week 1 Quiz, and Week 1
Mintz , S. (2018). Accounting in the public interest: An
historical perspective on professional ethics. CPA Journal,
88(3), 22. Retrieved from https://www.cpajournal.com/
EBSCOhost database in the Ashford University Library. This is
a very interesting article explaining the history of ethics in
accounting and all the changes that have taken place. The article
also provides a great overview and rationale of the Sarbanes-
Oxley Act (SOX), and points out the inherent ethical issues
embedded within an accountant’s role in business, and the
obligation to follow the American Institute of Certified Public
Accountants (AICPA) Code of Professional Conduct. The article
will give you a deeper knowledge regarding ethics and may
assist you with your Post Your Introduction discussion forum,
Week 1 Quiz, and Week 1 CNow Homework Problems
Nathan, N. (2017, June). Annual report can reveal the secrets a
company wants to hide: Here’s how to uncover. The Economic
Times. Retrieved from https://economictimes.indiatimes.com/
Business Insights: Global database in the Ashford University
Library. This article provides additional insight, beyond your
textbook, in reading and understanding a company’s annual

report. The article gives tips on how to compare certain
numbers to gain a better perspective and may assist you with
your Reading and Using the Annual Report Case Study
discussion forum this week.
Multimedia
Kloza, B. (Executive Producer), & Granberry, R. (Producer).
(2014). Accounting fundamentals [Streaming video]. Retrieved
from the Films On Demand database.
On Demand database in the Ashford University Library. This is
a four-part series on accounting fundamentals, which includes
videos on the purpose of accounting, financial reporting,
income statements, and balance sheets. These videos will aid
the visual learner and reinforce concepts presented in your
textbook, and they may assist you in your Week 1 Quiz and
Week 1 CNow Homework Problems assignment this week.
These videos have closed captioning and transcript.
Link Media. (2015, June 9). How to read annual report (Links to
https://youtu.be/0GTJ-NeFI3Q
· This video provides a basic yet comprehensive overview of
financial statements and how to read them. This video will
assist more visual learners and help reinforce the concepts in
your textbook, and may assist you in your Reading and Using
the Annual Report Case Study discussion forum, Week 1 Quiz,
and Week 1 CNow Homework Problems assignment this week.
This video has closed captioning and a transcript.
Web Page
U.S. Securities and Exchange Commission. (2007, February
5). Beginners’ guide to financial statement. Retrieved from
https://www.sec.gov/reportspubs/investor-
publications/investorpubsbegfinstmtguidehtm.html

· This web page goes deeper in the U.S. Securities and
Exchange Commission website and provides a review on how to
read an annual report, including financial statements, footnotes,
and other parts. This is an excellent resource, which may assist
you with your Reading and Understanding the Annual Report
Case Study discussion this week.
Websites
American Institute of Certified Public Accountants (Links to an
external site.). (https://www.aicpa.org/)
· This website provides detailed information about the American
Institute of Certified Public Accountants (AICPA). The AICPA
is the professional organization of certified public accountants,
overseeing the profession, setting ethical standards, and
auditing standards for U.S. companies. This website will give
Financial Accounting Standards Board (Links to an external
site.). (https://www.fasb.org/home)
· This website provides detailed information about the Financial
Accounting Standards Board (FASB). FASB is an independent
nonprofit organization that has the authority to set and interpret
Generally Accepted Accounting Principles (GAAP). This
activity this week.
International Accounting Standards Board (Links to an external
site.). (https://www.iasplus.com/)
International Accounting Standards Board (IASB). IASB has the
authority to set and interpret International Financial Reporting
Standards (IFRS). This website provides foundational
accounting information and may assist you in your Accountant’s
Lingo Interactive learning activity this week.

Sarbanes-Oxley Act 2002 (Links to an external site.).
(http://www.soxlaw.com/)
Sarbanes-Oxley Act (SOX). SOX is the most important current
piece of legislation to impact the accounting field. Congress
passed the act in 2002 to bring reform and accountability to
financial statement reporting. Enron and WorldCom, among
other corporations, had huge accounting irregularities and fraud
that brought about the need for this act. This website will give
U.S Securities and Exchange Commission (Links to an external
site.). (https://www.sec.gov/)
Securities and Exchange Commission (SEC). The SEC is a
federal agency that enforces securities laws, and has the
ultimate authority to determine the rules for preparing
statements for companies whose stock is sold to the public. This
activity this week.
Instruction
Prior to beginning work on this discussion forum, read Chapters
1 and 2 in your course textbook, Using Financial Accounting
Information: The Alternative to Debits and Credits.
Select a company of interest that trades on the New York Stock
Exchange (NYSE). The annual report can be found on your
selected company’s website, usually under the heading
“Investor Relations.” Select a company that a fellow student has
not already posted.
Retrieve the latest two annual reports, then complete the
following:
· Calculate the current ratio and profit margin ratio for the

latest two years, and interpret the results. Then, explain what
the ratios over the 2 years tell you.
· Locate the Management Discussion and Analysis comments in
the latest annual report, and discuss the main points in your own
words.
· Locate the Auditor’s Report in the latest annual report, and
discuss the opinion given and who conducted the audit.
· Based on this initial quick review, provide your assessment of
your chosen company.

Template Personal Balance SheetYour NameBalance SheetDateASSETSLIA.docx

More Related Content

Similar to Template Personal Balance SheetYour NameBalance SheetDateASSETSLIA.docx (19)

More from jacqueliner9 (20)

Recently uploaded (20)

Template Personal Balance SheetYour NameBalance SheetDateASSETSLIA.docx