Microsoft Excel for Accounting
- From Microsoft Excel for Accounting, complete Extend Your Skills EA2-E1: Create Financial Statements for Frozen Fractals Corp.
Once you have prepared the financial statements, use Excel to perform a ratio analysis as instructed below and write a memo analyzing the company’s financial position.
You must use Excel formulas to compute the ratios and totals on the financial statements where applicable. Points will be deducted if you do not use formulas for your calculations.
Instructions
Part I
From Microsoft Excel for Accounting, Complete EA2-E1: Create Financial Statements for Frozen Fractals Corp. Use formulas and functions to recreate the firm’s financial statements.
Using the data from your balance sheet, statement of owner’s equity, and income statement, perform the following ratio analyses:- Current ratio.
- Quick ratio.
- Debt ratio.
- Equity ratio.
- Debt-to-equity ratio.
- Profit margin ratio.
- Refer to Chapter 9 of Microsoft Excel for Accounting for the formulas for the ratios.
Submit one Excel workbook for Part I with each financial statement on a separate tab. Put the financial ratios on a separate tab. Label each tab accordingly.
Part II
Write a 2–3 page memo analyzing the company’s financial position based on the financial statement results and ratio calculations performed in Part I.
In your summary, discuss the following: - Whether the firm is financially strong.
- What they have more of (assets or liabilities).
- Whether or not they are generating income.
- The results of their financial ratios.
- Whether or not you would invest in this company.
- The memo will be submitted electronically as a Microsoft Word document.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is: - Demonstrate the use of various functions and applications in Microsoft Excel for accounting records and reports.
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