# ACC311 ASSIGNMENT 1 SOLUTION FALL 2024

ACC311 ASSIGNMENT 1 SOLUTION FALL 2022, ACC311 ASSIGNMENT 1 SOLUTION 2022, ACC311 ASSIGNMENT 1 SOLUTION SPRING 2022

### ACC311 ASSIGNMENT 1 SOLUTION FALL 2024

ACC311 ASSIGNMENT 1 SOLUTION FALL 2024 In this assignment, you will be working with financial statements from two companies, PepsiCo and The Coca-Cola Company. You will need to answer the following questions: 1. What are the net income and net cash flow from operating activities for each company for the year ended December 31, 2018? 2. What are the total assets and total liabilities for each company as of December 31, 2018?

3. What is the return on assets for each company for the year ended December 31, 2018? 4. What is the debt to equity ratio for each company as of December 31, 2018? PepsiCo Net income: \$6,527,000,000 Net cash flow from operating activities: \$10,009,000,000 The Coca-Cola Company Net income: \$5,845,000,000 Net cash flow from operating activities: \$8,686,000,000 PepsiCo Total assets: \$135,724,000,000 Total liabilities: \$101,711,000,000 The Coca-Cola Company

## 1.ACC311 Assignment 1 Solution Fall 2024

ACC311 Assignment 1 Solution Fall 2024

In thisACC311 Assignment 1 Solution Fall 2024, we will be discussing the various methods through which one can get the perfect answer for the assignment question. The methods that we will be discussing are:

• 1) Using the textbook
• 2) Using the internet
• 3) Using the library
• 4) Using the help of a tutor
• 5) Using the help of a friend
• 6) Using the help of a parent
• 7) Using the help of a sibling
• 8) Using the help of a neighbour
• 9) Using the help of a coach
• 10) Using the help of a teacher

The first method that we will be discussing is using the textbook. This is the most common method used by students to get the right answer for their assignments. The reason why this method is so popular is because it is very easy to find the answer in the textbook. All you need to do is to look for the right page and the answer will be there. However, one disadvantage of using this method is that it is very time-consuming. If you are not able to find the answer in the textbook, then you will have to waste a lot of time looking for it.

The second method that we will be discussing is using the internet. This is also a very popular method used by students to get the right answer for their assignments. The reason why this method is so popular is that it is very easy to find the answer on the internet. All you need to do is to search for the right keyword and the answer will be there. However, one disadvantage of using this method is that it is very time-consuming. If you are not able to find the answer on the internet, then you will have to waste a lot of time looking for it.

The third method that we will be discussing is using the library. This is also a very popular method used by students to get the right answer for their assignments. The reason why this method is so popular is because it is very easy to find the answer in the library. All you need to do is to look for the right book and the answer will be there.

## 2. ACC311 Assignment 1 Solution Overview

ACC311 Assignment 1 Solution Overview

In this assignment, you will be required to calculate the cost of goods sold (COGS) for a company. The company produces two products, Product A and Product B. The company sells both products for \$100 per unit. The company’s overhead costs are \$40 per unit for Product A and \$60 per unit for Product B.

To do this, you will first need to calculate the total overhead cost for each product. This is done by multiplying the overhead cost per unit by the number of units produced.

• For Product A, the total overhead cost is \$40 per unit x 10,000 units = \$400,000.
• For Product B, the total overhead cost is \$60 per unit x 5,000 units = \$300,000.
• Next, you will need to calculate the total cost of each product. This is done by adding the overhead cost to the cost of the raw materials.
• For Product A, the total cost is \$400,000 + \$50,000 = \$450,000.
• For Product B, the total cost is \$300,000 + \$70,000 = \$370,000.
• Finally, you will need to calculate the COGS for each product. This is done by subtracting the total cost from the selling price.
• For Product A, the COGS is \$100 – \$450,000 = -\$350,000.
• For Product B, the COGS is \$100 – \$370,000 = -\$270,000.
• Thus, the COGS for Product A is -\$350,000 and the COGS for Product B is -\$270,000.

## 3. ACC311 Assignment 1 Solution Details

#3 ACC311 Assignment 1 Solution Details

The assignment is based on the Balance Sheet and Income Statement of General Electric Company. The data is for the year ended December 31, 2017.

• 1. Prepare a vertical analysis of General Electric’s balance sheet as of December 31, 2017.
• 2. Prepare a horizontal analysis of General Electric’s income statement for the year ended December 31, 2017.
• 3. Based on your analysis in requirements 1 and 2, answer the following questions:
• a. What trends do you see in GE’s balance sheet?
• b. What trends do you see in GE’s income statement?
• c. What do these trends indicate about GE’s financial position and performance?
• 4. Use the internet to research General Electric’s stock price for the year ended December 31, 2017. Based on your research, answer the following question:
• a. What effect, if any, do you believe GE’s stock price had on its financial position and performance?
• 5. Based on your analysis in requirements 1-4, answer the following question:
• a. Would you recommend investing in GE stock? Why or why not?

## 4. ACC311 Assignment 1 Solution with file

ACC311 Assignment 1 Solution Fall 2024

In this assignment, we have been asked to prepare the trial balance of ABC Corporation as on December 31, 20X1 and to calculate the company’s income tax payable for the year.

The first step is to gather all the necessary information from the financial statements of the company. We will need the balance sheets as of December 31, 20X0 and 20X1, and the income statement for the year ended December 31, 20X1.

From the balance sheets, we can see that the company’s assets have increased from \$10,000 to \$12,000, while its liabilities have increased from \$6,000 to \$8,000. This means that the company’s equity has increased from \$4,000 to \$4,000.

From the income statement, we can see that the company’s revenue has increased from \$20,000 to \$22,000, while its expenses have increased from \$18,000 to \$19,000. This means that the company’s net income has increased from \$2,000 to \$3,000.

Now that we have all the necessary information, we can prepare the trial balance.

• Trial Balance
• As of December 31, 20X1
• Assets
• Cash \$2,000
• Accounts Receivable \$4,000
• Inventory \$6,000
• Total Assets \$12,000
• Liabilities
• Accounts Payable \$4,000
• Income Tax Payable \$4,000
• Total Liabilities \$8,000
• Equity
• Retained Earnings \$4,000
• Total Equity \$4,000
• Total Liabilities and Equity \$12,000

From the trial balance, we can see that the company’s total assets are equal to its total liabilities and equity. This means that the company is in good financial health.
Now, we can calculate the company’s income tax payable for the year.
Income Tax Payable
For the year ended December 31, 20X1
Revenue \$22,000

## ACC311 ASSIGNMENT 1 SOLUTION 2024

ACC311 Assignment 1 Solution Fall 2024

In this assignment, we have to find the cost of equity for a company. The data that we have been given is the following:

The company has 10,000 shares outstanding.
The market price per share is \$40.
The company just paid a dividend of \$2 per share (i.e. D0 = \$2).
The dividend is expected to grow at a rate of 5% per year.
The company’s beta is 1.2.
The risk-free rate is 3% and the market risk premium is 6%.
Using the Gordon Growth Model, we can calculate the cost of equity for the company as follows:

Cost of equity = D1/(1+g) + P0(1+g)/(1+g)^2
where,
D1 = D0(1+g)
g = growth rate
P0 = market price per share
Substituting the values in the equation, we get:
Cost of equity = 2(1.05)/(1.03) + 40(1.03)/(1.03)^2
= 2.095 + 39.216
= 41.311%
Thus, the cost of equity for the company is 41.311%.