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1. Discussion Overview

As an accounting it is not only important to be able to construct financial statements but you must be able to critical analyze their content. This discussion will provide you an opportunity to review actual statements and provide comments on their content.

Critical Analysis of Financial Statement Data

In this week’s Discussion, you will be comparing the financial statements of two companies. Please select from the following list:

1. Wal-Mart®

2. Kmart®

3. Target®

4. Carrefour Group®

5. Tesco ® plc.

To locate the financial statements, go to the Investors section of the company website and access the most recent annual report. Be sure when you are comparing the companies, the annual report selected is for the same year. Once you have made your selection, please answer the following:

· What are the differences and similarities between their income statements?

· What are the differences and similarities between their balance sheets? What classifications are presented?

· Locate the notes to the financial statements and highlight some of the notes you found that would be of interest to investors about each company.

Throughout this course, many discussion opportunities come up where you need to respond to other people's opinions and comments. Address the Discussion topic after you have completed your reading.

2. Usage of Financial Statements in Business Decisions

Assume that you recently accepted a position with Stockman National Bank as an assistant loan officer. As one of your first duties, you have the responsibility of evaluating a loan request for $90,000 from Goldworks.com, a small proprietorship. In support of the loan application, Yolanda Tovar, owner, submitted a trial balance for the first year of operations ended March 31, 2020.

Use the trial balance to answer the questions.

· Explain to Yolanda Tovar why a set of financial statements (income statement, statement of owner’s equity, and balance sheet) would be useful to you in evaluating the loan request.

· In discussing the Trial Balance with Yolanda Tovar, you discovered that the accounts had not been adjusted at March 31. Analyze the Trial Balance and indicate possible adjusting entries that might be necessary before an accurate set of financial statements could be prepared.

· Assuming that an accurate set of financial statements will be submitted by Yolanda Tovar in a few days, what other considerations or information would be required before making a decision on a loan request?

· You noted that Goldworks.com’s trial balance is prepared through March 31, 2020. Why would the business close out its year on this date? What factors could influence this selection?

3. Discussion Overview

Throughout this course, many discussion opportunities come up where you need to respond to other people's opinions and comments. Address the Discussion topic after you have completed your reading.

Creating an Accounting Information System

You are the CEO of a newly incorporated retail firm that will sell DKNY® and Tommy Hilfiger® along with other designer clothing. Your job is to set up an accounting information system to maintain appropriate records needed in the eventual preparation of financial statements. Certain principles should be followed in the development of an accounting information system. Identify and explain each of the principles.