6-1 Final Project Milestone Three: Ratio Analysis Report Draft

ACC 307 Milestone Three Guidelines and Rubric Overview: In your final project, you will assume the role of an accountant and complete the year-end adjustment process for your company using a provided workbook. This workbook is the first deliverable (Part I) of your final project. In Part II, you will analyze the provided financials of the same company and create a report documenting your findings. For your third milestone, you will complete a draft of your ratio analysis report so that you can gain feedback and improve your work prior to the final submission in Module Eight. Note that you do not need feedback from Milestone Two to successfully complete this assignment. You should use the provided Final Project Part II template to structure your submission. Prompt: Specifically, the following critical elements must be addressed:

I. Abstract: Summarize the story of profitability and liquidity for your company. In other words, highlight the most important aspects of your report, including your major conclusions.

II. Computations: Identify and describe your computations from the Financial Analysis tab of your workbook. Be sure to format your key results in a table or graphical format, as appropriate. Explain why each cited figure was included in your report in terms of its importance for the organization.

III. Comparison: Evaluate the financials of the company by comparing current ratios to both historical and industry-average ratios. Clearly identify all unexpected or aberrant figures.

IV. Conclusion: Draw informed conclusions based on your computations and comparisons in the previous paragraphs. Be sure to justify your claims with specific evidence and examples.

Rubric Guidelines for Submission: Your ratio analysis report must be 2–3 pages in length (plus a cover page and references) and written in APA format. Use double spacing, 12-point Times New Roman font, and one-inch margins. All references must be cited in APA format.

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Abstract

Meets “Proficient” criteria and demonstrates sophisticated ability to identify issues in financial reporting using key ratios and generally accepted accounting principles

Summarizes the story of profitability and liquidity for the company by highlighting the most important aspects of the report, including the major conclusions

Summarizes the story of profitability and liquidity for the company, but fails to fully or logically highlight the most important aspects of the report, including the major conclusions

Does not summarize the story of profitability and liquidity for the company in an abstract

10

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Computations

Meets “Proficient” criteria and demonstrates sophisticated ability to identify issues in financial reporting using key ratios and generally accepted accounting principles

Identifies, describes, and appropriately displays computations in table or graphical format, and explains why each figure is important for the organization

Discusses computations, but fails to identify, describe, and appropriately display each figure fully or logically, or fails to explain why each figure is important for the organization

Does not discuss the computations

25

Comparison

Meets “Proficient” criteria and demonstrates sophisticated ability to identify issues in financial reporting using key ratios and generally accepted accounting principles

Evaluates the financials by comparing current ratios to both historical and industry-average ratios, and clearly identifies all unexpected or aberrant figures

Evaluates the financials, but fails to fully or logically compare current ratios to both historical and industry-average ratios, or fails to clearly identify all unexpected or aberrant figures

Does not evaluate the financials 25

Conclusion

Meets “Proficient” criteria and demonstrates sophisticated ability to identify issues in financial reporting using key ratios and generally accepted accounting principles

Draws informed conclusions based on previous computations and comparisons, and justifies claims with specific evidence and examples

Draws conclusions, but not all conclusions are informed or consistent with previous computations and comparisons, or submission fails to justify claims with specific evidence and examples

Does not draw conclusions 30

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

10

Total 100%