Quick Books
Ynaldonado53
Module-04-Assignment-Student-Name.xlsxProfit and Loss
| Instructions: 1. Using Microsoft Excel formulas, calculate a horizontal and vertical analysis for the first three months of | ||||||
| QB Cloud’s operations for the profit and loss. | ||||||
| QB Cloud | ||||||
| Profit and Loss | ||||||
| Horizontal & Vertical Analysis | ||||||
| October | November | December | October - December | Quarterly Vertical Analysis | Horizontal Analysis | |
| Income | ||||||
| 401 Sales | 6,000.00 | 11,920.00 | 13,220.00 | 31,140.00 | ||
| Total Income | $6,000.00 | $11,920.00 | $13,220.00 | $31,140.00 | ||
| Cost of Goods Sold | ||||||
| 501 Cost of Goods Sold | 0.00 | 5,960.00 | 6,610.00 | 12,570.00 | ||
| Total Cost of Goods Sold | $0.00 | $5,960.00 | $6,610.00 | $12,570.00 | ||
| Gross Profit | $6,000.00 | $5,960.00 | $6,610.00 | $18,570.00 | ||
| Expenses | ||||||
| 601 Advertising | 125.00 | 250.00 | 330.00 | 705.00 | ||
| 603 Bank Charges | 20.00 | 20.00 | 20.00 | 60.00 | ||
| 605 Dues & Subscriptions | 150.00 | 0.00 | 125.00 | 275.00 | ||
| 607 Depreciation Expense | 0.00 | 0.00 | 800.00 | 800.00 | ||
| 609 Freight & Delivery | 64.65 | 89.15 | 52.65 | 206.45 | ||
| 611 Insurance | 0.00 | 0.00 | 750.00 | 750.00 | ||
| 619 Meals and Entertainment | 126.40 | 46.40 | 109.71 | 282.51 | ||
| 621 Office Supplies | 226.85 | 111.82 | 200.11 | 538.78 | ||
| 623 Rent or Lease | 0.00 | 0.00 | 6,000.00 | 6,000.00 | ||
| 625 Repair & Maintenance | 140.00 | 0.00 | 150.00 | 290.00 | ||
| 627 Shipping and delivery expense | 47.00 | 0.00 | 47.00 | 94.00 | ||
| 629 Stationery & Printing | 425.22 | 127.96 | 115.82 | 669.00 | ||
| 633 Telephone Expense | 158.32 | 158.32 | 240.45 | 557.09 | ||
| 635 Utilities | 79.00 | 84.32 | 85.33 | 248.65 | ||
| Total Expenses | $1,562.44 | $887.97 | $9,026.07 | $11,476.48 | ||
| Net Operating Income | $4,437.56 | $5,072.03 | -$2,416.07 | $7,093.52 | ||
| Net Income | $4,437.56 | $5,072.03 | -$2,416.07 | $7,093.52 | ||
| Address the following questions. Be mindful of writing in complete sentences and using proper spelling and grammar. | ||||||
1a. Identify and explain three horizontal analysis items that are not 0%.
1b. Identify and explain three vertical analysis items that are not 0%.
1c. Which expenses seem to be appropriated only to certain months? Do you believe this is the correct application or should they be appropriated differently? Why or why not?
Balance Sheet
| Instructions: 2. Using Microsoft Excel formulas, calculate a horizontal and vertical analysis for the first three | |||||
| months of QB Cloud’s operations for the balance sheet. | |||||
| QB Cloud | |||||
| Balance Sheet | |||||
| Horizontal & Vertical Analysis | |||||
| October | November | December | Quarterly Vertical Analysis | Horizontal Analysis | |
| ASSETS | |||||
| Current Assets | |||||
| Bank Accounts | |||||
| 101 Checking | 50,437.56 | 61,469.59 | 53,493.52 | ||
| Total Bank Accounts | $50,437.56 | $61,469.59 | $53,493.52 | ||
| Accounts Receivable | |||||
| 105 Accounts Receivable (A/R) | 0.00 | 0.00 | 400.00 | ||
| Total Accounts Receivable | $0.00 | $0.00 | $400.00 | ||
| Other Current Assets | |||||
| 115 Merchandise Inventory | 0.00 | 11,960.00 | 9,870.00 | ||
| 123 Prepaid Rent | 6,000.00 | 6,000.00 | 0.00 | ||
| 125 Prepaid Insurance | 3,000.00 | 3,000.00 | 2,250.00 | ||
| Total Other Current Assets | $9,000.00 | $20,960.00 | $12,120.00 | ||
| Total Current Assets | $59,437.56 | $82,429.59 | $66,013.52 | ||
| Fixed Assets | |||||
| 135 Computer Equipment | 10,000.00 | 10,000.00 | 10,000.00 | ||
| 137 Accumulated Depreciation | 0.00 | 0.00 | -800.00 | ||
| Total Fixed Assets | $10,000.00 | $10,000.00 | $9,200.00 | ||
| TOTAL ASSETS | $69,437.56 | $92,429.59 | $75,213.52 | ||
| LIABILITIES AND EQUITY | |||||
| Liabilities | |||||
| Current Liabilities | |||||
| Accounts Payable | |||||
| 201 Accounts Payable (A/P) | 0.00 | 17,920.00 | 3,120.00 | ||
| Total Accounts Payable | $0.00 | $17,920.00 | $3,120.00 | ||
| Other Current Liabilities | |||||
| 205 Loan Payable | 5,000.00 | 5,000.00 | 5,000.00 | ||
| Total Other Current Liabilities | $5,000.00 | $5,000.00 | $5,000.00 | ||
| Total Current Liabilities | $5,000.00 | $22,920.00 | $8,120.00 | ||
| Total Liabilities | $5,000.00 | $22,920.00 | $8,120.00 | ||
| Equity | |||||
| 301 Common Stock | 60,000.00 | 60,000.00 | 60,000.00 | ||
| 305 Opening Balance Equity | 0.00 | 0.00 | 0.00 | ||
| 318 Retained Earnings | 0.00 | 0.00 | 0.00 | ||
| Net Income | 4,437.56 | 9,509.59 | 7,093.52 | ||
| Total Equity | $64,437.56 | $69,509.59 | $67,093.52 | ||
| TOTAL LIABILITIES AND EQUITY | $69,437.56 | $92,429.59 | $75,213.52 | ||
| Address the following questions. Be mindful of writing in complete sentences and using proper spelling and grammar. | |||||
2a. Identify and explain three horizontal analysis items that are not 0%
2b. Identify and explain three vertical analysis items that are not 0%.
2c. Do you think the short timeframe being measured here impacts the reliability of your analysis? Why or why not?
Ratio Analysis
| Instructions: 3. Using Microsoft Excel formulas, calculate the following ratios | |||
| for QB Cloud and interpret the results: | |||
| October | November | December | |
| Debt Ratio | |||
| Current Ratio | |||
| Profit Margin |
Interpret the results of the ratios.
