Classification: Protected A
Assignment 5A: Stratford House
This assignment is a "capstone" type of assignment,
inging together many of the concepts
covered in the course. The assignment requires you to reflect on the financial statements you
prepared in the second assignment and to use the skills in this module to undertake a financial
analysis exercise. This is an individual assignment worth 20% of your course mark. Review
the grading ru
ic for the assignment, noting that you will be assessed on your ability to apply
the concepts, obtain co
ect answers and organize and present your work in a professional
manner.
Stratford House
Part 1: Prepare the year end Statement of Comprehensive Income for the period ending
June 30, 2016.
Stratford House has been in operation for one year now. You can assume that the financial
statements you prepared for Assignment 2 (from July 1 to Sept.30) were for the first quarter of
the operating year and that the financial information for the remaining three quarters of the
operating year are provided below. You can assume that the information below is co
ect and that
no additional adjustments to the financial information is required. Add together the account
alances from the Statement of Comprehensive Income you prepared in Assignment #2 and the
account balances from the additional three Statements of Comprehensive Income (provided
elow) for the remainder of the year to prepare the annual Statement of Comprehensive Income
for the period of July 1, 2015 to June 30, 2016.
Part 2: Financial Analysis of the Statement of Comprehensive Income
Using the annual Statement of Comprehensive Income prepared in Part 1 of this assignment,
undertake a financial analysis of Stratford House. Your financial analysis should include a
vertical and horizontal analysis of the annual Statement of Comprehensive Income.
Part 3: Financial Analysis of the Statement of Financial Position
Stratford House’s Statement of Financial Position as at June 30, 2016 is provided below. You can
assume that the information below is co
ect and that no additional adjustments to the financial
information is required. Using the Statement of Financial Position provided below, undertake a
financial ratio analysis of the organization.
Part 4: Report to the Board
Using the information from your financial analysis in Parts #2 and #3 of this assignment, prepare
a report to the board of directors on the financial health of the organization as assessed over the
first year of operations.
Classification: Protected A
Stratford House
Statement of Comprehensive Income
Beginning of Year Remaining Portion of Year
July 1 to Sept. 30 Oct.1 to Dec.31 Jan.1 to Mar.31 Apr.1 to June 30
Income
Fee Income 37650 $40,662 $36,596 $40,987
Donations Income 15280 $16,044 $13,637 $15,410
Grant Income 35000 $35,000 $30,000 $25,000
Total Revenue
Expenses
Wages XXXXXXXXXX $15,970 $19,838 $20,830
Rent 21000 $21,000 $21,000 $21,000
Utilities 8500 $9,350 $8,228 $7,405
Supplies XXXXXXXXXX $7,699 $7,314 $8,412
Insurance 6000 $6,000 $6,000 $6,000
Vehicle 1960 $2,156 $1,940 $2,328
Dep. - Vehicle XXXXXXXXXX $1,098 $1,098 $1,098
Dep. - Equipment XXXXXXXXXX $483 $483 $483
Uncollectible
Pledges 0 $0 $250 $125
Taxes 5700 $5,700 $5,700 $5,700
Total Expenses
Classification: Protected A
Stratford House
Statement of Financial Position
As at June 30, 2016
Assets
Cash $56,320.70
A/R - Fees $27,936.00
A/R - Pledges $6,057.72
A/R - Grants $-
Equipment $29,000.00
Accum. Dep. - Equip. $(1,933.33)
Vehicle $37,000.00
Accum. Dep. - Vehicle $(4,393.75)
Prepaid Rent $-
Prepaid Insurance $-
Supplies $2,903.77
Total Assets $152,891.10
Liabilities
Accounts Payable $9,318.38
Wages Payable $12,872.89
Taxes Payable $4,320.77
Unearned Income $7,920.00
Total Liabilities $34,432.04
Equity $118,394.00
Total Liabilities & Equity $152,826.04
Part One
Stratford House
Statement of Comprehensive Income
Period of July 1 to June 30
Beginning of Year Remaining Portion of Yea
July 1 to Sept. 30 Oct.1 to Dec.31 Jan.1 to Mar.31 Apr.1 to June 30
Income
Fee Income $ 37,650 $ 40,662 $ 36,596 $ 40,987
Donations Income $ 225,280 $ 16,044 $ 13,637 $ 15,410
Grant Income $ 35,000 $ 35,000 $ 30,000 $ 25,000
Total Revenue $ 297,930
Expenses
Wages $ 13,309 $ 15,970 $ 19,838 $ 20,830
Rent $ 21,000 $ 21,000 $ 21,000 $ 21,000
Utilities $ 8,500 $ 9,350 $ 8,228 $ 7,405
Supplies $ 7,333 $ 7,699 $ 7,314 $ 8,412
Insurance $ 6,000 $ 6,000 $ 6,000 $ 6,000
Vehicle $ 1,960 $ 2,156 $ 1,940 $ 2,328
Dep. - Vehicle $ 1,098 $ 1,098 $ 1,098 $ 1,098
Dep. - Equipment $ 483 $ 483 $ 483 $ 483
Uncollectible Pledges $ - 0 $ - 0 $ 250 $ 125
Taxes $ 5,700 $ 5,700 $ 5,700 $ 5,700
Total Expenses $ 65,384 $ 69,456 $ 71,851 $ 73,381
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Part Two
Stratford House
Statement of Comprehensive Income
Period of July 1 to June 30
Beginning of Year Remaining Portion of Yea
July 1 to Sept. 30 Oct.1 to Dec.31 Jan.1 to Mar.31 Apr.1 to June 30 Income Totals Horizontal Analysis
yan.popplestone: ryan.popplestone:
For the Horizontal Analysis, focus on income, providing analysis (shift in percentage) for Q1 to 2, Q2 to 3 and Q3 to 4
Income Q1 to 2 Q2 to 3 Q3 to 4
Fee Income $ 37,650.00 $ 40,662.00 $ 36,596.00 $ 40,987.00 $ 155,895.00
Donations Income $ 225,280.00 $ 16,044.00 $ 13,637.00 $ 15,410.00 $ 270,371.00
Grant Income $ 35,000.00 $ 35,000.00 $ 30,000.00 $ 25,000.00 $ 125,000.00
Total Revenue $ 297,930.00 $ 91,706.00 $ 80,233.00 $ 81,397.00 $ 551,266.00
Expenses Expense Totals Vertical Analysis
yan.popplestone: ryan.popplestone:
For the Vertical Analysis, focus on the Expense items, using the method learned in your text (i.e. what is the percentage of each Expense Item against Total Expenses?)
yan.popplestone: ryan.popplestone:
For the Horizontal Analysis, focus on income, providing analysis (shift in percentage) for Q1 to 2, Q2 to 3 and Q3 to 4 Wages $ 13,309.00 $ 15,970.00 $ 19,838.00 $ 20,830.00 $ 69,947.00
Rent $ 21,000.00 $ 21,000.00 $ 21,000.00 $ 21,000.00 $ 84,000.00
Utilities $ 8,500.00 $ 9,350.00 $ 8,228.00 $ 7,405.00 $ 33,483.00
Supplies $ 7,332.75 $ 7,699.00 $ 7,314.00 $ 8,412.00 $ 30,757.75
Insurance $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 6,000.00 $ 24,000.00
Vehicle $ 1,960.00 $ 2,156.00 $ 1,940.00 $ 2,328.00 $ 8,384.00
Dep. - Vehicle $ 1,098.44 $ 1,098.00 $ 1,098.00 $ 1,098.00 $ 4,392.44
Dep. - Equipment $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX $ 1,932.33
Uncollectible Pledges $ - 0 $ - 0 $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Taxes $ 5,700.00 $ 5,700.00 $ 5,700.00 $ 5,700.00 $ 22,800.00
Total Expenses $ 65,383.52 $ 69,456.00 $ 71,851.00 $ 73,381.00 $ 280,071.52
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Part Three
Quick Ratio
Cu
ent Ratio
Debt Ratio
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Part Fou
NOTE: Doubleclick on the template if you would like to use it; click on the template and press delete if you would like to use another template
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Stratford House Annual Report to the Board:
Report for period of: July 1, 2015 to June 30, 2016
To: Stratford House, Board of Directors
Prepared By:
Stratford House: Financial Analysis-Report to the Board
State the purpose and objectives of the report. What are the elements of the analyses that you will review?
Horizontal Analysis
What is a Horizontal Analysis? What will a Horizontal Analysis tell the Board of Directors?
State your findings from the Horizontal Analysis. What does the Horizontal Analysis tell you about the financial health of Stratford House? Did you assess any notable anomalies or strengths?
Vertical Analysis
What is a Vertical Analysis? What will a Vertical Analysis tell the Board of Directors?
State your findings from the Vertical Analysis. What does the Vertical Analysis tell you about the financial health of Stratford House? Did you assess any notable anomalies or strengths?
Ratio Analysis
Which Ratios did you use? Describe each ratio, then identify what each ratio means for the financial health of the organization. Note the three ratios recommended on Page Three of the Excel Workbook.
Interpretation and Recommendations
When you consider all analyses together, what do they suggest about the financial health of Stratford House? Is the organization profitable? Is it able to pay its debts? To strengthen the organization’s financial health, are there any recommendations you would provide for consideration to the Board of Directors?
References
Classification: Protected A
Classification: Protected A
Stratford House Annual Report to the Board:
Report for period of: July 1, 2015 to June 30, 2016
To: Stratford House, Board of Directors
Prepared By:
Stratford House: Financial Analysis-Report to the Board
State the purpose and objectives of the report. What are the elements of the analyses that you will
eview?
Horizontal Analysis
What is a Horizontal Analysis? What will a Horizontal Analysis tell the Board of Directors?
State your findings from the Horizontal Analysis. What does the Horizontal Analysis tell you
about the financial health of Stratford House? Did you assess any notable anomalies or
strengths?
Vertical Analysis
What is a Vertical Analysis? What will a Vertical Anal ysis tell the Board of Directors?
State your findings from the Vertical Analysis. What does the Vertical Analysis tell you about
the financial health of Stratford House? Did you assess any notable anomalies or strengths?
Ratio Analysis
Which Ratios did you use? Describe each ratio, then identify what each ratio means for the
financial health of the organization. Note the three ratios recommended on Page Three of the
Excel Workbook.
Interpretation and Recommendations
When you consider all analyses together, what do they suggest about the financial health of
Stratford House? Is the organization profitable? Is it able to pay its debts? To strengthen the
Individual Assigment 1
The General Journal for Stratford