Microsoft Word - SA 3 Financial Reporting_ XXXXXXXXXXdocx Financial Reporting Summative Assessment: Outline & Rubric Summative Assessment Outline Financial Reporting Purpose of this Assessment The...

Microsoft Word - SA 3 Financial Reporting_ XXXXXXXXXXdocx
Financial Reporting Summative Assessment: Outline & Ru
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Summative Assessment Outline
Financial Reporting


Purpose of this Assessment

The final assessment for this competency is to analyze an annual report and audit reports, and to prepare financial statements for a
selected company, including an income statement, balance sheet, and statement of cash flows.

Items Required for Submission

In order to demonstrate mastery of your competency, you will submit:

1. A one- to two-page analysis of a selected Annual Report and audit reports
2. An income statement
3. A balance sheet
4. A statement of cash flows
5. A reflection on what the numbers in the statements mean
Competency Name: Financial Reporting
Competency Statement: Demonstrate an understanding of financial reports and their use by decision-makers.
Summative Assessment Submission Title: Preparing Financial Reports
Competency Objectives:
1. Demonstrate the ability to read and comprehend an annual report.
2. Understand the different types of audit reports (e.g., ISO, GAAP, SOX).
3. Prepare an income statement and balance sheet.
4. Demonstrate an understanding of the Statement of Cash Flows and how they are used for operating, investing, and
financial decisions.

Program Learning Outcome(s): N/A
Institutional Learning Outcome(s): N/A
Financial Reporting Summative Assessment: Outline & Ru
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Step ONE: Analysis of Annual Report

1) Select a business from the provided list and analyze their latest annual report (either on the company website under investor relations or on
finance.yahoo.com).



Company
Stock
Symbol
Amazon AMZN
Apple AAPL
Bank of America BAC
Best Buy BBY
Citigroup C
Continental
Airlines
CAL
Chipotle CMG
Costco
Wholesale
COST
Chevron CVX
Dell DELL
eBay EBAY
Edison
International
EIX
FedEx FDX
General Electric GE
Google GOOGL
Harley Davidson HOG
Hershey HSY
Intel INTC
Jet Blue JBLU
Johnson &
Johnson
JNJ
Financial Reporting Summative Assessment: Outline & Ru
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KB Homes KBH
Kraft Foods KFT
Microsoft MSFT
Pepsi PEP
Proctor and
Gamble
PG
Rubio’s RUBO
Sta
ucks SBUX
Verizon
Communications
VZ
Wal-Mart WMT
Exxon Mobil XOM
Taco Bell, YUM YUM
2) Complete the following steps for the selected company’s Annual Report. You can use information from the footnotes to answe
these questions but make sure to reference from where the information came.
Look at the balance sheet for the last two years. What caused the changes in the balance sheet from last year to this
year? Use account names and numbers for both years to explain your answer.
Look at the Income Statement (sometimes called Statements of Operations) for the last two years. What caused the
changes in the Income Statement from last year to this year? Use account names and numbers for both years to explain
your answer.
What type of audit opinion did the external auditors give? What accounting standards did they use? Where are each of
these components found?
Put together a one page response to answer the questions above, and include the Annual report used with your submission as
an attachment.
Step TWO: Create the Financial Statements
Use the adjusted trial balance examples and templates provided to create an income statement, statement of retained earnings,
alance sheet, and statement of cash flows (note: use first four spreadsheet tabs for this step).
Financial Reporting Summative Assessment: Outline & Ru
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Step THREE: Reflection
Analyze the statements you have created and use them to answer the following questions (note: use the reflection questions tab in the
same template for your financial statements):
1. Is Wells Mobile Apps paying too much out in dividends? Why or why not? Explain your reasoning.
2. For Scenic Industries, there was an increase in cash from the first year to the next. What was the single biggest event that
caused this? Explain your reasoning.
Step FOUR: Complete Checklist for Submission
Before you submit, check to see if you believe you have met the criteria noted below.
Did you….
Provide a comprehensive and accurate analysis of a firm’s annual report, addressing all questions posed, including a discussion
of the income statement, balance sheet, audit report, and use of accounting standards?
Did you accurately account names and numbers to meaningfully support your explanations and reasoning?
Co
ectly place account titles and co
ectly place and calculate all numbers in the income statement?
Co
ectly place account titles and co
ectly place and calculate all numbers in the balance sheet?
Co
ectly place account titles and co
ectly place and calculate all numbers in the statement of cash flows?
Clearly and completely address all the questions posed in the Reflection and use the financial statements you created to
meaningfully and accurately support your reasoning?
Financial Reporting
Summative Problem.x
Financial Reporting Summative Assessment: Outline & Ru
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Step FIVE: Submit Your Work
 Your completed final assessment documents should be submitted through the Final Assessment page of your competency.
Scoring Ru
ic for Summative Assessment
Criterion EMERGING (1) DEVELOPING (2) PROFICIENT (3) EXEMPLARY (4)
Analysis of Annual Report Provides a limited analysis
of a firm’s annual report,
addressing some
questions posed, including
a discussion of the income
statement, balance sheet,
audit report, and use of
accounting standards.
Provides a partially
accurate analysis of a
firm’s annual report,
addressing all questions
posed, including a
discussion of the income
statement, balance sheet,
audit report, and use of
accounting standards.
Provides an accurate
analysis of a firm’s annual
eport, addressing all
questions posed, including
a discussion of the income
statement, balance sheet,
audit report, and use of
accounting standards.
Provides a comprehensive
and accurate analysis of a
firm’s annual report,
addressing all questions
posed, including a discussion
of the income statement,
alance sheet, audit report,
and use of accounting
standards.
Income Statement Account titles and
numbers in the
Income Statement are
almost never co
ectly
placed and calculated.
Account titles and
numbers in the Income
Statement are rarely
co
ectly placed and
calculated.
Account titles and
numbers in the Income
Statement are usually
co
ectly placed and
calculated.
Almost all account titles and
numbers in the Income
Statement are co
ectly
placed and calculated.
Balance Sheet
Account titles and numbers
in the Balance Sheet are
Account titles and numbers
in the Balance Sheet are
Account titles and numbers
in the Balance Sheet are
Almost all account titles and
numbers in the Balance
almost never co
ectly rarely co
ectly placed and usually co
ectly placed Sheet are co
ectly placed
placed and calculated. calculated. and calculated. and calculated.
Financial Reporting Summative Assessment: Outline & Ru
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and calculated. and calculated. and calculated. calculated.
Statement of Cash
Flows
Account titles and numbers
in the Statement of Cash
Flows are almost never
co
ectly placed and
calculated.
Account titles and numbers
in the Statement of Cash
Flows are rarely co
ectly
placed and calculated.
Account titles and numbers
in the Statement of Cash
Flows are usually co
ectly
placed and calculated.
Almost all account titles and
numbers in the Statement of
Cash Flows are co
ectly
placed and calculated.
Reflection The reflection poorly
addresses the questions
posed and does not use
the financial statements
created to accurately
support the student’s
easoning.
The reflection partially
addresses the questions
posed and uses the
financial statements created
to support the student’s
easoning.
The reflection adequately
addresses the questions
posed and uses the
financial statements
created to accurately
support the student’s
easoning.
The reflection clearly and
completely addresses the
questions posed and uses the
financial statements created
to meaningfully and
accurately support the
student’s reasoning.

Financial Reporting Final Assessment
STEP THREE
Reflection: Analyze the statements you have created and use them to answer the following questions. Your reasoning should reference the numbers and accounts. Use no less than 30 and no more than 200 words for each of the questions.
    
1. Is Wells Mobile Apps paying too much out in dividends? Why or why not? Explain your reasoning.
2. For Scenic Industries, there was an increase in Cash from the first year to the next., What was the single biggest event that caused this? Explain your reasoning.