BUS FPX 4060 Assessment 1 Transaction Analysis and Financial Statements

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Name

Capella university

BUS-FPX4060 Financial Accounting Principles

Prof. Name

Date

Transaction Analysis and Financial Statements

In comparing Alltech and SynergyXT, various financial metrics were evaluated to gain insights into their performance. Alltech reported a total liability and owner’s equity of $11,502 million, while SynergyXT’s total stood at $48,823 million. Alltech’s net income was $3,127 million, whereas SynergyXT reported $9,276 million. Additionally, Alltech’s sales amounted to $15,453 million, whereas SynergyXT’s sales totaled $44,612 million.

Total Assets Invested:
Alltech’s total assets amounted to $11,502 million, and SynergyXT’s totaled $48,823 million.
Return on Assets (ROA):
- Alltech: ROA = $3,127 million / ($8,101 million + $11,502 million) / 2 = 31.90%
- SynergyXT: ROA = $9,276 million / ($36,171 million + $48,823 million) / 2 = 21.83%
Expenses:
- Alltech: Expenses = $15,453 million – $3,127 million = $12,326 million
- SynergyXT: Expenses = $44,612 million – $9,276 million = $35,336 million

Considering that competitors’ average return is 18%, both Alltech and SynergyXT exhibit satisfactory returns, with Alltech outperforming SynergyXT in terms of ROA.

Balance Sheet – December 31, 2011:

Assets:

Current Assets: $80,990 million
Fixed Assets: $175,000 million Total Assets: $255,990 million

Liabilities:

Current Liabilities: $6,950 million Equity: $249,000 million

Balance Sheet – December 31, 2012:

Assets:

Current Assets: $51,680 million
Fixed Assets: $427,800 million Total Assets: $479,480 million

Liabilities:

Current Liabilities: $37,500 million
Long-Term Liabilities: $105,000 million Equity: $336,980 million

Comparing the equity amounts reveals an increase from $249,000 million in 2011 to $336,980 million in 2012. Net income for 2012 is calculated as $81,540 million.

Debt Ratio for 2012: $142,500 million / $479,480 million = 29.72%

Adjusting entries were made to account for various transactions:

Insurance expense adjustment: $2,800
Teaching supplies adjustment: $5,500
Depreciation adjustments: $11,000 (equipment) and $6,250 (professional library)
Unearned training fee adjustment: $3,600
Salaries payable adjustment: $750
Prepaid rent adjustment: $2,200

The adjusted trial balance and financial statements were prepared accordingly.

Income Statement – 2012:

Revenues: $152,250 million
Expenses: $116,750 million Net Income: $35,500 million

Statement of Retained Earnings – 2012:

Retained Earnings, December 1: $52,900 million
Add: Net Income: $35,500 million
Less: Dividends: $42,000 million Retained Earnings, December 31: $46,400 million

Balance Sheet – December 31, 2012:

Assets:

Current Assets: $46,400 million
Fixed Assets: $53,750 million Total Assets: $100,150 million

Liabilities:

Current Liabilities: $42,750 million Equity: $57,400 million

References

Wild, John J. and Shaw, Ken W (2022) Financial and Managerial Accounting (9th ed). 3 Adjusting accounts for financial statements. P.58-63. Retrieved from https://capella.vitalsource.com/reader/books/9781264098583/epubcfi/6/2[%3Bvnd.vst.idref%3Dco ver]!/4/2/2%4054:98