JOHNSON & JOHNSON https://www.sec.gov/ix?doc=/Archives/edgar/data/200406/000020040620000010/form10-k20191229.htm The Principles of Accounting I & II courses introduced you to specific componen 1

JOHNSON & JOHNSON https://www.sec.gov/ix?doc=/Archives/edgar/data/200406/000020040620000010/form10-k20191229.htm

The Principles of Accounting I & II courses introduced you to specific components of an SEC 10-K Report as bases for basic financial ratio analyses and interpretation of results for a selected corporation. In the more advanced accounting courses including Intermediate Accounting I & II and Advanced Accounting, you may delve deeper into analyzing financial statements, schedules, and notes to gain a more in-depth understanding of a corporation through its SEC 10-K filing. 

In Cost Accounting, the SEC 10-K project focuses on cost-related information found in the financial statements and disclosures of the SEC 10-K filing of a manufacturing corporation.  Using knowledge learned in prior accounting courses, you can compare and contrast the SEC 10-K Report of a manufacturing to a non-manufacturing corporation.

ACCT 321: Cost Accounting SEC 10-K Project Requirements

Summary: This SEC 10-K project challenges you to review, analyze, and interpret financial statements and disclosures of a manufacturing corporation headquartered in the U.S.  To simulate processes used by practicing accountants, you are presented analyses and findings to the class and participate in a peer review process in the Discussions area. The deliverables are in response to information and analysis requests by your supervisor.

Outcomes:  Prepare discussion postings and reports on a U.S. publicly-traded manufacturing corporation using its most current SEC 10-K report.

Competencies: Review cost accounting-related information in a SEC 10-K filing for a manufacturing corporation.  Compare, interpret, and contrast the information available for a manufacturing versus a non-manufacturing corporation.

Assessments: Assessments will include three documents: a Word document report, an Excel spreadsheet, and a PowerPoint presentation. 

Explain the analyses in your reports using your own words. If you use direct quotes or paraphrased content, provide links and/or parenthetical references for your sources.

  1. Microsoft Word document:
    1. Estimated length: five to seven (5-7) pages
    2. 1 inch margins top & bottom; 1 to 1.25 inches on left & right sides
    3. Line spacing: single spacing with double spacing between paragraphs
    4. Font size: 12 CPI
    5. Font style: Times New Roman
    6. Save the file with YOUR NAME in the file name.   Example: YourNameSECreport.docx

2.  Excel Ratio File spreadsheet:

Using the SEC Financial Statements Ratios and Calculations, prepare a ratio analysis of your SEC corporation’s current and prior years financial statements. In addition to presenting the year to year profit and loss and balance sheet variances, calculate inventory turnover, gross margin, working capital and operating margin. Explain the value of understanding why inventory balances, inventory turnover, cost of goods sold, operating margin, and working capital are important metrics for Cost Accounting. Label your work in Excel to assist those who read your work.

Using the SEC 10-K financial statements, create a three year comparative income statement with summary line items focusing on revenue through net income with key line items included but items of lower value appropriately grouped as All other Expenses. Revenue, Cost of Goods Sold, SG&A, and Income Tax Expense should be separate line items. Include a vertical analysis column for each of the three years presented.

https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html

Formulas must be embedded into the cells

If you do not know how to create formulas in Excel, click the following link for training from Microsoft:

https://support.microsoft.com/en-us/office/overview-of-formulas-in-excel-ecfdc708-9162-49e8-b993-c311f47ca173?wt.mc_id=otc_excel

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