Please see attached Assignment 5 pdf for instructions. IA5 template is also attached to be used for assignment as well as previous assignment that may be needed for assignment.
Classification: Protected A Assignment 5A: Stratford House This assignment is a "capstone" type of assignment, bringing 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 rubric for the assignment, noting that you will be assessed on your ability to apply the concepts, obtain correct 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 correct and that no additional adjustments to the financial information is required. Add together the account balances from the Statement of Comprehensive Income you prepared in Assignment #2 and the account balances from the additional three Statements of Comprehensive Income (provided below) 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 correct 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 13308.6 $15,970 $19,838 $20,830 Rent 21000 $21,000 $21,000 $21,000 Utilities 8500 $9,350 $8,228 $7,405 Supplies 7332.75 $7,699 $7,314 $8,412 Insurance 6000 $6,000 $6,000 $6,000 Vehicle 1960 $2,156 $1,940 $2,328 Dep. - Vehicle 1098.4375 $1,098 $1,098 $1,098 Dep. - Equipment 483.3333333 $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 $152,826.04 Part One Stratford House Statement of Comprehensive Income Period of July 1 to June 30 Beginning of YearRemaining Portion of Year July 1 to Sept. 30Oct.1 to Dec.31Jan.1 to Mar.31Apr.1 to June 30 Income Fee Income$ 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 &1#&"Calibri"&11&K000000Classification: Protected A Part Two Stratford House Statement of Comprehensive Income Period of July 1 to June 30 Beginning of YearRemaining Portion of Year July 1 to Sept. 30Oct.1 to Dec.31Jan.1 to Mar.31Apr.1 to June 30Income TotalsHorizontal Analysis ryan.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 IncomeQ1 to 2Q2 to 3Q3 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 ExpensesExpense TotalsVertical Analysis ryan.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?) ryan.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$ 483.33$ 483.00$ 483.00$ 483.00$ 1,932.33 Uncollectible Pledges$ - 0$ - 0$ 250.00$ 125.00$ 375.00 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 &1#&"Calibri"&11&K000000Classification: Protected A Part Three Quick Ratio Current Ratio Debt Ratio &1#&"Calibri"&11&K000000Classification: Protected A Part Four 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 &1#&"Calibri"&11&K000000Classification: 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 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 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 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