BUS FPX 4060 Assessment 1 Transaction Analysis and Financial Statements

Student Name

Capella University

BUS-FPX4060 Financial Accounting Principles

Prof. Name

Date

Transaction Analysis and Financial Statements

In the evaluation of Alltech and SynergyXT, various financial metrics were analyzed to discern 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%

BUS FPX 4060 Assessment 1 Transaction Analysis and Financial Statements

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, J. J., & Shaw, K. W. (2022). Financial and Managerial Accounting (9th ed.). Adjusting accounts for financial statements (pp. 58-63).https://capella.vitalsource.com/reader/books/9781264098583/epubcfi/6/2[%3Bvnd.vst.idref%3Dco

BUS FPX 4060 Assessment 1 Transaction Analysis and Financial Statements