Applied Managerial Accounting Unit: Analyzing Financial Statements for Planning and Cost
Applied
Managerial Accounting
Unit: Analyzing Financial Statements for Planning and Cost
Deliverable
Length: 1,500–1,750 words(not including title page
and references)
APA
At least 5 references
Assignment
Objectives:Compare
and contrast financial and managerial accounting.Discuss the information found
on financial statements including balance sheets, income statements, statements
of cash flows, and statements of owner’s equity and describe how accounting
information is used by managers for planning and control.
You have recently hired a new assistant, Susan Thompson,
who previously worked in a financial accounting office preparing journal
entries, which provide you with a recording of the day-to-day activities of the
company and financial statements (income statement, statement of owners’ equity
balance sheet, and cash flow statement). Although your new assistant has
experience with and fully understands financial accounting, she has no
experience with managerial accounting.
Part 1
In
a memo to your new assistant, Susan Thompson, complete the following:
·
Explain to her the similarities and
differences between financial and managerial accounting.
·
Provide examples of managerial accounting
reports that she could expect to see within EEC, and explain how management
might use the information to make decisions.
o
Keep in mind that although the income
statement, the statement of owners’ equity balance sheet, and the cash flow
statement are generated in financial accounting, they are used to develop all
of your managerial accounting reports.
o
Examples of a few of those reports are the
horizontal analyzes, vertical analyzes, and ratios.
Part
2
In
a memo to the board of directors, discuss the information found in each of
the following financial statements and describe how accounting information is
used by managers for planning and control:
·
Balance sheet
·
Income statement
·
Statement of cash flows
·
Statement of stockholders’ equity
