Reporting to Management

Project I have made for my Business Accounting class at Full Sail University.

1. Financial statement REPORT Daniela Quiroz Business Accounting Full Sail University

2. Balance Sheet I s the financial statement containing details of the company’s assets, liabilities, and equities. The purpose of the balance sheet is to provide information of the company resources. The balance sheet is the first of the three key financial statements that we are evaluating in this report.

3. Ratios Debt to Assets: 61.8% Return on Assets: 7.4% Return on Equity: 19.4%

4. Accounts ASSETS Cash: is the amount of money our business has at our disposal. Supplies inventory: Represents the amount our company paid for supplies to have at out disposal. Vehicles: Represents the purchase of a company vehicle to deliver equipment to several events. Deposit at vendor: Represents the amount of a check we have made as an advanced payment for merchandise to be received. LIABILITIES Loan Payable: Represents the remaining balance of the loan the company has. Interest Payable: It’s the amount of interest currently owed to lenders by our company. EQUITY Common Stock: Is the number of shares our company have. Retained Earnings: Represents the portion of the company’s equity that can be used to invest in new equipment, R&D, and marketing.

5. Profit and Loss Statement It’s a financial report that shows how much our company has spent and earned over a specific period of time. It’s an important report that compares the total income of our company against its expenses and debt, and its an indicator of the financial health of our company. Is the second of the three key financial statement we’re evaluating today. This report shows that our company has been profitable. The difference between the actual net income and the budgeted income is $67, which indicates that we are getting almost the same amount that we are expecting to get back.

6. Variances Event Revenue was less than budgeted as not all of the guests were able to arrive due to traffic. Utilities Expenses were less than expected as less energy and water expenditure was used due to the missing guests. Payroll Expenses were higher than budgeted since the bad weather caused dirt, more personnel had to be hired to organize and clean after the event. Depreciation Expense doesn’t vary much from what was budgeted, since it was used for what was needed. Interest Expense is the cost that must be paid for funds we borrowed for payroll. Office Supplies Expense were less than budgeted because we used materials we had from previous events. Insurance Expenses were less than budgeted since previously insured equipment was used for the event. Equipment Rental Expenses were less than expected since we were able to used some of our own equipment for the event.

7. Statement of Cash Flows It summarizes the movements of cash and cash equivalents that enter and go out of our company. We find on this statement the operating activities, investing activities, and financing activities. It complements the balance sheet and the profit and loss statement. Is the third of the three key financial statements we are evaluating in this report.

8. Activities Operating activities Deposit at venue: This activity used cash and was important because it was the deposit required to reserve the venue. Investing activities Vehicles: This activity used the amount of cash presented in the image because vehicles were needed to carry the equipment to the event. Financing activities Common Stock: is the balance our company has in shares.

9. Internal Controls

10. Internal Controls

11. Recap In order for a company's accounting to roll and bring great profits, the three main financial statements we need are the balance sheet, profit and loss statement, and cash flow statement. Internal controls are necessary in a company to ensure that accounting is not altered and is conducted in a secure and confident manner. Budgeting is a way to predict a company's numbers and to organize and understand these same numbers. Each of these reports helps us understand the resources and funds that our company has, how healthy it is financially, and how we can improve those numbers. 

12. References Ingram, D. (January 25, 2019). What Are the Seven Internal Control Procedures in Accounting? Chron. Retrieved From. https://smallbusiness.chron.com/seven-internal-control-procedures-accounting-76070.html Investopedia. (2023). Retrieved from https://www.investopedia.com