Accounting Capstone

This document provides an overview of an accounting capstone project. It includes the executive summary, financial performances, operations, and customer marketing. The document discusses key performance indicators, ROI, ROE, stock level, production level, and more.

Running head: Accounting Capstone
ACCOUNTING CAPSTONE
Name of student
Course name
Course ID

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Accounting Capstone
Table of Contents
1. Executive Summary...............................................................................................................2
2. Main Body..............................................................................................................................2
b. Operations..............................................................................................................................7
c. Customer marketing...............................................................................................................9
d. RESOURCES /LEARNING..................................................................................................9
Conclusion................................................................................................................................10
Reference list............................................................................................................................11

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Accounting Capstone
1. Executive Summary
Since in the given game, Y10 is the base year and in this year, the weighted
average of ROE is stated. In Y10, the ROE is weighted to 20. In Y11, the ROE for the E
Company is 13.7 and the same variable is having ROE in Y12 is 19. The total earning that the
shareholders earned is around $210,000. The amount is getting circulated every year. In Y11,
the company is having ending equity as $264,444. In Y12, the same amount is more or less
close to $308,609 with stock purchase of amount -$15,462. In the Y10, the company has
produced about 9156 pairs of shoes. In the Y11, the company has produced about 8233 pairs
of shoes. Moreover, in Y12, the company is producing 8233 pairs of shoes
2. Main Body
a. Financial Performances
i. Summary of key performance indicators
Y10 Y11 Y12 Y13
(projected)
Revenue $432,646 $417,634 $438,768
Expense $ 40,530 $ 42,701 $ 44,189
Net profit $40,000 $30,827 $50,574
Net profit % 9.2% 7.4% 11.5%
ii) ROI
The rate of investment will reveal the rate that will definitely give the amount of
profit to the shareholders that will definitely increase the level of company revenue. The ROI
will give the development of resources and the shares the economy is giving. ROI = Net

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Accounting Capstone
income/cost of investment. Through the calculation of process the shareholder will be able to
identify the shares of profit of the shareholders. On the other hand, through the development
of rate of investment is going to increase the rate of investment that will indulge the
shareholder to increase the development of resources.

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Accounting Capstone
iii) ROE
Rate of equity is going to determine the development of return that the investors will
get from the equity. The ROE is the main tools that will not only induce the shareholder to
increase the information and the rate that will induce the development of investment. Since in
the given game, Y10 is the base year and in this year, the weighted average of ROE is stated.
In Y10, the ROE is weighted to 20. In Y11, the ROE for the E Company is 13.7 and the same
variable is having ROE in Y12 is 19. The ROE is increasing year by year because of the fact
that investment is increasing and the ROE is going to increase the development and
capitalisation of resources.
iv) Original targets
The company is going to identify the development of original targets. The target that
the company has set in making the budget and resources distribution. Through the
development of the resource utilisation, the company will be able to identify the absolute
advantages that the company will get in identifying their gaps in their investment. This will
help the company to increase their budget spending that will allow them to indulge the
development of business.
v) Revenue
The revenue will identify the amount of the income the company is getting from the
market. The company is mainly getting the amount of revenue both from the selling of
products both in online and offline platform.

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Accounting Capstone
Y10 Y11 Y12
Net sales
revenue
Revenue from
internet
$90,315 $104,193 $120,299
Revenue from
wholesale
$314,731 $313,441 $318,469
vi) Re balance sheet / financing/share issues, effects on ROE
The company is going to increase the development of resources and the share of
capital and return of equity. On the other hand, the company is making a comparison in all
the years taking the balance sheet into actions. On the other hand through the increase in
balance sheet the effect is falling heavily on the ROE. Through the development of resources,
it will be highlighted in the sense that the company will definitely increase their resource
allocation. On the other hand, Y10 is considered as base year. In Y10, the amount of money
the company is having is around $190,000 as the beginners’ equity and the earnings retained
is $20,000. The total earning that the shareholders earned is around $210,000. The amount is
getting circulated every year. In Y11, the company is having ending equity as $264,444. In
Y12, the same amount is more or less close to $308,609 with stock purchase of amount -
$15,462 that is showing the amount of deficit.

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Accounting Capstone
vii) Apply some liquidity ratios and analysis, debtors
The company is aiming to increase the liquidity ratio, and in order to do this, the
company is choosing the cash ratio. In the year the Y10, the company is having cash ratio of
2.7. In Y11, the cash ratio is 3.05 and in the Y12, the cash ratio is 4.73. The liquidity ratio
will automatically increase the probability of the company to finance the short term debts. On
the other hand, using the liquidity ratio, the company is going to indulge the improvement in
the debt financing. Not only the cash ratio will be considered but the debt to asset ratio will
also be important.
viii) Company’s cash position
In Y10, the company is having cash reserve of amount $421,841 and the aim of the
company is to increase the level of cash in form of revenues and other options. On the other
hand, the development of cash within the company will definitely increase the development
of resources that will induce the government to improve the position and they will be able to
improve their resources.
ix) Strategies taken
In order to increase the development of their resources, the company will be mainly
looking to indulge the development of both human and capital resources. It is highly
important for the company to bring in enough motivation and enough amount of investment
that will definitely increase the development of better products. Through the introduction of
better accessibility, the company is mainly looking to minimise their debts and maximise
their assets. It will be important for the company to take the strategies that will definitely
induce the company to improve their position.

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Accounting Capstone
b. Operations
i) Stock level
The company is currently having stocks of around $20, 000 and the amount of the
stocks that are being stored are in the company are getting returned to the shareholder on the
circular way. This is highly important in order to indulge the level of goods that are being
solidified and the company is having enough amount of improvement in the investment.
ii) Production level
In Y10, the total amount of footwear that are being produced within the company is
mainly looking to incorporate the development of resources that are being currently allocated
to the company. In the Y10, the company has produced about 9156 pairs of shoes. In the
Y11, the company has produced about 8233 pairs of shoes. Moreover, in Y12, the company
is producing 8233 pairs of shoes. The company is actually paying more focus on the
development of resources but it is important in the sense that through the development of
better resources the company will be highly indulged in the improvement by utilising the
amount of resources to increase the development of better production. All the amount of
production in all the areas are not going according to capability as some of the areas are
underperforming.
iii) Worker’s productivity
Though the company has increased the quantity of shoes but the overall worker
productivity is not increasing in all regions of the business. It is highly important for the
economy to increase the workers’ productivity. In North America, in both year the worker
productivity was around 5000 and in the same year, the productivity of the workers in Asia

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Accounting Capstone
pacific is 3500. The employee productivity is not increasing irrespective of the geographical
locations.
iv) Upgrades of capacity required
It is highly important for the company to increase the development of technologies
that will definitely increase the improvement in the involvement of resources. Now with the
up gradation of technology the company will increase the employees’ production. This is
important in the sense that through the increase in the development of better technology, the
company will grow in their regions. Upgrading the capacity will definitely increase the
production rate and will increase the revenue earned.
v) Plant capacity utilised fully or underutilised
In some of areas, the plant capacity has not fully utilised and in some of the areas, the
capability and the actual production rate is 0. In those plants, the company is mainly having 0
revenue. All the plants are not totally utilised that has given rise to the development of
resources. It is important for the company to increase the growth of resources.
vi) Other comments
The company is highly willing to indulge the improvement in the economic
productivity but in order to increase the development of resources the economy is mainly
going to increase their technological up gradation that will definitely increase the resource
identification process. Minimising the gaps will improve the rate of business.

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Accounting Capstone
c. Customer marketing
Y10 Y11 Y12 Y13
(projected)
Sales per
region ($)
$432,646 $474,574 $534,140 $473,367
Sales per
region no
88,200 93151 98254
Pricing average
Internet
Wholesale
Sales per dollar
of advertising
spend
Internet $27,277 $24,741 $27,798 $28,154
Wholesale
market
$29,323 $30,069 $28,769 $28,423
d. RESOURCES /LEARNING
Y10 Y11 Y12 Y13 (projected)
Number of staff
employed
1943 1961 2008 2014
Effect on
corporate image
2.0 1.6 5.6 2.5

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Accounting Capstone
Training strategies
and expenses
$937 $951 $971 $973
Conclusion
The whole study is mainly looking to incorporate the development of resources and
how the company is willing to incorporate the best policies to incorporate the development of
resources. It is important in the sense that it will definitely increase the development of better
production ability that will not only include the development and productivity of employees
but also the resources. Training strategies and expenses are $937, $951, $971, $973 in Y10,
Y11, Y12 and Y13 projected.

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Accounting Capstone
Reference list
Barr, J., & Busler, M. (2017). The Service-Learning Experience in a Capstone Marketing
Course: An Empirical Investigation. International Journal of Business and Social
Science, 8(4).
Brands, K., & Lange, L. S. (2016). Teaching Accounting Ethics: Opportunities and
Challenges. Journal: Vol, 5(1), 6.
Crespo, P., & Oliveras, E. (2017). Teaching transversal competences in the area of
accounting: Fact or Fiction?. European Accounting and Management Review, 3(2),
65-74.
de Oliveira Neto, J. D., de Sousa Gomes, G., & Titton, L. A. (2017). Using technology driven
flipped class to promote active learning in accounting. Revista Universo
Contábil, 13(1), 49-64.
Dieg, M., Duncan, D., Howard, S., Kelley, M., Morrison, A., Rao, P., & Yildirim, A. (2018).
Chapala Climate Action Plan: Capstone Studio.
Griffin, M. (2018). Addressing Skills in an Analytics World: Proposals for the Accounting
Department at the University of Arkansas.
Lotfy, M., & Lindoo, E. (2017). Results of using a contextualized case study in the senior
capstone course. Journal of Computing Sciences in Colleges, 33(2), 59-67.
Nelson, K. (2017). Public vs. Private Accounting: A Guide to Choosing Which Field is Best
for You.
Officer, F., & Officer, C. A. (2017). AGS.

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Accounting Capstone
Walz, K. A., & Christian, J. R. (2017). Capstone Engineering Design Projects for Community
Colleges. American Journal of Engineering Education, 8(1), 1-12.