MBS544 Accounting Process Assignment: Financial Analysis

This assignment presents a comprehensive accounting process analysis for a business named Greta, likely for a university-level accounting course (MBS544). The solution includes a detailed chart of accounts, meticulously crafted journal entries to record various financial transactions, and the creation of subsidiary ledgers to track specific accounts. A trial balance is provided to ensure the equality of debits and credits. The assignment culminates in the preparation of key financial statements: a Statement of Profit or Loss (income statement) and a Balance Sheet, offering insights into Greta's financial performance and position. A comparative analysis with competitor's, including ratio calculations (Gross Profit Margin, Net Profit Margin, Return on Equity, Current Ratio, Inventory Turnover, and Debt Ratio), provides a basis for evaluating the company's performance. The report includes an analysis of Greta's financial performance and provides recommendations based on the ratios.