University Management Accounting Assignment Solution: Analysis

This management accounting assignment solution covers various aspects of financial analysis and accounting principles. It includes detailed explanations and examples of spreadsheet applications, such as formatting cells and using formulas. The solution addresses topics like inventory systems, including periodic systems, and demonstrates the creation of income statements and balance sheets. It further explores bank reconciliation processes, journal entries for accounts receivable, and methods for determining bad debt. The analysis extends to evaluating a company's financial status through receivable ratios, and it concludes with a case study of the Wesfarmers group, examining its business segments, financial statements (including the statement of comprehensive income, earnings per share, and return on equity), working capital ratios, and offering investment advice. The assignment draws on multiple accounting references to support the analyses and recommendations.

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the University
Subject code and name ‘
Student Name and ID
Assignment Task Number
Author Note

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Table of Contents
Answer 1:................................................................................................................................................3
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Answer 3:................................................................................................................................................4
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Answer 5:................................................................................................................................................5
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Answer 7:................................................................................................................................................7
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Answer 11:............................................................................................................................................10
Answer 12:............................................................................................................................................11
Answer 13:............................................................................................................................................11
References:............................................................................................................................................14

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Answer 1:
The replacement of the cell references with that of the names helps the user in the way such
that he can use the spreadsheet according to his requirements. For example, it helps the user to format
the spreadsheet and use the formula in the same, provided he names the cell first. The following is an
example of a spreadsheet which presents owner’s Equity + Liabilities = Asset
Answer 2:
In order to make the negative numbers more prominent for the relevant users of the
spreadsheet, they can be written within the bracket rather than using a minus sign in front of it. This
can be shown with the help of the following example:

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Answer 3:
Both the processed data as well as the unprocessed data are included in the spreadsheet. To
differentiate between the two types of data, the spreadsheet needs to segregate into the data area and
the report area. This moreover, will also help the user to extract varied data according to his need and
also process the same for the purpose of his requirement (Hoggett et al., 2015). The spreadsheet,
which represents separate areas of report, is shown as follows:

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Answer 4:
The If function is taken to be the logical function in the spreadsheet. The function does logical
testing which in turn is used for analyzing the satisfaction of the particular condition. The If function
returns “TRUE” of the condition gets satisfied and the same returns “FALSE” if the condition is not
satisfies.
The following spreadsheet shows the example of an IF function under the normal view:

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The IF function under the formula view can be shown as follows:
Answer 5:
Periodic systems of the inventory:
In the context of the periodic system, the sales and the purchases related transactions are not
updated for each of the transactions. Instead, the records, in this case are updated after each period’s
closing which can be three months, six months or a year. The purchases get added to opening stock.
After that there is reduction of closing stock from the same to derive the cost figures of the sold
commodities (Higgins, 2012).
The example is given as follows:
Answer 6:
Fancy Footwear- 10 column-adjusted worksheet in the normal view:

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Fancy Footwear- 10 column-adjusted worksheet in the formula view:

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Statement of Income as a normal view:
Statement of Income as a formula view:

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Balance Sheet in normal view:

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Balance Sheet in formula view:

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The uses of the spreadsheet as an accounting tool:
 In this method, it becomes easier to do the calculations with the help of the formula, which
can be used in the spreadsheet.
 The formatting of the data as per the size, numbers, font and text needed can also be done.
 In this context, the graphs and the charts can also be used according to the requirement and to
analyze and compare the data.
 If a particular cell does not require to be shown then it can be hidden (DRURY, 2013).
Answer 7:
Inventory in the normal view:

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The calculation of Gross Profit as a normal view:
Inventory as the formula view:
The calculation of the Gross Profit as the formula view: