UNIVERSITY OF THE PEOPLE

BUS 5110-01 MANAGERIAL

ACCOUNTING - AY2024-T4

PORTFOLIO ASSIGNMENT UNIT 1

INSTRUCTOR: DR. LORETTE ORDOGNE

18th APRIL, 2024.
In looking carefully at Polly’s Pet Product has provided us with three (3) statements they are

Income Statement is a statement showing the revenues, expenses, and income, A statement of

cash flow shows the revenue and expenses of a company over a given period. A balance sheet is

use at the company to know the financial position of the company. However, some of the

spreadsheet cells contained missing information. This assignment seeks to determine the missing

financial information while providing a narrative of the rationale used to complete the

calculations. Polly’s Pet Products has provided this author with the three key managerial

financial statements, including their Income Statement or Trading Profit & Loss Account as of

December 31, 2018, Balance Sheet or Financial Position as of December 31, 2018, and

Statement of Cash Flows as of December 31, 2018. However, some of the spreadsheet cells

contained missing information. This assignment seeks to determine the missing financial

information while providing a narrative of the rationale used to complete the calculations as

followed below.

In my personal understanding Pollys Pet Products analysis and show the revenue, expenses, and

income that show the operating cost which are the day-to-day running of the company giving the

different revenues and gross profit that gives the operating. The Income Statement shows the

financial health and status of the company, after calculating, For me to able to arrive at the

missing cells calculated I have to used Accounting Ratios for easy calculation.

1- All the operating expenses of the company relate to all the overheads such as rentals,

maintenance, payroll, marketing, advertising and all sorts of other costs that the company

incurs in order to run its business. No matter what, some of the operating expenses are

necessary and unavoidable even if the company does not have any sales or revenue.
 Budget reports assist organizations with making educated choices since they feature

which sections of the organization give the best ROI (Return on Investment).

2- I learn that the organization's fiscal reports give monetary data that brokers, lending

banks, and analysts use to assess an organization's financial health. With this fiscal policy

help to make the calculation more use and understanding

3- So many companies that are seeking to be listed on the stock exchange market are

required to share financial statements that are based on the accounting principles adopted

by the country. ( Oliver Lee. 2015) There is many important financial statements, such as

the Income Statement, the Balance Sheet, Statement of Stockholders’ Equity and the

Cash Flow Statement. Income statement usually, the first place an investor or analyst will

look is the income statement. The income statement displays the performance of the

business throughout each period, shows sales revenue, gross profit. And net income, it is

usually used to assess profitability of the company.

Balance sheet : The balance sheet displays the company’s assets, liabilities, and

shareholders’ equity at a point in time. It shows the financial position of a business

expressed as a “snapshot” or financial picture of the company at a specified point in time.

Cash flow statement: This statement is also known as the Statement of Cash Flows. It

provides information about the cash inflows and outflows of an organization during a

period. Statement of Stockholders’ Equity: This statement provides information about

stockholders’ equity balances as listed on the balance sheet, with explanations on why

these items changed. Changes in the statement usually happen due to distribution of

shares, new issuances of stock and repurchases of treasury stock. ( Oliver Lee. 2015) In

My Organization we use multiple financial statement such as the balance sheet which
captures a manufacturing company's assets, liabilities, and capital, at a specific point in

time. The income statement is one of the most important financial statements our

accounting usually prepares. This statement comes in various formats but generally

reveals our company revenues, expenses and net profit or loss for an accounting period.

Usually, management is able with this information set

References

1- Three financial statements - the ULTIMATE summary (AND INFOGRAPHIC).

(2021, January 05). Retrieved February 03, 2021, from

https://corporatefinanceinstitute.com/resources/knowledge/accounting / three-

financial-statements/.

2- O. L. (2020, August 20). Most Important Financial Statements for Management.

Invensis Technologies. https://www.invensis.net/blog/important-financial-

statementsmanagement/ .

3- Accounting Principles: Financial Skills. (2013). [Ebook]. Retrieved 22 June 2020,

fromhttp://www.free-management-ebooks.com