APA References for Accounting Spreadsheets
If the user uses the names for spreadsheet cell it will enable him to use the sheet in easier way and input the formulas easily. It will also allow editing and updating the cells easily and can be used for putting various ranges, functions, table and analysis (Hoyle, Schaefer & Doupnik, 2015).
| Particulars | Amount |
| Sales revenue | $100,000.00 |
| Less: Expenses | |
| Salary and wages | $15,000.00 |
| Interest expenses | $35,000.00 |
| Rent expenses | $18,000.00 |
| Total expenses | $68,000.00 |
| Net profit before tax | $32,000.00 |
| Less: Tax expenses | $9,600.00 |
| Net profit after tax | $22,400.00 |
|
Particulars |
Amount |
|
Sales revenue |
100000 |
|
Less: Expenses |
|
|
Salary and wages |
15000 |
|
Interest expenses |
35000 |
|
Rent expenses |
18,000 |
|
Total expenses |
=SUM(C5:C7) |
|
Net profit before tax |
=C3-C8 |
|
Less: Tax expenses |
=C9*30% |
|
Net profit after tax |
=C9-C10 |
Negative numbers are shown in bracket rather than putting minus sign in front of the number to make it more visible and showing it distinctly from the positive numbers. It will help the users to identify the negative numbers more easily (Drury, 2013).
Example of showing negative numbers in bracket
The data area and the report in the excel spreadsheet must be segregated to present it more clearly and useful manner for the users. All the raw data are put into the data area and all the processed data are put into the report area. This enables the user to make difference between the processed data and unprocessed data (Armitage & Webb, 2013).
| Male | Female | Children | |
| 2013 | 500 | 400 | 450 |
| 2014 | 600 | 600 | 600 |
| 2015 | 700 | 800 | 750 |
| 2016 | 800 | 1000 | 900 |
| 2017 | 900 | 1200 | 1050 |
YouTube video reference explaining IF functions – https://www.youtube.com/watch?v=iKN-QpBLkyM
IF function – it signifies whether the particular function is fulfilled or not. When the condition satisfied it returns TRUE value and when the condition is not satisfied it returns FALSE value (Carraher & Van Auken, 2013).
|
Particulars |
Amount |
Result |
|
Sales revenue |
100000 |
|
|
Less: Expenses |
||
|
Salary and wages |
35000 |
|
|
Interest expenses |
15000 |
|
|
Depreciation |
10000 |
|
|
Total expenses |
60000 |
|
|
Net profit before tax |
40000 |
|
|
Less: Tax expenses |
12000 |
|
|
Net profit after tax |
28000 |
Profit |
|
Particulars |
Amount |
Result |
|
Sales revenue |
100000 |
|
|
Less: Expenses |
||
|
Salary and wages |
35000 |
|
|
Interest expenses |
15000 |
|
|
Depreciation |
10000 |
|
|
Total expenses |
=SUM(C7:C9) |
|
|
Net profit before tax |
=C5-C10 |
|
|
Less: Tax expenses |
=C11*30% |
|
|
Net profit after tax |
=C11-C12 |
=IF(B13>0,”Profit”,”Loss”) |
5. Periodic versus perpetual inventory
Periodic system of inventory takes the count of inventory and measures the COGS occasionally rather than tracking and measuring the inventory on continuous basis like perpetual system of inventory (Bebbington, Unerman & O’Dwyer, 2014). The stock under the perpetual system is updated automatically as the inventories are measured on continuous basis. Food video used the periodic system of inventory (Cho?odowicz & Or?owski, 2015).
Example of the periodic inventory –
COGS = Opening inventory + Purchases – Closing inventory
If, Opening balance on 01-01-2017 = $ 1,000
Purchases made = $ 5,000
Closing balance on 31-12-2017 = $ 4,000
Then, COGS = $ 1,000 + $ 5,000 – $ 4,000 = $ 2,000
Example of perpetual inventory –
In a school library stock of books are updated whenever there is issue of any book purchase of any new book.
Introduction – spreadsheet is the electronic document under which the data is input and arranged in columns and rows of the grid that can be updated, edited, manipulated or used for the purpose of calculations.
Discussions – the spreadsheet has various disadvantages and disadvantages to the users as follows –
Advantages – users of the spreadsheet can easily maintain and keep a track of large number of data through spreadsheet. It also helps the users to make calculations using formulas very easily and the user further can easily edit, update, delete and add data in the spreadsheet as per his requirements. Moreover the cells of the spreadsheet can be copied to the doc file, if required. Further, the templates included in the spreadsheet contain formulas that can be used for repetitive type of task which in turn enhance the productivity.
Creating a Sales and Expense Spreadsheet
Disadvantages – the main disadvantage of spreadsheet is that generally one sheet is used by individual person and if more than one person is working on same assignment then every person will make their individual report that may lead to data duplication. It will waste the time and effort of the people. Further, using the spreadsheet efficiently needs special training and knowledge (Golyagina & Valuckas, 2016).
Conclusion – from the above analysis it is concluded that the spreadsheet can be used as a important tool for carrying out daily business operation. Irrespective of some disadvantages the spreadsheet can be a useful tool for maintaining business data if used by a person with appropriate knowledge.
Calculation of ending inventory and cost of goods sold (Bragg, 2013).
| Average cost | LIFO $ | FIFO $ | |
| Beginning inventory | $3,420.00 | $3,420.00 | $3,420.00 |
| Net purchase | $7,790.00 | $7,790.00 | $7,790.00 |
| Cost of goods available | $11,210.00 | $11,210.00 | $11,210.00 |
| Ending inventory | $7,583.24 | $7,250.00 | $8,075.00 |
| Cost of goods sold | $3,626.76 | $3,960.00 | $3,135.00 |
Calculation of Gross profit
| Particulars | Average cost $ | LIFO $ | FIFO $ |
| Sales revenue | $25,000.00 | $25,000.00 | $25,000.00 |
| Cost of goods sold | $3,626.76 | $3,960.00 | $3,135.00 |
| Gross profit | $21,373.24 | $21,040.00 | $21,865.00 |
| Particulars | Debit | Credit |
| Sales on credit – | ||
| Accounts receivable | $10,000.00 | |
| To sales | $10,000.00 | |
| Collection of cash – | ||
| Cash a/c | $6,000.00 | |
| Allowance for the doubtful debts | $4,000.00 | |
| Accounts receivable | $10,000.00 | |
| Income statement | $4,000.00 | |
| To bad debts | $4,000.00 |
Write-off approach – this is the simple approach of accounting that charges off the bad debts immediately. As per this approach, the particular account receivable is subtracted from the sales revenue under the period in which the amounted is expected to be uncollectible (Myrelid & Olhager, 2015).
|
Bad debt expenses |
$50,000 |
|
|
To accounts receivable |
$ 50,000 |
Allowance method – this term refers to the process of uncollectible accounts receivable that records the bad debt estimation expenses under the period of sale. This approach is used for adjusting the accounts receivable that is shown in the balance sheet.
|
Bad debts expenses |
$50,000 |
|
|
To allowance for doubtful debts |
$ 50,000 |
As the e-commerce industry is growing fast since last few years, the big businesses like eBay is trying to enhance their income through the online retailing that is possible with the assistance of computers only. To carry out the online shopping business smoothly it needs computer devices and internet connection. eBay is the well known online shopping site from where the users can purchase the goods as per his choice without physically visiting the store. People prefer online shopping as it is convenient and easy to select the product as per their requirement (Hoggett et al., 2015). Further it saves the money and time as the products can be purchased from any corner of the world with just one click. However, all these activities can be done with the use of computers only. Therefore, computer plays major role in online retailing.
|
Details |
Amount (in $) |
|
Credit Sale made to Harry |
10,000 |
|
Partial payment received by cash |
7,500 |
|
Promise received outstanding to 15/12/2017 |
|
|
Dishonour of past promise due to non payment |
|
|
Partial payment received by notes |
2,500 |
| Particulars | Debit | Credit |
| Account receivable | $10,000.00 | |
| Sales | $10,000.00 | |
| [Being sales made on credit] | ||
| Cash | $7,500.00 | |
| Notes receivable | $2,500.00 | |
| Accounts receivable | $10,000.00 | |
| [Being notes received for part payment of credit sales] | ||
| Cash | $2,500.00 | |
| Notes receivable | $2,500.00 | |
| [Being cash received for notes] |
Wesfarmers is the largest conglomerate in Australia that deals in various products and services like hotel, energy, fertilizers, supermarkets, coal, safety products, home products and industrial products. It has head quarter in Western Australia. The company’s main focus is on its diverse operation and it is committed to provide satisfactory returns to the shareholders. The employee base of the company is more than 530,000 (Sustainability.wesfarmers.com.au, 2018).
Sustainability issues – various materially issues incorporated in its sustainability report are as follows –
- Establishing strong and respectful relations with its employees
- Providing a healthy and safe workplace to its employees
- Trying to reduce the harmful impact of its production to the community in which it operates
- Offering opportunities to the people working with them to develop their career
- Maintaining robust policies with regard to the corporate governance requirements (Sustainability.wesfarmers.com.au, 2018).
Nat profit after tax – the income statement of the Wesfarmers for the year closed on 30th June 2017 revealed the revenue of $ 68,444 million. After deducting operating expenses, interest expenses and tax expenses the net profit of the company amounted to $ 2,873 million.
Working capital ratio –
|
Particulars |
Unit |
|
Current Assets |
$9,667 |
|
Current Liabilities |
$10,417 |
|
Working Capital Ratio [Current Assets/Current Liabilities] |
0.93 |
It can be observed from the above table that the company’s working capital ratio for the year closed on 30th June 2017 was 0.93. Though the working capital ratio of 1 is considered as efficient for any company, it can be suggested that the company can pay off its liabilities to increase the working capital ratio.
Earnings per share – the EPS of the company have been increased to 254.7 cents per share for the year ended 30th June 2017 as compared to 36.2 cents per share for the previous year (Sustainability.wesfarmers.com.au, 2018).
Net profit after tax for the last 5 years were as follows –
|
Year |
Amount ($ m) |
|
2017 |
2,873 |
|
2016 |
2,353 |
|
2015 |
2,440 |
|
2014 |
2,689 |
|
2013 |
2,261 |
Bar graph
Pie chart
Conclusion and Recommendation
It can be concluded from the above discussions that the profitability position and cash flow position of Wesfarmers is satisfactory and the company is regular in paying return to the shareholders through dividends. Moreover, the EPS of the company states that the company is regular is generating wealth for its shareholders. Therefore, the investor can invest in Wesfarmers Ltd.
References
Armitage, H. M., & Webb, A. (2013). The Use of Management Accounting Techniques by Canadian Small and Medium Sized Enterprises: A Field Study. In CAAA Annual Conference.
Bebbington, J., Unerman, J., & O’Dwyer, B. (2014). Sustainability accounting and accountability. Routledge.
Bragg, S. M. (2013). Inventory management. AccountingTools.
Carraher, S., & Van Auken, H. (2013). The use of financial statements for decision making by small firms. Journal of Small Business & Entrepreneurship, 26(3), 323-336.
Cho?odowicz, E., & Or?owski, P. (2015). A periodic inventory control system with adaptive reference stock level for long supply delay. Measurement Automation Monitoring, 61.
Drury, C. M. (2013). Management and cost accounting. Springer
Golyagina, A., & Valuckas, D. (2016). Representation of knowledge on some management accounting techniques in textbooks. Accounting Education, 25(5), 479-501.
Hoggett, J., Edwards, L., Medlin, J., Chalmers, K., Hellmann, A., Beattie, C., & Maxfield, J. (2015). Accounting.
Hoyle, J. B., Schaefer, T., & Doupnik, T. (2015). Advanced accounting. McGraw Hill.
Myrelid, A., & Olhager, J. (2015). Applying modern accounting techniques in complex manufacturing. Industrial Management & Data Systems, 115(3), 402-418.
Sustainability.wesfarmers.com.au. (2018). [online] Available at: https://sustainability.wesfarmers.com.au/media/2222/2017-wesfarmers-sustainability-full-report.pdf [Accessed 5 May. 2018].
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