Rasmussen Mod 4 Ratio Analysis and Balance Sheet of the QB Cloud Worksheet As the fiscal year ends for a company, it is important to analyze how the compan

Rasmussen Mod 4 Ratio Analysis and Balance Sheet of the QB Cloud Worksheet As the fiscal year ends for a company, it is important to analyze how the company is performing to determine if there are issues to work on and successes to expand on.

As the owner of QB Cloud, you’re interested in finding out how well the company has done in the first three months of operations. Complete the following tasks using the Module 04 Analysis template

Using Microsoft Excel formulas, calculate a horizontal and vertical analysis for the first three months of QB Cloud’s operations for the profit and loss. Address the following questions:
Identify and explain three horizontal analysis items that are not 0%.
Identify and explain three vertical analysis items that are not 0%.
Which expenses seem to be appropriated only to certain months? Do you believe this is the correct application or should they be appropriated differently? Why or why not?
Using Microsoft Excel formulas, calculate a horizontal and vertical analysis for the first three months of QB Cloud’s operations for the balance sheet. Address the following questions:
Identify and explain three horizontal analysis items that are not 0%.
Identify and explain three vertical analysis items that are not 0%.
Do you think the short timeframe being measured here impacts the reliability of your analysis? Why or why not?
Using Microsoft Excel formulas, calculate the following ratios for QB Cloud and interpret the results:
Debt Ratio (Total Liabilities/Total Assets)
Current Ratio (Current Assets/Current Liabilities)
Profit Margin (Net Income/Sales)

If you need a refresher on Microsoft Excel, check out the Excel for Accounting Guide Instructions: 1. Using Microsoft Excel formulas, calculate a horizontal and vertical analy
QB Cloud’s operations for the profit and loss.
QB Cloud
Profit and Loss
Horizontal & Vertical Analysis
October
November
December
Income
6,000.00
401 Sales
Total Income
$
6,000.00
Total Cost of Goods Sold
$
Gross Profit
$
11,920.00
$
11,920.00
0.00
$
6,000.00
$
13,220.00
$
13,220.00
5,960.00
$
6,610.00
5,960.00
$
6,610.00
Cost of Goods Sold
0.00
501 Cost of Goods Sold
5,960.00
6,610.00
Expenses
125.00
250.00
330.00
20.00
20.00
20.00
605 Dues & Subscriptions
150.00
0.00
125.00
607 Depreciation Expense
0.00
0.00
800.00
64.65
89.15
52.65
0.00
0.00
750.00
619 Meals and Entertainment
126.40
46.40
109.71
621 Office Supplies
226.85
111.82
200.11
0.00
0.00
6,000.00
140.00
0.00
150.00
601 Advertising
603 Bank Charges
609 Freight & Delivery
611 Insurance
623 Rent or Lease
625 Repair & Maintenance
47.00
0.00
47.00
629 Stationery & Printing
425.22
127.96
115.82
633 Telephone Expense
158.32
158.32
240.45
79.00
84.32
85.33
627 Shipping and delivery expense
635 Utilities
Total Expenses
$
1,562.44
$
887.97
$
9,026.07
Net Operating Income
$
4,437.56
$
5,072.03
-$
2,416.07
Net Income
$
4,437.56
$
5,072.03
-$
2,416.07
Address the following questions. Be mindful of writing in complete sentences and usin
1a. Identify and explain three horizontal analysis items that are not 0%.
1b. Identify and explain three vertical analysis items that are not 0%.
1c. Which expenses seem to be appropriated only to certain months? Do you believe this is the correct application
appropriated differently? Why or why not?
izontal and vertical analysis for the first three months of
d
oss
Analysis
October – December
Quarterly Vertical
Analysis
Horizontal Analysis
31,140.00
$
31,140.00
$
12,570.00
$
18,570.00
12,570.00
705.00
60.00
275.00
800.00
206.45
750.00
282.51
538.78
6,000.00
290.00
94.00
669.00
557.09
248.65
$
11,476.48
$
7,093.52
$
7,093.52
plete sentences and using proper spelling and grammar.
elieve this is the correct application or should they be
Instructions: 2. Using Microsoft Excel formulas, calculate a horizontal and vertical anal
months of QB Cloud’s operations for the balance sheet.
QB Cloud
Balance Sheet
Horizontal & Vertical Analysis
October
November
December
ASSETS
Current Assets
Bank Accounts
50,437.56
101 Checking
Total Bank Accounts
$
50,437.56
$
0.00
61,469.59
$
61,469.59
$
0.00
53,493.52
$
53,493.52
$
400.00
Accounts Receivable
0.00
105 Accounts Receivable (A/R)
Total Accounts Receivable
0.00
400.00
Other Current Assets
115 Merchandise Inventory
123 Prepaid Rent
Total Current Assets
11,960.00
9,870.00
6,000.00
6,000.00
0.00
3,000.00
125 Prepaid Insurance
Total Other Current Assets
0.00
3,000.00
2,250.00
$
9,000.00
$
20,960.00
$
12,120.00
$
59,437.56
$
82,429.59
$
66,013.52
Fixed Assets
135 Computer Equipment
137 Accumulated Depreciation
Total Fixed Assets
TOTAL ASSETS
10,000.00
10,000.00
10,000.00
0.00
0.00
-800.00
$
10,000.00
$
10,000.00
$
9,200.00
$
69,437.56
$
92,429.59
$
75,213.52
$
0.00
$
17,920.00
$
3,120.00
$
5,000.00
$
5,000.00
$
5,000.00
$
5,000.00
$
22,920.00
$
8,120.00
$
5,000.00
$
22,920.00
$
8,120.00
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts Payable
0.00
201 Accounts Payable (A/P)
Total Accounts Payable
17,920.00
3,120.00
Other Current Liabilities
5,000.00
205 Loan Payable
Total Other Current Liabilities
Total Current Liabilities
Total Liabilities
5,000.00
5,000.00
Equity
301 Common Stock
305 Opening Balance Equity
60,000.00
60,000.00
60,000.00
0.00
0.00
0.00
0.00
318 Retained Earnings
4,437.56
Net Income
Total Equity
TOTAL LIABILITIES AND EQUITY
0.00
0.00
9,509.59
7,093.52
$
64,437.56
$
69,509.59
$
67,093.52
$
69,437.56
$
92,429.59
$
75,213.52
Address the following questions. Be mindful of writing in complete sentences and usin
2a. Identify and explain three horizontal analysis items that are not 0%
2b. Identify and explain three vertical analysis items that are not 0%.
2c. Do you think the short timeframe being measured here impacts the reliability of your analysis? Why or why not?
horizontal and vertical analysis for the first three
Quarterly Vertical
Analysis
Horizontal
Analysis
mplete sentences and using proper spelling and grammar.
y of your analysis? Why or why not?
Instructions: 3. Using Microsoft Excel formulas, calculate the following ratios
for QB Cloud and interpret the results:
October
November
Debt Ratio
Current Ratio
Profit Margin
Interpret the results of the ratios.
December
ollowing ratios

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