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ASSIGNMENT 2
FINANCE & ACCOUNTING – SENIOR ACCOUNTANT ANALYSIS
DUE DATE: WEEK 5
Note: While representative of possible situations faced by SunsTruck Sunglasses, all scenarios in this assignment
are fictional.
REAL BUSINESS
Large discount retailers like Target and Walmart employ large teams of Finance and Accounting professionals to
help measure and understand the financial health of the business. Financial and accounting information helps
these businesses make educated financial decisions, such as whether or not to continue partnering with a retail
supplier. While often smaller businesses, it is equally important for these retail suppliers to use financial and
accounting data to make educated decisions, such as the best approach to gaining additional funding.
YOUR ROLE
This week, you’ll assume the role of Senior Accountant with SunsTruck Sunglasses.
For the last six months, SunsTruck has partnered with the discount retail store to run a pop-up sunglasses stand in
their stores for a big summer promotion. Due to the high customer purchase rate, the store has requested stock for
five additional stores. SunsTruck needs to increase its capacity to meet the additional demand. In order to do so,
SunsTruck needs additional money.
In this assignment, you will need to help determine which type of financing option is best for your company and
train your junior accountants on the accounting cycle and financial statements.
STEP 1: FINANCING
The junior accounting team has assembled a Financing Report that (a) offers three options for securing the
additional funds required to meet the new order; and (b) details the criteria Shaun, the owner of SunsTruck, would
like you to consider when choosing one of the three options. Based on this report:
Identify which financing option you think is the best option for SunsTruck to pursue given Shaun’s
constraints. Underline your selection:
Option 1: Equity
Option 2: Debt
Option 3: Debt + Self-Financing
Based on the review of Shaun’s statements and considering financial expansion, I’ll
recommended to go with the “Option 1: Equity” financing, where is the process of raising capital
through the sales of shares in an organization, it’s a process to share business ownership with other
stakeholders to expand the business productivity, which also can be refers to levitation funding from
other sources. Centered the other alternate is depending on Shaun’s financial conditions and limitation,
the equity of $150,000 from Venture Capital Firm will be the best choice for sharing Shaun’s 30% of
total shares to extend his business toward. I’m considering this $150,000 is not as a value of money,
it’s business extension fluid to Shaun’s to eclarite his SunsTruck as business in the next level.
Ultimately, Shaun’s not only part of 70% shares, but also the extended part of his business.
Investment or company stocks can be a valuable tool for investors to fully understand the risks and
opportunities of the business. This can be changing his business shape and size, will give investors a
enhanced and immaculate business impression of the company for future investors.
Note: You should complete Steps 2 & 3 after reading the material in Week 5.
Based on the early notification and review from Junior Accountant email, I’ll recommended to
prepare a financial budget along with business operations costs, such salaries, office supplies
including other expenses, here I’ll concentrate on fruitful business outcomes. To formulate an
estimate business outcome, I may review the previous revenues, expenses and net income to
estimate a fruitful business budget with details documentation or references. I’ll furthermore
continuation on the business reports to continue my business guideline, which may pursue a right
path of a successful business for SunsTruck.
Please explain to your junior accountants why you are giving them this financial statement and where the debt
information is located.
Last but not the least, “Balance Sheet” is a statement of the assets, liabilities, and capital of a
business or other organization at a particular point in time, detailing the balance of income and
expenditure over the preceding period.
As a part of potential investor, I would like to review the current and previous balance sheet
of SunsTruck. Not only to the see the present status of their assets and liabilities but also review the
operations cycle, revenues growth, expenses ratios, so that I can recognize their exact retheme of
business. If SunsTruck already managed a proper business maneuvers sequence, as a part of investor
I’ll not lose my investment in their business. The balance sheet - also called the Statement of
Financial Position - serves as a snapshot, providing the most comprehensive picture of an
organization's financial situation. It reports on an organization's assets (what is owned) and liabilities
(what is owed).