BYU Student Author: @Christian
Reviewers: @Boston, @Mike_Paulsin
Estimated Time to Solve: 45 Minutes
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As accountants, we are often tasked with auditing financial statements and verifying others’ work. Greenleaf Solutions has been a client of your company, Summit Financial Group, in performing their audit for several years now. They have given you their completed books and expect you to go through and identify any errors that may have occurred. As a manager, you tasked Jack, an associate, to gather the books and check through some of the information and then bring it to you for verification. However, after working with Jack for some time now, you’ve realized that he lacks several basic accounting skills. He was really only hired because he knew one of the partners (he nearly failed many of his accounting classes throughout college). Jack tells you that he automated some of the tasks such as sums and credits linked to debits. You need to go back through and check his work to verify that he formatted everything correctly. Below is a list of things to check for. Find his errors and answer the questions on the “Answers” sheet in the excel file to find out if you were right about his errors!
- Check accounts are in the correct place (i.e. assets in assets).
- Verify cash amount with the Statement of Cash Flows (after it’s been checked)
- Check that the correct accounts are being subtracted or added to income
Statement of Cash Flows
- Check that the adjustments are correctly being added or subtracted from net cash.
Remember to double-check the sum formulas!
Great little challenge! I’ve always been rusty with statements of cash flows, but this provided some solid, basic practice. Brought a smile to my workbook. Thanks, @Christian!
I love the use of what I’m assuming is conditional formating to show when I got the right answer. That was very fun. I had put everything in the right spot, but because of my cut and pasting, my sum formulas got all messed up. I got there eventually though!
This challenge was super fun! I had to dig in my brain to remember some basic accounting principles but it was all worth it to see that end screen!
If anyone is having any trouble remembering how these financial statements are supposed to look, I’d recommend taking a look at resources like the following:
Balance Sheet (hbs.edu)
Income Statement (hbs.edu)
Cost of Goods Sold (businessnewsdaily.com)
Statement of Cash Flows (accountingtools.com)
This helped me remember the basics on what we’ve learned so thanks for that and the positivity.
This was a fun and quick challenge! It help me check to see if I still remember how to create a statement of cashflow using the indirect method.
I got stuck on the “Increase in Inventory” part of the Statement of Cash Flows… I changed the value to 1,000 because the Income Statement said that the Beginning Inventory was 20,000 and the Ending Inventory was 19,000, so I thought that the -20,000 on the Statement of Cash Flows was an error… Is this an inconsistency or a lack of understand on my part?
I had a lot of fun with this challenge! I loved being able to see the smiley face when I got it right. This was great practice with understanding how financial statements connect. Your video did a great job explaining the financial statements as well. Thanks for putting this together!
I enjoyed this challenge! Definitely beneficial to see how financial statements can be made in excel, and also beneficial to practice auditing other’s excel sheets.
Challenge48_Data.xlsx (22.8 KB)
Great refresher on some basic accounting, had a lot of fun working on this!
This challenge was enjoyable! I forgot to re-check the sums on the balance sheet the first time around!
I arrived to the answer matching the answer solution, however I believe that the “interest expense” of $2000 is normally classified under cash from operations rather than financing.
Challenge48_Data_TateTelfordSolution.xlsx (23.7 KB)
Challenge48_Data.xlsx (22.8 KB)
This was a great refresher! Thank you.
Good challenge to remember the basics!
This is a pretty good review of the Balance Sheet, Income Statement, and Statement of Cash Flows
Challenge48_Data-WyattFronk’s_Solution.xlsx (22.9 KB)
Great review of the financial statements, however I got a little stuck because I’m pretty sure interest expense is an operating cash flow rather than investing. Overall great challenge!
I always forget how to do statement of cash flows, so this was helpful! The smiley face was a nice touch.
Challenge48_Data_Douglas.xlsx (23.1 KB)
I loved seeing the smiley face slowly appear haha. Great practice to sharpen my accounting tools.