This document provides Tyler Madison with information on Gem Star Productions' balance sheet, ratios, profit and loss statement, cash flows, internal controls, and learned accounting concepts. The balance sheet shows assets of $65,066 including cash, supplies inventory, and vehicles, with total liabilities and equity also of $65,066. The ratios calculated include a debt to assets ratio of 62%, return on assets of 7.4%, and return on equity of 19.5%. The profit and loss statement shows actual revenues and expenses compared to budget, and the cash flows statement analyzes operating, investing and financing cash flows for the period.

1. Reporting to
Management
Portfolio Assignment
Tyler Madison

2. Focus Points
 Balance Sheet
 Asset/Liability Ratio
 Profit/Loss Budget
 Cash Flows Reports
 Internal Controls
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3. Balance
Sheet
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Gem Star Productions, Inc.
Balance Sheet
Assets:
Cash $49,280
Supplies Inventory 1,333
Vehicles 13,953
Deposit at Vendor 500
Total $65,066
Liabilities:
Loan Payable $40,000
Interest payable 233
Total 40,233
Equity:
Common Stock 20,000
Retained Earnings 4,833
Total 24,833
Total Liabilities and Equity $65,066

4. Ratios
Debt to Assets
• Total Debt / Total Assets
• $40,233 / $65,066 = 62%
Return on Assets
• Net Income / Avg. Total
Assets
• $4,833 / $65,066 = 7.4%
Return on Equity
• Net Income / Shareholder
Equity
• $4,833 / $24,833 = 19.5%
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5. Profit
and
Loss
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Profit and Loss Statement
ACTUAL BUDGET VARIANCE
Sales:
Event Revenue $11,400 $15,000 -$3,600
Less Expenses:
Utilities Expense 220 750 -530
Payroll Expense 3,200 4,500 -1,300
Depreciation Expense 297 300 -3
Interest Expense 233 300 -67
Office Supplies Expense 667 900 -233
Insurance Expense 1,200 1,500 -300
Equipment Rental Expense 750 1,050 -300
Total 6,567 9,300
Net Income 4,833 5,700 -867

6. Cash
Flows
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GemStar Productions
Statement of Cash Flows
OPERATING ACTIVITIES
Net Income 4,833
Adjustments to reconcile
Net Income to net cash
provided by operations:
Supplies Inventory -1,333
Deposit at Venue -500
Interest Payable 233
Net Cash Provided by
Operating Activities 3,233
INVESTING ACTIVITIES
Depreciation 297
Vehicles -14,250
Net Cash Provided by
Investing Activities -13,953
FINANCING ACTIVITIES
Loan Payable 40,000
Common Stock 20,000
Net Cash Provided by
Financing Activities 60,000
Net Cash Increase for the
Period 49,280
Cash at End of the Period 49,280

7. Internal Controls
Controls
1) Physical Safeguards
2) Employee Training/Awareness
3) Regular Audits
4) Documentation/Record Keeping
5) Reconciliation of Accounts
Execution
1) Physical security measure
• Key passes, security codes, palm scans
• Recorded use and surveillance of
checkpoints
2) Maintains physical safeguards
• Routine training and meetings to
recognize and report accounting oddities
and suspicious behavior
3) Keeps employee accountability
• Scheduled audits determined by
department heads
4) Keeps accounting accurate
• Formatted electronically and/or on paper
5) Prevents discrepancies among
departments
• Authorized employees are trained in
specific billing practices
• Finalized by upper management
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8. Learned Concepts
• Accounts
• Internal Controls
• Accounting ratios
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9. Reference(s):
Investopedia. (2019, June 6). Investopedia.
https://www.investopedia.com/