Accounting Information Systems

Name of the Student:

Name of the University:

Authors Note:

Table of Contents

Short report: 2

Executive Summary: 2

1. Evaluating the product lines of the organization for detecting performance of each item: 2

2. Recommending the actions that can be taken into consideration by the organization: 3

Financial reports: 4

1. Profit and Loss: 4

2. Balance sheet: 5

3. Trial Balance: 6

4. Aged Payables (detail): 7

5. Aged Receivables (detail): 8

6. Inventory Item Summary: 8

References and Bibliography: 9

Short report:

Executive Summary:

            The evaluation of companies performance has a relatively help in identifying the overall improvements that needs to be conducted in the product line. The valuation of the product line indicates adequate recommendation that could be used by the company to effectively improve its operational conditions and utilize their product line improve their profitability in the long run. The analysis directly indicated that improving the overall inventory management system would eventually help the organization to reduce the level of inventory blockage in their operations. This inventory management system would eventually help in supporting the budget preparation conditions of the company and allowed the management to utilize the essential resources effectively. The second recommendation is to increase the overall marketing campaigns for boosting the level of sales for their clothing range, as it has low demand among the customers in comparison to Accessory range.

1. Evaluating the product lines of the organization for detecting performance of each item:

            The reports provided for the organization has directly depicted about the inventory item summary, which helps in analyzing the overall product line of the company. This analysis of the product line has helped in identifying the overall items that are highly demanded by the customers in comparison to two other items. From the relevant analysis, it has been detected that the overall revenue from the accessories is relatively higher in comparison to clothing range that is maintained by the company in their inventory. The inventory analysis of the organization has directly stated that maximum of the sales revenue has been generated from accessories particularly backpacks, sunglasses and hats. The revenue generation capability of the company has relatively improved due to the selling of accessories to the customers, where the closing balance for the accessories range is relatively low in comparison to the clothing range. This will indicate that the revenues from the clothing range are not appropriate for the company as it is deteriorating due to low demand from customers. Blue whales seal that was provided by the clothing range was from shorts item (Ismail & King, 2014).

            However, the overall costing range of the accessories that has been maintained by the company is relatively similar to the levels of clothing range. The demand from the overall customers is relatively high for the accessories, while performance of pants, tops jumpers and shorts are relatively low. Nevertheless, the inventory levels of pants were adequately diminished during the month of July, which indicates that the management was able to accurately detect the level of demand for a particular item. This helped in reducing the level of inventory blockage and freed the essential resources needed for supporting the operations of the organization (Trigo, Belfo & Estebanez, 2014).

2. Recommending the actions that can be taken into consideration by the organization:

            The analysis of different selling items of the organization has directly indicated about the usage of adequate inventory management system. This inventory management system would eventually help in forecasting the level of demand for a particular product. This could lead to the reduction in the maintenance of inventory stock and increase the working capital conditions of the company. The second major recommendation techniques to be adopted by the organization are to improve its current advertising and marketing plan. The improvement in the marketing plan would eventually help in supporting the demand for clothing range, which is required for increasing the profitability conditions of the company in the long run.

References and Bibliography:

Brandas, C., Megan, O., & Didraga, O. (2015). Global perspectives on accounting information systems: mobile and cloud approach. Procedia Economics and Finance, 20, 88-93.

Ismail, N. A., & King, M. (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business, 1(1-2), 1-20.

Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues, concepts and practice. Routledge.

Simkin, M. G., Norman, C. A. S., & Rose, J. M. (2014). Core concepts of accounting information systems. John Wiley & Sons.

Trigo, A., Belfo, F., & Estébanez, R. P. (2014). Accounting information systems: The challenge of the real-time reporting. Procedia Technology, 16, 118-127.