Richardson, Teeter, Terrell – Data Analytics for Accounting, 3e

Solutions Manual – Chapter 1 Labs

Lab 1-0 How to Complete Labs

Lab 1-0 Part 1 Explore Different Tool Tracks

Lab 1-0 Part 1 Objective Questions (LO 1-1, 1-5)

OQ1. According to your instructor, which track(s) will you be completing this semester? (Answer this on
Connect or write your response in your lab document.)

Answer: Answers vary. Could be Microsoft Track, Tableau Track, and/or Other Track

OQ2. Where should you answer objective lab questions? (Answer this on Connect or write your
response in your lab document.)

Answer: Objective lab questions should be answered either on Connect or on the lab document,
depending on the instructor’s preference.

Lab 1-0 Part 1 Analysis Questions (LO 1-1, 1-5)

AQ1. What is the purpose of taking screenshots of your progress through the labs? (Answer this on
Connect or write your response in your lab document.)

Answer: The purpose of taking screenshots is to show your progress through the lab exercise and not
only the final product.

Lab 1-0 Part 2 Take Screenshots of Your Tools

Lab 1-0 Part 2 Objective Questions (LO 1-1, 1-5)
OQ1. Where did you go to complete this lab activity? (Answer this on Connect or write your response in
your lab document.)

Answer: Answers vary but may include personal computer, school computer lab, remote desktop.

OQ2. What type of computer operating system do you normally use? (Answer this on Connect or write
your response in your lab document.)

Answer: Answers vary but may include Windows, Mac, or Other.

Lab 1-0 Part 2 Analysis Questions (LO 1-1, 1-5)

AQ3. Compare and Contrast: If you completed both tracks in this lab, which tool are you most interested
in learning and why? (This question does not appear in Connect. Write your response in your lab
document.)

Answer: Student responses will vary.

Lab 1-0 Submit Your Screenshot Lab Document

Verify that you have captured all of your required screenshots and have answered any questions your
instructor has assigned, then upload your screenshot lab document to Connect or the location indicated
by your instructor.

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Lab 1-1 Data Analytics Questions in Financial Accounting

Lab 1-1 Part 1 Identify the Questions
Lab 1-1 Part 1 Analysis Questions
AQ1. Use what you know about financial statement analysis (or search the web if you need a refresher)
to generate three different metrics for evaluating financial performance. For example, if you wanted to
evaluate a company’s profit margin from one year to the next your question might be, “Has Apple Inc’s
gross margin increased in the last three years?”

Answer: Answers vary but should be written in question form: “Has Apple Inc’s gross margin increased in
the last three years?”

AQ2. Next to each question generate a hypothetical answer to the question to help you identify what
your expected output would be. You may use some insight or intuition or search for industry averages
to inform your hypothesis. For example: “Hypothesis: Apple Inc’s gross margin has increased slightly in
the past 3 years.”

Answer: Answers vary but should be written in statement form: “Hypothesis: Apple Inc’s gross margin
has increased slightly in the past 3 years.”

AQ3. Evaluate each question from Part 1. There are specific data attributes that will help you find the
answer you’re looking for. For example, if your question was “Has [Company X’s] gross margin
increased in the last 3 years?” and the expected answer is “Apple Inc’s gross margin has increased
slightly in the past 3 years,” this tells you what attributes (or fields) to look for: company name, gross
margin (sales revenues – cost of goods sold), year.

Answer: Answers vary but should be written as a list of attributes or tags: “company name, gross margin
(sales revenues – cost of goods sold), year.”

Lab 1-1 Part 2 Master the Data

Lab 1-1 Part 2 Analysis Questions
AQ1. For each of your questions, identify the account or data attribute you need to answer your
question. Then use FASB’s XBRL taxonomy to identify the specific XBRL tags that represent those
accounts.

Answer: Answers vary but should be written in XBRL tag format: “EntityRegistrantName, Revenues,
CostOfGoodsSold, CurrentFiscalYearEndDate”

Example solutions:

AQ1 AQ2 AQ3/ Part 2 AQ1

Has [Company X's] Target's Company
current ratio current ratio Name=EntitySectorIndustryClassificationPrimary
increased over the has increased Current Assets=AssetsCurrent
past four years? slightly over Current Liabilities=LiabilitiesCurrent
the past five Year=DocumentPeriodEndDate
years
What was Target's gross Company

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 Richardson, Teeter, Terrell – Data Analytics for Accounting, 3e

[Company X's] rate profit Name=EntitySectorIndustryClassificationPrimary

of increased by Net Income=NetIncomeLoss
increase/decrease 3% this past Total Assets=Assets
of gross profit this year Year=DocumentPeriodEndDate
past year?

Has [Company X's] Target's debt- Company

debt-to-equity ratio to-equity Name=EntitySectorIndustryClassificationPrimary
decreased over the ratio has Total Liabilities=Liabilities
past four years? increased Stockholder's Equity=StockholdersEquity
over the past Year=DocumentPeriodEndDate
5 years

Lab 1-1 Submit Your Screenshot Lab Document

Verify that you have answered any questions your instructor has assigned, then upload your screenshot
lab document to Connect or to the location indicated by your instructor.

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Lab 1-2 Data Analytics Questions in Managerial Accounting

Lab 1-2 Part 1 Identify the Questions
Lab 1-2 Part 1 Analysis Questions (LO 1-3, 1-4)
Q1. Use what you know about loan risk (or search the web if you need a refresher) to identify three
different questions that might influence risk. For example, if you suspect risky customers live in a
certain location, your question might be “Where do the customers with highest risk live?”

Answer: Answers vary but should be written in question form: “Where does the risky customer live?”

Q2. For each question you identified in Q1, generate a hypothetical answer to each question to help you
identify what your expected output would be. You may use some insight or intuition or search the
Internet for ideas on how to inform your hypothesis. For example: “Hypothesis: High-risk customers
likely live in coastal towns.”

Answer: Answers vary but should be written in statement form: “Hypothesis: risky customers likely live in
coastal towns.”

Q3. Finally, identify the data that you would need to answer each of your questions. For example, to
determine customer location, you might need the city, state, and zip code. Additionally, if you
hypothesize a specific region, you’d need to know which cities, state, and/or zip codes belong to that
region.

Answer: Answers vary but should be written as a list of attributes: “City, state, zip code”

Lab 1-2 Part 2 Master the Data

Lab 1-2 Part 2 Analysis Questions (LO 1-3, 1-4)
AQ1. Evaluate each of your questions from Part 1. Do the data you identified in your questions exist in
the table provided? If so, write the applicable fields next to each question in your document.

Answer: Answers vary but should be written as a list of attributes: “Zip_code, addr_state”

AQ2. Are there data values you identified in Part 1 that don’t exist in the table? Explain how you might
collect the missing data or where you might locate it.

Answer: Answers vary but should be written as a list of attributes: “Total employment length”

Example Solutions

Q1 Q2 Q3/Q4 Q5
1.customer’s member number (member_id)
Risky customers 2.The number of credit accounts a customer
Does the customer
likely have has (total_acc)
have many credit
many credit 3.The customer’s total available credit
accounts?
accounts (revol_bal)

How long is the People with 1.customer’s member number (member_id) Total
employment time short 2.The length of the employment time employment
of the customer? employment (emp_length) length
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time are
potential risky 3. the total time of full-time work experience
customers
Risky customers
How long will the are likely to 1.customer’s member number (member_id)
Loan term
customer pay back have longer 2.The time length customers promised to pay
the loan? time for back the loan
payment.

Lab 1-2 Submit Your Screenshot Lab Document

No screenshots are required for this Lab.

Lab 1-3 Data Analytics Questions in Auditing

Lab 1-3 Part 1 Identify the Questions
Lab 1-3 Part 1 Analysis Questions (LO 1-3, 1-4)
AQ1. Use what you know about internal controls over the order-to-cash process (or search the web if
you need a refresher) to identify three different questions that might indicate internal control weakness.
For example, if you suspect that a manager may be delaying approval of shipments sent to customers,
your question might be “Are any shipping managers approving shipments more than 2 days after they
are received?”

Answer: Answers vary but should be written in question form: “What is the percentage of errors to total
shipments?”

AQ2. Next to each question generate a hypothetical answer to each question to help you identify what
your expected output would be. You may use some insight or intuition or search the Internet for ideas
on how to inform your hypothesis. For example: “Hypothesis: Only one or two shipping managers are
approving shipments more than 2 days after they are received.”

Answer: Answers vary but should be written in statement form: “Hypothesis: Good internal control
should have error percentage under 1%.”

AQ3. Finally, identify the data that you would need to answer each of your questions. For example, to
determine the timing of approval and who is involved, you might need the approver ID, the order date,
and the approval date.

Answer: Answers vary but should be written as a list of attributes: “the total number of errors concerning
shipments for a quarter, the total number of shipments for a quarter, The shipment id”

Lab 1-3 Part 2 Master the Data

Lab 1-3 Part 2 Analysis Questions (LO 1-3, 1-4)
AQ1. List some of the tables and fields from the audit data standard that relate to each question you
identified in Part 1. For example, if you’re looking for the shipment timing and approval data, you would
need the Shipments_Made_YYYYMMDD_YYYYMMDD table and Approved_By, Entered_Date, and
Approved_Date fields.

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Answer: Answers vary but should be written as a list of attributes:

“Shipments_Made_YYYYMMDD_YYYYMMDD, Shipment_ID, Shipment_Period”

AQ2. Are there data values you identified in Part 1 that don’t exist in the tables? Explain how you might
collect the missing data or where you might locate it.

Answer: Q5. Answers vary but should be written as a list of attributes: “Total employment length”

Example Solutions

Q1 Q2 Q3/Q4 Q5

1.Sales orders date

2.Shipments date
3.Sales orders id

Good internal 4.Shipments id

How long will
control should
it take from
take 1-3 days
receiving sales
from receiving Sales_Orders_YYYYMMDD_YYYYMMDD None
orders to
sales orders to
shipments Sales_Order_ID
shipments
made?
made Sales_Order_Date
Shipments_Made_YYYYMMDD_YYYYMMDD
Shipment_ID
Shipment_Date

1.the total number of errors concerning

shipments for a quarter
2.the total number of shipments for a quarter
Good internal
What is the
control should 3.The shipment id
percentage of
have error None
errors to total
percentage
shipments?
under 1% Shipments_Made_YYYYMMDD_YYYYMMDD
Shipment_ID
Shipment_Period

How long will Good internal 1.the date of sending sales invoice None
it take from control should
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2.invoice id
3.the date of opening accounts receivable
4.the customer membership id
5.the transaction date
6.the balance amount

sending sales
invoice to finish the Invoices_Generated_YYYYMMDD_YYYYMMD
opening process within D
accounts one day Invoice_ID
receivable
Invoice_Date

Open_Accounts_Receivable_YYYYMMDD
Customer_Account_ID
Transaction_Date
Balance_Amount

Lab 1-3 Submit Your Screenshot Lab Document

Verify that you have captured your required screenshot and have answered any questions your
instructor has assigned, then upload your screenshot lab document to Connect or the location indicated
by your instructor.

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Lab 1-4 Comprehensive Case: Questions About Dillard’s Store Data

Lab 1-4 Part 1 Identify the Questions
Lab 1-4 Part 1 Analysis Questions (LO 1-1, 1-3, 1-4)
AQ1. Assume that Dillard’s management is interested in improving profitability. Write three questions
that could be asked to assess current profitability levels for each product and how profitability could be
improved in the near future.

Answer: Answers will vary but should be written in question form: “What is the current profitability of
each product category?”

AQ2. Assume that Dillard’s management wishes to improve its online sales and profitability on those
sales. What three questions could be asked to see where Dillard’s stands on its online sales?

Answer: Answers will vary but should be written in question form: “What percentage of sales are
online?”

Lab 1-4 Part 2 Master the Data

Lab 1-4 Part 2 Objective Questions (LO 1-1, 1-3, 1-4)
OQ1. What table and fields could address the question of the profit margin (sales price less cost) on each
product (SKU) available for sale?

Answer: SKU_STORE: SKU, Retail, Cost; TRANSACT: Orig_Price, Sale_Price

OQ2. If you’re interested in learning which product is sold most often at each store, which tables and
fields would you consider?

Answer: TRANSACT: Store, SKU, Tran_Amt

Lab 1-4 Part 2 Analysis Questions (LO 1-1, 1-3, 1-4)

AQ1. You’re trying to learn about where Dillard’s stores are located to identify locations for the next
additional store. Consider the STORE table. What questions could be asked about store location given
data availability?

Answer: Answers will vary but should be written in question form: “How many stores are located in each
state?”

AQ2. What questions would you have regarding data fields in the SKU table that could be used to help
address the cost of shipping? What additional information would be helpful to address this question?

Answer: Answers will vary but should be written in question form: “Because shipping is based on weight
and volume, what are the weight and dimensions of the package?”

Lab 1-4 Submit Your Screenshot Lab Document

No screenshots are required for this Lab.

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Lab 1-5 Comprehensive Case: Connect to Dillard’s Store Data

Lab 1-5 Part 1 Load the Dillard’s Data in Excel + Power Query and Tableau Prep
Lab 1-5 Part 1 Analysis Questions (LO 1-3, 1-4)
AQ1. Why would you want to filter the date field before loading data into your model for analysis?

Answer: Dates limit the amount of data for analysis.

AQ2. What are some limitations introduced into your analysis by filtering on such a small date range?

Answer: Q2. Smaller data is more efficient for processing but may not provide a generalizable model
for overall activity.

Lab 1-5 Part 2 Tableau Desktop and Power BI Desktop

Lab 1-5 Part 2 Analysis Questions (LO 1-3, 1-4)
AQ1. Compare the tools you used in Part 2 with the tools you used in Part 1. What are some of the
differences between these visualization tools (Power BI Desktop or Tableau Desktop) and those data
prep tools (Power Query or Tableau Prep)?

Answer: Visualization tools are more focused on creating charts and graphs and have many more
options available to quickly create those graphs. Data prep tools are focused on cleaning data so they
are more focused on manipulation and previewing sample data.

Lab 1-5 Submit Your Screenshot Lab Document

Verify that you have answered any questions your instructor has assigned, then upload your screenshot
lab document to Connect or to the location indicated by your instructor.

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