Accounting in Management

This production would entail the use of 250 labor hours and 2000 Kgs of Materials. Thus, after the demand for Beta is met, we have a balance of 1250 Labour hours and 8000 Kg of Materials. The next higher contributor is Delta. Therefore, we would produce the full order of Delta for this 750 Labour hours and 3000 Kg of Materials. The balance left over would be 500 Labour hours and 5000 Kg of Materials, which would be used for production in respect of Alpha which is the least contributing product. The limiting factors only allow the production of 500 Units of Alpha. The statement shown below would explain the position.In this analysis, there are three types of products Alpha, Beta, Delta. The number of items produced is 500 Units of Alpha, 500 Units of Beta, and 750 Units of Delta respectively. The total contribution is£ 7500 Alpha, £ 11000 Beta, and £ 12750 Delta. There are two constraints in this scene. Materials available are only 10000 Kg and labor hours in 1500. Alpha, Beta, Delta denoted as X1, X2, X3.The limiting factors in the problem are the availability of 1500 labor hours @ £ 20/hour and 10,000kgs of materials @ £ 3/kg. Since 1000 units of Alpha would consume 10,000Kgs materials, there would be no materials left for producing Beta and Delta. Beta has the maximum contribution of £ 22/unit and therefore it has to be produced on Priority. The next higher contribution is from Delta viz. £ 17/unit. Therefore, the second priority would be given to Delta and the third priority to Alpha. This is also in line with Principles of Marginal Costing and meets the requirements of Portland Ltd, to maximize their profit.To understand whether a company can grow as a world-class competitor and to know whether any system within the organization impedes this objective, one has to analyze the basic characteristics of itsfunctioning based on the following indicators.

Enron and Offbalance Sheet Financing

It is argued that bad accounting practices had inflated earnings and capital employed by the use of off-balance-sheet financing. Such practices had not been blocked by Enron’s auditors, Arthur Anderson, and it is claimed that the rules which applied to the company in the US were not robust enough to prevent such accounting practice. this has led to criticism of the auditors and of financial reporting practice and those who regulate it. In the wake of the collapse, there has been much activity designed to tighten up the rules relating to financial reporting and auditing, including legislation (the Sarbanes- Oxley act) and new rules imposed by the Securities and Exchange Commission and the New York Stock Exchange. The impact of these changes is still unfolding but extends worldwide as they affect all companies which seek a listing in the US.The objective of this case study is to try to understand why Enron collapsed and how financial reporting practices failed to alert investors and other stakeholders to the problems of the company in time to avoid the huge losses sustained. In particular, it focuses on the accounting areas of income recognition and off-balance-sheet financing which are said to lie at the root of the problems.Information needed to understand and analyze the issues involved are taken from newspapers, magazines articles, and internet sources.Hartgraves, A.L. and Benston, G. J. (2002) said that critics harshly criticized Enron’s auditor, Arthur Andersen, for allowing Enron to exclude from its financial statements (Financial Terms, 2005) the SPEs it sponsored, thereby keeping a substantial amount of debt off its balance sheet and recognizing substantially higher profits from transactions with SPEs. SPEs refer to special purpose entities.

Knowledge Management within the Education Profession

This report discovers the practice of knowledge management within the education profession as a tool for improving the efficiency of the administrative services and the effectiveness of academic programs. Knowledge management within the educational profession refers to a set of procedures that makes eminent sense through a combination of practical expertise gained through experience, good intuition, and a feel of what can be likely described as a set of emerging theories that focus on effective knowledge management continuum within educational institutions (Hansen, 2000). Pertinent to the field of education with regard to knowledge management entail two fundamental aspects. how to embrace and integrate knowledge management principles and how to avoid misunderstanding of such principles. Evidently, application of such knowledge management principles is in essence important with regard to improving educational efficiency. In the recent past, educational administrators have attempted to improve the efficiency of their tasks through knowledge management. Therefore, this report aims at investigating how knowledge management enables educators in an institution to develop and set effective practices to collect information and share what they know will ultimately lead to improved educational outcomes. In making this attempt, however, this report explicitly clarifies that people, in this regard educators, processes, and technology are important aspects in ensuring effective knowledge management…. 1. Educational administrators have been improving the efficiency of their task through employing knowledge management tools. Instructors within the education profession have been utilizing management tools for a considerable number of years to improve the efficiency of administrative services and the effectiveness of academic programs. From the past, the practice of knowledge management within the education profession has primarily been focusing on the technical systems that are implemented to collect, organize, and disseminate the institution’s expanse of quantitative data in areas such as accounting, finance, and enrolment planning. With the increasing number of trustees, state legislatures, teachers, administrators, faculty members, students, and parents begun to seek better education outcomes or at least have a better sense of what current outcomes measure, in the case of higher education, most educational institutions and systems have invested in technology to generate data that can provide answers to those seeking improved performance. Among the primary benefits of knowledge management underpins the fact that it actively addresses both the information culture and technology culture unique to the organizational context of the college, school, or university (Kellick, 2011, P. 150). The technology culture can be thought of as the institution’s use and integration of technology in planning, development, operations, and assessment. The information culture, on the other hand, involves information processes and politics for sharing information within and across the organization. 2. Knowledge management enables educators in an institution to develop and set practices to collect information and share what they know, leading to action

The European Debt Crisis through Economic Theory

Later a twin debt blow has been considered as one of the most prominent reasons behind the European debt crisis. The twin blow came out of the banking crisis together with the previously mentioned extremely high sovereign debt. The European Central Bank (ECB) launched the single currency (euro) in 1999 along with the Economic and Monetary Union (EMU), aiming to gain monetary efficiency. An Economic and Monetary Union offers a series of monetary efficiency gains in forms of accounting ease among the member states that in turn reduces opportunity cost of transforming one currency into another, development among member states would be at par owing to reduction of any possible economic shock (that are often regional in nature), member states under an Economic and Monetary Union following a common currency would also abstain from inner inflow and outflow of speculative capital, furthermore policy formation among member states would be coherent and coordinated in nature that will eventually usher better economic growth and development. While fiscal irresponsibility on the part of periphery countries has been considered by many analysts as the root of the ongoing crisis, this paper argues that the impact on capital flows within the euro-zone of financial deregulation and liberalization and of the adoption of the common currency was critical in exacerbating a growing competitiveness gap between core and periphery countries and explaining the evolution of the crisis.The crisis in Europe began when financial markets lost confidence in the creditworthiness of PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) and interest rates on government bonds soared to astonishing levels that forced the governments of these countries to seek bailouts from the international community,including the European Community, the IMF and the European Central Bank (ECB), collectively known as Troika.

Accounting for Managers

More importantly, financial ratios are there due to the level that is divided by a financial flow itself which could be in the form of price or in simple plain accounting practices, the earnings. On the contrary, the financial ratios are also possible due to the flow that goes on to divide the same by a level that comprises of the return on equity or the earnings itself with respect to the equity. Now when we talk about the differences between the public sector organizations and that of the private sector we need to outline the exact stakeholders and investors who have one claim or the other within the said company’s shares and assets. For this to happen, one should comprehend that public sector organizations are open to accountability and audit in front of one and all but the private sector concerns are more or less within the four walls of the company, and their revenues, shares, and assets are not disclosed that easily. In fact, there is no provision whatsoever to discuss the liquidity basis and the like when the talk goes out loud of the financial reporting mechanisms related to the private sector organizations.In calculating financial ratios of a public or a private sector organization, one must fathom that the numerator or the denominator at any point in time might just be the ratio, remarked as the PEG ratio. This is quite true that in terms of financial ratios, the ratio analysis has got its due part in telling one and all about the whole category and as such the industry. On the other hand, there are a number of important pointers that one can pick with regards to the theory of ratios for that matter. Let us start with the financial ratios. These are the flags that in essence lay the foundation for showing those areas that can be remarked as the ones having strengths or weaknesses, both within the realms of the private and the public sector concerns. For this point in the case, even more, than one ratio can eventually be quite misleading.

Secret reserve accounting is likely to create conflict between management shareholders and employees

It would represent the surplus of available assets over the capital and liabilities. It is not apparent in the ledger too. Creating secret reserves is likely to strengthen the financial situation of the organisation concerned. The actual financial position and the financial position observed through the balance sheet would be different – the financial position of the company would be stronger than its apparent situation on records. As a result, conflicting inferences are likely to be obtained when it comes to secret reserve accounting. Creating secret reserves will definitely involve the management, some of the employees and the shareholders are likely to remain in dark. Secret reserve accounting will not show even under the suspense account and affect the capital flow in a concealed fashion. Undervaluation of available assets, omitting the rise in asset values, providing extra depreciation on the assets that are fixed, etc. are the methods of secret reserve accounting. In this context, the question is in the form of the following statement: Secret reserve accounting is likely to create conflict between management, shareholders and employees. – Critically discuss. … After that, the various conflict scenarios between the management, shareholders and employees will be critically discussed. Last, the conclusion will be drawn with the final opinion about the research statement. Literature Review The academic literature in the context of secret reserves reveals interesting opinions and scholastic approaches. First, a view on the nature and scope of secret reserve as an accounting term should be considered. Secret reserves – this accounting term has been made to cover a multitude of sins: whenever objection is taken to pessimistic writing off of invested values, or disproportionate charges of depreciation, or again to charges to operations or revenue, for capital expenditures which should have been applied to the increase of assets, the answer is, secret reserves. (Esquerre, 1978) So if the owner of a corporation is creating secret reserve and implementing related accounting practices, his/her capital assets have likely been knocked down into the pit of secret reserves and that their book value, as it stood at the time, was likely preposterous. Hence the questions in issue would be: Does the owner want to deceive the shareholders, the government, the public or his own self? Does he wish to submit to the directors, the shareholders, the banks and the public, financial statements with a mental footnote to the effect that things are not in truth what they would show on their face? And if it is well to hide the owner’s wealth from some people (in his perspective), can it be believed that anyone capable of reading balance sheets is not in a position to follow accounting facts from year to year, and to point out fluctuations in wealth not supported by the statement of income submitted, and thus unearth secret

Managerial Accounting Managerial Topic

This paper is an attempt to capture a glance of this debate by defining this accounting system and briefly highlighting its pros and cons. Discussion According to the definition of Fair Value as, It is the Statements of Financial Accounting Standards 157, the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (Shaffer Federal Reserve Bank of Boston, pp. 63-68). Therefore, Fair Value Accounting refers to the process of assessing values of assets and liabilities based on their current market price or the price determined by market forces of similar assets and liabilities or any other fair and objective method of assessing value. Quite understandably, since the market prices are always subject to change, the values on the balance sheet of a company using fair value accounting becomes extremely volatile and changes quickly. Another option available to companies is of historical cost accounting or book value accounting, which would use the original buying or selling price of the asset or liability (Curtis, pp. 95-99, 2009). However, the problem with such methods is that considering the violate market conditions, those assets quickly become irrelevant. Consider the example of a company, which holds 1 million of a particular corporation bought at the price of 100 US dollars each. However, that corporation is close a liquidity thus pushing the price of that bond down to just 10 US dollars. If that company is still showing the price of 100 US dollars for that bond then it is clearly committing a fraud (Needles, Powers Crosson, pp. 12-13). However, important here to note is that in many conditions, the market value of assets and liabilities are not available. In those conditions, the value allows its calculation by mainly looking at the expectations of future cash flows related to that element. However, there remains the doubt that expectations would be either too optimistic or too pessimistic thus distorting the overall calculation (Warren, Reeve Duchac, pp. 36-38). An advantage of this accounting method is that it serves as an alarm for companies when the value of their assets is going down. With this method, the company gets an early call of its problems and if it reacts quickly, it can take steps to make the balance sheet of the company look better (Curtis, pp. 95-99). However, with the traditional accounting methods, a company may get to know about the depreciation of the value of its asset so late that there would be no going back. Furthermore, the investor and shareholders of the company get closer and greater insights to the overall outlook and performance of the company and as mentioned earlier that the company also gets more time to take corrective actions (Needles, Powers Crosson, pp. 12-13). In addition, this accounting method ensures that companies do not manipulate their net income and losses. The same is true because now companies have to report the realized gains and losses as soon as they occur now when the actual transaction related to that assets and liabilities occur (Shaffer Federal Reserve Bank of Boston, pp. 63-68). However, one of the biggest problems with fair value accounting appeared on the scene during the current credit crunch when many banks and other financial institutions confronted

Types of Accounting Systems

Under cash based accounting revenue is recorded when cash is received, and expensed is recorded when cash if paid (Weygant, et. al. 2002, pg.89). The use cash based accounting is suitable for small businesses that deal primary in cash such as a hot dog vendor or a pizza cart. The use of cash based accounting is not in compliance with the generally accepted accounting principles, thus public companies cannot utilize this method of accounting because it would violate GAAP and SEC mandates. It is easier to implement a cash based accounting when the firm does not have account receivables or account payables. It is possible for accountants to convert a system from a cash basis accounting to an accrued basis accounting. The process is time consuming due to the fact that the accountant must use a lot of adjusting entries. The users of financial statement or stakeholders require precise and accurate financial statements that are free of fraud and materials errors. The major stakeholders groups that use often use financial information of companies to make decisions include the employees, lenders, shareholders, board of directors, suppliers, managerial staff, governmental institutions, and the community. The employees need information regarding the financial activity of the company they work for to provide them with security that the company is aligned with the going concern principle. The lenders evaluate the financial statements of companies to determine whether to lend them money or not. Banks and others rely on the accuracy of the financial statements to make decisions worth thousands or millions of dollars. Suppliers often extend credit lines to corporate customers based on their evaluation of the financial performance of an enterprise. The general public expects corporations to act in a socially responsible manner at all times. The shareholders make buy and sell decisions based on the results of the financial statements. Wall Street would collapse if investors stop believing in the accuracy of financial statements. Back at the turn of the century a series of financial scandals caused investors in the US to lose confidence in the accuracy of financial statements released by public companies. The US Congress reacted by passing the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act raised the consumer confidence, overall accountability, accuracy, and it imposed severe penalties for white collar crimes. Executive managers such as CEOs found of fraudulent financial activity can receive penalties of up to 20 years in prison. The CEO now has to sign the financial statements prior to being release to certify that they are free of fraud and material error. Accountants utilized a concept knows as depreciation to reflect the loss in value of an equipment or machinery as time passes. The most common depreciation method used by accountants in the United States is straight line depreciation. Straight line depreciation is calculated by diving price minus salvage value by lifetime in years (price – salvage value) / (years). Depreciation helps adjust the value of an asset. Companies that depreciate its assets receive a tax benefit because depreciation is categorized as an expense the lowers the net earning of the company. Three additions depreciation methods are LIFO, FIFO, and weighted average. The MACRS depreciation method is one of the best methods to reduce taxes in the short

Renting an Apartment Is a Better Option than Buying a House

Correct economic decisions are very essential in the long run and can prove to be beneficial. One such economic decision relates to the choice with regard to renting an apartment or purchasing a house. This choice is an extremely important decision that needs to be taken with care as both renting an apartment and buying a house have their own positive points as well as drawbacks. There are supporters of both these decisions with a few people considering renting as a better option whereas the other group believes that buying is a much wiser decision. Thus, it can be said that renting and buying have their own benefits and drawbacks and a decision needs to be based according to personal needs and the option which serves as a more profitable settlement for the person. Renting is basically a process in which a person rents a house or an apartment for a living but does not have any ownership rights over the house. He has an obligation towards the landlord of a paying a fixed amount to him every month according to the joint decision taken by them. Renting can be considered to be a good option for people who choose to shift every now and then. This is because a person can easily leave a rented house and move to another city rather than having the burden of actually going through the process of selling his house after a few months. Thus it is argued that renting is the best option for people who do not wish to stay in one place for more than a period of two years (Rockwell Publishing Co. 2006, Law 2003). According to Thomas Z. Lys who is a professor of accounting at Kellogg School of Management at Northwestern University, If you believe you’ll be moving in the next four or five years, I’d rent. The New York Times carried out a survey in this regard and provided for the fact that owing to the rise in the prices of buying a house, renting is a very suitable option considering the economic factors. The analysis identified very important facts that renting an apartment was a better and reasonable option if considered from the financial point of view.

Role of Technology in Small Business Accounting

Role of Technology in Small Business Accounting In today’s economy, there are a lot of entrepreneurs and business people who engages to small and medium enterprises for them to be able to gain full control of their resources, operations and systems with the end result of consolidating their own business profit. Thus having a small business is not as easy as it seems, it requires proper knowledge and skills to be able to successfully pull it of. Also, added technology is needed for it to reach its full product quality, service efficiency and cost-effectivity. Based on a five-country survey of more than 600 Microsoft small business specialists, Microsoft found that the major concerns driving SMB (Small and Medium Businesses) technology investments are declining revenue, competition from larger businesses, and general economic difficulties. In response, many SMBs are focusing on IT investments that directly benefit their bottom line – either by reducing operating costs, improving employee productivity, or acquiring and retaining customers (AccountingWEB, 2005). Given such findings, we can therefore say that a small business does need to invest money on technology. Technology may be a capital-extensive investment thus it also realigns the process management of the business in a more productive and time-effective operation coupled with great quality product or service. To eventually expand your small business, technology can surely help a lot on this endeavor not to mention the aid of this technology on giving the business an avenue for TQM (Total Quality Management). As we may repeatedly notice, technology is often associated with quality which would therefore result into attracting more customers and retaining existing one’s that would leverage your brand image and strengthen customer relationship. Reference: Small businesses are using technology to cut costs and grow business, AccountingWEB, March 25, 2009, Retrieved April 28, 2011 from

Management accounting for business decisions Trailer Construct plc

The Trailer Construct PLC is a small family business which is in the process of expansion into a higher level of operations. The enterprise is involved in the construction and repair of trailers custom made according to the specifications of the client. The demand for construction of new trailers has been consistently rising through the five years to 2011, although demand for repair remained consistent throughout the same period. As a result, the company decided to raise its production level, however its policies and practices remained the same.Trailor Construct’s problem is comprised of a mismatch between its increased scale of operations, and its policies regarding inventory management, cash management, cost tracing and determination, price setting, and its human resources management. The firm is comprised of three divisions, namely Administration, Repair and Construction. The aforementioned policies involved practices undertaken in all three, and therefore are resolved using a systemic approach. This report recommends that the economic order quantity be applied to the inventory management practices of the company, instead of the present long lead time, large inventory storage employed by the company which unnecessarily inflates carrying costs. Production should be enhanced to make better use of expanded capacity and increase production efficiency, to reduce the level of fixed costs distributed to each unit of production. Cash management should be managed better by speeding up collection of receivables. This is to avoid the need to borrow from the bank to bridge cash shortfalls, and thereby eliminate unnecessary interest charges. Finally, employee performance should be improved by motivation through employee engagement. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Repair 4 Construction 5 Administration 6 Inventory management 7 Treatment of employees 8 Conclusion 8 References 10 Introduction The case of the Trailer Construct plc concerns the transformation of a small family business into a larger corporation as a result in the escalation in the scale of operations. This is typical of successful enterprises which attract a greater volume of business than its usual procedures are suited for. The administrative procedures, employee management, and inventory policies should evolve when a company shifts towards a higher scale of operation, because the greater business volumes enable the development of economies of scale, and demand a greater efficiency in these policies and activities. Repair The financial performance of the Repair division shows turnover to be almost unchanged from one year to the next. in comparison, turnover in construction is growing steadily. There is therefore no reason for the procedure that the client can bring in their trailer for repair after only a phone call. However, there is concern that maintaining a large stock or spare parts is unnecessary investment in materials when a lower stock level would do. There may be some merit to stocking up on materials in anticipation of higher prices, but this seldom results in the anticipated savings (unless a sudden significant rise in price or severe shortage takes place) because of the increase in storage and carrying costs that may just offset and even exceed the amount saved by chasing the lower price. The recommendation therefore is that the inventory system should employ the economic order quantity (EOQ) system which is described in the discussion on inventory below. Construction Being the larger of the two divisions, the Construction division shows a steadily rising turnover, indicating that the market is expanding. This presents an opportunity that Trailer Construct should take advantage of. The financial show that although turnover rises, profits remain unchanged for Construction. This may or may not mean that the firm is unduly incurring unnecessary expenses. The company decided to increase capacity by

Corporate Ethics

The self-serving goals of corporate America has created a value system not only separate but in opposition to that of society. The result justifies any means by which to achieve it including the destruction of the environment as well as the financial gouging of customers and employees. This discussion examines the rationale behind corporate crimes against individuals and humanity along with possible solutions by which to stem this seemingly growing disparity of definitions between corporate and social ethics.Corporate piracy became a news item in the 1980’s when the term ‘hostile takeover’ became a part of everyday language. During this time and extending into the 1990’s, other corporate excesses including the revelations of excessive salaries for top management and substantial employee layoffs became so commonplace it was hardly worthy of news reports. These patterns of somewhat acceptable extremes culminated in contemptibly deceptive excesses which inevitably toppled corporate giants such as WorldCom, Enron, Tyco and Arthur Anderson among others in the 2000’s. Bernard Ebbers, former CEO of WorldCom, is currently serving a 25-year term in prison for the part he played the $11-billion accounting fraud which caused the downfall of his company which is MCI today. Ebbers testified that he had nothing to do with the fraud but had retired two months before its collapse at about the same time the company was posting a nearly $4 billion profit. Soon after his departure, this hefty profit was shown to be a paperwork deception (Bernard Ebbers, 2005). Former Enron executives Kenneth Lay, Jeffrey Skilling and Andrew Fastow were found culpable of conspiracy in the most high profile of the cases involving corporate fraud. In 2001, the energy company filed for bankruptcy with debts totaling $31 billion which, among other ramifications, left thousands without a job, benefits or a pension fund which was squandered by the company.

Accounting for Costa Company

Accounting for Decision Making Accounting for Decision Making Income ment for Costa Company for the year ended on 31-Dec-12 $ Revenues 624,400 (619,400+5,000) Cost of Goods Sold 412,610 (402,610+80,500-70,500) Gross Profit 211,790 Depreciation expense 18,250 Insurance 1,500 Salaries 61,940 Utilities 7,400 Marketing 5,600 Misc. expenses 4,500 Property taxes 6,500 Rent 22,000 Net Income 84,100 1. There are two errors indicated related to inventory and sales of Costa Company. These errors will have profound impact on the company’s financial position as reported in the balance sheet of the company and also in the comprehensive income statement. Errors, omission, and mistakes can mislead users of the financial information about the reality of the business and its financial situation (Weygandt, Kimmel, Kieso, 2010). Incorrect reporting of closing inventory would not only overvalue company’s assets and hence the size of the company’s book. This would also lead to wrong reporting of cost of goods sold which will have direct impact on the net income generated by the company and also the amount available to be distributed to shareholders. Missing out a revenue transaction will have a negative effect on the net income of the company because costs related to it are already included in costs of goods sold by the company. This underreporting of net income would in turn affect the equity side of the balance sheet. 2. The income statement of Costa Company after adjustments to two errors reported in the case has generated a net income of $84,100 at the year end. This indicates that the company’s business operations are actually generating enough revenue that is able to cover costs of goods sold and operating expenses and taxes related to the business. The gross profit of the company is $211,790 which indicates that the gross profit margin is 33.92%. The net profit margin of the company is 13.47% (Warren, Reeve, Duchac, 2012). Thus, from the analysis of the company’s profitability it could be highlighted that the company’s business is profitable. 3. The company’s financial position indicates that the company’s total assets are $465,000. The current assets are $140,000 and non-current assets are $325,000. The company’s non-current assets are equipment held by the company recorded at their cost less accumulated depreciation. The company is holding large amount of inventory in its current assets which can cause liquidity issues for the company if its short term obligations fall due and the company is not able to generating sufficient cash to meet its requirements. The cash holding by the company at the year end is $41,500 which may be considered on the lower side as compared to its both short and long term borrowing. On the liabilities side, the company has high long term debt amounting $105,000. The company also has issued common stock of $10,000 and retained earnings of $245,500. This reflects that the company has a strong solvency position as its equity position is far greater than both its short and long term liabilities. Reference List Warren, C. S., Reeve, J. M., Duchac, J. E. (2012). Financial accounting. Mason, OH: South-Western Cengage Learning. Weygandt, J. J., Kimmel, P. D., Kieso, D. E. (2010). Financial Accounting, Study Guide. Hoboken, NJ: John Wiley Sons. Retrieved from McGraw Hill:

Advance Accounting

toAASB 101 para 51 a, b c, the name of company, date of reporting and whether it is an individual entity or group entities are necessary details for those financial statements.Mentee has written the correct amount for the Interest Revenue. Interest on this investment is paid annually (31December 2013), the reporting date is 30th June 2013. For accounting purposes, only $14,000 ($28,000/2) should be recognized as revenue as at 30th June 2013. However, for tax purposes only what is paid is an allowable deduction. That means there is no tax deduction on June 30. We need to deduct accounting revenue of $ 14,000 and add back zero.Vehicle depreciation 4 years s/line no residual value so $60,000/4=$15,000 for accounting. For tax is 20% of $60,000= $12,000 accounting 20% tax. Vehicle was purchased on 1 July 2011, so it was still being depreciated for both tax and accounting purposes.Machinery depreciation for 10 years s/line residual value of $10,000 so ($210,000-10,000)/10=$20,000 to be accounted for. For tax is 20% of $210,000=$42,000 accounting 20% tax. Machinery purchased on 1 July 2007 so it is still being depreciated for accounting purposes but not tax purposes.Therefore, tax depreciation has already depreciated full cost such that there is no further deductions for this period. However, $15,000 of machinery seems wrong.The annual leave expense is an expense and a liability and needed to be reversed under accounting treatment. Mentee wrote the correct amount. Under the taxation treatment, the annual leave expense should be deducted once the annual leave expenses are paid. The information given is that the annual leave paid in the period $14,000. Thus, it should be deducted under taxation treatment.The goodwill is recognised as an impairment loss. This would be reversed under the accounting treatment. Mentee did not add goodwill amount under the accounting treatment. However, it would be not be deductible under taxation treatment.According to AASB

The complexity of Management

In this paper, the proponent clearly illustrates situations that identify existing complexities within an organisation. Marketing versus accounting department In most instances, there is always an ongoing clash between the accounting and marketing department. This is because of the meaning of accounting in an organisation seems to be broad (McSweeney, 1995). In order to understand this in detail, there is always a good reason to believe that each department has essential role or function to play in an organisation. In line with this, it is necessary that these specific functions have to be elaborately discussed in detail in order to find out why there is an ongoing complexity that exists within an organisation. A salesperson was having a hated argument with an accounting staff. The problem was actually within the bound of how they tried to handle customer service. The salesperson was so aggressive about creating a sale with the customer and he was always ready to shortcut the process just to be able to close the deal. However, the accounting staff understood her function clearly well. In other words, she was so aggressive about the implementation of what has been agreed within their department. As a result, there was a strong clash of personal interests of each department that went on between the accounting staff and salesperson. … In other words, some rules employed by the company may be altered just to be able to prioritise what is deemed important for the achievement of the ultimate goal of the company. The ultimate goal is to have excellent financial performance that will enable the company to continue operation. However, there may be always a compromise in the process. The accounting department is such a complex component of an organisation because it primarily involves finances in general. It involves the general role of an organisation to handle every necessary aspect in financial activities that will make the entire flow of the organisation run smoothly. For instance, cash flow is important and even return of investment is necessary in order that the operation will continue to have healthy performance. These activities are necessary and they are handled by the accounting department in general. However, their tasks have specific goals and objectives that in the process will run against the objectives of other departments. For instance, the sales department is there to help the accounting department reach the objective in obtaining healthy cash flow. The sales department is there in order to help the company reach its full potential in obtaining high return of investment that the bottom line is to have a positive healthy cash flow. However, this does not run smoothly as always as it might be expected. There are some specific concerns. For instance, the company may declare terms and conditions of payments. Some customers may ask about longer terms especially when they are trying to place high orders that are far from what is expected. Some companies may not have looked on this in advance but the accounting department may be strict about its

State of Economy (Michigan)

Based on this evidence, economists remain certain that Michigan economic status will continue to climb out of its deep economic hole. The economy has enjoyed an increasingly substantial economic recovery from the Great Recession for instance the GDP of the state has increased up to 385 dollar in 2011 compared 352 dollars of the last two years and this can be attributed to some key indicators. The per capita income of the nation has increased by 0.7% in the 3rd quarter of 2012 on a yearly basis, even thought this rise was lower compared to the 2rd quarter. Based on this evidence, the GDP of the nation is calculated to be increasing at a 0.8 percent compared to the previous years. The figure below shows Michigan economic growth after the Great Recession This extensive economic growth – as shown in the figure is assumed to be from manufacturing sector. For instance, manufacturing has a great contribution to the positive economic growth index especially the automobile industry. The other main contribution is from the construction sector that has made an enormous growth index change since 2005. Other crucial indicators of Michigan’s economic growth include reduction in the unemployment rate from 9.2 percent to 8.7 percent between October and November. For instance, between 2011 and 2012, the nation has had substantial growth in private sector employment. This qualified Michigan to be among the top six rapidly growing world economies. The levels of employment in the nation have currently shown some improvement signs since the end of the Great Recession in 2009 (Barenblat, 25). For example, the nation’s household employment has risen to about 2.7% matching the national gain of the state. In addition, the greatest employment increased is evidence in some sectors such as education, health services, hospitality sector, leisure, logging in addition, mining sectors, with health sector adding up 1.7 million employment opportunities accounting for 50% of the job opportunities created since recession in 2008. Similarly, the housing market has also show some minimal improvements that may viewed as economic improvement indicators and the United States sales of light vehicles has been very strong in December, assisting in boosting the production of Michigan light motor vehicles in 2012. For instance, statistics shows that housing markets are stabilizing with rise in sales and prices. Although, new homes constructions remain minimal, they are expected to rise and meet the gap demand. The business climate of the nation and the economy have enhanced during the past few years although the change has not been stronger to push the nation in the top ten economically strong nations. Following the reduction of business taxation and shift of corporate tax, the business condition of the Michigan has shifted to be among the top seven best economies of the world. Economists report that the GDP per capita and employment rates of Michigan has increased substantially compared to their peer nations since 2008-9. A firm competitive business climate in Michigan in conjunction with innovative customer service based administration has great impacts on the country’s economic growth. The nation has reinvented the stated government in crucial ways to function for the best for its entire people. Their policies has shifted a 1.5 billion dollars deficit in the budget without the use of on-time accounting tricks and

Analyzing an accountant system

The owner still has a debt obligation towards his relative ($100,000) which when accounted for is severely impacting the revenues generated by the company, thereby resulting in severe losses. The expenses for the purpose of conducting the business are of random nature which does not explain the exact purpose of incurring such expenses. As an example, it can be cited that the owner of MTS spends 40% of its allocated advertisement budget on business lunches involving local theatre producers and directors and the rest 60% is spent on advertising in local newspapers, theatre programs, sponsoring local children`s theatre and delivering flyers to the community. No clear rationale can be identified from this distribution strategy. As is evident from the income statement, the expenses incurred from advertising and promotion contributes significantly towards reducing the revenues generated by the company. For a startup company which is highly leveraged, efforts are needed to be put in order to reduce the obligations. The company needs to restrict its expenses behind advertising and promotion. … This is particularly because these are the expenses that are most directly involved in creating revenues. As is evident from the income statement, MTS has incurred huge amount of cost of goods sold as well as administrative expenses with respect to the revenues that the company has generated. The company needs to formulate a more effective strategy in order to bring down the aforementioned expenses. One particular area that is needed to be highlighted in the income statement is the expenses incurred as a result of payment made to the employees. According to the case study, MTS is supposed to book $25,000 as expenses due to payments made to employees. However, the income statement reflects a completely different figure which is significantly higher than the actual figure that is required to be reported. This sheds light on an important concern. The concern arises due to a weaker internal control within the company. The serious error committed while drafting the income statement questions the credibility of the accounting official responsible for preparing the income statement. The amount recorded as payment to employees in the year is $90,999 whereas the actual amount that had to be reported was $25,000. Had it been the case, then it would have significantly improved the figure that has been reported in the bottom line. This highlights a massive loophole in the internal control mechanism of the organization. There is no perfect approach towards employing officials who are experienced in the field of accounting. This is evident from the fact that the accounting part is handled by a person who does not have an accounting background and

IASB Conceptual Framework

It is against this background that International Accounting Standards Board (IASB) has continued to make efforts aimed at making the work of the accountant in the preparation of financial statements as easy and well consolidated into the qualities mentioned earlier as possible. Most of these efforts have been done through the preparation of the Conceptual Framework for Financial Reporting, commonly referred to as the conceptual framework (IFRS and IASB, 2012). As global business operations remain a dynamic phenomenon, one would notice a sense of constant change with the approach to financial reporting (EFRAG, 2014). It is against this background that the IASB is making plans on reviewing its existing IASB to align better with the changing nature of global business.The need to have a common global language when it comes to financial reporting was the need for setting up the International Financial Reporting Standards (IFRS) (IFRS, 2012). Together with IASB, the IFRS has always acknowledged the need to having a documented conceptual framework. On the whole, the purpose of such a document can be said to be the need to have a common a single medium through which the concepts that underlie the preparation and presentation of financial statements will be presented (FASB 2014). This means that the need for the conceptual framework is purposely to have an avenue through which all accountants across the globe can a single reference point in their practice, especially when it comes to the preparation of financial statements. Already, the importance of financial statements has been emphasized. With the important role that financial statements play, one would constantly want to question what makes a good financial statement and what makes a bad financial statement. The answer to this question is what makes the need to have a conceptual framework documented for the IASB purposeful.

The use of prophylactic antibiotics to reduce the instances of surgical site infections

We will write a plan for the implementation and evaluation of this plan and its application guidelines. In the interest of covering the trend of electronic health records, the plan will involve the use of newer technologies in maintaining a 100% antibiotic prophylaxis rate. While much has been written concerning which medications to use, when and how, I will take the Stetler Model to use newer technologies to improve upon current problems and provide new ideas to that extent. Phase 1: Introduction and Preparation A great many strides have been made since the advent of antibiotics that have helped cure infection and even prevent them from happening. In surgical care, because the body is being necessarily invaded normal flora can be translated to areas in which they become pathogenic and cause infection and disease (Wells, 2009) . Surgical site infections occur as a result of these bacteria and cause disease in the following manners: Incisional Deep (muscle and fascial layers) Subcutaneous (cellulitis) Organ or Space (Abscess or Meningitis) Further, research conducted by White (2007) shows how despite national recommendation guidelines many hospital surgical teams fail in achieving a 95%+ rate of surgical antibiotic prophylaxis to prevent post-operative infections which can occur as late as 30 days after the procedure (Wells, 2009). The most common soft tissue infectionsare gram positive organisms and are easily treated or prevented, but if allowed to infect areas of the body without prior treatment they can reproduce and cause abscesses, then the chance of damaging infections where organ function is compromised can be adequately controlled using the Stetler model to be implemented here. Appendix 1 will show the replication of the National Research Council Wound Classification. Interest Interest in this topic stems from insight to the needs we have at present to improve some of the antiquated paper systems in place with one that provides for the needs of the patient population, accounting for human error, that will be incurring a surgical procedure and that would be all patients from pediatric to geriatric. The need to limit infection as a complication of an already difficult medical practice is tantamount to improving post-operative infection outcomes where co-morbidities are not common place, but rare and limited. Patient Population and Clinical Settings As mentioned, almost every patient will at one time need a surgical procedure. However, each operation is different and carries risks unique to itself. A colectomy will certainly need different antibiotic treatment than a simple cyst removal or even a transplant operation, however the pre-surgical needs are all the same. Each patient needs to meet with the anesthesiologist, the operating surgeon if they haven’t prior to the date, and nursing staff who will be caring for them throughout the process. In each, be it an outpatient facility, hospital, or clinic, appropriate treatments should be administered and proper documentation followed. Validation and Literature Review A complete and thorough review of current literature regarding surgical prophylaxis was performed using Google Scholar for literature review, PubMed, and text sources. Search target parameters included ‘surgical prophylaxis error’, ‘nursing surgery error’, ‘pre-surgical antibiotics’ and ‘surgical infection’. After a thorough review,

Explain and evaluate the significance of the IAASB clarity project for UK audits

As a result, any case of bankruptcy of corporations whose financial accounts were audited. would directly or indirectly point out the role and possible and probable contribution of auditors. Since the fall of Enron, WorldCom and the most recent global financial crisis, the role and practices of auditors have come under more scrutiny than ever before. And these scandals and termed as ‘audit failures’, defined as an event in which the auditor fails either to implement generally accepted accounting principles or to issue qualified report.( Francis, 2004). But, previous research suggests that audit failures result in the impairment of auditor reputation, as witnesses by a loss in market share (Firth, 1990. Wison and Grimlund, 1990. weber et al.2008), also lower audit fees (Davis and Simon, 1992). The recently emerged financial conditions have put more pressure on the International Auditing and Assurance Standards Board (IAASB) to revisit some of the basic International Standards on Auditing (ISAs). Undoubtedly, the use and need of these international auditing standards is never more needed and felt than this time. In the current economic and financial global circumstances, the need and significance is timely understood and realised by the IAASB. In collaboration with other international professional auditing, accounting and other professional bodies, the International Auditing and Assurance Standards Board began its working on the clarity project in the year of 2006 (Smith, 2010). This clarity project is designed and established to reduce the ambiguity in some of the standards on the auditing, and it is designed to enhance clarity on some of the standards. Additionally, another significant aim of this clarity project is introduced to enhancing understandability on some of the auditing standards. The new clarified audit related standards came into force in the UK and in Ireland for the purpose of audit of financial statements for period ending on or after the date of 15 December 2010, But, before going to explain and evaluate this clarity project for UK, it is vitally important to understand the main objectives behind the establishment of the International Auditing and Assurance Standards Board. Background of International Auditing and Assurance Standards Board The IAASB is established to develop auditing and assurance standards

Management accountR12

The theory aims at reflecting management accounting system as dependent on factors that crop up from time to time. This theory brings details of the factors which rise up and affect a management accounting system. According to this contingency theory, the contingent factors affecting a management accounting system are unique to each organisation. Organisations vary from one another in terms of operations thus the difference in the form of adoption, functioning and sophistication of a system. This means that each company will have a management accounting system which is specific to its form. This explains why we do not have a globally adopted accounting system. Contingency theory has made bold steps in helping us understand how accounting and budgetscan and should be used to deal with the issue of management control. The theory basically supports the handling of accounting and budgets in a way which recognizes related changes which might occur in the company (Sharma, 2009). The contingency theory is usually very important in ensuring that the management accounting system in a company is in sync with the prevailing factors at a given time. The efforts by this theory have been successful through the manipulation of the factors that affect a management accounting system among other factors. … With this, the organisation does not need to have management control based on a sophisticated management accounting system. Under such a situation, themanagement will control the organisation on the basis of the set out budgets. The contingency theory also shows how accounting and budgets can be used to handle matters of management control through the consideration of strategies and mission as situational factors. Basically, the type ofstrategies and mission applied by a company determines the kind of system for management accounting to be put in use. For example a firm may decide to apply a strategy of low cost and defense. Under such a strategy, a company will work towards standard products, few lines of products, low cost operations as well as policies promoting economies of scale. with this, there will be need to have plans capable of making employees uphold low cost mentalities, incentives to workers depending on the results of evaluation of financial performance and adherence to budgets among others. This means that there is need for a management accounting system which is a bit sophisticated. Contingency theory shows that accounting can be utilized to handle the issue of management control through the determination of the accounting information need and use (Emmanuel et al,1990). According to this theory, the kind of accounting information needed by an organisation is very key in determining the management accounting system required. In a situation where the accounting information required iscomplex, then a highly sophisticated management accounting system is required. If a firm requires just simple information, then a less sophisticated management accounting system is required by an organisation. There is also the intended use of the

Accounting For Decision Making

To do this, we had to conduct research on the two companies’ performance over the years and analyzed the data using financial ratios and statistical graphs. From our findings we found out that fantastic holdings has good gross profit margins but has higher expenses rates which reduces the net profit margin (Whiteside 2007). It was also evident that fantastic holdings has good profits in comparison to the input as given by the investors and has also good use of its assets to make high sales. Fantastic holdings limited were also noted to have good debtors and creditors turnovers. This is a good indication that the company has good strategies of dealing with debtors and offsetting their debts to creditors. On the other hand, super retail group company shows high liquidity in terms of offsetting short term debts (Whiteside 2007). From the analysis, it is recommended to an investor to invest in fantastic holdings limited. Those in need of loans from the companies are advised to consult super retail group company. These findings are discussed in details in the sections below. Table of contents 1.0 Executive Summary …………………………………………………………………………2 2.0 Introduction ……………………………………………………………………………………. 4 3.0 Profitability …………………………………………………………………………………… ..4 4.0 Efficiency ………………………………………………………………………………………. 5 5.0 Financial Stability …………………………………………………………………………… .7 5.1 Short Term ……………………………………………………………………………… 7 5.2 Long Term ………………………………………………………………………………. 7 6.0 Limitations ……………………………………………………………………………………….8 7.0 Recommendations ……………………………………………………………………………10 8.0 List of References ……………………………………………………………………………..11 9.0 Appendices ………………………………………………………………………………………12 10.0 Assignment Planner …………………………………………………………………….. ..14 11.0 Mark Sheet …………………………………………………………………. ……………….16 2.0 Introduction This report analyzes two big companies. fantastic holdings limited and super retail group limited. Fantastic holdings limited is a big company dealing in manufacturing and sale of furniture. It manages over 125 retail stores running in five different chains of goods. The chains include. Le Cornu, original mattress factory, FHL, national retailers fantastic furniture and push and Dare gallery. It is also a major manufacturer of mattresses and sofas (Plunkett Plunkett Research 2008). On the other hand, super retail group is a leading company having eight groups. This includes. super cheap auto and super retail commercial, rebel, ray’s outdoors, FCO fishing camping outdoors, gold cross cycles, BCF boating camping fishing and Amart sports. The company has specialized in the retail of sporting, automotive goods and leisure equipment (Madaan 2009). This report tries to analyze the progress of the two companies financially in regard to profits gained over certain periods of time, sales returns and profitability of the two compan

Management of common minor injuries

Somatic pain that emanates from the skin, muscles, bones, ligaments, and joints can be regarded as the most prevalent form of pain encountered in musculoskeletal injuries. Somatic pain can be categorized into two types: deep and superficial. Usually, deep somatic pain is lasting and mainly indicative of sizable tissue damage to the internal joint structures/muscles (O’Connor 2013, p.87). Wrist and sprains have analogous signs and symptoms but differ anatomically. Wrist sprains and sprains mainly result from a fall onto an outstretched hand. The hand’s position and/or rotation at point of impact determine the form of and severity of the injury. Complex wrist and hand anatomy can render a diagnosis of wrist injuries on a challenging task (Parmelee-Peters and Eathorne 2005, p.35). The scaphoid represents the most dominantly injured carpal bone, accounting for close to 70% of carpal fractures. The management of wrist injuries should encompass rehabilitation of muscles weakened and motion lost by pain, immobilization, and inflammation. The rehabilitation should respond to five goal-oriented phases: (1) minimizing pain and inflammation, as well as oedema, if present. (2) enhancing pain-free range of motion. (3) reinforcing and enhancing general condition. (4) enhancing coordination and flexibility. (5) returning to normal work with prevention of injury that may include utilization of protective equipment (Moulton and Yates 2012, p.125). Discussion Scenario 1: The immediate pain in the left wrist below the thumb could arise from sprained thumb injury sustained after the fall. A sprained thumb is a dominant cause of thumb pain and swelling. This may emanate from damage to the Ulnar Collateral Ligament at the base of the thumb. In cases where the patient experiences severe sprained thumb injuries, there is frequent immediate thumb swelling and bruising may develop. The capability to pinch grip small objects maybe frequently impaired owing to the resultant instability within the Meta-Carpo-Phalangeal (MCP joint). Diagnosis for sprained thumb made through physical examination, whereby stressing the Ulnar Collateral Ligament may reveal instability within the joint (Kamper, Mahoney, Nelson, and Peterson 2001, p.371). This can be confirmed by undertaking an x-ray while stressing the joint. nevertheless, x-ray evidence may not be always helpful in isolation. Sprains usually tend to resolve in a period of about 4-6 weeks and can be aided by physiotherapy treatment. Ultrasound can be an effective mode of assessment in the early stages, coupled with mobilization, can help

MDA an essential tool to propel one’s career

For the employed, going back to school has various reasons like wanting a raise in salary, a promotion, application to a bigger company or it could also be a means to avoid dismissal from service. Most people who are taking postgraduate studies choose to enroll in Master of Business Administration Program because of the demand for its graduates. In addition, students want to be employed with higher salaries after getting a Masters degree. However, statistics show that such expectations are quite the contrary to many although could be true to a handful. Anne VanderMey (2009) claims that schools usually show prospective careers after MBA with the expected salaries to match. However, she mentioned that new statistics shown by PayScale proves this to be far from real to most graduates where only a few get the $150,000 gross annual income mark and most are able to produce the five digit mark only with the worst scenario of a graduate having $30,000 for a year. With the results of the statistical study however, schools say the information they have, prove graduates having higher salaries and the problem is pointed out to the manner PayScale gathers its information. Nevertheless, individuals have been interviewed and are quoted by VanderMey to prove that they are paid much lower than what they expected when they took their graduate studies. Eugene Choi for instance says he is paid $3,000 per month in a Japanese company Fuji TV (FJTNY), instead of the report of his school which was $7,500 a month. Salary could be a better problem for graduates than unemployment. One of the reasons why students enroll in MBA is, as mentioned earlier, its employability. However, the problem is still rampant among MBA graduates so that the education one gets is not an assurance to getting a seat in a company. It is perceived that employers are looking for the reputation of the schools students graduated from aside from the course they finished and Emerging, a French consulting firm and Trendence, a German consulting firm proved this through the survey they jointly performed among hundreds of employers from ten countries and concluded a one hundred fifty list of top universities according to employability ranking (Schuetze 2011). Reputation, Jeff Muzzerall, director of the Corporate Connections Center at the Rotman School of Management at the University of Toronto said, is crucial to employer’s recruitment. Employers on the other hand say they are looking at the big picture and consider various requirements rather than just concentrate on the school where an applicant graduated from. Instead, they look into skills, overall sense of focus and sense of balance in a student so that they may also consider other activities of an applicant as Steffen Laick, a top recruiter at Ernst Young, the global accounting firm mentioned in his interview (Schuetze 2011). With the statistics and what common sense suggest, it could be concluded that and MBA does not always guarantee success to everyone who take up the course rather would work for those who go to the right places at the right time and do the right things. Hard work, which has always been known to be the way to success, is still applicable to this modern age where education and skills are highly sought for. Education can never be a guarantee for those who want to take on an easy life

Discuess the statement about the pricing valuation and sensitivities of Credit default Swaps Spreads by presenting a critical r

Secondly, it presents a review of sensitivities and spillover effects on CDS spreads from bond, equity and options markets. Under this, the market that has the greatest influence is identified after considering statistical evidence from various sources. Finally, the report reviews credit default swaps in the context of monitoring sovereign risks in both developed and emerging market economies. This seeks to demonstrate how credit default spreads behave in tranquil and volatile market environments. In addition, the importance of CDS market development in emerging economies is also highlighted in this report. 2.0 Background Credit default spreads (CDS) are recent innovation in the management of credit risks. They have gained popularity in the management of both single name and sovereign debt risks. The market is valued based on information from related underlying equity, bond and their options markets. However, various challenges have been experienced when dealing with CDS markets. These challenges include pricing of CDS spreads, lack of exchanges for trading credit derivatives, manipulation of accounting information, among others. Pricing of the CDS spreads is not an easy task. Though various models have been put forward by many researchers, there is no universally accepted method of computing the price of CDS. Another challenge is the lack of exchanges for trading credit derivatives. CDS quotes are therefore obtained over the counter (OTC) and may not be reliable for estimating the CDS spreads. Spillover effects from the bond, equity, and options markets also affect the CDS spreads. The extent to which these markets impacts on the CDS spreads is not clearly known despite the various statistical methods posted by different researchers. Some suggested that equity markets have the greatest spillover effects on the CDS spreads while others argued that options market are the major contributors. Credit default swaps have been fully taken up in the developed economies while the emerging economies are still struggling to catch up. The way in which CDS behaves in tranquil and volatile market environments has sparked serious research. Many questions concerning CDS markets and their importance in the emerging economies have been raised by various researchers. How are sovereign risks managed by these economies? The application CDS in managing risks is a new innovation that requires further research. 3.0 Credit Default Swaps 3.1 Determination of the price of a single name CDS security. Many approaches of determining CDS spreads have been put forward by various researchers. One commonly used approach for pricing a derivative is by finding a portfolio of assets whose returns matches that of the derivative replicated. Duffie Singleton (2003) and Lando (2004) suggested such portfolios in their research. This strategy may not work in a situation where similar replicating instruments needed for replicating the portfolio are not issued by the issuer whose CDS’s are being replicated. In addition, what happens to the replicating portfolio when the CDS contract ends after a credit event? Another approach of pricing CDS spreads is to determine the value of spread which equates the net present value of the expected value of the coupon to the net present value of the expected value of the payoff. Hull White (2001) used this approach to formally derive the pricing formula. They assumed that interest rates, recovery rates and default

Review of Accounting Ethics

Other reasons behind such accounting ethical breaches are the avoidance of taxes, prevention from a legal or regulatory consequence, approving the loans from the financial institutions, etc. (Weil, 2012) The importance of accounting ethical breaches is highlighted more especially in the events when the public money is involved in the financing of the organizations. Such organizations which are keen enough to attract the external financing through representation of general-public are willing to portray their desired financial results to the upcoming investors of the organization. By such ready-made results, these organizations tend to mislead the investors so that their shares can be fully subscribed and the company can raise their required amount of money in the first stance. Besides the accounting standards, there are some code of ethics have been issued by the regulators to assist the companies in making their financial statements more ethical. … Groupon Inc. went to general-public for raising external financing through issuance of shares to the common investors. The share price of the company surged from $20 to $31 on the first trading day of the shares of the company. The underwriters of the company like Morgan Stanley, JP Morgan Chase, Credit Suisse, Goldman Sachs and others millions of dollars in creating a hype for this stock in the form of underwriting fee. With conservative estimations, it is believed that those investors who bought the shares of Groupon Inc. have lost some $9 billion in total since November 4, 2011, the first trading day of the Groupon Inc.’s stock. The share price of the company fell to around $13 from a high of $31 since its inception. However, the original backer of the company’s shares, Mason, Eric and others kept their holdings with them and did not sell any portion thereof. On account of such holdings that they kept with them of the stocks of Groupon Inc., they received an incentive named as payday which was a fat reward for such endeavor (Weil, 2012). Financial analysts and critics believe that it was mainly the fault of the management of the Groupon Inc. using such aggressive accounting to cause such debacle. The accounting treatment of the company was so aggressive that the Securities and Exchange Commission of US had to intervene in the financial matters of Groupon Inc. twice before the launch of its IPO. The accountants of the Groupon Inc. recognized the full revenues of the coupons that they sell to their merchants. The company booked all the revenues in this regard which heightened its earnings sharply just before the launch of the IPO. At that time, the analysts were

Coca cola Enterprises

In order to establish itself an enhanced space in the market, the company engages in social responsibilities. Coca Cola acts as a global employer and is ranked within the top 10 organisations (The Coca Cola Company, 2012). Products/services and geographic scope The company has launched some customised strategies while entering into international expansion plans. When entering into a new market, it tends to focus on business volumes. It invests in brand promotion through the use of visual and print media. Such brand promotional activities have helped the company to develop as well as to enhance its distribution. The distribution network is entrusted with the responsibility of the distribution of beverages to different corners of the targeted countries (The Coca Cola Company, 2010:23). In terms of expansion policies, Coca Cola is focusing on the creation of outsourced manufacturing, bottling and distribution that will work to cater for the local needs. The company engages in innovation in the realm of products, packaging, equipment and other activities designed to gain further penetration into both established and foreign markets. The invention of recyclable packaging through the use of plants helps to cement the company’s sustainable image. In Europe, Coca Cola focuses on enhancing its packaging activities. The family and economised plans serve the needs of all types of consumers. The company has formed ties with various sporting events, with a view to creating brand awareness and enhancing the loyalty of consumers. It has also diversified its business by entering into the production of juice and energy drinks (Bodden, 2008). Competitors Coca Cola’s main competitor within the soft drinks industry is PepsiCo. a firm that poses a serious threat to the company. Moreover, some local brands also provide some kind of competition for Coca Cola. Any kind of competition is healthy for a market, as it benefits the consumers (Porter, 1998). In spite of Coca Cola enjoying the major proportion of the market, it does not have the capability to exploit the market conditions, mainly because the substitute drinks companies have significant power. Some other competitors include RC Cola, Kola Real and Inca Kola (Bell, 2003). PEST analysis Political analysis: the company belongs to the non-alcoholic beverages group and falls under the Food and Drug administration. Coca Cola Company takes all the necessary steps in order to analyse whether the introduction of new ingredients will meet the required standards, and asks for advanced approval from the FDA. Coca Cola Company also abides by the rules set by the FDA on plastic bottled products. The company follows differentiated accounting policies which show a significant role in the reported results. According to the jurisdiction of various countries, the company is subject to income tax policies. It is also subject to import and excise taxes where outsourcing units are absent. Economic factors: before entering into a new market, the company always analyses the economic factors of the country in question. When a country experiences economic growth, the purchasing power of its population increases, enabling the company to market its products. Coca Cola currently uses 63 other currencies in addition to the US dollar. Fluctuating foreign currencies can impact revenue generation. The fluctuation of exchange rates affects the export of the products globally. The company uses the derivative financial instruction

Contracting Method and Award

The United States General Accounting Office (2003) provides that the method used to bid is the Invitation For Bid (IFB) which includes the product description or description of service required, conditions of purchase, payment, packaging, delivery, the deadline for bid submission, as well as the contractual clauses. The bids are opened at the purchasing office at a time predetermined in the invitation for bid and recorded. The lowest bidder who can meet the requirements of the government gets the contract. It is noteworthy that sealed bidding puts primary consideration on the bid price. Whereas contracting by negotiation allows flexibility in the award of the contract and does not place a lot of emphasis on price but puts into consideration other factors such as past performance, managerial experience or technical approach. The government offers a Request For proposal (RFP) in which the government requests a service or product it requires and solicits proposals from the prospective contractors and how these contractors intend to execute the requests and the price attached. Unlike the other contract methods, these proposals are subject to negotiations after submissions. Best uses for the contract methods. The government uses contracting by negotiation where the contract exceeds $ 100,000 and that the product or service required necessitates a high level of technicality. This procedure is employed when the best value of the service or goods are expected from the selection of officially acceptable proposals in regard to the lowest evaluated price. In essence, this implies that the cost of the contract does not play a pivotal role in the evaluation process. The simplified acquisition procedure best suits situations where the government aims to reduce administrative cost associated with the contracting process. This method promotes economy and efficiency in the contracting process. Additionally the simplified procedure puts into consideration the provision of opportunities to small, disadvantaged, veteran owned and women owned businesses with an aim of providing a fair proportion of government contracts to these businesses. According to Kenneth Philip (2006) sealed bidding becomes useful in a situation where the government expects competition from various contractors and it has provided an adequate description of the contract. The procedure requires time to issue invitations for bids as well as to receive these bids. therefore, it implies that the procedure can only be used where the government has time for this. It is also noteworthy that this procedure does not require contemplation of price and only the lowest bidder wins the contract. In this regard, the procedure best suits situations where the government aims for the lowest price. If the government uses the improper contracting method, the cost incurred in the contracting process may unnecessarily increase this is so especially, where the simplified acquisition procedure is disregarded. In situations where the requirements are technical, and the negotiated procedure is not used this may result in substandard contract outcomes. Steps in choosing proper contracting methods. In order to determine the best procedure to use in the contracting process by the government, it is critical to put into consideration some factors. Key among these factors is the requirements of the service

Finance and Accounting 2

The interaction made with the organization based on relationship marketing can prove to be a part of ongoing relationship between the customer and the organization and this is because through the interaction, which was done through mail, highlights the importance of relationship marketing in the competitive environment and can be said to be a competitive advantage for organizations. Based on the interaction it has been learned that PG has been using digital tools in order to build one on one relationship with the customers so to enhance the innovative and marketing capabilities of the company. According to PG CEO, Bob McDonald the company aims to create indispensable relationship with the brands and it is possible though digital technology. The interaction on relationship marketing which took place can evaluate the way organization is thinking and to what extent they are ready to incorporate change to cater the needs of the customers. PG is known for its innovation and customers expects the same level of innovation, involvement from the company while dealing with the requirements of the customers, therefore the interaction with the management of PG is definitely an advantage to gather more information about the strategies which are adopted by the company to cater the needs of its target customers (Marketing Governance, 2011). Based on the interaction it has been revealed that PG builds relationship with the customers based on trust and transparency. The company provides individual with choices and information with respect to communication strategy. The interaction further tends to create value for the ongoing relationship between the customers and the organization a whole. In the competitive world it has become extremely necessary to build trust on the customers so that loyalty is maintained with respect to specific brands and for this relationship marketing plays an important role and can be related to ongoing relationship between the customers and the organizations. Based on the interaction with PG management, it has also been revealed that it has developed website allowing customers to shop through the site rather than visiting the stores. The online retail market is the new buzz word and companies are following it to attract and retain new and potential customers. By developing e-store PG has created an image for itself in the minds of the customers as an accessible brand made available to the customers at any point of time and also helps to retain them from shifting to another brand offering the same facility. PG advertise the sites and hopes that the convenience of shopping online by the customers draws more and more customers to the site (NBC News, 2010). The online retail stores have proved to be effective and have helped many retail outlets to incur profit ad increase revenue. Most important, it creates a perception in the minds of the customers that the brands is accessible and PG being a huge FMCG giant and involved in many different sectors, the customers would prefer to buy products from the company which would further result in customer loyalty for the brand. This way the brand will be able to keep up the long term relationship with its target market and also potential target customers. Therefore organizations and brands are dependent on the customers providing them with an upper hand in comparison to the companies.

Accounting Basics

4. The incomes which are earned and not yet received are called accrued income. It will be shown in the credit side of Income Statement so bill invoice on 4th July, 17th July and 26th July (only 5000$ as 500$ was received cash) will be shown in the credit side of Income Statement and will be added to debtors account as it is credit invoice. 5. On 8th July, Amount received against above invoice adjustment will be as debtors are reduced by 3500 $ and cash will increase by the same amount. 6. As on 9th July, Advertising bill was produced but payment was made on 13th July so the amount of advertising expenses will be shown in debit side of Income Statement and will be deducted from cash account. 7. The office supplies were purchased on 14th July and payment was done 1 week later so the amount will be shown in office suppliers as it’s an assets and 21st July cash entry will be done against that. 8. The amount was withdraw on 20th July for personal use from bank, as no bank account statement is given the amount will be shown in liabilities side of balance sheet and will be deducted from drawings 9. The clock of 3800$ was sold at the price of 5500 $. So the profit on sale of clock will be credited in Income Statement. 10. The personal assistant was appointed on 14th July @ salary of 26000$ per annum and was paid fortnightly. The salary paid to him on 28th July will be debited in Income statement and will also be shown in Cash Account. 11. Following are the accounts: Cash account Date Particulars Amount Date Particulars Amount 1st July To balance B/fd 18500 9th July By Office supplier 750 2nd July To Capital A/c 150000 13th July By Advertising Exp 700 8th July To…The buyer who is willing to buy the business will always see that what the value of the assets in the market is? The seller will also see that he is getting worth amount or not. The elements of cost which are included in the fair valuation of assets are its purchase price, any costs to be incurred for the movement or transportation and costs of dismantling and removing the asset from its original location (Picker 2009). And then the amount will be the final/minimal amount that the owner wants from buyer. If the market value is more than the expected value the excess amount is considered as income of business and is distributed among owners. Thus, by using fair value method of valuation, Rick can have excess amount and will not run into losses as he plans to dissolve his business. On this ground, Fred’s suggestion to Rick is supported.

Business and Customer Processing in an Organization

The production and accounting can be considered as an internal business process while sales and purchasing can be an external business process. The success of a business remains on the effective management of both internal as well as external business processes.Capabilities based competition is one of the common things in the business process. In order to compete in the market, the organization must well assess their own capabilities along with its competitor’s capabilities. Such an assessment will help the organization in formulating strategies for future business. For example, the Indian automobile manufacturer, Tata has recently unveiled the cheapest passenger car called Nano for $ 2000. The Tata group expect a boom in the sales of their Nano car which will definitely reduce the sales of their competitors. So the competing automobile companies in India need to find an alternative to counter the competitions from Nano. Thus Capabilities based competition identifies an organization’s key business processes, manage them centrally, and invest in them heavily, looking for a long term payback.In order to make an organization capable of competing based on their capabilities they should focus on. a shift in their strategies to achieve aggressive goals, organise around the chosen capability and make sure employees have the necessary skills and resources to achieve it, make progress visible and bring measurements and reward into alignment and do not delegate the leadership of the transformation. The business strategies must be changed based on the requirements of the changing world. Globalization, Privatization and Liberalization policies have forced organizations to change their business strategies to exist in the market. The successful old strategies may not be suitable for the requirement of the modern world. For example, it is very difficult for a small scale industry to survive is an MNC start functioning around them.

If Accounting Is to Retain Any Credibility Then Without Credibility It Is Worthless

The faithful representation of the economic phenomena may be a challenge at times for the accountant, it should always remain their goal. It is against Tinker’s prophetic confession that accounting policies ought to be chosen for their supposedly desirable economic consequences rather than their ability to depict relevant situations faithfully. Accountants are reporters just as journalists and they are therefore endowed with the task of reporting faithfully any financial transactions that the company engages in. In the recent years, the roles of the accountants has greatly changed, these changes are in line with the changing regulations and business laws though from research there are indicators that there is a perception gap between the profession and the public and this is with regards to trust. The major contributor towards this is the ignorance hence lack of understanding of the public of the roles of the accountants in business growth, which is a crucial component of economic growth and recovery. The credibility of the accounting information assumes that the accounting information does not comprise any significant error or subjectivism, therefore it faithfully presents image of the process or phenomena (Previts, Robinson Chandar 2007). The conceptual frameworks upon which credibility is ensured comprises of detailed elements, which ensure the elements are appropriate in terms of content. It is therefore appropriate if the accounting information is objective that is the transactions and events are faithfully mirrored (Previts, Robinson Chandar 2007). This means that the transactions and events reflect the true meaning and consequences of economic events alongside the legal requirements. The information has to be neutral i.e. avoid influencing a decision or issuing a judgment for the accomplishment of any pre-determined objective. The display of transactions faithfully in the primary elements, which ensures the credibility of the information, provided in the statements. This ensures a balance between the information provided numerically and in a described manner concerning the information’s inductive phenomena. For the sake of the generation of faithful information, there has to exists a transaction or an event which is embodied upon the balance sheet level regarding the display of the elements concerning the corporation’s assets, debts, and own capital (Sims Quatro 2005).

Understand &amp

explain the Accounting Equation and its componentsUnderstand explain the Accounting Equation and its componentsFurthermore, it makes sure that financial statements reflect acrual basia of accounting. Adjusting entries are necessary because a single transaction may affect revenues or expenses in more than one accounting period and also because all transactions have not necessarily been documented during the period. The determination of an objective net income as well as the correct balances on the Balance Sheet. There are two types of adjusting entries the deferrals or the prepayments and the accruals. They are further categorized into four types of adjusting entries which includes accrued revenues, prepaid revenues, accrued expenses and prepaid expenses. Accrued revenues which are also referred to as accrued assets refers to revenues whichhave already been earned but have not been paid for and thus have not been posted in the general ledger. These are adjusted in the financial statements by debiting the asset accounts recievable and crediting the the relevant revenue account. An example of accrued revenue may occur when an architecutral firm offers consultancy services of $ 1300 to a manufacturing enterprise but fails to bill its services untill next accounting period. An adjusting entry to record the income in the correct period would be done by Accounts Reciavable $ 1300 Consultancy Income $ 1300 Prepaid income refers to revenues or money recieved from clients before the services has been earned. The effect of this transaction is at first when the cash is received. cash account is debited and credited as unearned fees or customer deposits. When a Cleaning services company receives $ 1000 being payment for its services for 5 months in advance which includes two months of the next accounting period is an example of a prepaid income. The adjusting entry at the end of the accounting period would be Cleaning Income $ 600 Prepaid Income $ 600 Accrued expenses relates to expenses which have been incurred by a firm but have not been paid paid for. An illlustration of an accrued expense usually occurs when company pays its rent expense for rent relating tothe previous month. Thus if the rent expense amounts to $ 12000 a month. While recording the last salary payment at the end of an accounting period the adjusting entry will appear as follows. Rent Expense $ 12000 Accrued Rent $ 12000 Prepaid expenses relates to the expenditures which have been paid for recorded as assets which are paid for in advance. An example of a prepaid expense may arise when a company prepays $ 2000 relating to advertising and promotion expense, which relates to the next accounting period. To make adjustment entry in the general ledger the journals will be as follows. Prepaid Advertisement and Promotion $ 1300 Advertisement and Promotion $ 1300 There are other adjusting entries which may bad debts, depreciation allowances and stock or inventory adjustments. One example of such adjustment may arise when a manufacturing company purchases a motor vehicle for $ 0.65 million which is assumed to depreciate by straight-line method for 5 years then at the end of the first accounting period to adjust the motor vehicle value to ensure there is no balance sheet overstatement will be done as follows. Depreciation Expense $130,000 Accumulated Depreciation – Motor Vehicle $ 130000 Finance officers to ensure that they record adjustment entries in a computerized accounting system usually conduct a comprehensive mothly examination- cut-off procedures- of trial balance. This is done to ensure that all incomes and

Finance and Accounting Nike Inc

Financial information is an important component for any organization in the contemporary business environment. Accounting and budgeting information are important aspects of finance and accounting that rely on accuracy, reliability and ease of access for the strategic advantage of any firm. Initially setting up shop in the name of Blue Ribbon Sports in 1962, the Oregon based company has become to be known as Nike Inc. as from 1972. The company has grown significantly and has several subsidiaries including NIKE Golf, Cole Haan and Harley international among other business enterprises (Nike Inc., 2012). This has seen the company grow to a global leader in the sporting goods industry. Besides, it is recognized as the global leader in design, marketing and distribution of athletic boots, clothing and accessories for varied sports and fitness needs. The company’s main objective is to design, develop and market the sports related merchandise around the globe. The company serves as wide market segment with its products made for different social groups like women, men and children. To further illustrate this diversity, it is indicated that the company has well over 300 shoe models designed in 900 different styles to suit a further 25 different sporting activities (Nike Inc., 2012). To help in its expansion and market penetration, the company has collaborated with many firms internationally. This has helped the company to explore markets that do not fall in its core operational competencies. The company’s main competitors are Adidas and old navy among other industry giants. The company has to remain innovative in its product development and promotion so that it survives in the highly competitive industry that also involves clients who are in some form of competition. In the area of finance and accounting, the company has remained a giant in the industry if the group’s ever-impressive results are anything to go by. However, the company’s operation in a highly competitive industry means that the organization’s management has to constantly review its strategic management decisions so that it remains a leader in the industry. Accounting and budgeting information will therefore remain an important

The scorecard measures Between Toyota&amp

PeugeotThe organizational profits but also the response of the customers to a firm’s strategic decisions indicate the ability of the organization to identify plans that are aligned with the market trends. The role of various factors in a firm’s performance has been extensively studied in the context of management accounting. A series of management accounting techniques has been developed in order to help firms to measure their performance, either in the short or the long term. Current paper focuses on the potential use of Balanced Scorecard, an accounting technique developed in 1990 by Kaplan and Norton, for measuring the performance of a well known, organization: Toyota. Reference is made to potential scorecard measures under each of the four headings of the balanced scorecard that could be applied to Toyota. At the next level, two alternative strategic management techniques are suggested for another well-known firm of the global automotive industry, Peugeot, at the level that these techniques could possibly help the organization to measure its performance more effectively. The performance of both, Toyota and Peugeot, is compared with reference to these firms’ potential to apply effectively their strategies. Peugeot is more prepared in order to face the challenges of the global market, a fact that is related to the firm’s ability to avoid failures when measuring its performance. 2. Balanced scorecard as related to the just-in-time technique in Toyota The just-in-time technique used in Toyota is based on the following principle: waste must be controlled, as possible. For this reason, in Toyota efforts are made so that the following philosophy is applied: the volume of the firm’s products is decided in accordance with the level of the existing orders (Toyota, Production system, 2012). In order to be able to respond quickly to new orders, the firm promotes the following strategies: all parts required for the vehicle ordered are available in the assembly line, so that the production of the vehicle can proceed with no delay (Toyota Production system 2012). After using certain parts for producing a new vehicle, the assembly line has to replace these parts so that its stock is kept at a specific level, a fact that secures the readiness of the firm’s production units to respond quickly to new orders (Toyota Production system 2012). The above technique could be analyzed using the Balanced Scorecard (Figure 1, Appendix). The Balanced Scorecard is consisted from four parts: ‘Customer, Internal Processes, Employee Learning and Growth and Financial’ (Niven 2006, p.13). A series of potential scorecard measures under each of the four headings of the balanced scorecard as they could apply to Toyota are presented below. 2.1. Customer The relationship between the firm and its customers has faced severe challenges the last decade mostly because the continuous failures in the firm’s products. It is expected that customers’ loyalty has been decreased, a problem that should be faced by the organization with no delay. A measure should be developed by the organization for estimating the level of customer loyalty and the level of customer satisfaction in regard to the firm’s products worldwide. The firm would initiate a survey among its customers worldwide. the views of the firm’s existing customers on the quality of the firm’

Does the mixture of debt and equity in a firm’s financial structure matter Why

Primarily the equity shares are issued at ‘Par value’ but subsequent issues are made at premium. The company can finance its capital and revenue expenditure through the issuance of these shares or through its internally generated funds. The shareholder’s equity, as presented in the statement of financial position, comprises of retained earnings and issued and subscribed shares. Retained earnings are the accumulated profits from the period the company was incepted. These retained earnings or internally generated accumulated funds can also be utilized by the company in financing its assets. Debts are classified into current and non-current. Current debts include items such as accounts payable, accruals etc which arise in the normal course of business and pertain to company’s day to day operations. In order to understand the impact of debt in the capital structure of a company, it is imperative that the company should clearly get acquainted with the concept of debt. There is no universal agreement between the financial analysts all across the corporate sector when it comes to identifying what constitute a debt. It is considered a general notion that the long term debt as appearing in the balance sheet of the company constitutes the debt in the capital structure of the company. However, this definition of debt is way too broad and it includes the credits and short term overdraft of the company as well. The impact of debt on the capital structure can be analyzed from two different perspectives of financial accounting and financial management. Educated investors only invests in companies analyze several ratios such as current ratio, quick ratio and debt to equity ratio. Current ratio is quite important from the investor’s perspective as it tells the state of liquidity of the company and would it be able to pay off its long term debts in the future. The most commonly used liquidity ratio, the current ratio, which is calculated by comparing the current assets and current liabilities. The strengthened the current ratio the more ability the company has to pay its debts and short term obligations over the next 12 months. The asset test, which is also regarded as the quick ratio, is calculated by subtracting the inventory balance from the total current assert balance. Out of the current assets mentioned, inventories are regarded as the one which takes comparatively more time to be converted into cash or cash equivalent. The gearing ratios indicate the level of risk taken by a company as a result of its capital structure. These ratios are a great source of determining the level of financial risk to which the company is exposed and thus helps in reducing it to the optimum. The equity ratio indicates how much of the entity’s assets are financed through the finances generated through the revenue generated from the operations of the entity and raising financing through equity issue rather than acquiring debts or other financial institution. In addition to the above, the cost of raising funds in the form of loan acquired from the bank or financial institutions is substantially less as compared to the cost of raising financing through shares or bonds. The cost of raising equity comprises of printing of shares, cost of listing the equity shares on the stock market

Description And Comparison Of Two Companies (Part III)

The company is a part of automotive industry that manufactures some of the best automobiles, motorcycles as well as engines in the world. With the BMW Group owning three of the world’s best automobile brands- BMW, Mini and Rolls Royce and a total revenue of €76.84 billion in2012, BMW Group has become one of the leading premium brands in the world. The company is well known for its innovation, technology and quality. Louis Vuitton Louis Vuitton Malletier commonly referred to as LV, headquartered in Paris, is a French company founded in 1854. The company is a part of the retail industry that manufactures and sells a variety of products-shoes, watches, sunglasses, luxury trunks, accessories, jewelry and many other items. LV is one of the leading premium luxury fashion brands in the world. The company earned revenue of €3.2 billion in 2012. Target market BMW The BMW has a very strict target market. It only targets the luxury sector and avoids the entanglement in the mass production of average cars. BMW targets the elite and affluent class of the world for its real BMW. However, the company moved to target the upper middle-class with its new Mini and the 1 series. Louis Vuitton Louis Vuitton has a very limited target market of very wealthy people with high disposable incomes around the world. Nonetheless, the company targets both genders and a varying age from 16 to 80. Competitors BMW Mercedes-Benz and Audi are two of the most pertinent competitors of BMW. These three are referred to as the ‘German Big 3’ and are the leading premium automaker brands in the world. Louis Vuitton Hermes, Chanel and Gucci are some of the strong direct competitors to Louis Vuitton. These brands, along with LV, have remained the top ranked premium brands for the last few years. (Zelesny, 2011) Business Risks BMW BMW terms the volatility in the environment, the high debt levels and the uncertainty in the relevant industry as some of the most important business risks to the company. (Annual Report, 2012) Currently, the ongoing strikes in South Africa will cost the company extra 25 percent of the regular cost to import the cars into the lucrative African market. (Furlonger, 2013) Louis Vuitton Louis Vuitton referred to the slowdown in the renewed growth of the world economy as well as the Euro crisis as risks hindering the growth of the company. It also referred to the foreign exchange risk culmination due to the weakening of the Euro. (Annual Report, 2012) The sudden surge for the Louis Vuitton’s logo bags caused a gap in the supply, which converted into a business risk as it hindered the continuous supply of the brands in the market. (Financial Times, 2013)The maturing of the taste in one of the largest markets – China has resulted in the Louis Vuitton logo fatigue. This will cause the Chinese consumers to move to alternate cheap brands. (Roberts, 2012) Fiscal Year BMW BMW Group’s financial year ends on 31st December. (Annual Report, 2012) Louis Vuitton Louis Vuitton’s financial year ends on 31st December. (Annual Report, 2012) Stock Exchange BMW BMW is listed on the Frankfurt Xetra stock exchange in Germany. Louis Vuitton Louis Vuitton is listed on the EN Paris stock exchange. Financial Principles BMW The notes to the BMW financial statements 2012 strictly signify that the company-followed uniform accounting policies and principles in accordance with IAS 20, IAS 27, IAS 33, IFRS 2 and others. This company follows international accounting principles. (Annual Report,

The Impact of SarbanesOxley Act

The Sarbanes-Oxley Act was the consequential integration of two parallel financial reform bills advanced by Sen. Paul Sarbanes of Maryland and Rep. Michael Oxley of Ohio that correspondingly aimed at curbing the accounting practice accesses witnessed by large corporations in the US and internationally. Rep. Oxley bill was considered modestly pro-business with non-stringent regulations, however, Sen. Sarbanes was more substantial in its reform agenda and may not have sailed through at other times but the ensuing WorldCom scandal tilted public opinion heavily against corporate executives thus was passed 97-0 in Congress (Murray, 2002). (Hilzenrath et al, 2002).At the signing of the act in July 2002, President Bush proclaimed it as the most momentous legislation with the most far-reaching reform of American business practices since the time of Franklin Delano Roosevelt. (, 2002). The Securities Acts of 1933 and 1934 initiated by President FDR were also critical at that time in regulating the stock exchange and restoring investor confidence after the Great Depression plummeting of stocks that can be likened to the current global financial crisis.Although the Sarbanes-Oxley Act of 2002 heralded a new era of transparency and responsibility for accounts reporting, it was also the harbinger for escalated expenditure, confusion and antipathy by corporate executives as the guidelines necessitated costly outlays and less flexibility and financial dexterity (Bisoux, 2005). Nonetheless, Bisoux (2005) asserts that SOX has forced many corporate executives to abandon the what-you-don’t-know-can’t-hurt-you approach at managerial levels to an honesty-is-the-best-policy (p. 25).

Do Banks and Companies Misstate Profits through Accounting Techniques

Are banks and private companies misstating company figures to make it appear that they are either losing or earning lower profits through accounting techniques? Companies employ accountants to make financial reports. Thus, from the perspective of accounting, what can we say on the situation? Are accountants being used by banks to misstate company profits? On a related point, how do we assess the earning management techniques with regard to their potential to be used by companies to understate company profits? In relation to the said issues, what do the professional ethics for accountants require for accounting professionals on the matter? What are some of the relevant literature on the issue? Some of the relevant materials on the subject matter being addressed by this work were the works of Mitre and Rodrigue (2002), Turner and Wheatley (2003), Laux (2003), and Lev (2003).Mitra and Rodrigue (2002, p. 185) defined earnings management as management’s intentional and opportunistic manipulation of financial reports for personal gain. According to Mitra and Rodrigue (2002, p. 185), there are three ways of earning management: via structuring of revenues and expenses, changes in accounting procedures, and accruals management (Mitra and Rodrigue 2002, p. 185). However, Mitra and Rodrigue (2002, p. 185) had stressed that accruals management is the most damaging to the usefulness of accounting reports because investors are made unaware of the extent of accruals.Nevertheless, Mitra and Rodrigue (2002, p. 185) clarified that earnings management does not always a negative connotation because management may have implemented an earnings management to provide a conservative or more realistic earning figures based on the GAAP or Generally Accepted Accounting Principles. Mitra and Rodrigue explained (2002, p. 185) that opportunistic behavior arises from earnings management because it is empirically difficult to differentiate earnings management that is opportunistic from what is done in the interest of a conservative portrayal of the company situation. The Mitra and Rodrigue (2002, p. 185) assessment is that management or researchers generally take an opportunistic perspective in view of the difficulty of separating legitimate from what is illegitimate in earnings management.

A Matrix of Functions under the Umbrella Company

A Matrix of Functions under the Umbrella Company Accenture is a worldwide multinational company that has interests and employees in fifty-four countries. It is registered in the New York stock exchange. The company offers profession and technological services to other organizations across the world. It is headquartered in Dublin, Ireland. Its revenue in 2014 was estimated at 30 billion US dollars with a net profit of 2.9 billion US dollars and an operating capital of 4.3 billion dollars. Its total assets are estimated at an impressive 17.9 billion dollars and have a total equity of 5.7 billion dollars. It has 319,000 employees worldwide which makes it a notable world player in the area of business.[acc14] The company operates as a matrix of functions under the umbrella company, which are:Communications, Media and TechnologyFinancial ServicesProductsRecoursesHealth and Public ServicesThese five operating groups have nineteen industry subgroups that focus on business issues, evolution and relevant technology all focused on innovation and cutting edge market trends.AnalyticsThe company has heavily invested in cutting edge technology that has enabled it greatly improve its level of customer engagement and satisfaction. It keeps on top of business trends through engaging the best in all fields that are relevant to its day to day operations . It is constantly on the lookout for innovative methods of doing business so that it can deliver its services to its clientele as well as improve its service delivery.Business process managementThe process of doing business is a learned art and a science in itself and Accenture offers these services to its clientele. This is ensured first though the companies own performance in business and translated into services of better improving and providing the same services to clients.Customer Relations ManagementCustomer engagement and customer satisfaction is taken very seriously at Accenture with measures put in place to ensure that these two functions are closely monitored and controlled to achieve optimum levels. Surveys, consultants and other professionals are engaged to ensure that both internal as well as external research into these functions is achieved. FinanceAccenture has finance at its heart and its proper management in order to make profit is top priority as evidenced by its performance in the New York stock Exchange. It also endeavors to ensure confidence in investors as well as clients through sound financial management and adherence to international accounting standards for all its transactions. It publishes its accounts in all the relevant mediums for this express purpose.ManufacturingManufacturing is a key area in which competitive and relevant products are made available with emphasis on the highest qualityMergers and AcquisitionsThe company has undergone mergers and is also involved in acquisitions and other business interests across the world. Risk ManagementThis is a very necessary activity for the company especially since it needs to be able to accurately project the business environments such as political, economic and demand and supply issues.Supply Chain ManagementThe fact that the company stretches across the world makes it able to offer services, products of the same high quality around the world. This is done while remaining true to its brand name, identity and offers the same services to others.

*How Do You Find The Direct Materials Cost Per Unit And

Telecom Company produces a cell phone that sells for $150, and a smart phone that sells for $350. Last year, total overhead costs of $550,000 were allocated based on direct labor hours. A
total of 12,000 direct labor hours were required last year to build 6,000 cell phones (2 hours per unit), and 10,000 direct labor hours were required to build 2,000 smart phones {5 hours per unit).
Total direct labor and direct materials costs for last year were: Cell Phone Smart Phone Direct materials $2?0,000 $160,000
Direct labor 300,000 200,000 Management of Telecom Company would like to use activity-based costing to allocate overhead
rather than using one plantwide rate based on direct labor hours. The following estimates are for
the activities and related cost drivers identified as having the greatest impact on overhead costs. 3) Estimated Cost Estimated Driver Activity
Overhead Cell Smart Activity Cost Driver Costs Phone Phone Total
Production Number of runs production runs $200,000 20 5 25
Quality Inspection inspections hours 150,000 600 1,400 2,000
Packaging and Number of units shipping shipped 200,000 6,000 2,000 8,000 Total $550,000 (1) Calculate the direct materials cost per unit and direct labor cost per unit for each Managerial Accounting

Hi There Attached Are Two Documents For Financial Accounting

the first document has 5 questions, whilequot;Amazon vs. eBay which Is the Cheaper Stock to Buy?
1) Find the last 5…Business

I’M Unsure How To Get Started On A Process Costing Assignment

I need to calculate the equivalent units ofPLEASE USE THIS FORMAT BELOW:
100% XXXX
100% XXXX
ADD EUP…Cost Accounting

3) …

Sentra Inc.2) Sentra Inc. manufactures three types of graphic calculators: Super Deluxe, Deluxe and Regular.
The budgeted data for the last quarter are given below:
Selling price
Variable cost
Sales volume in
per unit
margin per unit
Super Deluxe
Actual operating data for the last quarter are given below:
Selling price
Variable cost
Sales volume in
per unit
margin per unit
Super Deluxe
a) Compute the actual and budgeted contribution margins in dollars for each product for the
last quarter.
b) Calculate the actual and budgeted sales mixes for the three products for the last quarter.
c) Calculate the total sales-volume, sales mix and sales quantity variances for the quarter. All
the variances are to be computed in terms of contribution margins.Cost Accounting

P65a Inventory Turnover And Days Sales And In Inventory Can Someone Please Provide Me

Chapter 6 Accounting for Invent
p6-5A. Inventory Turnover and Days’ Sales in Inventory The Southern Corporation installed a new in- LO
ventory management system at the beginning of 2018. Shown below are data from the company’s
accounting records as reported by the new system:
Sales revenue. . .
Cost of goods sold .
Beginning inventory
Ending inventory . . ..
Calculate the company’s (a) inventory turnover (round to three decimal places) and (b) days’ sales in
inventory for 2018 and 2019. Comment on your results.Financial Accounting

Please Answer The Questions Below And Charting Out Each Of The Problem Elements(Ex N=10 Pv=1200) Par Value Assume

10. You have been offered the opportunity to purchase a non-callable bond with a $100 annual coupon at
a market rate of 7% that matures in 15 years. What is the most you should pay for this bond? What is the current price of a bond with an 8% semiannual coupon at a market rate of 6% that
matures in 10 years? What is the yield to maturity of a bond with a 7% semiannual coupon, a current price of $1,200, that
matures in 15 years? Last year you purchased a bond with a 6% semiannual coupon with a market rate of 8% that matures
in 20 years. Today, 1 year later, the market rate has increased to 10%. What is the percentage change
in bond value from last year to today? Two years ago you purchased a bond with a 6% semiannual coupon with a market rate of 8% that
matures in 20 years. Today, the market rate has decreased to 6.5%. What is the percentage change in
bond value from two years ago to today? Financial Accounting

Problem 256

Slow to Change Company has decided to computerize its accounting system. TheNPV of Lease alternative
Cash Flows
PVF 16%
Present Value
NPV of Purchase…Managerial Accounting

Financial Accounting The Trial Balancei Need Help In Obtaining The Answer For

The Trial Balance of Hong Ann Sdn Bhd as at 31 December 2019 is given below.
Hong Ann Sdn. Bhd.
Trial Balance as at 31 December 2019
Accumulated Depreciation:
Furniture and Fittings
Motor Vehicles
Accounts Payable
Accounts Receivable
General Expenses
Staff Salaries:
Sales and Distribution Department
Administrative Department
Delivery Expenses
Bank Overdraft
Long-Term Mortgage Payable
Interest from Investments
Freight Inwards
Commission to Distributor
Furniture and Fittings at Cost
Directors’ Fees
Interest on Mortgage and Bank Overdraft
Inventory as at 1 January 2019
Land at Cost
Motor Vehicles at Cost
Retained Earnings
Share Capital
622,750Financial Accounting

Hi I Need Help With This Question Please

Question 48(6

INITIAL…Financial Accounting

I Only Need Question P38a Answered Which Is

er cost sheets.
counting procedures described in the first paragraph of the problem, do the
Record general journal entries for all transactions. Note that general journal entries are not
required in transactions 3 and 7. Post only those portions of these entries affecting the gen
eral ledger accounts set up in requirement (a).
Enter the applicable amounts directly on the appropriate job order cost sheets for transac
tions 3, 4. 7, 8, and 13. Note parenthetically the nature of each amount entered
Present a brief analysis showing that the general ledger accounts for Work- in-Process Inventory
and for Finished Goods Inventory agree with the related job order cost sheets.
Explain in one sentence each what the balance of each general ledger account established in re
quirement (a) represents
P3-8A. Manufacturing Overhead Distribution Worksheet The following are selected operating data for
the production and service departments of Bluestone Company for 2019.
Overhead costs (identified by department). . …
Indirect materials. …
$ 82.200
$ 25,440
$ 516.000
Indirect labor . ..
$ 32,584
Square feet of building floor space used . …….
Assessed value of equipment used
$ 63,000
$ 210.000
Cubic yards of factory space used ..
Machine hours
Direct labor . ………… .. . . ….
$ 20,000
$ 400.000
Building depreciation of $1 10,000 is allocated on the basis of square feet of floor space. Personal prop-
erty taxes of $30,000 are allocated on the basis of assessed values of equipment used. Costs for service
departments 1 and 2 are allocated to production departments on the basis of cubic yards of factory space
and machine hours, respectively
a. Prepare a 2019 overhead distribution worksheet for Bluestone Company similar to the one pre-
pared for Exhibit 3-15
Compute the manufacturing overhead rates for production departments 1 and 2 using machine
hours and direct labor costs, respectively, for allocation bases. Round your answer to two decimal
places.Managerial Accounting

Resource Ch 57 Of

Financial Accounting


BE 5-1
Sales Revenue COGS Gross Profit Operating expense Net Income $ 71,200 (b) $ 41,200 $ 30,000 (d) $ 17,900 $ 12,100 $ 108,000 $ 70,000 (c) $ 38,000 (e) $ 8,500 $ 29,500 (a) $ 181,500…Business

Determine Whether Each Of The Following Actions In Buying Selling And Accounting For Inventories Is Ethical Or

Determine whether each of the following actions in buying. selling. and accounting for inventories is ethical or unethical. Give your reason for each answer.
0 (Click the icon to view the actions.) 1. In applying the lower-of—cost—and-net—realizable-value rule to inventories, Terre Haute Industries recorded an excessively low net realizable value for its ending inventory. This allowed the company to pay less income tax for the year. This action is V because V 2. Laminated Photo Film purchased lots of inventory shortly before year-end to increase the weighted-average cost of goods sold and decrease reported income for the year. This action is V because V 3. Madison Inc. delayed the purchase of inventory until after December 31, 2017, to keep 2017’s cost of goods sold from growing too large. The delay in purchasing inventory helped net income in 2017 to reach the level of profit demanded by the
company’s investors. This action is |lt;l because : 4. Dover Sales Company deliberately overstated ending inventory in order to report higher profits (net income), This action is 7 because V 5. Roberto Corporation deliberately overstated purchases to produce a high figure for cost of goods sold (low amount of net income). The real reason was to decrease the company’s income tax payments to the government. This action is V because 7 Business

Super Deluxe Deluxe And Regular

Sentra Inc. manufactures three types of graphic calculators: Super Deluxe, Deluxe and Regular. TheSOLUTION
Calculations of variances are given below:
Super Deluxe
Super Deluxe
Sales Volume
Selling Price per unit…Cost Accounting

09 49 14

XYZ has been informed by its investment dealer, that bonds of equala} Cost of Debt
Yield*[1 – Tax}- 14*[1—0.4} 3.4 b} Cost of Preferred stock
Dividend g x 100
Preferred Stock 55 10.91 c} Cost of Equity w + Growth rate Market Price
2. 83
+ 0. 09
14. 77 d}…Financial Accounting

Write A

1,000 – 1250word paperon the following topic:

Describe the

Running head: MANAGERIAL ACCOUNTING IN CONTEMPORARY BUSINESS Managerial Accounting in Contemporary Business
Managerial Accounting…Business

I Can’T Determine How To Calculate The Cost Of Job 355 Using The Traditional Plant Wide Manufacturing Overhead

Sorrentino Industries manufactures a variety of custom products. The company Expected usage and costs for manufacturing overhead activities for the upcoming
has traditionally used a plantwide manufacturing overhead rate based on machine year are as follows: hours to allocate manufacturing overhead to its products. The company estimates a (Click the icon to view the expected usage and costs.) that it will incur $1,920,000 in total manufacturing overhead costs in the upcoming year and will use 15 000 machine hours. During the year, Job 355 is started and completed. Usage for this job follows: 0 Click the icon to view the additional information about the hazardous waste E (CHCK the icon to View the usage for Job 355′) disposal fees.) Read the muirements. Requirement 1. Calculate the cost of Job 355 using the traditional plantwide manufacturing overhead rate based on machine hours. Begin by calculating the plantwide overhead rate. First identify the formula used to compute the plantwide overhead rate, then compute the rate. (Abbreviations used:
MOH = manufacturing overhead; mfg. = manufacturing) I = Plantwide mfg. overhead rate Managerial Accounting

I Can’T Determine How To Calculate The Cost Allocation Rate For The Activity I Also Can’T Determine How To

Frances Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur
manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their
allocation bases are as follows:
(Click the icon to view the budgeted costs and activity bases.)
Frances Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,750 parts, require 15 setups, and consume 1,700 hours
of finishing time.
Job 420 used 300 parts, required 2 setups, and consumed 130 finishing hours.
Job 510 used 475 parts, required 5 setups, and consumed 310 finishing hours.
Read the requirements.
Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity.
Activity cost
allocation rateManagerial Accounting

I Am Mostly Not Sure How To Calculate Average Invested Capital Is It Investment Cap At The End Of The Year

ANE HUDSON is the CEO of ISS Australia, a company that pr
security, catering and maintenance. Hudson says ISS does not outsour
quality staff who deliver innovative solutions and quality servic
contractors. Staff are permanent employees. They receive inducti
assistance and are encouraged to pursue a career in the company.
people across Australia to work in facilities as diverse am
settings. A downturn in the mining sector and the
services returned that total to 15 000 en-
our people are more committed .
has four key values that
spends time tall .
the con
Question 8
(13 marks)
Billings Company is a decentralised wholesaler with two autonomous divisions. The divisions are
evaluated on the basis of return on investment (ROI), with year-end bonuses given to the divisional
managers who have the highest ROIs. Operating results for the company’s two divisions – X and Y
for the most recent year are given below:
op eubraz
Division X
Division Y
$ 10,500,000
$ 458,000
Cost of goods sold
Operating expenses
Invested capital at the beginning of the year
Invested capital at the end of the year
The company had an overall ROI of 15% last year. The company is considering an expansion project
in the upcoming year. The project would be implemented by one of the two divisions. The following
data relate to the project:
Expansion project
$ 2,000,000
Cost of goods sold
Operating expenses
Invested capital
Calculate the current ROI of the two divisions. Show your calculations.
(3 marks)
ROT = Profit Before tax
Ave invested cap.
XManagerial Accounting

Financial Accounting For Undergraduatesproblem P22aplease See Attachment Need By 11pm

(3} (4) –
(5} ‘ (5}
{3} {91
{10} $2,430 ‘+’ s? see 4}quot; seen + some $300 + 35,000 + $10.00!] + $3.200-
+2300 – 1 . +2,ooo H.500 _ .
—300 400
4’50 +750 —2.500 —2.500 ______________—_______.____..___——-—————— Required .
a. Show that assets equal liabilities plus stockholders’ equity as of May 1. b. Describe the :1th transaction indicated by each line. (For example. line 2; Borrowed $2.000,
giving a note payable.) If any line could reasonably represent more than one type of transaction, describe each type.
c. Show that assets equal liabilities plus stockholders‘ equity as of May 3]. Financial Accounting

Mccormick &Amp

Company is considering building a new factory in Largo, Maryland. James Francis, a landowner, isA
Computation of Future value
Offer 1
Offer 2
Time (Nper
Interest Rate
Future Value
$ 33,60.000
$49,54,880Financial Accounting

Every Network Is Different However Common Security Principles Apply To Any Network Regardless Of Its Unique


Every network is different. However, common security principles apply to any network, regardless of its unique

elements. One of these common principles is secure network design. Secure network design embeds core protections and improvements into an IT infrastructure before it is implemented. Design comes from planning. Planning comes from sufficient knowledge and understanding.

Based on your text, briefly discuss the following Concept of Network Design and Security relative to your company’s implementation.




Defense in Depth:






Content / Context:

Divide and Conquer:

Security through Obscurity:


Information Security

Hi All I Have A Homework For My Managerial Accounting Class

Submit your reflection paper on or beforeRunning head: MANAGERIAL ACCOUNTING MANAGERIAL ACCOUNTING
Student name
Course name
Managerial Accounting Introduction of managerial accounting


Ch. 11 amp 12 ofFinancial Accounting

CompleteExercises E11-15, E12-1, amp

E11- 15
Stockholders’ equity
Paid-in capital
Common stock
In excess of par value
Total paid-in capital
Retained earnings
Total stockholders’
Outstanding shares

Please Help With Below Question

ACT 5140 – Accounting for Decision Makers

HW #1 – Appendix

Ratio analysis
Ratio Analysis is one of the most important analysis technique which is used to analyse the
financials of the company from different perspectives. Different ratios of Home Depot has…Business

Question 1 Please Help Me To Arrive At The Correct Altman’S Zscore Based On The

Current Assets
Total Assets
Current Liability
Total Liability
6 827
Gross Profit
Operating Profit
Net Profit
Source: Created by the case authors with information from quot;Dillard’s Inc. DOS: Income Statement,quot; Momingstar, accessed
March 20. 2018, https:/ statementis.html71=0P000001085culture=en-USamp;platform=sal;
quot;Kohl’s Corp KKS: Income Statement,quot; Momingstar, accessed March 20, 2018, https //financials.momingstar.comincome
statementis.html?t-OP0000035Zamp;culture=en-USamp;platform=sal; quot;Macy’s Inc. M: Income Statement,quot; Momingstar, accessed
March 20, 2018, https:/financials.morningstar.comincome-statementis.html?t=OP00000246amp; culture=en-USamp;platform=sal;
quot;Nordstrom Inc. JWN: Income Statement,quot; Momingstar, accessed March 20, 2018, https //
statement/is.html71=0P000003XPamp;culturemen-USamp;platform=sal; quot; Inc. AMZN: Income Statement,quot; Momingstar,
accessed March 20, 2010, https:/;culture=en-
X1 = (Current Assets – Current Liabilities) + Total Assets
X = Retained Earnings + Total Assets
X, = Earnings before Interest and Taxes + Total Assets
X4 = Book Value of Equity + Total Liabilities
Z-Score Bankruptcy Model: Z = 6.56(X1) + 3.26(X2) + 6.72(X3) + 1.05(Xq)
Zones of Discrimination: 2 gt; 2.9 = Safe Zone; 1.23 lt; Z lt; 2.9 = Grey Zone; Z lt; 1.23 = Distress Zone
A Z-score was calculated by substituting the values in the given formulas from the financial statements of
the company under investigation. The value indicated the company’s current degree of financial distress.
For example, a score of 1.1 indicated that the company had a very high probability of going bankrupt,
whereas a score of more than 2.9 indicated that the company was out of harm’s way.Managerial Accounting

Hhow Can Accounting The Insurance In

Question three: prepare adjustment entries for the year ended
December 31, for each of these separate situation.
a- Prepaid insurance has a debit balance of 6,000 $, the insurance policy
purchased on 14 July to cover 2 years.
b- The office supplies has debit balance of 3,000 $ at the beginning of the
year, during the year purchase 6,000 $, at the year end the supplies used
3000 $.
c- The annual depreciation for the building is 40,000 $.
d- Total wages for December is 60,000 $, two weeks, wages still not paid yet
to the workersBusiness

On June 30 2019 When Smith Company’S Stock Was Selling At $65 Per Share Its Capital Accounts Were As Follows


On June 30, 2019, when Smith Company’s stock was selling at $65 per share, its capital accounts were as follows:

Capital stock (par value $50; 80,000 shares issued) $4,000,000 Paid-in capital in excess of par 600,000 Retained earnings 4,200,000 If a 100% stock dividend were declared and distributed, capital stock would be: a. $4,000,000. b. $4,600,000. c. $8,000,000. d. $8,800,000.

Financial Accounting

Please Show Work For Following Problems A Firm Has $100 Of Average Inventory Operating Profit


please show work for following problems:

A firm has $100 of average inventory, operating profit

of $500 and sales of $1,500. What will be its days in inventory?

  • 36.5 days
  • 24.3 days
  • 73.0 days
  • Not enough information

Which of the following assumptions regarding investor behavior are required by the CAPM?

I. Investors try to maximize their wealth

II. Investors consider only risk when making investments

III. Investors are risk averse

IV. Investors adopt a long-term perspective

Financial Accounting

Hi If You Please Help Me By Explaining The Question Thanks The 2017 Statement Of



If you please help me by explaining the question.


The 2017 statement of

financial position of Roger’s Tennis Shop Inc. showed long-term debt of $2.3 million, and the 2018 statement of financial position showed long-term debt of $2.55 million. The 2018 statement of comprehensive income showed an interest expense of $190,000.

What was the firm’s cash flow to creditors during 2018? (Negative answer should be indicated by a minus sign. Enter your answer in thousands of dollars. Omit $ sign in your response.)

Cash flow to creditors $

Financial Accounting

Suppose A Firm’S Operating Cash Flows Is Estimated To Be $10 Million Its Fixed Capital Investment Is At $2 5


Suppose a firm’s operating cash flows is estimated to be $10 million, its fixed capital investment is at $2.5

million, and its investment in net working capital is currently at $1.0 million.

Its long-term debt is $100 million in total and the most recent debt issuance had the YTM of 4.5%. Its stock is currently trading at $50 a share with 2 million shares outstanding. Its beta is estimated to be 1.2; risk-free rate is 2% with the equity market premium of 5%.

Q1) What is the value of the firm if you assume the firm’s free cash flows will grow at 3% indefinitely?

Q2) what is your estimate of a share price?Financial Accounting

Question 2 Using Real Options In A Risk Environment Can Be Beneficial If


Question 2

Using real options in a risk environment can be beneficial if

the enterprise need to make decisions on switching or acquiring multiple suppliers. Ericsson and Nokia had different approaches in managing risk, which led to different outcomes during a business interruption event at a major supplier.

a. Explain the difference between risk and uncertainty. (5 Marks)

b. Explain how real options how can be used to inform decisions to reduce the impact of exogenous shocks on the enterprise. (25 Marks)

Financial Accounting