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Accounting homework help

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College of Administration and Finance Sciences

Assignment 3

Deadline: Saturday 30/04/2022 @ 23:59

Course Name: Insurance Accounting

Student’s Name:

Course Code: ACCT 424

Student’s ID Number:

Semester: 2

CRN:

Academic Year: 1443 H

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: /Out of 10

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.


Assignment Question(s):
(Marks 10)

Q1. The following financial transactions are related with a General Takaful Product:

i. An amount of SAR 6,200 received as advanced contribution from new participants.

ii. An amount of SAR 4,500 received as a contribution from new participants.

iii. Contribution renewal received from participants SAR 5,500.

You are required to prepare necessary journal entries. (3 Marks)

Q2. Discuss the three primary methods used by Guaranty Fund to assess property and liability insurance using your own words. (2 Marks)

Q3. XYZ Company has the following financial data: (5 marks)


Particulars


Amounts (SAR)

Total Profit for the Year

377,500

General Takaful Assets (Year 2014)

1,390,000

General Takaful Assets (Year 2015)

1,517,500

Cash

11,500

Short-term Investment

23,500

Short term liabilities

85,000

Underwriting Surplus Distributable to Participants/Participants’ Share of Profit

 145,500

Gross Contribution

958,000

Net Contribution

662,500

Wakalah Fee

77,500

Commission Paid

28,300

Management Expense

58,000

Net Claim Incurred

287,500

Earned Contribution

632,500


You are required to calculate:

a) Return on Assets

b) Quick Liquidity

c) Surplus Distribution Ratio

d) Expense Ratio

e)
Claims Ratio

1

Accounting homework help

· McDonald’s hopes new social media question-and-answer will modify food image (Links to an external site.)
Passikoff, R. (2014, October 14). McDonald’s hopes new social media question-and-answer will modify food image. Forbes. https://www.forbes.com/sites/robertpassikoff/2014/10/14/mcdonalds-hopes-new-social-media-qa-will-modify-food-image/#70bf235f3f6d

Accounting homework help

Comparitive Data

[WLOs: 4] [CLOs: 1, 2, 5]

Prior to beginning work on the this assignment, review Chapters  14 and 15 in your course textbook as well as the 
Comprehensive Assessment of Firm Financial Performance Using Financial Ratios and Linguistics Analysis of Annual Reports  (Links to an external site.)
article and the 
Financial Ratios (Links to an external site.)
 web page. Complete the 
Comparative Data Staffing template

  Download Comparative Data Staffing template.

·
Background: 
As the office manager for Dr. Smith and Brown’s, you have the responsibility of ensuring efficient operation of their practices. In your healthcare career, you will need to understand the criteria, and use of comparative data as well as terms such as common-sizing, trend analysis, forecasting and projecting, which requires the analysis of data to make informed decisions.

·
Instructions: 
For this assignment, you will complete the 
Comparative Data template

  Download Comparative Data template. You are responsible for providing detailed responses to the questions posed in the document. You will also need to provide examples where indicated as well as references formatted per APA guidelines. When you have completed the document template, it should be at least two pages in length.

Accounting homework help

ABC Temp Devices is a domestic and global producer of temperature monitors. Based upon the influx of domestic and global companies wanting to purchase their temperature monitors, demand has recently skyrocketed. The importance of the managerial accounting department has been brought to the forefront, as they are being asked to provide preliminary information on the new business developments. ABC’s major competitor is 123 Engineering Laboratories, located in Pullman, Washington.

Imagine that you are the head of ABC’s managerial accounting department. The CEO has asked you to recommend an operating budget and financial benchmarks compared to the leading competitor in the market, as well as recommend a cost system appropriate for the product.

Instructions

Prepare a 2–3 page summary of your recommendations. Be sure to include suitable sources to justify the rationale for your decisions.

· Recommend a budget type.

· Recommend at least one financial benchmark you think the CEO of ABC should consider. Provide a rationale for your response.

· Recommend a cost system appropriate for the product.

· Provide an explanation of the budgeting rationale you proposed and why you believe your suggestions will put the company in a better position than the leading competitors. Remember to reference the financial benchmark, budget type, and cost system in your explanation.

· Use one source to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source slide at least one time within your assignment.


Accounting homework help

Prior to beginning work on this discussion, please read Chapters 16, 17, 22, 23, 27 and 28 in your course textbook, the 
Capital Budgeting in Health Organizations: Application of the Multicriteria Method Promethee V1 (Links to an external site.)

Capital Budgeting (Links to an external site.)
, and 
The Increasing Importance of Strategic Capital Planning  (Links to an external site.)
(
PDF Version

  Download PDF Version), and 
Overview of Capital Budgeting (Links to an external site.)
 articles, as well as the 
Capital Budgeting (Links to an external site.)
 web page.

The most obvious cost in a capital budget is the actual cost of the capital expenditure item. We must also consider other costs that will be incurred when we make the capital expenditure (purchase). These costs are important to include because they can be the difference between a successful implementation of the capital expenditure item and staying on budget.

After reviewing the textbook readings,

· Provide an example of a healthcare capital expenditure.

· Explain the rationale behind the purpose of a capital expenditure budget.

· Include two other cost considerations and explain their inclusion in your capital budget plan.

· For example, if you are installing an Electronic Medical Records (EMR), you must include future cost for maintenance, software updates, new computers, etc. These are the hidden costs of operation often not considered in a capital budget.

Accounting homework help

Kingdom of Saudi Arabia

Ministry of Education

Saudi Electronic University

A picture containing text, outdoor, sign  Description automatically generated

المملكة العربية السعودية

وزارة التعليم

الجامعة السعودية الإلكترونية

College of Administrative and Financial Sciences

Assignment 3

Management of Technology (MGT 325)

Deadline: 30/04/2022 @ 23:59

Course Name: Management of Technology

Student’s Name:

Course Code: MGT325

Student’s ID Number:

Semester: 2nd

CRN:

Academic Year:2021-22

For Instructor’s Use only

Instructor’s Name: Sulaiman Albawardi

Students’ Grade:

Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.


Course Learning Outcomes-Covered

· Explain of the concepts, models for formulating strategies, defining the organizational strategic directions and crafting a deployment strategy. (Lo 2.2)


Assignment 3 Marks:10

Students are requested to read the opening case of
chapter 10 “Organizing for Innovation” from their book Strategic Management of Technological Innovation (Page Number-197-200) of e-textbook.

Based on your understanding of the case and concepts studied until now answer the following question in 300-500 words each.

1.What are the advantages and disadvantages of the creative side of Google being run as a flexible and flat ‘technocracy’?
(3 marks)

2. How does Google’s culture attract the kind of employees it can attract and retain.
(1.5 marks)

3.What do you believe the challenges are in having very different structure and controls for Google’s creative side versus the other parts of the company.
(2.5 marks)

4. Some analysts have argued that Google’s free-form structure and the 20 percent time to work on personal projects is possible only because Google is prior success has created financial risk in the company. Do you agree with this? Would Google be able to continue this management style if it had closer competitors?
(3 marks)

NOTE: It is mandatory for the students to mention their references, sources and support each answer with at least 2 peer reviewed journal.


ANSWER

Accounting homework help

Kingdom of Saudi Arabia

Ministry of Education

Saudi Electronic University

A picture containing text, outdoor, sign  Description automatically generated

المملكة العربية السعودية

وزارة التعليم

الجامعة السعودية الإلكترونية

College of Administrative and Financial Sciences

Assignment 3

Public Management (MGT 324)

Due Date: 30/4/2022@ 23:59

Course Name: Public Management

Student’s Name:

Course Code: MGT 324

Student’s ID Number:

Semester: Second

CRN:

Academic Year:2021-22-2nd

For Instructor’s Use only

Instructor’s Name:

Students’ Grade:

Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.


Learning Outcomes:

3.1 Demonstrate different management and leadership styles for different situations. PLEASE READ THEM CAREFULLY

Assignment 2

Submission Date by students: Before the end of Week11

Place of Submission: Students Grade Centre via blackboard.

Weight: 10 Marks

We expect you to answer each question as per instructions in the assignment. You will find it useful to keep the following points in mind. The assignment with be evaluated in terms of your planning, organization and the way you present your assignment. All the three section will carry equal weightage

Kindly read the instruction carefully and prepare your assignment accordingly.

1) Planning: Read the assignments carefully, go through the Units on which they are based. Make some points regarding each question and then rearrange them in a logical order. (3 Marks)

2) Organisation: Be a little selective and analytical before drawing up a rough outline of your answer. Give adequate attention to question’s introduction and conclusion. (3 Marks)

Make sure that:

a) The answer is logical and coherent

b) It has clear connections between sentences and paragraphs

c) The presentation is correct in your own expression and style.

3) Presentation: Once you are satisfied with your answer, you can write down the final version for submission. If you so desire, you may underline the points you wish to emphasize. Make sure that the answer is within the stipulated word limit. (4 Marks)

Write an essay on the following topic in about 1000-1200 words.

“Leadership approach is essential for the growth and success of an organsiation. In the light of this statement, select two organizations with different leadership approaches. Compare and contrast the different leadership approaches prevailing in these organizations and their relevance in the present day context.


Answers

1. Answer-

2. Answer-

3. Answer-

Accounting homework help

Running head: CAFR REPORT 1

CAFR REPORT 5

CAFR Report, Virginia

Student Name

School

Dated

I. INTRODUCTION

The county of Fairfax was established in 1742, and it is located in the north Commonwealth of Virginia, United States of America (CityHistory, 2020) The county is known for its dedicated people and the hardworking public towards their jobs and businesses. It has been observed that the county’s government is in a struggle to devise better policies for the public. The financial crisis is minimized through proper planning and awareness among the public. The government is already familiar with the financial inputs and outputs and tries to manage the outcomes through better planning (Fairfax, 2007). Comment by Jeremy Yoo: Cite Comment by Jeremy Yoo: Still, Do not use Lottery source

The current report discusses the current financial conditions of Fairfax and the relevant issues. The comprehensive financial report was submitted on June 30th, 2021, and it has presented the financial outcomes of the county. The report is submitted annually, and it has been observed that the situation for the public remained suitable throughout the year. There are some points of improvements that are delivered to the government like the steps to improve the economic conditions and improve people’s living. It is important to review the whole report and decide whether the county’s overall condition has been improved (Schools, 2017).

There are different sections of the report, and the most important is the county’s economic conditions. The economic conditions are observed throughout the year, and the report is published (Last paragraph, Page IX). The county’s local economy was disturbed because of the coronavirus, which will be further discussed. The financial statements and their details have been discussed in the report. Comment by Jeremy Yoo: There’s no page number like IX

Fairfax Virginia is responsible for data accuracy, the fairness of figures and the complete details of the accounting and financial statements. The county must ensure that the complete report is delivered and adheres to honesty and integrity. CAFR has different sections, and the important one is the management personnel, where the committee with the different roles in CAFR has been discussed. The roles and responsibilities of different members have been explained.

CAFR’s committee of Fairfax has made the complete internal framework control where the processes are designed to prevent the losses and encourages the administration of the county to take the measures to meet the requirements of financial stability. It is made sure that the report is prepared with the complete alert to meet GAAP principles.

II. REVIEW OF MAIN SECTIONS

A comprehensive annual financial report has different goals and objectives. The report is published for the public and other regulatory authorities. The first purpose of the comprehensive financial report is to inform about the economic development of Fairfax County to allow the people to know how much they have to work hard to meet the goals of everyday life. The unemployment rate of Fairfax County in the year of coronavirus was 4.1 percent, and the county had to face other problems as well like economy recovery and small business promotion (First paragraph, page 11).

The general public is provided with detailed information on the financial statements, and the different analysis tools have been used. The government accounting standards, board regulation and GAAP (principles of regulation and consistency) are used to measure the analysis of the success or failure of the county’s financial condition. Comment by Jeremy Yoo: Cite

There are different kinds of funds used to handle the different tasks and activities in the county. The ratio of increase and decrease in the individual funds has been shown how the people spent during the coronavirus and the situation of government funds. The private and public funds are important for the public and the management to maintain CAFR. The major portion of the report revolves around the coronavirus initiatives and testing. The report is important because it is observed that the people and their lifestyles changed during coronavirus, and it gave a new direction to the financial analysis. The coronavirus has just passed and the county was passing through the economic downfall. The report has discussed the main issues due to coronavirus and the steps to recover. Comment by Jeremy Yoo: Cite

CAFR consists of three important sections, and the first part is of introduction. The background and information about the coming sections have been discussed in the introduction section. The introduction section is important because it is found that the general public does not have proper knowledge of statistical and financial knowledge. The public still want to understand the report, so it is necessary to guide them. Comment by Jeremy Yoo: These paragraphs should be the main part of this section.

CAFR is based on the next two sections. The financial discussion is the second part where the general public is guided on how the finance was used and how the coronavirus impacted the county’s economic situation, assets, and debts and what will be the future of the economy.

The last section is of the statistical analyses, where the graphical and tabular forms of data have been presented in detail. The net gain, profit and loss in assets have been explained to create awareness among the public regarding the economy.

2. REVIEW OF MAIN SECTIONS Comment by Jeremy Yoo: I would write like this in Part 2. Do not need Corona stuffs.

Introductory Section

It contains the letter of transmittal, which provides an overview of the County of Fairfax’s finance, economic prospects, and achievements. Also, included in this section is the certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association. It is the highest form of recognition in governmental financial reporting (cite) Page VIII

EXPLAIN MORE ABOUT THE INSTRUCTORY SECTION

Financial Section

The financial section includes the independent auditors’ report, management’s discussion and analysis, basic financial statements, including the accompanying notes, required supplementary information, and other supplementary information (CITE). Page 1


Management’s Discussion and Analysis

This subsection provides a narrative introduction to and overview and analysis of the basic financial statements. It included a description of the government-wide and fund financial statements, as well as an analysis of the county of Fairfax’s overall financial position and results of operations (CITE). Page 4


Basic Financial Statements

Basic financial Statements subsection…….. Page 20


Required Supplementary Information



This subsection…………. Page 152


Other Supplementary Information



This…………………………… Page 176

Statistical Section

The Statistical Section provides financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statement………………………. Five categories Page 282


Financial trends information



It is intended to assist users in understanding…. Page 284


Revenue Capacity Information


Page 294


Debt Capacity Information


Page 298


Demographic and Economic Information


Page 305


Operating Information


Page 308

III. Intended Audience

There are three primary users of CAFR report and they include the citizens, legislative and administration bodies, investors and creditors. They are important groups of users who have to read the report and understand it for the future use. It is stated that there are four uses of a government financial statements or CAFR are as follows. The first use is to compare the actual financial results that of legal budget, to know the financial condition of the government and the operational activities, to help to determine the compliance with the finance-based laws, rules and regulations and it also helps to know the effectiveness of government. Comment by Jeremy Yoo: Cite Comment by Jeremy Yoo: Cite

The citizens have the right to know the financial disclosures of the government that how it is operating, where the funds were spent and what are the future directions set by government. The citizens have to give the tax so they may know where their money was spent and how is the financial performance of government and it also helps them to know the ratio of effectiveness and efficiency of the government. The government is responsible to answer the people that how they are going to address the financial issues and what can be done to improve the future.

The legislative bodies have to make sure that the government is spending in limit and budget is appropriate for the different activities mentioned in report. CAFR further determines that whether the government obeys the certain rules and regulations of Fairfax county. The legislative bodies further ensure that the government is spending in the good direction. Comment by Jeremy Yoo: Cite

The investors and creditors have studied the rate of interest, rate of borrowing and credit rating of the state. Comment by Jeremy Yoo: Add more sentences

These all are the intended users of CAFR and the report ensures that the government is fulfilling its responsibilities. Comment by Jeremy Yoo: How? Explain and cite

IV. Thoughts on CAFR

The report is presented to its users through the financial outcomes and statistics. The whole report is presented in the form of financial data that how the county managed itself to balance the input and output. The disclosure of financial and accounting data is important, and the report has disclosed all the necessary information. The report on taxation, disclosures, unemployment and the challenges have been explained. There is no alternative to CAFR, and it is demonstrated to the public through the complete guidelines. The county needs to meet the standards of GASB and GAAP in accounting. Comment by Jeremy Yoo: Cite

The county needs to make sure that the public must be informed of the areas where the county has spent maximum and where the improvements are needed. If the proper information is not presented, the public will not know the details. The thoughts on the report are positive because it is the need of the people to disclose the information and let them know where the issues exist. Overall, it is a good initiative for the people to present the report.

CAFR cannot be matched with any other accounting or financial standards report, and the report is more than hundreds of pages. The report has discovered the hundreds of financial statements and the accounting principles. The report has discussed the financial statements. Irregularities, financial problems and the problems like unemployment, lack of education and the social issues to create the awareness among people. Comment by Jeremy Yoo: Cite

References

Authority, S. C. P. E. B. (2018). Comprehensive annual financial report. South Carolina State Documents Depository.

CityHistory. (2020). The City of Fairfax. Retrieved from https://www.fairfaxva.gov/government/historic-resources/city-history#

Schools, D. P. (2017). Comprehensive Annual Financial Report. Balance Sheet31, 32.

Virginia, W., & Lottery Commission. (2007). Comprehensive Annual Financial Report for the Fiscal Year ended June 30, 2007d. Location: http://www. WV lottery. com/pdf/wvl2007ar. pdf accessed Jan 3, 2008.

Accounting homework help

Kingdom of Saudi Arabia

Ministry of Education

Saudi Electronic University

A picture containing text, outdoor, sign  Description automatically generated

المملكة العربية السعودية

وزارة التعليم

الجامعة السعودية الإلكترونية

College of Administrative and Financial Sciences

Assignment 3

Project Management (MGT323)

Deadline: 30/04/2022 @ 23:59

Course Name: Project Management

Student’s Name:

Course Code:MGT323

Student’s ID Number:

Semester: II

CRN:

Academic Year:2021-22, II Term

For Instructor’s Use only

Instructor’s Name: Dr Farhat Anjum

Students’ Grade:

Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. Atleast two Scholarly Peer- Reviewed Journals are required as references.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.

· Do not make any changes in the cover page.


Assignment Workload:

· This Assignment comprise of a Case Study and Discussion questions.

· Assignment is to be submitted by each student individually.


Assignment Purposes/Learning Outcomes:

After completion of Assignment-3 students will able to understand the

1. Defining the concepts, theories and approaches of project management. (L.O-1.1)

2. Analyze to work effectively and efficiently as a team member for project related cases. (L.O-3.1)

3. Evaluate to monitor and control the project. (L.O-3.2)



Assignment-3: Case Study & Discussion questions


Assignment Question: (Marks 10)

Please read the Case-8.3 “Tham Luang Cave Rescue.” from Chapter 8 “Scheduling Resources and Costs” given in your textbook – Project Management: The Managerial Process 8th edition by Larson and Gray page no: 304-307 also refer to specific concepts you have learned from the chapter to support your answers. Answer the following questions for Part-1, Part-2.

Part-1: Case study questions

1. How did the physical environment of the cave affect the rescue plan? Explain in 250 words (3 Marks).

2. How did the rescue team respond to the risks of the project? Explain in 250 words (3 Marks).

3. Some have called the rescue a miracle and that luck was the decisive factor. Do you agree? Explain in 150 words (2 Marks)

Part-2: Discussion questions

Please read Chapter 8 Pg-No. 279 & 281 carefully and then give your answers on the basis of your understanding.

4. Why would people resist a multi project resource scheduling system? (1 Mark) (100 words)

5. What do you think would have happened if the Washington Forest Service did not assess the impact of resources on their two-year plan? (1 Mark) (100 words).

Answers:

1.

2.

3.

4.

5.

Accounting homework help

Drs. Smith and Brown

Statement of Net Income for the Three Months

Ended March 31, 20__

Revenue

Net patient revenue 180,000

Other revenue 0

Total Operating Revenue 180,000

Expenses

Nursing/PA salaries 16,650

Clerical salaries 10,150

Payroll taxes/employee benefits 4,800

Medical supplies and drugs 15,000

Professional fees 3,000

Dues and publications 2,400

Janitorial service 1,200

Office supplies 1,500

Repairs and maintenance 1,200

Utilities and telephone 6,000

Depreciation 30,000

Interest 3,100

Other 5,000

Total Expense 100,000

Income from Operations 80,000

Nonoperating Gains (Losses) 0

Nonoperating Gains (Net) 0

Net Income 80,000

Drs. Smith and Brown

Balance Sheet

March 31, 20__

Assets

Current Assets

Cash and Cash Equivalents 25,000

Patient accounts receivable 40,000

Inventories—supplies and drugs 5,000

Total Current Assets 70,000

Property, Plant, and Equipment

Buildings and Improvements 500,000

Equipment 800,000

Total 1,300,000

Less Accumulated Depreciation (480,000)

Net Depreciable Assets 820,000

Land 100,000

Property, Plant, and Equipment, Net 920,000

Other Assets 10,000

Total Assets 1,000,000

Liabilities and Capital

Current Liabilities

Current maturities of long-term debt 10,000

Accounts payable and accrued expenses 20,000

Total Current Liabilities 30,000

Long-term Debt 180,000

Less Current Portion of Long-Term Debt (10,000)

Net Long-Term Debt 170,000

Total Liabilities 200,000

Capital 300,000

Total Liabilities and Capital 1,000,000

Accounting homework help

Attached is the pdf for your Case Study #2.  Please read the case and answer the five (5) questions presented. 

Students are required to prepare a written submission which summarizes/analyzes the case and answers the listed questions at the end of the case. In addition, students are expected to provide background information and discussion on the relevant issues in the case.

You can use your textbook, class notes, and any other outside sources in preparing your case responses. Please make sure to cite all sources. You should not simply copy and paste info from other sources such as the Internet, etc. Your submission should be in your own words.

I expect very complete, thorough, and well constructed answers to each of the questions. Your Case Study submission should be at minimum 3 pages, 1.5 spacing, 11pt. Times New Roman font. 

Accounting homework help

BCOM 3113 Students 2 November 6, 2013

The main purposes of this assignment are for you to

· Gather information for specific readers and purposes,

· Organize and format information, and

· Demonstrate your ability to apply all the principles of effective written communication.

Short Report Topic

Choose one of the three options below for your short report:

1. Helping Your Boss Promote Mindfulness: You’re a management major on co-op with a large customer-data company. Your company sells technology that collects detailed records of what customers buy, at what price, and when, and then crunches those data to help companies improve their revenue. The employees include computer engineers, salespeople, client consultants, customer support staff, technicians, and professionals in other business areas. You’ve been assigned to various areas of the company to learn about a variety of topics, and you’re currently reporting to Mark Lindsay, the director of communications. One of Mark’s duties is to work with the president to write the script for his monthly video to the employees. Mark has been coming across more and more articles about the detrimental effects of multitasking and the benefits of focused, “mindful” work, so he thinks he’ll recommend that the president’s next talk be on this subject. That’s where you come in. “See what you can find out about mindfulness on the job,” he asks you. “Find out what it means, how to have it, what its benefits are, and who’s practicing it.” Cite your sources, so they can be accessed, if needed.

Send your memo report to Mr. Lindsay, as an email attachment to a transmittal message, answering his (and the president’s) likely questions and helping them see what approach to take with this topic in the video.

2. Recommending Ways for Employees to Stay Informed with LinkedIn: You’re a new hire in the _____ department of _______ company (you fill in the blanks). Your boss, Sara Dallin, drops by your desk and tells you about a webinar she recently attended that extolled the benefits of using social media to stay abreast of trends in one’s field. She was particularly surprised at how useful LinkedIn can be for this purpose. She thinks the others in your department would be surprised, too, because most people think of LinkedIn as an employment-networking tool. But it’s also a great way to see what people are talking about in various professional areas. “Organizations, groups, and individuals share a lot of useful information there,” she says, “so we should be following what’s going on.”

She plans to send the department a persuasive message along these lines—but first she wants you to further scope out LinkedIn’s educational potential. Who are the thought leaders in the field? What kinds of things do they write about? How easy is it to contact a specific individual to ask questions? What groups are available, and how easy is it to join them? Can you see what your competition is up to? In what other ways might LinkedIn be a valuable resource for those in your department

You’ll do this research for your boss and send her your findings. Try to tell her everything she needs to be able to prepare a persuasive and knowledgeable message to the team.


Send your memo report to your boss, Sara Dallin, as an email attachment to a transmittal message.

3. Helping Employees Interact with New Colleagues outside the United States: You work in the human resources department of a clinical research organization with about 2,000 employees. Like other companies in this industry, your company arranges, runs, and reports on clinical trials of new drugs, biomedical devices, and promising medical treatments. Your company recently expanded beyond U.S. borders for the first time by opening a new research facility in Sao Paulo, Brazil.

Your boss, Mike Reno, wants to be sure that all U.S. employees who will be interacting with the Brazilian employees understand that Brazil, and Sao Paulo, in particular, has its own culture. Toward that end, he has asked you to prepare a short report on what people should keep in mind when conversing with those that manage and work in the Sao Paulo branch. For example, how formal are the Brazilians in their correspondence? Do they value directness or indirectness, or does it depend on the circumstances? What is their attitude toward hierarchy? What might be topics or wording to be careful about? When visiting the Brazilian site, what should U.S. employees know about the business and social protocol that is likely to be used there?

Write him a report in which you convey a helpful, accurate picture of the culture in Brazil and offer well-researched advice for U.S. employees that he can share with them as he sees fit. Cite your sources – and be careful to use reliable ones.

Send your memo report to your boss, Mike Reno, as an email attachment to a transmittal message.

Format

Remember these tips as you are composing your short report:

· Organize your Short Report in an easy-to-read Memo Report. Short Report Memo example:

Memo Report

DATE: May 2, 2018

TO: Annette Sawyer

FROM: Ben Cannon

SUBJECT: Options Available to Managers When Dealing with Chronically Tardy Employees

· This will be the memo report attached to your e-mail.

· You will compose in memo format – Follow heading format as it appears above.

· Design a business logo for the top of the memo that is related to the business in your chosen prompt. Type Memo Report underneath the logo.

· Organize your Transmittal Message in e-mail format
. An example of a transmittal in letter format is on page 471.

· An e-mail message to your boss

· Length will be ½ to 1 Page

· E-Mail Format:

From:

To:

Cc:

Subject:

· Compose and type the report first, then compose your transmittal message.

· Keep in mind your reader’s interests and the purpose for the information. The report will probably be about two – four pages, although it may be more depending on the amount of information you include.

· Avoid overly casual language and explain well, since the report will be read by your boss and may be passed on to other supervisors or executives.

· Decide how to carefully organize the information in a functional, helpful way with appropriate headings for each section of the report. You may use bulleted lists or other graphic aids, such as graphs, charts, or pictures, if they will help present the information concisely and clearly. Chapter 5 of your textbook includes many tips on using visuals.

· Remember that when memos are more than one page, you should use continuation-page headings, BCOM textbook, page 95.

· Keep all information accurate and up-to-date!

Research

Please follow these guidelines for your informal short report:

· Use Chicago Style (Notes-Bibliography) Format

· Use at least three sources.

· Do not forget to cite sources within your report using citation footnotes

· Do not plagiarize!

Evaluation Criteria

Remember that the most important aspect of a report is usability. The information must be well-organized, clear, 100% accurate, and verifiable. This report must be in your own words.

Grade: Transmittal Message – 25 points


Informal Short Report – 150 points

Points will be assigned based on how well you apply the principles of business communication discussed in the textbook and in class (see the Scoring Rubric in Canvas).

Accounting homework help

Meiger Mining, Inc., has just discovered two new mining sites for iron ore. Geologists and engineers have come up with the following estimates regarding costs and ore yields if the mines are opened:

Site A

Site B

  Variable extraction costs per ton

$

3.80

$

4.00

  Fixed costs over the life of the mine:

        Blasting

$

150,000

$

185,000

        Construction

225,000

240,000

        Maintenance

25,000

20,000

        Restoration costs

40,000

35,000

        Total fixed costs

$

440,000

$

480,000

  Total tons of ore that can be extracted over the life of the mine:

200,000

160,000

  

Meiger’s owners currently demand a return of 21 percent of the market price of iron ore.

  

a.

If the current market price of iron ore is $8.35 per ton, what is Meiger’s target cost per ton? (Round your intermediate and final answer to 2 decimal places. Omit the “$” sign in your response.)

Accounting homework help

Written Assignment:SEC 10-K Analysis

Using the Internet, access the SEC 10-K annual report for a publicly traded company of your choice. The company must have inventory and accounts receivable.

You must select a company that is publicly traded SEC 10-K and has inventory and accounts receivable. Most students find the SEC 10-K annual report at their company’s website in sections such as About Us and/or Investor Relations. Look for SEC and Annual Filings (you will often find drop-down menus to click). You must research and secure the SEC 10-K Annual Report for the most recent year. Save the file to your computer for access. Do not print as the report is usually 100 pages or more. Post the name of your company, the SEC 10-K web link, and how you found the SEC 10-K in the SEC 10-K discussion for approval by your professor.

Review the company’s MD&A (Section 7), Notes to the Financial Statements (Section 8) addressing FASB changes as required by your professor, as well as financial statements and other pertinent accompanying footnotes. Use this information to prepare your “analytic” results. You may want to seek additional background and comparative data on the business. Yahoo Finance has a “competitors” feature we will discuss in class.

If specific FASB pronouncements defined during the class required the restatement of prior period earnings or other adjustments, those should be highlighted in your analysis. If these did not occur, you must confirm that your research did not highlight any required restatements.

Use terms from our class and create displays using the SEC 10-K for your company. The use of headings will label the sections in your report. Your goal is to explain the financial statements and the information of the SEC 10-K with the knowledge you learn from our class. While not describing every item in the SEC 10-K, your report should tell a story and illustrate your mastery of accounting terms, concepts, and the impact of recent pronouncements. No more than one paragraph should be devoted to your company’s history and non-financial information.

A PowerPoint presentation will also need to be prepared to cover the highlights of your report. A PowerPoint presentation is a high-level summary of your written analysis and paper. Do not use paragraphs or even complete sentences, use sentence fragments or “bullet” points. Charts, tables and graphs add value and information to the presentation but ensure there is narrative to explain and support the graphs. The presentation should be sufficiently sized to explain your analysis. Only one slide is required to present the Corporations history and structure: all other slides focus on the prepared research. Please post the presentation in the designated SEC 10-K discussion near the end of the semester to share with other students. Read your classmate’s presentation and provide comments to at least one other posting.

After the discussion week, you should review your PowerPoint presentation and submit the final version in the assignment folder. This is the PowerPoint file I will grade. The PowerPoint Presentation discussion is part of participation and designed to assist you in creating your final project. However, if you fail to participate in that discussion, it may affect the ‘grade’ for your PowerPoint Presentation.

3-4 pages single spaced, double space between paragraphs.

Page count does not include title page, tables and exhibit, table of content and works cited list

Title page

bibliography or works cited (business classes use APA format)

in-text citations (business classes use APA)

Tables, and appendixes if you wish to copy and paste financial statements or materials you did not write

Your report should use one-inch margins on the left,right,top and bottom of each page and font det at 12 points.

THE COMPANY OF MY CHOICE IS COSTCO

Accounting homework help

1

I. Strategic Profile and Case Analysis purpose
()

II. Situation Analysis
()

a. General environmental analysis ()

b. Industry analysis ()

c. Competitor analysis()

III. (SWOT Analysis): Identification of Environmental Opportunities and Threats
(External)
and Firm Strengths and Weaknesses
(Internal)
. What are some economic and market indicators that could impact your organization’s ability to compete? In addition, provide the following financial ratios: (1) return on total assets, (2) operating profit margin (or return on sales), (3) net profit margin (or net return on sales), and (4) current ratio. Describe what these mean to your organization.

IV. Strategy Formulation
(Remember Chapters 4-9)

a. Current Strategy—
Business Level and Corporate Level Strategies, M&A, Alliances

b. Strategic alternatives to the strategies in (a) above

c. Alternative evaluation (different from what is currently being used by the organization, if applicable)

d. Alternative choice (if applicable)

V. Strategic Current and Alternative Implementation Strategy
(Remember Chapters 10-13)–
governance polices, current organizational structure and controls, leadership style
.

a. Action items

b. Action plan

Accounting homework help

You may select any case (of at least an hour long) to review and use to compose your Court Visit paper. Please make sure to provide a source link in your write-up at the bottom of the last page.

Here is the Ohio Supreme Court video case link:  http://www.ohiochannel.org/collections/supreme-court-of-ohio

Note: you must copy the link and paste it into a new browser tab for the access to work properly. 

 Write a paper on your virtual “visit” with your observations.

Accounting homework help

Read Case Study 6-19 “West End Boutiques” under CASE ANALYSES on pages 197-198 of Chapter 6 in Core Concepts of Accounting Information Systems.

Write a 175- to 260-word response to each of the two requirements (#1 and #2) following the case study. Your responses must be in your own words. In your paper, for Questions #1 and #2 list each of the six scenarios separately with their corresponding risks and internal controls to mitigate those risks. For Question #2, do not summarize internal controls — each of the six scenarios should be listed separately with individual internal controls.

6-19. West End Boutiques

The West End Boutiques company was founded by Libbie Williams in 1990 with a single store in College Station, Texas, and the company now has 21 shops located in the triangle of Dallas, San Antonio, and Austin, Texas. Libbie was an accounting major in college, passed the entire CPA exam in her first attempt with high scores, and worked for one of the large CPA firms for 11 years prior to opening her first store. Based on her work experience, she fully understands the value of strong internal controls. Further, she recently selected a state-of-the-art accounting system that connects all of her stores’ financial transactions and reports.

Libbie employs two internal auditors who monitor internal controls and also search for ways to improve operational effectiveness. As part of the monitoring process, the internal auditors take turns conducting periodic reviews of the accounting records. For instance, the company takes a physical inventory at all stores once each year and an internal auditor oversees the process. Chris Domain, the most senior internal auditor, just completed a review of the accounting records and discovered several items of concern. These were:

1. Physical inventory counts varied from inventory book amounts by more than 6% at two of the stores. In both cases, physical inventory was lower.

2. Two of the stores seem to have an unusually high amount of sales returns for cash.

3. In nine of the stores, gross profit has dropped significantly from the same time last year.

4. At four of the stores, bank deposit slips did not match cash receipts.

5. One of the stores had an unusual number of bounced checks. It appeared that the same employee was responsible for approving each of the bounced checks.

6. In seven of the stores, the amount of petty cash on hand did not correspond to the amount in the petty cash account.

Requirements

1.For each of these concerns, identify a risk that may have created the problem.

2.Recommend an internal control procedure to prevent the problem in the future.

Accounting homework help

4- Identify a company that must be incompliance with your law or regulation(the Sarbanes-Oxley Act) but was hacked.
a. Why was the company hacked?
b. Was the company in compliance with the law?
c. Did the law require a control(s) to help prevent such a hack?
d. Was the control sufficient enough to mitigate threat? If not, why not?
e. Identify and describe other companies subject to this law that were also hacked

Accounting homework help

Page 7 of 7


HCA 312 – WEEK 4 ASSIGNMENT



ENTER YOUR NAME IN THE BOX ABOVE

FINANCIAL AND OPERATING RATIOS

INSTRUCTIONS: Review Chapters 11, 12 from earlier weeks in class. Read this week’s assigned chapters, 13, 14 & 15, before completing the template. In addition, you will utilize the Ratio Benchmark & Median Table below as well as the textbook appendices 13A, and 13C to complete the operating ratio calculations. As the Practice Manager, you will be utilizing Dr. Smith and Dr. Brown’s Physician Practice financial statements for completing the financial ratio calculations below to determine the feasibility of a capital expenditure. Refer to the Week 4 Assignment directions within the course to understand what is expected in each part of the table below. Thorough explanations and definitions for each section are required. If you include enough detail for each section, the template document will be at least seven pages in length. Include APA citations within the Response Column where appropriate. List your references in APA format on the last row of this template. All citations and references must be in APA style according to the Writing Center guidelines. Once you complete the template, upload the document to the Week 4 Assignment section of the course.

Use the Ratio Benchmark and Median Table below in Part 3 for your analysis on Dr. Smith and Dr. Brown’s financial health status.

RATIO BENCHMARK AND MEDIAN TABLE

Ratio

Benchmark – 50th Percentile) for Comparable Physician Group Practices

Median for Comparable Physician Group Practices

Current Ratio

*2.2

2

Quick Ratio

*1.74

1

Debt Service Coverage Ratio

*1.49

1.1

Operating Margin

*4.45

2.6

Return on Total Assets

*4.04%

4.05%

*Benchmark Data: 50th Percentile Information extrapolated from Appendix 33B Case Study.

PART 1:

CALCULATION of FINANCIAL RATIOS:

Below are five financial ratios. In each of the columns, you will be responsible for showing the calculation for each based off Dr. Smith and Brown’s financial statements (located with the textbook). You will need to identify the type of ratio as well. Choices for the type of ratio are:

LIQUIDITY, SOLVENCY, PROFITABILITY or N/A.

EXAMPLE for the INVENTORY TURNOVER RATIO:

Show Calculation: 180,000/5000 = 36

Identify the type of ratio: n/a

CURRENT RATIO

QUICK RATIO

DEBT SERVICE COVERAGE RATIO

OPERATING MARGIN

RETURN ON TOTAL ASSETS

Show calculation in the box provided:

Identify the type of ratio:

Show calculation in the box provided:

Identify the type of ratio:

Show calculation: (For this ratio, the denominator you will use is 22,200)

Identify the type of ratio:

Show calculation in the box provided:

Identify the type of ratio:

Show calculation in the box provided:

Identify the type of ratio:

PART 2:

TYPE OF RATIOS

In your own words, define the meaning of each ratio: liquidity, solvency, and profitability.

Liquidity

Solvency

Profitability

PART 3:

OPERATING RATIOS

Define the financial ratios listed below. Next, analyze the result for each ratio calculated above and explain what the calculated result tells you about the financial health of Dr. Smith and Dr. Brown’s physician practice

EXAMPLE:

INVENTORY TURNOVER RATIO

DEFINE: Inventory turnover is calculated to determine how quickly the inventory is used based on the services rendered. If the inventory turnover is high, this means the hospital does not have enough inventories on hand to accommodate the patient load. ANALYSIS: For this example, the hospital is turning over their inventory 36 times per year, which is about 3 times a month. The opposite is true if the inventory turnover calculation is lower than the median. FINANCIAL HEALTH: This could mean that there is a build-up of inventory due to lower than expected patient revenues.

1) CURRENT RATIO

2) QUICK RATIO

3) DEBT SERVICE COVERAGE RATIO

4) OPERATING MARGIN

5) RETURN ON TOTAL ASSETS

PART 4:

CAPITAL BUDGET EXPENDITURES – TIME VALUE OF MONEY CALCULATIONS

Complete the tables below by computing the following time value of money calculations: Present Value, Internal Rate of Return, and Pay Back Period for the capital expenditures for Dr. Smith and Brown’s physician practice. Enter the result of the calculation into the blank cells.

PRESENT VALUE

CE/Amount

Compounding Period

Rate of Interest

Present Value

Laboratory: $70,000

Annual

4% for 15 years

EMR Software: $125,000

Annual

6% for 10 years

INTERNAL RATE OF RETURN

Initial cost of Investment

Periods of Useful life

Estimated annual net cash inflow generated

Look-up table value

Rate of Interest

e-prescribing software:

$ 75,000

10

$10,190

Lab equipment: $ 58,000

6

$14,108

PART 5:

EVALUATION OF CAPITAL BUDGET EXPENDITURES

As a Health Care Manager, you will be responsible for operational decisions by applying financial management principals. For Part 5, you will apply the concepts of the Time Value of Money to define, analyze, and rationalize your findings from the Financial and Operation ratio results to make informed decisions regarding capital expenditures for Dr. Smith and Brown’s physician practice. Include any government or regulatory mandate information that you considered when making your decision. Complete each of the cells below.

Define the time value of money.

Provide a real-world example for the time value of money.

Why is time such an important factor when considering a capital expenditure?

After review of the financial statements and ratios, analyze the feasibility that the EMR Capital Expenditure listed above would benefit Dr. Smith and Dr. Brown’s practice. Explain your rationale on whether you would recommend the purchase of the capital expenditures identified. Include any positive or negative aspects of regulatory or government mandates that were considered in making the decision to purchase the capital expenditures.

REFERENCES

List the references you used to complete this assignment.

You must format the references in APA format as outlined in 7th edition guidelines found at the Writing Center.

HCA312 6/12/2018

Accounting homework help

These reports concentrate on forms, not transactional accounting. These papers require research outside the class environment. These papers serve in part as an introduction to the topics of government accounting, which is why they are required prior to work on more detailed accounting and rules.

Project 3: Analysis of the Form 990 for Not-for-Profits (NFPs)

Entity: Christian Civic League of Maine

1. Explore the concepts of the class material relating to NFPs and Form 990s. You must find and review / read outside literature on these subjects as well and use and reference them in your paper.

2. Prepare a paper on the Form 990 to include the following:

a. A brief overview of your entity.

b. Discuss what a Form 990 is, what is its focus, what are its major sections and requirements, and what it’s intended to do.

c. Discuss who are the Form 990’s actual intended users – who and why is the form intended for (what is NOT expected is a fund-by-fund accounting of figures, performance, balances, etc.).

d. Finally, compare the Form 990 to your NFP entity’s annual report (if they don’t have an annual report, find an annual report from another NFP) and discuss the different audiences / needs / users / purpose of same.

4. Your deliverable is to be three – five pages in length (~1,000 to 1,800 words), single-spaced, double spacing between paragraphs, one inch margins and a font size of 10 – 12 points. Include a cover page and works cited section. In-text citations for all facts must be included and done per APA standards. The paper is to be uploaded through your assignment folder only in a single Word document with only “YourName.doc(x)” as the file name. There are to be no active hyperlinks anywhere in the submission.

5. Points will be deducted for failing to adhere to these requirements, especially the 4 requirements in part 3.

6. Please refer to the grading matrix for how your performance will be evaluated.

Grading Metrics

Area of Assessment

Points

Expectation

Assessment Criteria

Basic Content in Place

50

1-Must use an approved 990 from an approved entity; 2- a brief introduction / review of your chosen entity; 3- coverage of the general focus of the information of a 990 & its major sections; 4- coverage of the actual intended users of a 990; 5- comparison of a 990 to your entity’s annual report.

Quantitative: 5 requirements worth 10 points each

Advanced Content in Place

20

Demonstrate an understanding of the subject of a 990.

Qualitative: 0 to 20 points depending on the student’s ability to tie together all the requirements into a cohesive presentation

Overall Analysis and Evaluation

10

1,000 to 1,800 words required to properly address the topics at hand; headings used to identify the four primary subject areas required; appropriate and relevant outside literature used and referenced properly.

Qualitative: 0 to 10 points depending on the student’s ability to demonstrate an understanding of the topic at hand and ability to lay out the discussion of same in a meaningful, logical manner.

Meets Presentation Requirements

5

Single-spaced; double-spacing between paragraphs; one inch margins; font size 10-12; cover page.

Quantitative: 5 requirements worth 1 point each

APA In-Text Citations and Reference Section

5

“Works Cited” section included at end; proper in-text citations used and all facts are cited

Quantitative: 5 points for including the Works Cited Section and proper in-text citation of all facts

Clarity, Mechanics, Grammar

10

Free of spelling and grammar mistakes. Text and sentence structure should be clear and readable. Free of choppy or incomplete sentences. Proper use of paragraphs. No active hyperlinks anywhere in the paper.

Quantitative: 10 points if totally free of grammar / spelling errors and active hyperlinks; 5 points if minor grammar / spelling errors and or active hyperlinks; <5 points for numerous spelling grammar errors, 0 points when no demonstrable attention has been paid to grammar / spelling.

Accounting homework help

Week 4 – Assignment 2

 

 

Financial and Operating Ratios

[WLOs: 1, 2, 3, 4] [CLOs: 1, 2, 3, 4, 5]

Prior to beginning work on this assignment, review Chapters 11 and 12 from earlier weeks in class. Read this week’s assigned chapters, 13 13, 14, 15, as well as the 
Comprehensive Assessment of Firm Financial Performance Using Financial Ratios and Linguistics Analysis of Annual Reports (Links to an external site.)
 article and the 
Financial Ratios (Links to an external site.)
 web page. You will also utilize Appendices 13A, 13B, 13C, and 33A as well as 
Dr. Smith and Dr. Brown’s financial statements

  Download Dr. Smith and Dr. Brown’s financial statements. As the Practice Manager, you will be utilizing Dr. Smith and Dr. Brown’s Physician Practice financial statements for completing the financial ratio calculations below to determine the feasibility of a capital expenditure. 

After reviewing the chapters, download the 
Financial and Operating Ratios Assignment template

  Download Financial and Operating Ratios Assignment template. You will be responsible for entering your responses directly into the template provided. You will need to ensure that your responses are thorough, examples are given where indicated, and references are listed in APA format in the space provided within the template. In the assignment template provided, complete Parts 1 through 5.

Part 1: Calculations of Financial Ratios

· Calculate the financial ratios for Dr. Smith and Brown’s physician practice to analyze the financial viability of the organization.

· Identify the type of ratio for each of the following:

· Current ratio

· Quick ratio

· Debt Service Coverage ratio (DSCR)

· Operating Margin

· Return on Total Assets (ROTA)

Part 2: Type of Ratios

· Define the type of ratios used in determining the financial viability of an organization.

· Liquidity

· Solvency

· Profitability

Part 3: Operating Ratios

· Define the financial ratios utilized to determine the financial status of Dr. Smith and Brown’s physician practice.

· Compare the results in Part 1 with the median to determine the value associated with the financial ratio.

· Analyze the results calculated in Part 1 and explain what the calculated result tells you about the financial health of Dr. Smith and Dr. Brown’s physician practice

Part 4Capital Budgeting Expenditures – Time Value of Money Calculations 

· Calculate each of the operational ratios for Dr. Smith and Dr. Brown’s physician practice.

· Present Value

· Internal Rate of Return

Part 5: Evaluation of Capital Expenditures

· Define the time value of money.

· Provide a real-world example for the time value of money.

· Explain why time is an important factor when considering a capital expenditure.

· After review of the 
Dr. Smith and Dr. Brown’s financial statements

  Download Dr. Smith and Dr. Brown’s financial statementsand ratios, analyze the feasibility that the Capital Expenditure listed above would benefit Dr. Smith and Dr. Brown’s practice. Explain your rationale on whether you would recommend the purchase of the capital expenditures identified. Include any positive or negative aspects of regulatory or government mandates that were considered in making the decision to purchase the capital expenditures.

Paper Requirements:
The 
Financial and Operating Ratios Template

  Download Financial and Operating Ratios Template, once completed,

· Should demonstrate an understanding of the reading assignments, class discussions, your own research, and the application of new knowledge.

· Must have substantive responses within the template and include complete sentences in paragraph format, including citations for each reference listed.

· Must be formatted according to APA style

· Must use one scholarly source in addition to the course text.

Accounting homework help

These reports concentrate on forms, not transactional accounting. These papers require research outside the class environment. These papers serve in part as an introduction to the topics of government accounting, which is why they are required prior to work on more detailed accounting and rules.

Paper #2: Analysis of a CAFR/ACFR Report

Entity: FAIRFAX COUNTY

1. Explore the concepts of the course material relating to CAFRs/ACFRs. You must also find and review / read outside literature on this subject and the below requirements as well and use and reference same in the paper.

2. Prepare a paper on the CAFR/ACFR report to include the following:

a. A brief introduction / review of your chosen CAFR/ACFR entity.

b. For the CAFR/ACFR report, discuss its focus, what it is trying to impart on its users, and an identification and review of the main sections of the CAFR/ACFR (what is NOT expected is a fund-by-fund accounting of figures, performance, balances, etc.)

c. Clearly identify who the actual intended audience / users of a CAFR/ACFR report are outside those the CAFR/ACFR report itself is addressed to.

d. Discuss your thoughts on how a CAFR/ACFR is presented to its users.

3. Your deliverable is to be three – five pages in length (~1,000 to 1,800 words), single-spaced, double spacing between paragraphs, one-inch margins and a font size of 10 – 12 points. Include a cover page and works cited section. In-text citations of all facts must be included and done per APA standards.

4. Points will be deducted for failing to adhere to these requirements, especially the 3 requirements in part 3.

Grading Metrics

6. Please refer to the grading matrix for how your performance will be evaluated.Paper #2: CAFR Area of Assessment

Points

Expectation

Assessment Criteria

Basic Content in Place

25

1: Use of an approved entity’s CAFR/ACFR, 2: a brief introduction / review of your chosen entity, 3: discussion of the main sections of a CAFR/ACFR and what it’s focused on, 4: clearly identify the actual intended users of the CAFR/ACFR report, 5: your thoughts on the CAFR/ACFR report overall

Quantitative: 5 requirements worth 5 points each

Advanced Content in Place

20

Demonstrate an understanding of CAFRs

Qualitative: 0 to 20 points depending on the student’s ability to tie together all the requirements into a cohesive presentation

Overall Analysis and Evaluation

25

1,000 to 1,800 words. Topics at hand properly addressed; headings used to identify the primary subject areas required; appropriate and relevant outside literature used and referenced properly.

Qualitative: 0 to 25 points depending on the student’s ability to demonstrate an understanding of the topic at hand and ability to lay out the discussion of same in a meaningful, logical manner.

Meets Presentation Requirements

10

Single-spaced; double-spacing between paragraphs; one inch margins; font size 10-12; cover page.

Quantitative: 5 requirements worth 2 points each

APA In-Text Citations and Reference Section

10

“Works Cited” section included at end; proper in-text citations used and all facts are cited

Quantitative: 5 points for including the Works Cited Section; 5 points for proper in-text citation of all facts

Clarity, Mechanics, Grammar

10

Free of spelling and grammar mistakes. Text and sentence structure should be clear and readable. Free of choppy or incomplete sentences. Proper use of paragraphs. No active hyperlinks anywhere in the paper.

Quantitative: 10 points if totally free of grammar / spelling errors; 5 points if minor grammar / spelling errors; < 5 points when no demonstrable attention has been paid to grammar / spelling.

Accounting homework help

· All problems

· Scan/Picture

· Photo

· Excel file (Empty shell on BB)

· Solver or Analytical Solver Platform

Q1: Chapter 6, Problem 14
Table  Description automatically generated

Q2: Chapter 6, Problem 23 Table  Description automatically generated with medium confidence
Text  Description automatically generated

Q3: Chapter 6, Problem 30

Table  Description automatically generated

Q4: Chapter 8, Problem 21

Text, letter  Description automatically generated

Accounting homework help

Hello. I have a term project due. First off, thank you so much so taking on such a challenging task. There are multiple components to this project.

COMPONENT 1:

1 Final Report

Details for report requirements explained in “Introduction to Industry and Company Analysis”

And “Term Project Guidelines”

COMPONENT 2:

1 Project PowerPoint

This PowerPoint needs to reflect the information that you have put in your report. Please provide accurate & detailed notes for each slide made. I will have to present this for minimum ten minutes.

COMPONENT 3:

6 Equity Market News and Stock Analysis Reports

This is 6 individual, 1-page short Reports. Summarize, discuss or analyze at least one equity investment news/events occurred current week in US or global financial markets, and/or one news/updates about the company and stock you are working on for your project. 

· Relate the news/events to the company, stock and industry you are working on for your project. Or you can select news/events about your company and stock.

· Short paragraphs preferred, Less than one page. And please indicate the information sources (web links or any references.)

· Grade based on relevance and significance of the news/events. 

· Please submit by each Thursday and use the link provided (type or attach a WRDS or PDF file).

A screenshot of a computer  Description automatically generated with medium confidence

Each week certain topics are discussed. So one report will be based on a recent article pertaining to the topics mentioned from each week. In essence:

Report# 1 = Article related to topics from date 3/25

Report# 2 = Article related to topics from date 4/01

Report# 3 = Article related to topics from date 4/08

Report# 4= Article related to topics from date 4/22

Report# 5= Article related to topics from date 4/29

Report# 6= article related to topis from date 5/06

COMPONENT 4:

6 Project Progress Reports

This professor requires a brief, two-three sentence update on the progress of our project.

Accounting homework help

Research an article in the University Library related to one of this week’s objectives (found in the Course Syllabus under Student Learning Outcomes — 6.1, 6.2, 6.3).

6.2 Explain the information system audit process.

Write a 700- to 1,050-word summary of the article in a Word document.

This is a summary in your own words of the article you read. Be sure to also address in the summary the item below under Apply. Include in the summary and Reference page the title and reference in APA format of the article you read.

Apply what you learned to your professional life. How could you use the information on your job?

Format your paper consistent with APA standards. Check out the APA guidelines under Resources below (Center for Writing Excellence > APA Sample Template Master’s Level — APA Format Information). Points will be deducted if paper and reference page are not in APA format.

Accounting homework help

See the problem below.

Please make sure to add all the formulas and answer each part in problem#1 and develop the tee with their decision and chance nodes for problem#2.

Thanks,

Problem # 1

How much will an employee’s portfolio be worth after working for the company 30 years more? The Human Resource department at EcoCarnifex Corporation was asked to develop a financial planning model that would help employees address this question. Frank Joseph was asked to lead this effort, and he has decided to begin developing a financial plan for himself first. Frank has a degree in business and at the age of 30 in 2017. At the beginning of 2017, he is making the annual salary $35,000 and has accumulated a portfolio valued at $15,000.

Frank made the following assumptions:

a) 5% annual salary growth at the end of each year is reasonable.

b) He plans to contribute 5% of his monthly salary throughout each year.

c) 10% annual portfolio growth seems reasonable.

(1) Develop an Excel worksheet that calculates and shows the value at the end of each year of Frank’s portfolio after he will work for the company 35 years more (i.e., at the end of 2051).

(2) If Frank plans to work for the company 30 years more instead and hopes to accumulate a portfolio valued at $1,000,000 for his retirement by the end of 2046. Can he, do it? Why or why not. Please explain in detail. If not, what he should do?

Frank has presented his findings based upon the above assumptions to his boss, but his boss does not agree with it. Instead, his boss made the following assumptions.

a) The annual salary growth should not be constant. It should vary from 0 to 8% following a uniform probability distribution.

b) The annual portfolio growth rate should be approximated by anormal probability distribution with a mean of 8% and a standard deviation of 5%.

(3) Develop an Excel worksheet with this new information and then use @Risk to perform this simulation (using 1000 iterations) that calculates and shows the value at the end of each year of Frank’s portfolio after he will work for the company 35 years more (i.e., at the end of 2051).

(4) Based on (3), can Frank accumulate a portfolio valued at$1,000,000 for his retirement by the end of 2046? Why or why not. Please explain in detail.

(5) Attach the simulation graph result at the end of 35 years more as an output.

(6) Based upon the graph result, what is the probability that Frank will have at least $1,000,000 of his portfolio value for his retirement at the end of 2051?

Note that Part 1 and Part 3 solutions must be separated.

  Please note both problem#1 needs to be delivered in Excel format with all the formulas. For problem#2, it also needs to be delivered in Excel format too with the decision tree that shows the decision and and chance nodes.

Problem#2/

Ben Traders, a privately held U.S. metals broker, has acquired an option to purchase one million kilograms of partially refined molyzirconium ore from the Meldavian government for $5.00 per kilogram. Molyzirconium can be processed into several different products which are used in semiconductor manufacturing, and George Ben, the owner of Ben Traders, estimates that he would be able to sell the ore for $8.00 per kilogram after importing it. However, the U.S. government is currently negotiating with Meldavia over alleged dumping of certain manufactured goods which that country exports to the United States. As part of these negotiations, the U.S. government has threatened to ban the import from Meldavia of a class of materials that includes molyzirconium. If the U.S. government refuses to issue an import license for the molyzirconium after Ben has purchased it, then Ben will have to pay a penalty of $1.00 per kilogram to the Meldavian government to annul the purchase of the molyzirconium. Ben has used the services of John A. Analyst, a decision analyst, to help in making decisions of this type in the past, and George Ben calls on him to assist with this analysis. From prior analyses, George Ben is well-versed in decision analysis terminology, and he is able to use decision analysis terms in his discussion with Analyst. Analyst: As I understand it, you can buy the one million kilograms of molyzirconium ore for $5.00 a kilogram and sell it for $8.00, which gives a profit of ($8 00 – $5 00) x 1 000 000 = $3 000 000. However, there is some chance that you cannot obtain an import license, in which case you will have to pay $1.00 per kilogram to annul the purchase contract. In that case, you will not have to actually take the molyzirconium and pay Meldavia for it, but you will lose $100 x 1 000 000 = $1 000 000 due to the cost of annulling the contract.

Ben: Actually, some chance may be an understatement. The internal politics of Meldavia make it hard for their government to agree to stop selling their manufactured goods at very low prices here in the United States. The chances are only fifty-fifty that I will be able to obtain the import license. As you know, Ben Traders is not a very large company. The $1,000,000 loss would be serious, although certainly not fatal. On the other hand, making $3,000,000 would help the balance sheet.

Which alternative should Ben select?

Suppose a source of perfect information existed that would let Ben know if the import license would be issued.

How much money would it be worth to obtain perfect information about issuance of the import license?

Now consider a potential source of imperfect information in the Ben Traders decision discussed above. We continue with the discussion between John Analyst and George Ben. Analyst: Is there any way of obtaining additional information about the chances of obtaining a license other than waiting and seeing what happens? Perhaps there is something that doesn’t take as long as waiting for the import approval. Ben: Well, there is always Sam S. Lofon. He is a Washington-based business consultant with good connections in the import licensing bureaucracy. For a fee, he will consult his contacts and see if they think the license will be granted. Of course, his assessment that the license will come through is no guarantee. If somebody in Congress starts complaining, they might shut down imports from Meldavia. They are really upset about this in the Industrial Belt, and Congress is starting to take some heat. On the other hand, even if Lofon thinks the license won’t come through, he might be wrong. He has a pretty good record on calling these things, but not perfect. And he charges a lot for making a few telephones calls Analyst: How good has he been? Ben: He is done some assessments for me, as well as other people I know. I’d say in cases where the import license was ultimately granted, he called it right 80% of the time. However, he hasn’t been so good on the license requests that were turned down. In those cases, he only called it right 65% of the time. Analyst: You commented earlier that he was expensive. How much would he charge? Ben: This is a pretty standard job for him. His fee for this type of service is $10,000.

Should Ben hire Loon, and if so, what is the maximum amount that he should pay Lofon for his services?

Accounting homework help

Week 5 Assignment – Project: Evaluate the Capital Investment Summary Click the linked activity title to access this assignment.

Shoals Corporation puts significant emphasis on cash flow when planning capital investments. The company chose its discount rate of 8 percent based on the rate of return it must pay its owners and creditors. Using that rate, Shoals Corporation then uses different methods to determine the most appropriate capital outlays. This year, Shoals Corporation is considering buying five new backhoes to replace the backhoes it now owns. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes.

The following information is available to use in deciding whether to purchase the new backhoes:

Old Backhoes New Backhoes

Purchase cost when new $90,000 $200,000

Salvage value now $ 42,000

Investment in major overhaul needed in next year $55,000

Salvage value in 8 years $15,000 $90,000 $ 15,000 90,000

Remaining life 8 years 8 years

Net cash flow generated each year $30,425 $43,900

Instructions To complete this assignment, write a 3–5-page paper in which you address the following items:

Evaluate, discuss, and compare whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.) Using Excel, calculate the net present value of the old backhoes and the new backhoes.

Discuss the net present value of each, including what the calculations reveal about whether the company should purchase the new backhoes or continue using the old backhoes.

Using Excel, calculate the payback period for keeping the old backhoes and purchasing the new backhoes. (Hint: For the old machines, evaluate the payback of an overhaul.)

Discuss the payback method and what the payback periods of the old backhoes and new backhoes reveal about whether the company should purchase new backhoes or continue using the old backhoes. Calculate the profitability index for keeping the old backhoes and purchasing new backhoes.

Discuss the profitability index of each, including what the calculations reveal about whether the company should purchase the new backhoes or continue using the old backhoes.

2. Identify and discuss any intangible benefits that might influence this decision.

3. Answer the following: Should the company purchase the new backhoes or continue using the old backhoes? Explain your decision.

The specific course learning outcome associated with this assignment is: Analyze the financial condition of a company using vertical, horizontal, and ratio analysis to make informed decisions.

Accounting homework help

Page 1 Kaplan Business School Assessment Outline

Assessment 2 Information

Subject Code: ACCM6000

Subject Name: Capstone

Assessment Title: Statement of Advice

Assessment Type: Competitive Analysis (Individual)

Weighting: 30 %

Total Marks: 45

Submission: Via Turnitin on MyKBS

Due Date: Tuesday of Week 6 at 19:55 AEST

Your Task
Your task is to conduct a competitor analysis of your company against two other competitors.
(Approximately 1,500 words).

Assessment Instructions
Develop the competitor analysis as follows:

• Conduct five key forces (Porter) which impact on your industry competition.

• Perform the PEST analysis for your company and compare the differences against
your two competitors.

• Conduct a benchmarking review covering internal benchmarking, external
benchmarking and best-in-class benchmarking.

• Describe the threats, bargaining power and competitive rivalry.

• Prepare your statement of advice addressed to the company’s CEO on how your
company differentiates itself from its competitors and what improvements can be
made to your company.

Learning Objectives

After completing this Individual Assignment, you will be able to:
1) Research information about the selected companies (using multiple sources)
2) Conduct a PEST analysis
3) Benchmark your company against two of its competitors
4) Articulate and recommend courses of action to differentiate a business against its

competitors

Page 2 Kaplan Business School Assessment Outline

Important Study Information

Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences
of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct
Policy.

What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?

Click here for answers to these questions:
http://www.kbs.edu.au/current-students/student-policies/.

Word Limits for Written Assessments

Submissions that exceed the word limit by more than 10% will cease to be marked from the point
at which that limit is exceeded.

Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the
resources on the MyKBS Academic Success Centre page. Click here for this information.

Page 3 Kaplan Business School Assessment Outline

ACCM6000 Capstone

Assessment 2

Marking Rubric

/45 marks

Porter’s Five Forces and PEST Analysis
0 – 7.5 7.5 – 15 Achieved marks ( /15)

Has demonstrated limited achievement:

Incorrectly described Porter’s Five Forces in
relation to your company and its two competitors.

Stated some recommendations on how Porter’s
Five Forces can be used as a tool for undertaking
industry analysis, to determine potential
profitability (attractiveness) of your company.

Failed to correctly state the PEST analysis for
your company and compare the differences
against your two competitors.

Has achieved all or most of:

Correctly described Porter’s Five Forces in relation
to your company and its two competitors.

Stated all recommendations for Porter’s Five Forces
as a tool to use for undertaking industry analysis, to
determine potential profitability (attractiveness) of
your company.

Correctly stated the PEST analysis for your company
and compare the differences against your two
competitors.

Benchmarking, Competitive Rivalry and Recommendations
0 – 7.5 7.5 – 15 Achieved marks ( /15)

Has demonstrated limited achievement:

Did not or only partially described the internal
benchmarking, external benchmarking and best-
in-class benchmarking processes of your
company against the two competitors.
Did not or only partially describe the threats,
bargaining power and competitive rivalry.
Failed to correctly state recommendations for
your company’s improvement to the CEO.

Has achieved all or most of:

Described all the internal benchmarking, external
benchmarking and best-in-class benchmarking
processes of your company against the two
competitors.
Described all the threats, bargaining power and
competitive rivalry.
Correctly stated recommendations for your
company’s improvement to the CEO.

Statement of Advice 3 (15 marks)

Page 4 Kaplan Business School Assessment Outline

All Statements of Advice Writing Style (15 marks: 5 marks for each statement of advice)

0 – 7.5 7.5 – 15 Achieved marks ( /15)

Has demonstrated limited

achievement:

Some sentences contain grammatical
errors and typos, there are noticeable
inconsistencies in the formatting, and the
syntax makes some of the answers
difficult to follow.

Has achieved all or most of:

The document does not contain any
grammatical errors or typos, the formatting
is consistent, and the syntax is articulate
and legible.

Accounting homework help

Social Media Marketing

Tracy L. Tuten & Michael R. Solomon

Social Commerce

Chapter 9

Learning objectives

What is the relationship between social commerce and e-commerce?

How are mobile devices and software applications influencing the development of social commerce?

How do social shoppers use social media as they move through the consumer decision-making process? Which social commerce elements should marketers employ to meet social shoppers’ needs?

How do ratings and reviews provide value for consumers and marketers?

What are the psychological factors that influence social shopping?

3

Figure 9.1 The zone of social commerce

Understanding social commerce

Social commerce is a subset of e-commerce that uses social media applications to enable online shoppers to interact and collaborate during the shopping experience, buyers to complete the stages of the purchase decision process, and to assist marketers in selling to customers.

It encompasses social shopping, social marketplaces, and hybrid channels and tools that enable shared participation in a buying decision.

It enables people, both networks of buyers and sellers, to participate actively in the marketing and selling of products and services in online marketplaces and communities.

Relationship between social commerce and social shopping

Social shopping is the active participation in the consumer decision-making process (one’s own and that of others), typically in the form of opinions, recommendations, and experiences shared via social media.

It refers to consumers’ behavior as they use social media to make purchase decisions. Social commerce is the commercial application of social media to drive the acquisition and retention of customers.

Key social commerce elements

Ratings and reviews

1

Curated merchandise

2

Shopping applications and venues

3

Shopping apps facilitate social commerce

Chatbots add another layer of mobility and convenience to social shopping!

The consumer decision-making process

Problem recognition

Information search

Alternative evaluation

Purchase

Post-purchase evaluation

Stage 1: Problem recognition

Problem recognition is facilitated by several social commerce tools:

Social ads on social networking sites

Shared endorsements from friends posted in activity streams

Curated images and lists on sites like Pinterest

Location-based promotions (e.g., Yelp)

Participatory commerce (e.g., Kickstarter)

Betabrand crowdsources product design using social media, an approach called participatory commerce.

One success story is its “dress yoga pants” which solve the problem women face when dashing from work to yoga class!

Credit: iStock.com /Dragonimages

Stage 1: Problem recognition

Stage 2: Information search

Information search is facilitated by several social commerce tools:

Comments and conversations throughout social channels

Ratings and reviews posted on sites (e.g., Yelp, Zagat, Citysearch)

Product and pricing information tagged to image posts

Social search queries on social network sites

Social sharing of wish lists and gift registries

Conversational commerce (chatbot services)

The prevalence and availability of information online, including via social channels, have changed the information search experience.

Tuten, Tracy (TT) – it would be good to use this if possible. it is from Google’s ZMOT information. Or to reconstruct if that would be permissable.

The power of ratings and reviews

95% of consumers report having read reviews prior to making a purchase decision.

66% of consumers read 1–10 reviews before making a purchase.

70% of mobile shoppers are more likely to purchase if the mobile site or app includes reviews.

82% seek out negative reviews as an indicator of authenticity.

60% have viewed a review on their smartphone while shopping in-store.

Transparency in reviews

25% have seen reviews they believe to be fake

21% have seen customers be paid or incentivized to post a positive review

81% find it difficult to distinguish between what is authentic user content and native advertising

Incentivized reviewers are less likely than non-incentivized reviewers to give a 1-star rating and four times less likely to be critical in the review.

Amazon prohibits incentivized reviews.

Stage 3: Evaluation of alternatives

Evaluation of alternatives is facilitated by several social commerce tools:

Bar code scanning/price comparisons using mobile phone apps

Recommendations, testimonials, recommendation agents, and popularity filters

Ratings and reviews

Stage 4: Purchase

Purchase is facilitated by several social commerce tools:

Shop within network options (e.g., Facebook Buy, InstaShop, Snapchat Deeplinks)

Social shopping malls (e.g., Wanelo)

Peer-to-peer marketplaces (e.g., Etsy)

Group buys (e.g., LivingSocial, Groupon)

Conversational commerce (chatbot services)

Stage 5: Post-purchase evaluation

Post-purchase evaluation is facilitated by several social commerce tools:

Comments posted on social network sites

Request for help or comment to brand on social network sites

Participation in loyalty program with social benefits

Submission of ratings and reviews on review sites and retailer website

Reviews and product experiences posted on blogs

The moment of advocacy: The third MOT

Stimulus

Zero MOT

First MOT

Second MOT

Third MOT

Best practices

Authenticity: Accept comments, even if negative

Transparency: Disclose invited/incentivized opinions

Advocacy: Let people rate the value of reviews

Participatory: Encourage customers to review

Reciprocity: Express gratitude for value of reviews

Infectiousness: Make it easy to share reviews

How can marketers build a strong base of authentic, good reviews?

Educate

people about products

Identify

people most likely to share opinions

Provide

tools to make it easier to share opinions

Study

how, when, and where opinions are shared

Listen and respond

to supporters, detractors, and neutrals

Mini-case study: Mantraband’s approach to social commerce

Uses Shopify to enable purchases from within its Facebook page (i.e., social storefront)

Uses Yotpo app to manage request for customer reviews including mobile functionality and auto-posting to social network sites

Curates organic UGC content from multiple sites

Credit: iStock.com / m-gucci

Tuten, Tracy (TT) – Insert photo 9.5

For reflection

Both consumers and brands can be victims of social commerce fraud!

Fraudsters pose as a legitimate brand on social media. They then scam customers while undermining the brand’s reputation and creating negative brand sentiment.

For reflection

A study of 5,000 brand profiles on Twitter, Facebook, YouTube, and Instagram found that nearly 20% of social media brand profiles were fake accounts used to

Offer counterfeit products and services

Phish for personally identifiable information to use in identity theft

Infect victims with malware

Maliciously attack brands

Generate ad revenue

For reflection

Psychology of influence

Influence factors may make it more or less likely that people will change their attitudes or behavior based on a persuasive message.

Bounded rationality and information overload encourage the use of heuristics such as satisficing and thin-slicing when making decisions.

The psychology of influence

Social proof

Authority

Affinity

Scarcity

Reciprocity

Consistency

Social shopping tools are designed with these influence factors to facilitate consumer movement through the purchase decision-making process.

Recap and questions

What is the relationship between social commerce and e-commerce? How are mobile devices and software applications influencing the development of social commerce?

How do social shoppers use social media as they move through the consumer decision-making process? Which social commerce elements should marketers employ to meet social shoppers’ needs?

How do ratings and reviews provide value for consumers and marketers?

What are the psychological factors that influence social shopping?

Accounting homework help

Enter Answer

Function: NPV; Formula: Add, Subtract; Cell Referencing
Some cells are merged.
Using Excel to Determine the Net Present Value Student Work Area
PROBLEM Required: Provide input into cells shaded in yellow in this template. Use the NPV function with cell referencing to the Problem area in the input cell. Use a math formula in the field in which the cash flow for the salvage value is expected to occur, and separately, to account for the initial cash flow in the formula after the function has been inputted.
Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows.
Original cost of investment $ 136,000
Estimated sales value at end of 5 years 60,000 Calculate the net present value of this project to the company using Excel’s NPV function.
Expected increase in annual cash flows 25,000
Estimated useful life in years 5 years
Borrowing rate 8.0% Net present value

Author: Answer Field
100% of your score.
Function: NPV; Formula: Add; Subtract, Cell reference.
Use the NPV function with cell referencing in each field to the respective amounts in the Problem area, with a mathematical formula in the field in which multiple cash flows are expected to occur. Use a mathematical formula with cell referencing to the Problem area to account for the cash flow at the acquisition date
Cost of capital 10.0%

Accounting homework help

Chart of Accounts

Asset Accounts Liability Accounts Equity Accounts
Acct # Acct # Acct #
Cash 101 Notes Payable 201 Common Stock 301
Baking Supplies 102 Accounts Payable 202 Dividends 302
Prepaid Rent 103 Wages Payable 203
Prepaid Insurance 104 Interest Payable 204
Baking Equipment 105 Loans Payable 205
Office Supplies 106
Accounts Receivable 107
Accumulated Depreciation 108
Trademark 109
Leasehold Improvements 110
Accumulated Amortization 111
Revenue Accounts
This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you. Acct #
Bakery Sales 401
Merchandise Sales 402
Expense Accounts
Acct #
Baking Cost of Goods Sold 501
Merchandise Cost of Goods Sold (FIFO) 502
Rent Expense 503
Insurance Expense 504
Misc. Expense 505
Business License Expense 506
Advertising Expense 507
Wages Expense 508
Telephone Expense 509
Interest Expense 510
Depreciation Expense 511
Amortization Expense 512
Office Supplies Expense 513

Worksheet

Peyton Approved
Trial Balance
2017
Unadjusted trial balance Adjusting entries Adjusted trial balance
Account Debit Credit Debit Credit Debit Credit
Cash 64,713.72 64,713.72
Baking Supplies 165,250.00 137,400.00 27,850.00
Merchandise Inventory (FIFO) 25,750.00 25,750.00
Prepaid Rent 7,500.00 7,500.00
Prepaid Insurance 2,400.00 2,000.00 400.00
Baking Equipment 17,000.00 17,000.00
Accumulated Depreciation 3,285.72 2,642.86 5,928.58
Leasehold Improvements 10,000.00 10,000.00
Accumulated Amortization 2,000.00 2,000.00 4,000.00
Trademark 2,300.00 2,300.00
Office Supplies 1,600.00 1,350.00 250.00
Accounts Receivable 30,401.00 30,401.00
Notes Payable 10,000.00 10,000.00
Interest Payable 1,468.75 1,468.75
Accounts Payable 27,325.00 27,325.00
Wages Payable 22,800.00 22,800.00
Loans Payable 21,000.00 21,000.00
Common Stock 30,000.00 30,000.00
Dividends 20,000.00 20,000.00
Bakery Sales 335,675.00 335,675.00
Merchandise Sales 35,200.00 35,200.00
Baking Cost of Goods Sold 137,400.00 137,400.00
Rent Expense 90,000.00 90,000.00
Interest Expense 1,468.75 1,468.75
Insurance Expense 2,000.00 2,000.00
Depreciation Expense 2,642.86 2,642.86
Amortization Expense 2,000.00 2,000.00
Misc. Expense 2,780.00 2,780.00
Office Supplies Expense 1,350.00 1,350.00
Business License Expense 375.00 375.00
Advertising Expense 5,200.00 5,200.00
Wages Expense 22,800.00 22,800.00
Telephone Expense 3,456.00 3,456.00
Merchandise COGS (FIFO) 15,760.00 15,760.00
Total 464,485.72 464,485.72 169,661.61 169,661.61 493,397.33 493,397.33

Adjusting Entries

Peyton Approved
Adjusting Journal Entries
2017
Date Accounts Debit Credit
31-Dec Depreciation Expense 2,642.86
Accumulated depreciation 2,642.86
31-Dec Amortization Expense 2,000.00
Accumulated Amortization 2,000.00
31-Dec Interest Expense 1,468.75
Interest Payable 1,468.75
31-Dec Insurance Expense 2,000.00
Prepaid Insurance 2,000.00
31-Dec Baking Cost of Goods Sold 137,400.00
Baking Supplies 137,400.00
31-Dec Office Supplies Expense 1,350.00
Office Supplies 1,350.00
31-Dec Wages Expense 22,800.00
Wages Payable 22,800.00
169,661.61 169,661.61

Income Statement

Peyton Approved
Income Statement
For Year Ending 12/31/2017
Bakery Sales $ 335,675.00
Merchandise Sales $ 35,200.00
Total Revenues 370,875.00
Merchandise Cost of Goods Sold (FIFO) 15,760.00
Baking Cost of Goods Sold 137,400.00
Gross Profit 217,715.00
Operating Expenses:
Rent Expense 90,000.00
Interest Expense 1,468.75
Insurance Expense 2,000.00
Depreciation Expense 2,642.00
Amortization Expense 2,000.00
Misc. Expense 2,780.00
Office Supplies Expense 1,350.00
Business License Expense 375.00
Advertising Expense 5,200.00
Wages Expense 22,800.00
Telephone Expense 3,456.00
Total Operating Expenses: 134,071.75
Net Income 83,643.25

Closing Entries

Peyton Approved
Closing Entries
For Year Ending 12/31/2017
Date Accounts Debit Credit
31-Dec Bakery Sales 335,675.00
Merchandise Sales 35,200.00
Income Summary 370,875.00
31-Dec Income Summary 287,232.61
Baking Cost of Goods Sold 137,400.00
Rent Expense 90,000.00
Interest Expense 1,468.75
Insurance Expense 2,000.00
Depreciation Expense 2,642.86
Amortization Expense 2,000.00
Misc. Expense 2,780.00
Office Supplies Expense 1,350.00
Business License Expense 375.00
Advertising Expense 5,200.00
Wages Expense 22,800.00
Telephone Expense 3,456.00
Merchandise Cost of Goods Sold (FIFO) 15,760.00
31-Dec Income Summary 83,642.39
Retained Earnings 83,642.39
31-Dec Retained Earnings 20,000.00
Dividends 20,000.00
761,750.00 761,750.00

Statement of Retained Earnings

Peyton Approved
Statement of Retained Earnings
For Year Ending 12/31/2017
Beginning Balance: – 0
plus Net Income 84,642.00
less Dividends: 20,000.00
Ending Balance: 64,642.00

Balance Sheet

Peyton Approved
Balance Sheet
As of December 31, 2017
Assets Liabilities and Owners’ Equity
Current Assets: Current Liabilities:
Cash 64,713.72 Accounts Payable 27,325.00
Baking Supplies 27,850.00 Wages Payable 22,800.00
Merchandise Inventory (FIFO) 25,750.00 Interest Payable 1,468.75
Prepaid Rent 7,500.00 Total Current Liabilities 51,593.75
Prepaid Insurance 400.00
Office Supplies 250.00 Long Term Liabilities:
Accounts Receivable 30,401.00 Notes Payable 10,000.00
Total Current Assets 156,864.72 Loans Payable 21,000.00
Total Long Term Liabilities: 31,000.00
Total Liabilities: 82,593.75
Long Term/Fixed Assets:
Baking Equipment 17,000.00 Common Stock 30,000.00
Accumulated Depreciation 5,928.58 Retained Earnings 84,642.00
11,071.42
Leasehold Improvements 10,000.00 Total Equity 114,642.00
Accumulated Amortization 4,000.00 6,000.00
Trademark 2,300.00
Total Assets: 176,236.14 Total Liabilities & Equity 176,236.00

Financial Analysis

2017 2016 2015 Industry Standard
Quick Ratio 1.66 2.2 2.8 1.75
Gross Margin 0.59 0.55 0.7 0.7
Net Margin 0.23 0.22 0.32 0.24
Return on Equity 0.89 0.9 0.78 0.8

Accounting homework help

Task 8: Given the fast growth of HHEC.com during the year, Sophia and Francesca are
concerned about the sources and uses of the company’s cash. You explain to them that preparing a Statement
of Cash Flows will provide answers to some of their questions. In response, they give you HHEC.com’s Year 3
income statement and balance sheet along with some additional information and ask you to prepare
HHEC.com’s Statement of Cash Flows for Year 3.

Year 2 Year 3 Type of Account Change
Cash 25,000 29,500 Asset 4,500
Accounts Receivable 50,000 63,800 Asset 13,800
Inventory 45,000 38,000 Asset -7,000
Equipment 83,000 82,000 Asset -1,000
Accumulated depreciation 54,000 58,300 Asset 4,300
Accounts Payable 39,000 16,400 Liability -22,600
Sales Tax Payable 20,000 27,000 Liability 7,000
Notes Payable 3,000 5,400 Liability 2,400
Retained Earnings 79,000 92,200 OE 13,200
Common Stock 6,000 11,000 OE 5,000
Treasury Stock 3,000 2,000 OE -1,000
Net Income 17,500 18,200 700
Dividends Payable 5,000 0 -5,000

Note: In Year 3, equipment with a book value of $800 was sold for $900.

ANSWER

Net Income 18,200
Depreciation Expense 4,500
Operating Accounts
Change in Accounts Receivable -13,800
Change in Inventory 7,000
Change in Accounts Payable -22,600
Change in Sales Tax Payable 7,000
Gain on Sale -100

1

Net Cash From Operating Activities 200
Sold Equipment 900
Net Cash From Investing 900
Change Notes Payable 2,400
Dividends Declared -5,000
Change Common Stock 5,000
Change Treasury Stock 1,000
Change Dividends Payable 0 CHANGED IT TO ZERO TO BALANCE THIS OUT
Cash from Finance 3,400
Net Increase in Cash 4,500
Cash Start of Year 25,000
Cash End of Year 29,500

2

Accounting homework help

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Accounting homework help

Enter Answer

Function: NPV; Formula: Add, Subtract; Cell Referencing
Some cells are merged.
Using Excel to Determine the Net Present Value Student Work Area
PROBLEM Required: Provide input into cells shaded in yellow in this template. Use the NPV function with cell referencing to the Problem area in the input cell. Use a math formula in the field in which the cash flow for the salvage value is expected to occur, and separately, to account for the initial cash flow in the formula after the function has been inputted.
Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows.
Original cost of investment $ 136,000
Estimated sales value at end of 5 years 60,000 Calculate the net present value of this project to the company using Excel’s NPV function.
Expected increase in annual cash flows 25,000
Estimated useful life in years 5 years
Borrowing rate 8.0% Net present value

Author: Answer Field
100% of your score.
Function: NPV; Formula: Add; Subtract, Cell reference.
Use the NPV function with cell referencing in each field to the respective amounts in the Problem area, with a mathematical formula in the field in which multiple cash flows are expected to occur. Use a mathematical formula with cell referencing to the Problem area to account for the cash flow at the acquisition date
Cost of capital 10.0%
– 0

Accounting homework help

Abadit Wineh

Professor Lisa M. Volpicelli
ACC2100 – FINANCIAL ACOUNTING

02/27/2022

Challenge 3 – Task 1

In order to demonstrate to Sophia why it is so important to follow these principles and guidelines, you must find an article about a company that violated one or more of these principles and guidelines and use it as an example for her.

Create a brief guide for Sophia that explains the 3 she needs to follow to record the company’s business transactions. Include examples and references from the article you choose.

Accounting principles define how companies and accountants should recognize, record, and present business and financial transactions. They ensure that a company follows the accounting standards when preparing financial statements. Full disclosure is a principle that requires firms to record all the information in the financial statements for the readers/users to understand it better and use it to make decisions. The materiality principle ensures that information that may affect the decisions made by the financial statement users is not omitted. Monsanto Company violated the full disclosure and materiality principle in 2009 and 2010 and was fined $80 Million after being found guilty. The paper will discuss the importance of accounting principles by using Monsanto as the case study.

The materiality principle ensures that companies do not manipulate financial information to fit their interest. Full disclosure helps the company to provide all information that would support the decisions made by readers and users. They protect readers and users of financial statements against being misled by false and incorrect information. For example, in 2009 and 2010, Monsanto Company failed to account for the cost of a program that was implemented to ensure that the distributors get huge rebates on one of its products, Roundup. As a result, the revenues increased, but the company only accounted for them and failed to consider the cost. This resulted in a material misstatement of income as the revenue was overstated by $ 44.5 and $ 48 million in 2009 and 2010, respectively (U.S Securities and Exchange Commission, 2016). For instance, the information was misleading; the income statement seemed appealing to investors and other interested people. Not disclosing and misstating the required or financial information about a company can result in deceiving and bad decision-making by the users.

A company should have strong internal controls to ensure compliance with the whole disclosure principle to avoid penalties and misguide the readers and public. “The full disclosure principle or the principle of openness is to present all information in financial statements that can affect the reader’s understanding” (Meiryani, 2019). The principle promotes honest, transparent, and complete reporting of a firm’s financial performance. It does include proper reporting of financial information and the available accounting policies, their changes, depreciation and asset valuation methods, goodwill, and business affiliates relationships that impact the transaction volumes, items that may not be quantified. Like tax issues, or existing lawsuit outcomes, among others, the information is usually included in the item description section of the financial statements, the balance sheet, income statement, or cash flow statement. It helps the readers understand everything going on in the firm well.

Moreover, the principles help accountants understand ethical standards in their practice. Their responsibilities should not be influenced by a company’s management’s interests that want to manipulate the statements to favor their fraudulent activities. They ensure that accountants are independent, accountable, and transparent, which would support appropriate financial reporting. The materiality principle guides the company to not over/understate their statements to cover fraudulent activities in the company.

Accounting principles like full disclosure and materiality are crucial as they promote transparency, accountability, responsibility, and complete financial reporting. Conversely, violating any accounting principles can result in deficient performance, penalty, bankruptcy due to poor management, and a damaged reputation.

References

Meiryani, A. (2019). Full disclosure in financial reporting. International Journal of Scientific & Technology Research, 8(7), 340-45.

U.S Securities and Exchange Commission. (2016). Monsanto paying $80 million penalty for accounting violations. SEC. https://www.sec.gov/news/pressrelease/2016-25.html.

Accounting homework help

Understanding
Corporate Law

CAROLINA ACADEMIC PRESS UNDERSTANDING SERIES

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Understanding
Corporate Law

FIFTH EDITION

Arthur R. Pinto
PROFESSOR OF LAW EMERITUS
BROOKLYN LAW SCHOOL

Douglas M. Branson
W. EDWARD SELL CHAIR IN BUSINESS LAW
UNIVERSITY OF PITTSBURGH SCHOOL OF LAW

CAROLINA ACADEMIC PRESS
Durham, North Carolina

Copyright © 2018
Carolina Academic Press, LLC

All Rights Reserved

Library of Congress Cataloging-in-Publication Data

Names: Pinto, Arthur R., author. | Branson, Douglas M., author.
Title: Understanding corporate law / Arthur R. Pinto and Douglas M.
Branson.

Description: Fifth edition. | Durham, North Carolina : Carolina Academic
Press, LLC, [2018] | Series: Understanding series | Includes
bibliographical references and index.

Identifiers: LCCN 2018011007 | ISBN 9781531010003 (alk. paper)
Subjects: LCSH: Corporation law–United States.
Classification: LCC KF1414 .P56 2018 | DDC 346.73/066–dc23
LC record available at https://lccn.loc.gov/2018011007

eISBN 978-1-53101-001-0

Carolina Academic Press, LLC
700 Kent Street

Durham, North Carolina 27701
Telephone (919) 489-7486

Fax (919) 493-5668
www.cap-press.com

Printed in the United States of America

Contents

Preface

Chapter 1 · Introduction and Formation
§ 1.01 Introduction
§ 1.02 Sources of Corporate Law
§ 1.03 Historical Background
§ 1.04 Choice of Form

[A] Sole Proprietorship
[B] Partnership vs. Corporation

§ 1.05 Limited Partnerships
§ 1.06 Limited Liability Company
§ 1.07 Taxation

[A] Double Taxation
[1] Subchapter S Corporation
[2] Limited Liability Companies

§ 1.08 Incorporation and Organization
§ 1.09 Choice of Law

[A] Delaware’s Dominance
§ 1.10 Ultra Vires

[A] Corporate Social Responsibility and Philanthropy
§ 1.11 Social Benefit Organizations

Chapter 2 · Promoters’ Liability and Defective Incorporation
§ 2.01 Introduction
§ 2.02 Promoters’ Liability on Preincorporation Contracts

[A] Overview
[B] Liability of the Promoter
[C] The Strict View of Promoters’ Liability
[D] Reliance on the Intent of the Parties
[E] Liability of the Newly Formed Corporation or LLC
[F] Promoters’ Fiduciary Duties

§ 2.03 Defective Incorporation

[A] The Problem
[B] The De Facto Corporation Doctrine and Corporation by
Estoppel

[C] Statutory Abolition of the De Facto Corporation Doctrine
[D] Does Corporation by Estoppel Survive the Model Business
Corporation Act?

[E] Model Business Corporation Act Compromise
[F] Corporate Death

Chapter 3 · Piercing the Corporate Veil
§ 3.01 The Concept of Limited Liability
§ 3.02 The Limited Liability Debate
§ 3.03 Grounds for Piercing the Corporate Veil

[A] Introduction
[B] Intermixture of Affairs
[C] Lack of Corporate Formalities
[D] Veil Piercing in Limited Liability Companies (LLCs)
[E] Inadequate Capitalization

[1] Overview
[2] What Is Capital for These Purposes?
[3] When Is Capital Adequate?
[4] Is Inadequate Capitalization Alone a Sufficient Ground?
[5] Does a Duty Ever Arise to “Top Off” the Original
Capital?

[F] Evasion of a Contract or Statute or Use of a Corporation
Solely to Work a Fraud

[G] Instrumentality Theories
[H] Torts Versus Contracts

§ 3.04 Equitable Subordination
§ 3.05 Piercing the Corporate Veil: Procedural Contexts
§ 3.06 Statutory Liability Under Environmental Laws
§ 3.07 Successor Corporation Liability in Products Liability
§ 3.08 Piercing the Corporate Veil — Structural Settings

[A] Personal Shareholder Liability
[B] Parent-Subsidiary Settings
[C] Brother-Sister (Sibling) Corporation Settings
[D] Enterprise Liability

[E] Reverse Piercing
[F] Participation
[G] Summary

Chapter 4 · Financing the Corporation
§ 4.01 Introduction
§ 4.02 Securities

[A] Debt
[B] Common Shares
[C] Preferred Shares

§ 4.03 Leveraging and Capital Structure
§ 4.04 Legal Capital Rules

[A] Preemptive Rights
[B] Par Value
[C] Dividends and Repurchases of Shares

§ 4.05 Valuation
[A] Liquidation Value
[B] Book Value

[1] Cost Based Accounting
[2] Depreciation
[3] Intangible Assets

[C] Earnings Approach
[1] Capitalization of Earnings
[2] Cash Flow as Earnings
[3] The Rate

Chapter 5 · The Legal Model and Corporate Governance: Themes and the
Allocation of Power Under State Law
§ 5.01 Introduction
§ 5.02 Themes

[A] Focus of Corporate Governance and Stakeholders
[B] Publicly Held Corporation
[C] The Stock Markets

[1] Benefits of Stock Markets
[2] Shareholder Protection and Stock Markets

[D] The Efficient Capital Market Hypothesis
[E] Role of Ownership

[1] The Berle-Means Corporation — Separation of
Ownership from Control

[2] Institutional Investors
[3] Political Significance of Share Ownership

[F] Independent Directors
[G] Gatekeepers
[H] Federalism
[I] Publicly Held vs. Closely Held Corporations

§ 5.03 Theories of the Firm
[A] Regulatory Approach
[B] Management, Director, or Shareholder Approach
[C] Law and Economics Approach

[1] Agency Costs
[2] Markets
[3] Nexus of Contracts
[4] Critics of Contractual Approach
[5] Behavioral Economics

§ 5.04 The Legal Model
§ 5.05 Shareholders

[A] Right to Vote
[1] Cumulative Voting
[2] Right of Expression

[B] Shareholder Meetings and Proxy Voting
[C] The Proxy Fight

[1] Change or Influence Management
[2] Replace Directors to Facilitate an Acquisition
[3] Change Policy

[a] Shareholder Proposals
[b] Withholding Votes
[c] Nominating Directors in Management’s Proxy
Statement

[4] Collective Action Problem
[5] Proxy Expenses

[D] Shareholder Democracy
[1] Fiduciary Duty

[E] Vote Buying

[F] Right to Information
§ 5.06 Board of Directors

[A] Board Structure
[B] Meetings

[1] Actions Without a Meeting
§ 5.07 Officers

[A] Authority
§ 5.08 Financial Scandals

[A] The Sarbanes-Oxley Act of 2002
[B] Dodd-Frank Act of 2010

Chapter 6 · Mergers and Acquisitions
§ 6.01 Introduction
§ 6.02 Mergers

[A] Triangular Merger
[B] Reverse Triangular Merger
[C] Short Form Merger

§ 6.03 Sale of Assets
§ 6.04 Tender Offer
§ 6.05 Other Legal Issues
§ 6.06 Appraisal Remedy

[A] Delaware Block Approach
[1] The New Delaware Methodology

[B] Stock Market Exception
§ 6.07 De Facto Mergers

Chapter 7 · Introduction to Federal Regulation and the Proxy Rules
§ 7.01 Introduction and Overview
§ 7.02 SEC Jurisdiction and Periodic Reporting by Publicly Held
Corporations
[A] SEC Jurisdiction
[B] Periodic Reporting — An Overview
[C] Certifications, Code of Ethics Disclosure, and Penalties for
Earnings Restatements

[D] Private Securities Litigation Reform Act (PSLRA) Safe
Harbor for Forward Looking Statements

[E] Management Discussion and Analysis (MD&A)

[F] Earnings Management and Revenue Recognition Issues
§ 7.03 Securities Issuance

[A] The Federal Disclosure Philosophy
[B] Registration Requirements
[C] The Registration Process
[D] Exemptions From Registration

[1] Scope
[2] The Intrastate Exemption
[3] The Private Offering Exemption
[4] Regulation D Exemptions
[5] Crowdfunding

§ 7.04 Proxy Regulation
[A] Introduction
[B] A Proxy Solicitation Hypothetical
[C] Proxy Contests

[1] The Shareholder’s Role
[2] Inadvertent Solicitation and Other Problems
[3] Regulatory Burdens and Costs
[4] Proxy Contest Procedures and Further Costs

[D] Use of Shareholder Consents
[E] The Internet and the “Notice and Access” Proxy Regime

§ 7.05 The SEC Shareholder Proxy Proposal Rule: SEC Rule 14a-8
[A] Proposals
[B] Eligibility and Procedure
[C] Background on the Nature of the Proposals
[D] Mechanics of the Shareholder Proxy Proposal Process
[E] The 14a-8, Question 9(7), Ordinary Business Operations
Exclusion

[F] Other Rule 14a-8 Exclusions
[G] Proposals to Amend Corporate Bylaws
[H] CA, Inc. v. AFSCME Employees Pension Trust

§ 7.06 The Proxy Rules’ General Antifraud Rule: An Introduction to
General Disclosure Law Concepts
[A] Introduction
[B] SEC Rule 14a-9
[C] Implication of Private Rights of Action

[D] Standing to Sue
[E] Materiality of the Omission of the Misleading Statement
[F] State of Mind (Fault) Required
[G] Causation
[H] Remedies

Chapter 8 · Introduction to Fiduciary Duty: The Duty of Care, the
Business Judgment Rule and Good Faith
§ 8.01 Introduction

[A] Overview of Duty of Care and Loyalty
[B] Sliding Scale

§ 8.02 Policy Issues
[A] Law and Economics Approach

§ 8.03 Duty of Care
[A] Nonfeasance
[B] Malfeasance and the Business Judgment Rule
[C] Causation

§ 8.04 The Smith v. Van Gorkom Case
§ 8.05 The Demise of the Duty of Care

[A] Delaware General Corporation Law § 102(b)(7)
§ 8.06 Good Faith

[A] Disney Litigation and Good Faith
[B] The Duty to Monitor and Stone v. Ritter

§ 8.07 Duty of Disclosure
§ 8.08 Duty to Act Lawfully

Chapter 9 · The Duty of Loyalty and Conflicts of Interest
§ 9.01 Introduction
§ 9.02 Policy
§ 9.03 Interested Director Transactions

[A] Common Law
[B] Statutory Responses

[1] Weak Form Approach
[2] Semi-Strong Approach

[a] The New York Approach
[b] The Current California Approach

[3] Strong Form Approach

[a] Delaware Approach
[b] The MBCA Approach

§ 9.04 Executive Compensation
[A] Stock Options
[B] Good Faith and Compensation
[C] Waste

[1] Delaware’s Waste Standard
§ 9.05 Corporate Opportunity and Abuse of Position

[A] Legal Tests
[1] Interest Test
[2] Line of Business Test
[3] Fairness Test
[4] The ALI Test

[B] Financial Inability
[C] Multiple Boards
[D] Use of Information and Competition
[E] Undisclosed Profits

§ 9.06 Shareholder Voting — Ratification and Optional Voting
[A] Effect of Optional Disinterested Shareholder Voting

Chapter 10 · Controlling Shareholders
§ 10.01 Introduction
§ 10.02 Use of Control

[A] The Zahn Case
[B] Parent-Subsidiary Dealings
[C] Sale of Corporation

§ 10.03 Freezeouts
[A] Policy Issues
[B] State Law
[C] Cases

[1] The Weinberger Case
[2] Post-Weinberger Cases

[a] Appraisal versus Equity in Delaware
[b] Fair Dealing

[i] Negotiating Committee of Independent Directors
[ii] Majority of Minority Shareholder Voting

[iii] Both Independent Board and Shareholder
Approval

[c] Business Purpose
[d] The Controlling Shareholder’s Tender Offer

[D] Federal Law
[1] SEC Rule 13e-3
[2] SEC Rule 10b-5

§ 10.04 Sale of Control
[A] Looting
[B] The Perlman Case
[C] The California Approach
[D] Sale of Office

Chapter 11 · Special Problems of the Closely Held Corporation
§ 11.01 Introduction and Overview

[A] Definitions of a Close Corporation
[B] Illiquidity and Exploitation
[C] Corporate Law Responses to the Illiquidity and Exploitation
Situation

§ 11.02 Obtaining and Maintaining a Measure of Control
[A] Preview
[B] Shareholder Voting Agreements
[C] Irrevocable Proxies
[D] Voting Trusts
[E] Class Voting
[F] Cumulative Voting
[G] Summary

§ 11.03 Protecting Shareholder Expectations in Closely Held Corporations
Ex Ante
[A] Contract
[B] Long-Term Shareholder Tenure and Salary Agreements
[C] Less Than Unanimous Shareholder Agreements
[D] Other Agreements Affecting Directors’ Discretion
[E] Comprehensive Shareholder Agreements

§ 11.04 Restrictions on Share Transferability
[A] Introduction
[B] Umbrella Test — Unreasonable Restraint Upon Alienation?

[C] Other Legal Aspects of Share Transfer Restrictions
[1] Legal Capital and Funding
[2] Procedural Aspects
[3] Disparity Between Buy-Out Price or Formula and Fair
Price

[4] Implied Covenant of Good Faith and Fair Dealing
[5] Notice

§ 11.05 Other Governance Features of the Closely Held Corporation
[A] Overview
[B] Greater Than Majority Quorum and Voting Requirements
[C] Informal Action by Shareholders and Directors

§ 11.06 Close Corporation Statutes
§ 11.07 Protecting Shareholder Expectations in the Close Corporation Ex
Post
[A] Resetting the Problem
[B] Heightened Fiduciary Duty in the Close Corporation Setting
[C] Heightened Fiduciary Duty in Other Jurisdictions
[D] Two Worlds Collide: The Donahue Principle Meets
Employment at Will

[E] Involuntary Dissolution Statutes
[F] Cases of Deadlock
[G] Oppression Grounds
[H] Remedies in Involuntary Dissolution Cases
[I] Valuation Issues in Court Ordered Buyouts
[J] Conclusion

§ 11.08 Limited Liability Companies
[A] Introduction

[1] Hybrid Nature
[2] Manager-Managed
[3] Comparison with Limited Partnership
[4] Comparison with the Limited Partnership Hybrid

[B] Background
[C] Formation of an LLC
[D] Finance
[E] Veil Piercing in LLCs
[F] Authority of Members and Managers

[G] Fiduciary Duties of LLC Managers and Members
[1] Introduction
[2] Implied Covenant of Good Faith and Fair Dealing
[3] The Duty of Loyalty
[4] Competition with the LLC
[5] Opting out of Fiduciary Duties
[6] Exculpatory Provisions

[H] Dissolution of an LLC
[I] Limited Liability Partnerships
[J] Series
[K] Social Enterprises, Mission Driven Companies, and the Low
Profit Limited Liability Company (L3C)

Chapter 12 · Hostile Tender Offers
§ 12.01 Introduction
§ 12.02 The Rise and Fall of Hostile Tender Offers
§ 12.03 Policy Issues

[A] Proponents
[B] Opponents

§ 12.04 Tactics
[A] Bidder Tactics
[B] Target Tactics

[1] Poison Pills
§ 12.05 State Law

[A] Delaware Approach
[1] The Cheff Case
[2] The Unocal Test
[3] The Revlon Test
[4] The Time Case
[5] The QVC Case
[6] The Unitrin Case
[7] Shareholder Voting and Tender Offers
[8] Judicial Scrutiny of Deal Protection

[a] The Omnicare Case (Using Unocal)
[b] The Lyondell Case (Using Revlon)

[9] Summary

§ 12.06 Federal Securities Law — The Williams Act
[A] History
[B] Disclosure Rules
[C] Other Rules
[D] Section 14(e)

§ 12.07 State Takeover Statutes
[A] Introduction
[B] Policy Issues
[C] Constitutionality

[1] The Edgar Case
[2] The CTS Case

Chapter 13 · SEC Rule 10b-5 Disclosure and Insider Trading
§ 13.01 SEC Rule 10b-5 Disclosure and Insider Trading
§ 13.02 Disclosure Concepts and Elements of a Cause of Action Under
Rule 10b-5
[A] Implication of Private Rights of Action
[B] Standing to Sue
[C] Materiality
[D] State of Mind
[E] Pleading State of Mind
[F] Reliance (Transaction Causation)
[G] The Fraud on the Market Theory Reliance Substitute
[H] Loss Causation
[I] The “In Connection With” Requirement
[J] Privity
[K] Secondary Liability for Disclosure Violations
[L] Statutes of Limitation

§ 13.03 The Prohibition of Insider Trading: Is It Good or Bad?
§ 13.04 The Law of Insider Trading

[A] Common Law Background
[B] The Nature of the Insider Trading Prohibition
[C] Who Is an Insider?
[D] Tipper-Tippee Liability
[E] The Misappropriation Theory
[F] The Misappropriation Theory in the Supreme Court

[G] Tippees of Misapporiators
[H] Remedies and Enforcement
[I] SEC Regulation FD

§ 13.05 The Insider Trading Prohibition Under State Law
[A] Common Law
[B] Common Law Exceptions: The Kansas Rule
[C] Common Law Exceptions: Special Facts Doctrine
[D] Modern Expansion of the Special Facts Doctrine
[E] Finding Harm to the Corporation from the Insider’s Trading

§ 13.06 Regulation of Insider Trading Under Section 16 of the Securities
Exchange Act of 1934
[A] Statutory Provisions
[B] Parties Plaintiff and Calculation of Damages
[C] Who Is an Officer for Section 16 Purposes?
[D] Insider Status at Only One End of a Swing
[E] Takeover Players and Section 16(b)

Chapter 14 · Corporate Litigation
§ 14.01 Introduction
§ 14.02 The Nature of the Derivative Suit: Direct Versus Derivative, Pro
Rata Recovery, and Other Preliminary Issues
[A] The Nature of the Derivative Suit
[B] Direct Versus Derivative — Special or Distinct Injury Rule
[C] Direct Versus Derivative — Denial of Contract Rights
Associated With Shareholding

[D] Direct Versus Derivative — Closely Held Corporation
Exception

[E] Pro Rata (Individual) Recovery in Derivative Actions
[F] The Tooley Test in Delaware

§ 14.03 Qualifications of a Proper Plaintiff-Shareholder
[A] Record Ownership
[B] Contemporaneous Ownership

[1] Introduction
[2] Basis for the Rule
[3] Possible Exception: Undisclosed Wrongdoing
[4] Exception: Continuing Wrong
[5] Exception: Double Derivative Actions

[C] Continuous Owner
[D] Clean Hands Requirement
[E] Adequate Representation Requirement
[F] Selection of Lead Counsel

§ 14.04 Reforms of the Earlier Strike Suit Era
[A] Overview
[B] Verification Requirement
[C] Security for Expenses Requirements

§ 14.05 The Demand Rule
[A] Overview
[B] Demand Refused
[C] Demand Accepted
[D] Demand Excused

[1] Introduction
[2] The Futility Exception

[a] Introduction
[b] Legal Tests for Demand Futility
[c] Disabling Conflicts of Interest
[d] Lack of Independence

[3] Threat of Irreparable Harm
[4] Closely Held Corporations
[5] Delay
[6] Neutrality

[E] Demand on Shareholders
§ 14.06 Termination of Litigation: The Advent of the Special Litigation
Committee Device
[A] Background
[B] Application of the Business Judgment Rule
[C] Delaware and the Zapata Second Step
[D] Structural Bias and Other Criticisms
[E] Recent Cases

§ 14.07 Proposed Reforms of the Modern Strike Suit Era
[A] The ALI Proposals Briefly Considered
[B] The American Bar Association (Model Business Corporation
Act) Proposals

[C] Derivative Action Summary

[D] Bylaw and Contractual Impediments to Shareholder
Litigation

§ 14.08 Right to Trial by Jury, Attorneys’ Fees, and Miscellaneous Issues
[A] Right to Trial by Jury
[B] Attorneys’ Fees in Derivative Actions

[1] Entitlement: Common Fund Versus Common Benefit
Cases

[2] The Cosmetic (Collusive) Settlement Problem
[3] Computation of Fee Amounts: Lodestar Versus
Percentage of Recovery Methods

[4] Objectors and Intervenors
[5] The WorldCom Case

[C] Statute of Limitations or Laches?
[D] Who Pays?

§ 14.09 The Reprise of the Shareholder Class Action
[A] The Death of the Derivative Action and the Rise of the
“Stock Drop” Class Action

[B] The Private Securities Litigation Reform Act (PSLRA) of
1995

[C] Particularized Issues Under the PSLRA
[1] Pleading
[2] Loss Causation
[3] Selection of the Most Appropriate Plaintiff

[D] The Securities Litigation Uniform Standards Act (SLUSA) of
1998

[E] Mail and Wire Fraud Government Criminal Prosecutions
§ 14.10 Lawyering Problems in Corporate Litigation

[A] Attorney-Client Privilege
[B] Attorney-Client Privilege in Derivative Litigation
[C] The Corporation as Client
[D] Sarbanes-Oxley Act (SOX) § 307: The Conflict Between
“Reporting Up” and the Prohibition on Disclosure of Client
Confidences

§ 14.11 Indemnification and Insurance
[A] Overview
[B] Indemnification Statutes

[C] Advance of Fees and Other Expenses
[D] Fees on Fees
[E] Implementation by Contract
[F] Non-exclusive Versus Exclusive Statutes, Public Policy
Limits, and Consistency Limitations

[G] Overriding Requirement of Good Faith (Statutory)
[H] Insurance
[I] Summary

Table of Statues & Regulations
Table of Cases
Index

Preface

Understanding Corporate Law is intended to assist law students and lawyers
with a basic understanding of the law of corporations as taught in most
corporations courses. Significant business, economic and policy issues are
highlighted in connection with a thorough analysis of the important cases and
both state and federal statutory provisions used in the study of corporations. It
includes the major theoretical approaches used in current corporate law
literature. In each chapter, the authors identify important policies and discuss the
relationship of the law as it has developed to those policies. The rise of
institutional shareholder ownership and its effect on legal developments is
highlighted. Statutory issues are covered under both the General Corporation
Law of the State of Delaware and the Business Corporation Act. In addition,
significant sections from the Principles of Corporate Governance of the
American Law Institute are covered. The corporate scandals of 2001 and 2002
and the enactment of the federal Sarbanes-Oxley (2002); the financial crisis of
2008 and enactment of Dodd-Frank (2010); and JOBs (2012) Acts are also
covered. Chapter 11 now incorporates material on limited liability companies
(LLCs). This book is designed to be used with all of the major corporate law
casebooks.
We also have written this volume so that non-lawyers who desire to progress

beyond a rudimentary knowledge of corporate law may do so by reading this
book.
Although the book was a collaborative effort, Professor Pinto wrote Chapters

1, 4, 5, 6, 8, 9, 10 and 12. Professor Branson wrote Chapters 2, 3, 7, 11, 13 and
14.
Professor Pinto would like to acknowledge his partner Stephen J. Bohlen for

his constant support.
Professor Branson dedicates this book to Elizabeth, Clare and Annie.
The book is dedicated to our students past and present who have inspired this

project.

Arthur R. Pinto
Douglas M. Branson

Chapter 1

Introduction and Formation

§ 1.01 Introduction
The corporation is one of several ways to structure a business. Partnerships,

limited liability companies and sole proprietorships, as forms of business, far
outnumber corporations. However, the economic impact of the corporate format
is significant, since it is the form chosen by most large enterprises. Although
there is no standard definition for the term “corporation,” the United States
Supreme Court in the Dartmouth College case described it as follows:

A corporation is an artificial being, invisible, intangible, and existing
only in contemplation of law. Being a mere creature of law, it
possesses only those properties which the charter of its creation
confers upon it, either expressly, or as incidental to its very existence.1

A corporation is a separate legal entity2 which owes its existence to the state.
Its owners, called shareholders (sometimes “stockholders” by some state
statutes) because they own shares of stock, elect a distinct group, known as the
board of directors, to oversee the management of the business and select officers
to run it (the directors and officers are often called the “managers”). A
significant aspect of the study of corporate law (which includes state corporate
law and federal securities law) involves corporate governance and the means by
which the relationships between shareholders and managers are governed.3

Experiences vary widely in business formation, but we will describe one that
may help the reader relate to some of the material in this book. A business often
starts with an idea or invention but requires capital (money or contribution of
goods or services is also possible) or other people to get started or expand. The
initial business can be formed as a corporation, partnership, limited partnership
or limited liability company. The capital can be invested in the business in two
general ways.4 If capital is lent, then the relationship between the lenders and
the business creates a debtor-creditor relationship where the creditor is looking

for eventual repayment plus some current return usually in the form of interest
on the loan. If the capital is provided for an ownership stake, then the investors
are willing to forgo a promise to be paid interest or a set return on the
investment for the potential for sharing in the success of the business as owners.
Their investment provides equity for the business. The source of debt or equity
(i.e., ownership) can be friends, family, banks or groups of private investors
who are willing to invest to start up or expand a new business with the hope of
making a profit when the business is successful. Some private investors invest in
a later stage of the development of the business then the initial investors. Those
private investors are often called venture capitalists, which is a sub-category of
investors called private equity.5

Many businesses continue to operate and expand with a small number of
investors. These corporations are called closely-held corp

Accounting homework help

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Accounting homework help

Abadit Wineh

Professor Lisa M. Volpicelli

ACC2100

Due date: 04/24/2022

Challenge 5 – Task 1

The sisters would like to understand various concepts related to accounting generally and to their business specifically. For example, you realize that they are not familiar with internal control and accounting control systems so you decide to explain to them why it is so important to have these systems in a merchandising business and also to provide them with a brief rationale of their importance. You also provide them with an explanation of the fraud triangle. As far as their particular business is concerned, they want to better understand what, specifically, you have done for their company in terms of merchandising

Write a memo to the sisters in which you provide explanations of internal control and accounting control systems and the fraud triangle. Be sure to explain, as well, the details of accounting for a merchandising business, including the following:

1. What subsidiary ledgers and special journals are and how they should be used

2. The different ways freight costs can be handled

3. What internal control is, the principles of internal control activities, and how these principles can be applied to cash receipts and disbursements

4. Utilize a resource outside of the textbook

As new collaborators, most employees lack insight into the new business venture’s success and stability variables. Internal business controls, proper freight management, and accurate accounting systems are the foundation of a thriving business. As the management, workers hold a substantial responsibility in propelling the business’ activities by initiating robust internal business controls as the vital support system (University of Washington, 2021). Internal business controls guide and monitor the business activities to curb risks and minimize fraud as they are the basis for the other business components. The following is a comprehensive outlook into the business incipiency and advancement contrivances.

Typically, a general ledger records business transactions and occurrences (Openstax, 2021). As the business grows, the transactions appreciate posing a documentation challenge. Profiling all the business activities in one volume is hectic and can lead to discrepancies and a failure eventuality. Therefore, special journals and subsidiary ledgers cater to different types of transactions. The special journals comprise sales, purchases, cash disbursements, and cash receipts journals (Openstax, 2021). A sales journal documents all the businesses’ sales, whereas a purchase journal records all the merchandise procured by the company. The cash disbursement journal compiles all the company’s expenditures, while cash injected into the business is encoded into the cash receipts journal. The subsidiary ledgers indicate the business’ creditors and debtors (Openstax, 2021). An accounts subsidiary receivable ledger records the credentials of people who own the business entity. On the other hand, an accounts payable subsidiary ledger incorporates the money owed to other companies.

Business operations are costly, and some expenses can result in losses (PartnerShip, 2021). However, reducing freight costs is a tactical technique of optimizing logistic costs, attaining influential impacts, and saving the business from incurring losses. Creating rapport with the carriers is essential in obtaining transportation discounts (PartnerShip, 2021). As a novice in the business niche, a company may not access the deal immediately. However, there are third parties that can leverage their bargaining power. Prudence is paramount when choosing the transportation means. A cheaper way of freight significantly reduces the costs (PartnerShip, 2021). Overseas goods shipment by the ocean is more frugal than air, while domestic goods shipment by rail is affordable than trucks. Freight consolidation is another strategy to minimize costs. Obtaining the goods in bulk and transporting them once is nominal than several trips of shipment.

Internal controls are blueprints that govern compliance, facilitate efficient operations, and promote integrity and steer the attainment of set Objectives (University of Washington, 2021). The principles of internal controls entail control activities, risk assessment, communication, and information, reviewing and monitoring, and control environment. Control activities are the intramural activities of the business. They are either preventive or detective. Risk assessment is the analysis of threats that can impede the prosperity of a company. On the other hand, communication and information are the business’s information flow strategies that maintain clarity and openness (University of Washington, 2021). Reviewing and monitoring is the oversight and appraisal of the company for progress, relapse, regress, and maturation. Controlling the environment segregates duties and nurtures integrity in the business. Segregation of duties streamlines the debit and credit processes by ensuring that only specific individuals authorize the disbursement and reception of cash (ECLKC, 2021). This promotes accountability in financial operations.

Conclusion
Business development is a consolidation of all the above factors. Studies have revealed that their implementation is a standard way of formulating a solid business foundation, nurturing it, and steering it towards prosperity. Therefore, a business should operate within the confines of these factors.

References

ECLKC. (2021). What Internal Controls Are Needed for Cash Disbursement? | ECLKC. ECLKC. Retrieved 20 April 2021, from https://eclkc.ohs.acf.hhs.gov/fiscal- management/article/what-internal-controls-are-needed-cash-disbursement#:~:text=The %20objectives%20of%20internal%20controls,internal%20control%20for%20cash %20disbursements

Openstax. (2021). 7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders – Principles of Accounting, Volume 1: Financial Accounting | OpenStax. Openstax.org. Retrieved 20 April 2021, from https://openstax.org/books/principles-financial-accounting/pages/7-2-describe-and- explain-the-purpose-of-special-journals-and-their-importance-to-stakeholders

Powered by TCPDF (www.tcpdf.org)

PartnerShip. (2021).

5 Key Strategies to Control Shipping Costs. Asafishing.org. Retrieved 20

April 2021, from

https://asafishing.org/uploads/5_Key_Strategies_to_Control_Shipping_Costs.pdf

University of Washington. (2021). Internal Controls | Financial Reporting. Finance.uw.edu. Retrieved 20 April 2021, from https://finance.uw.edu/fr/internal-controls

Accounting homework help

Introduction to Industry and Company Analysis

Requirement:

1. Provide an overview/introduction to the industry and companies you have selected.

2. Provide a list of information sources (please be specific).

1. Framework, concepts and theories to be considered:

Products and/or Services Supplied (principal business activity and other business activities)

Business-Cycle Sensitivities

Industry Classification (Classifying Companies into Industries)

Constructing a Peer Group

· Examine commercial classification systems

· Review the subject company’s annual report for a discussion of the competitive environment

· Review competitors’ annual reports to identify other potential comparable companies

“Porter’s five forces” analysis (threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, intensity of rivalry among existing competitors).

Price competition (Barriers to entry, Industry concentration, Industry capacity, Market share stability).

Competitive strategies (Low-cost strategy and Product/service differentiation strategy).

Using the life-cycle model (embryonic; growth; shakeout; mature; and decline).

External influences on industry growth, profitability, and risk (

· Macroeconomic influences include the level of production, interest rates, availability of credit, and inflation

· Technological influences include new products that change how companies do business

· Demographic influences include the distribution of consumers by age and gender

· Governmental influences include tax rates and regulations

· Social influences include how people work and spend.

A checklist for company analysis (please see Exhibit 8 for details):

· corporate profile;

· industry characteristics;

· demand for products/services;

· supply of products/services; pricing; and

· financial ratios.

2. Information sources include:

· economic publications

· business publications

· industry and trade associations

· company disclosures, and

· The companies’ competitors, suppliers, and customers

Accounting homework help

How Would You Write the Audit Opinion and Internal Control Report on the following:

As an auditor, what would your conclusions/recommendations be? What would you state in your audit report?

Materiality is $120 million


Audit Findings:

1. Cash reconciliations not performed until 5 months late, but were caught up by year-end. At one point in time, the unreconciled balances totaled $1.4 billion.

Financial statements had some minor differences before being provided to the auditors

Financial statements were fairly stated at year-end

Entity adopted new SFFAS this year that significantly changed the reporting structure

2. Audit could not be completed in time due to financial statement preparation weaknesses.

Large numbers of disbursements without supporting documentation (approximately $275 million)

3. Major problems after implementing a new financial accounting system

Problems with locating supporting contract information

Financial statements were fairly stated after material auditor adjustments.

Accounting homework help

INTRODUCTION

It is early 2014. A leading global skincare manufacturer,

Health & Beauty Co. (HBC), has been losing market share in

the hand and body lotion market. While the firm still leads its

competitors in market share in this segment of personal care,

it seeks to stem further share erosion and, to that end, has

recently developed a strategy to recover market share through

rebranding, advertising, and repackaging. The situation is

especially critical since a large competitor is believed to be

launching a new skincare product in the near future.

Your task as senior financial analyst is to draft the capital

expenditure proposal related to the new packaging proposal.

Information to support you in this task follows. You should

complete the firm’s capital expenditure template included in

Appendix 1.

BACKGROUND:

The U.S. skincare market has been growing at an average

rate of 4% over the past three years and is estimated to reach

$11 billion in 2018. This market includes facial, body, and

hair care, as well as other makeup segments. HBC holds

a leadership position in the hand and body lotion market

but needs to evolve to meet consumers’ growing needs and

compete with an ever-increasing number of competitors.

Recent market research by HBC revealed that consumers

perceive the current packaging as outdated: old, generic,

dull, and cheap looking. It also lacks a contemporary and

premium look compared with some of the main competitor’s

products. HBC is in the process of rebranding these product

lines, and newly developed packaging will play a pivotal role

in the plan to rebrand and reposition the product. The new

packaging aims to convey the brand image of modern, up-to-

date, high-quality, everyday use, and good value.

Preliminary investigation comparing the existing and

proposed packaging revealed the following:

1. The proposed packaging will keep the brand fresh and

relevant while maintaining the brand heritage and appeal

to existing and future consumers.

2. The project:

a. Provides the opportunity to simplify an over-

complicated and confusing pack line-up by reducing

the current portfolio of sizes.

b. May lead to improved margins since there is the

potential to raise prices on the newly packaged items.

The current gross margin of the product is 69%.

3. Overall, the new pack design is a cost-effective pack with

package unit prices lower than that of the current brand

pack.

4. The brand team believes that incremental sales growth

is achievable through the combination of new brand

positioning, advertising, and packaging. Feedback from

several large retailers consulted on the new packaging

was consistently positive.

I M A E D U C AT I O N A L C A S E J O U R N A L V O L . 1 0 , N O . 4 , A R T. 1 , D E C E M B E R 2 0 1 71

ISSN 1940-204X

Repackaging a Global Brand:
A Case Study Analyzing the Capital Expenditure Decision

Barbara Tarasovich, DPS, CPA, CGMA
Associate Accounting Professor
Jack Welch College of Business
Sacred Heart University

Bridget Lyons
Finance Professor
Jack Welch College of Business
Sacred Heart University

© 2 0 1 7 I M A

PROJECT INFORMATION:

The new packaging would require the purchase of molds and

assembly equipment (useful life of six years on all) as follows:

Cap/Pump molds $1,590,000

Change part 260,000

Pump assembly 570,000

In addition, the firm will incur start-up expenses related

to partial case returns and other items. It is assumed that

major customers will be able to manage down their inventory

levels with the assistance of the transitions team. Minimal

returns will come from large retailers including WalMart and

Kmart due to their quick inventory turnover. It is anticipated

that most returns will come from drug retailers as they shift

products to the new packaging and remove unsold product

from the shelves.

Partial case returns net of salvage value $1,800,000

Label conversion costs 700,000

Freight charge/launch year expenses 400,000

Other miscellaneous 300,000

The redesign calls for cutting SKU’s from 79 to 49. No

volume loss is anticipated from this since the transition team

will actively manage shelf space on a customer-by-customer

basis to minimize loss of shelf presence. The SKU reduction

is estimated at $119,000 per year since the new package

design is less expensive per unit.

The brand’s current long-term strategic role is to

maintain share and grow at category levels. Sales in the

most recent year were $139.5 million. Without the redesign,

sales are forecast to remain flat at historic levels. With the

redesign, management believes that sales can grow at the

rate of the skincare category—forecast at 4% per year for the

next five years—and there will also be incremental growth

related to recovery of market share of 2% in Year 1, 1% in

Year 2, 0.5% in Year 3, and 0% thereafter.

The gross margin will remain at 69% of net sales.

The incremental marketing and development cost is a

one-time $700,000 for market research and development.

Management thought the project should be evaluated using

a discount rate of 7% based on the firm’s weighted average

cost of capital (WACC) and the perceived riskiness of the

project. The tax rate is 27%.

ASSIGNMENT QUESTION:

1. As the accounting financial analyst supporting the brand,

the CFO assigns you the project of completing a capital

expenditure proposal for the repackaging. You must

complete the template in Appendix 1.

I M A E D U C AT I O N A L C A S E J O U R N A L V O L . 1 0 , N O . 4 , A R T. 1 , D E C E M B E R 2 0 1 72

ABOUT IMA® (INSTITUTE OF MANAGEMENT ACCOUNTANTS)
IMA®, the association of accountants and financial professionals
in business, is one of the largest and most respected associations
focused exclusively on advancing the management accounting
profession. Globally, IMA supports the profession through
research, the CMA® (Certified Management Accountant)
program, continuing education, networking and advocacy of the
highest ethical business practices. IMA has a global network of
more than 85,000 members in 140 countries and 300 professional
and student chapters. Headquartered in Montvale, N.J., USA,
IMA provides localized services through its four global regions:
The Americas, Asia/Pacific, Europe, and Middle East/India.
For more information about IMA, please visit www.imanet.org.

I M A E D U C AT I O N A L C A S E J O U R N A L V O L . 1 0 , N O . 4 , A R T. 1 , D E C E M B E R 2 0 1 73

Appendix 1. Capital Expenditure Proposal Template

(This form should be used for the approval of capital expenditures costing greater than $1,000 with a useful life of more than one
year that are capitalized on the balance sheet as fixed assets.)

Capital Expenditure Proposal

Section 1: Background
Describe here the project background, description, timeline, strategic rationale, and expected impact.

Section 2: Financial analysis
Identify and calculate the key metrics that will be used to analyze the decision. This might include proforma financials,
NPV, IRR, Payback, ROIC, break-even, and/or other measures.

I M A E D U C AT I O N A L C A S E J O U R N A L V O L . 1 0 , N O . 4 , A R T. 1 , D E C E M B E R 2 0 1 74

Section 3: Risks
Outline the financial and nonfinancial risks associated with the project.

Analyze the impact of the risks outlined above through sensitivity and scenario analyses. You should include tables
summarizing the results.

Section 4: Ethical considerations
Identify ethics issues of repackaging/rebranding a product without improving it. Also, consider if it is ethical to in-
crease the price without improving the product.

Accounting homework help

CASE STUDY 2

Spring 2022 B2

Proposal Analysis

As the newly hired analyst for the corporate offices of Illuminated Electronics Corporation (IEC), you must prepare an analysis of a capital budgeting proposal.

Proposal 1 – PPD

IEC has just developed a new electronic device (called the PPD) and it believes it will have broad market appeal. The company has performed marketing and cost studies that revealed the following information:

A) New equipment would have to be acquired to produce the device. The equipment would cost $315,000 and have a six-year useful life. After six years, it would have a salvage value of about $15,000.

B) Sales in units over the next six years are projected to be as follows:

Year

Sales in Units

 1

 9,000

 2

15,000

 3

18,000

4–6

22,000

C) Production and sales of the device would require working capital of $60,000 to finance accounts receivable, inventories, and day-to-day cash needs. This working capital would be released at the end of the project’s life.

D) The devices would sell for $35 each; variable costs for production, administration, and sales would be $15 per unit.

E) Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $135,000 per year. (Depreciation is based on cost less salvage value).

F) To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be:

Year

Amount of Yearly Advertising

 

1–2

$180,000

 3

$150,000

4–6

$120,000

G) The company’s required rate of return in 14%.

Proposal 2 – NED

One of your colleagues has provided an analysis of a competing proposal and concluded the following:

NPV = $120,000; IRR = 15.5%; Payback Period = 3.5 years, Profitability Index = 1.25

Required:

1) Compute the net cash inflow (incremental contribution margin minus incremental fixed expenses) anticipated from the sale of the PPDs for each year over the next six years.

2) Using the data computed (1) and other data provided in the problem, determine the net present value, internal rate of return, payback period, and profitability index of the proposed investment.

3) Using the analysis performed in (2), prepare “best” and “worst” case scenarios using the following assumptions:

a) Best Case – Projected sales expectations increase by 10%, required rate of return falls to 7%.

b) Worst Case – Projected sales decreases by 10%, required rate of return increases to 15%.

4) Write a memo to the CFO of IEC providing your analysis and recommendation regarding the PPDs. Be sure to compare your results to the competing proposal. Include a strong recommendation for or against the acceptance of the new PPDs into IEC’s product line.

Accounting homework help

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Accounting homework help

Sheet1

Consolidated Statements Of Income – USD ($) shares in Thousands, $ in Millions Costco Wholesale Corporation Change % in 2021 Change in amount 2021 Change % in 2020 Change in amount in 2020
2021 2020 2019
REVENUE
Net Sales $ 192,052 $ 163,220 $ 149,351 18% $28,832 9% $13,869
Membership fees $ 3,877 $ 3,541 $ 3,352 9% $336 6% $189
Total Revenue $ 195,929 $ 166,761 $ 152,703 17% $29,168 9% $14,058
OPERATING EXPENSES
Merchandise costs 170,684 144,939 132,886 18% $25,745 9% $12,053
Selling, general and administrative 18,461 16,332 14,994 13% $2,129 9% $1,338
Preopening expenses 76 55 86 38% $21 -36% -$31
Operating Income 6,708 5,435 4,737 23% $1,273 15% $698
OTHER INCOME (EXPENSE)
Interest expense (171) (160) (150) 7% -$11 7% -$10
Interest income and other, net 143 92 178 55% $51 -48% -$86
INCOME BEFORE INCOME TAXES 6,680 5,367 4,765 24% $1,313 13% $602
Income Tax Expense 1,601 1,308 1,061 22% $293 23% $247
Net income including noncontrolling interests 5,079 4,059 3,704 25% $1,020 10% $355
Net income attributable to noncontrolling interests (72) (57) (45) 26% -$15 27% -$12
NET INCOME ATTRIBUTABLE TO COSTCO $ 5,007 $ 4,002 $ 3,659 25% $1,005 9% $343
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic (in dollars per share) $ 11.30 $ 9.05 $ 8.32 25% $2 9% $1
Diluted (in dollars per share) $ 11.27 $ 9.02 $ 8.26 25% $2 9% $1
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic (shares) 443,089 442,297 439,755 0% $792 1% $2,542
Diluted (shares) 444,346 443,901 442,923 0% $445 0% $978
Consolidated Balance Sheets – USD ($) $ in Millions 2021 2020 2019 Change % in 2021 Change in amount 2021 Change % in 2020 Change in amount in 2020
CURRENT ASSETS
Cash and cash equivalents $ 11,258 $ 12,277 $ 8,384 -8% -$1,019 46% $3,893
Short-term investments 917 1,028 $ 1,060 -11% -$111 -3% -$32
Receivables, net 1,803 1,550 $ 1,535 $253 1% $15
Merchandise inventories 14,215 12,242 $ 11,395 16% $1,973 7% $847
Other current assets 1,312 1,023 $ 1,111 28% $289 -8% -$88
Total current assets 29,505 28,120 23,485 5% $1,385 20% $4,635
OTHER ASSETS
Property and Equipment, net 23,492 21,807 20,890 8% $1,685 4% $917
Operating lease right-of-use assets 2,890 2,788 4% $102 $2,788
Other long-term assets 3,381 2,841 1,025 19% $540 177% $1,816
TOTAL ASSETS 59,268 55,556 45,400 7% $3,712 22% $10,156
CURRENT LIABILITIES
Accounts payable 16,278 14,172 11,679 15% $2,106 21% $2,493
Accrued salaries and benefits 4,090 3,605 3,176 13% $485 14% $429
Accrued member rewards 1,671 1,393 1,180 20% $278 18% $213
Deferred membership fees 2,042 1,851 1,711 10% $191 8% $140
Current portion of long-term debt 799 95 1,699 741% $704 -94% -$1,604
Other current liabilities 4,561 3,728 3,792 22% $833 -2% -$64
Total current liabilities 29,441 24,844 23,237 19% $4,597 7% $1,607
OTHER LIABILITIES
Long-term debt, excluding current portion 6,692 7,514 5,124 -11% -$822 47% $2,390
Long-term operating lease liabilities 2,642 2,558 3% $84 $2,558
Other long-term liabilities 2,415 1,935 1,455 25% $480 33% $480
Total liabilities 41,190 36,851 29,816 12% $4,339 24% $7,035
EQUITY
Preferred stock 0 0 0
Common Stock 4 4 4 0% $0 0% $0
Additional paid-in capital 7,031 6,698 6,417 5% $333 4% $281
Accumulated other comprehensive loss (1,137) (1,297) (1,436) -12% $160 -10% $139
Retained earnings 11,666 12,879 10,258 -9% -$1,213 26% $2,621
Total Costco stockholders’ equity 17,564 18,284 15,243 -4% -$720 20% $3,041
Noncontrolling interests 514 421 341 22% $93 23% $80
Total equity 18,078 18,705 15,584 -3% -$627 20% $3,121
TOTAL LIABILITIES AND EQUITY $ 59,268 $ 55,556 $ 45,400 7% $3,712 22% $10,156

Accounting homework help

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Accounting homework help

1

Term Project

Business 771 Equity Asset Valuation 1712

George Z. Li, Ph.D., CFA

Purpose

Real world application of equity asset valuation models.

Hands-on experience on equity analysis, recommendation, and presentation.

Requirement

• Select one company or ideally a pair of companies (for example, two

competing firms, a big vs a small player, a winning vs. a losing stock, a public

vs. a private equity, an established vs. a start-up companies) in an industry you

have interest and /or experience; conduct detailed valuation analysis applying

the Dividend Discount Model, Free Cash Flow Model, Price Multiples, and

Residual Income Valuation Model.

• Conduct macroeconomic analysis, industry analysis, company analysis and

technical analysis in addition to the fundamental valuation analysis.

• Write a research report, make recommendation, and present to the class.

Timeline (please conduct analysis on a continuous basis and submit periodic report)

03/25 choose an industry and/or a company.

3/31- 4/1 provide an overview of the industry and the companies.

Find industry publications/webpages.

Read professional analysis sample reports (methodologies and forecast).

Industry performance, sub-sector, main product/service, key players.

Decide 1-2 companies to work on the project.

Company basics (business line, production, sales, marketing, outlook), financial

statements 3-5 years, stock market performance.

4/7- 4/08 Return analysis, earning quality/ accounting quality, profitability analysis,

Industry analysis: business cycle, life cycle, sales/revenue forecast, growth rate.

Company analysis: operating, investing and financing activities. Ratio analysis,

industry benchmark (safety, efficiency, profitability).

4/15 half-way report

4/21- 4/22 Discounted dividend valuation (adjustment and projection). Industry or

comparable,

2

Fee cash flow valuation (calculation, adjustment and projection).

4/28- 4/29 market-based valuation (peer group, comparable, ratios).

Residual income valuation.

5/5- 5/6 M&A and other considerations, private equity investment.

(sum-of-the-parts valuation, sensitivity analysis, situational adjustments)

Project presentation

5/13 project modification and revision

Final written project due

Evaluation

Analysis Report 70%

Project Progress 12%

Project Presentation 18%

Accounting homework help

Copyright

Wilkerson Co.
Harvard Business School Case #101-092
Case Software #XLS007
Copyright © 2010 President and Fellows of Harvard College. No part of this product may be reproduced, stored in a retrieval system or transmitted in any form or by any means—electronic, mechanical, photocopying, recording or otherwise—without the permission of Harvard Business School.

Exhibit 1

Exhibit 1 Wilkerson Company: Operating Results (March 2000)
Sales $2,152,500 100%
Direct Labor Expense 271,250
Direct Materials Expense 458,000
Manufacturing overhead
Machine-related expenses $336,000
Setup labor 40,000
Receiving and production control 180,000
Engineering 100,000
Packaging and shipping 150,000
Total Manufacturing Overhead 806,000
Gross Margin $617,250 29%
General, Selling & Admin. Expense 559,650
Operating Income (pre-tax) $57,600 3%

Exhibit 2

Exhibit 2 Product Profitability Analysis (March 2000)
Valves Pumps Flow Controllers
Direct labor cost $10.00 $12.50 $10.00
Direct material cost 16.00 20.00 22.00
Manufacturing overhead (@300%) 30.00 37.50 30.00
Standard unit costs $56.00 $70.00 $62.00
Target selling price $86.15 $107.69 $95.38
Planned gross margin (%) 35% 35% 35%
Actual selling price $86.00 $87.00 $105.00
Actual gross margin (%) 34.90% 19.50% 41.00%

Exhibit 3

Exhibit 3 Product Data
Product Lines Valves Pumps Flow Controllers
Materials per unit 4 components 5 components 10 components
2 @ $2 = $ 4 3 @ $2 = $ 6 4 @ $1 = $ 4
2 @ 6 = 12 2 @ 7 = 14 5 @ 2 = 10
1 @ 8 = 8
Materials cost per unit $16 $20 $22
Direct labor per unit .40 DL hours .50 DL hours .40 DL hours
Direct labor $/unit @ $25/DL hour $10 $12.50 $10.00
(including employee benefits)
Machine hours per unit 0.5 0.5 0.3

Exhibit 4

Exhibit 4 Monthly Production and Operating Statistics (March 2000)
Valves Pumps Flow Controllers Total
Production (units) 7,500 12,500 4,000 24,000
Machine hours 3,750 6,250 1,200 11,200
Production runs 10 50 100 160
Number of shipments 10 70 220 300
Hours of engineering work 250 375 625 1,250

Accounting homework help

Module1

Machine Scheduling

Units Run of Each Machine Unit Production Costs
Machine A B C A B C
1
A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell
$13 $9 $10 Production Cost: $0
2
A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell
$11 $12 $8 Setup Cost: $0
Produced
A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Constraint cell
Total Cost:
Needed 3 7 4
Setups on Each Machine Setup Costs
Machine A B C A B C
1
A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell
$55 $93 $60
2
A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Objective cell

A satisfied Microsoft Office user: Variable cell
$65 $58 $75
Run Time per Unit
Machine A B C Used Available
1 0.4 1.1 0.9
A satisfied Microsoft Office user: Constraint cell
8
2 0.5 1.2 1.3
A satisfied Microsoft Office user: Constraint cell
6
Linking Constraints
Machine A B C
1

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Constraint cell
2

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Constraint cell

Manufacturing Plan

Accounting homework help

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
The Home Depot, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of The Home Depot, Inc. and subsidiaries (the
Company) as of January 31, 2021 and February 2, 2020, the related consolidated statements of earnings,
comprehensive income, stockholders’ equity, and cash flows for each of the fiscal years in the three-year period
ended January 31, 2021, and the related notes (collectively, the consolidated financial statements). In our opinion,
the consolidated financial statements present fairly, in all material respects, the financial position of the Company as
of January 31, 2021 and February 2, 2020, and the results of its operations and its cash flows for each of the fiscal
years in the three-year period ended January 31, 2021, in conformity with U.S. generally accepted accounting
principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the Company’s internal control over financial reporting as of January 31, 2021, based on criteria
established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission, and our report dated March 24, 2021 expressed an unqualified opinion
on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company elected to change its method of
accounting for Leases as of February 4, 2019 due to the adoption of Accounting Standards Update No. 2016-02,
Leases (Topic 842), and related amendments.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is
to express an opinion on these consolidated financial statements based on our audits. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with
the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free
of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the
risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our
opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated
financial statements that were communicated or required to be communicated to the audit committee and that: (1)
relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the
accounts or disclosures to which they relate.

Estimation of store shrink using a sampling approach

As discussed in Note 1 to the consolidated financial statements, the majority of the Company’s U.S. merchandise
inventory balances are stated at lower of cost (first-in, first out) or market as determined by the retail inventory
method. The retail inventory method is based on a number of factors such as markups, markdowns, and
inventory losses (or shrink). Shrink is the difference between the recorded amount of inventory and the physical
inventory counted. The Company calculates shrink based on actual inventory losses identified as a result of
physical inventory counts during each fiscal period and estimated inventory losses occurring between physical

Table of Contents

37

inventory counts. The estimate for shrink occurring in the interim period between physical inventory counts is
calculated on a store-specific basis and is primarily based on recent shrink results. Due to changes in operating
conditions during fiscal 2020 as a result of the COVID-19 pandemic, the Company used the results from a
sample of stores that were able to conduct physical inventory counts as a basis for estimating shrink for those
stores at which physical inventory counts were temporarily suspended during the year.

We identified the evaluation of the estimation of store shrink using a sampling approach as a critical audit matter.
Evaluating the Company’s use of sampling and its reliability to produce results substantially the same as those
which would be obtained by a count of all U.S. retail stores involved a high degree of auditor judgment.
Additionally, professionals with specialized skills and knowledge assisted the engagement team.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the
design and tested the operating effectiveness of certain internal controls related to the process of developing and
selecting the sampling model to estimate store shrink. We evaluated the appropriateness of the Company using
sampling by comparing shrink results and store characteristics across the population to assess the sample’s
reliability to produce results substantially the same as those which would be obtained by a count of all U.S. retail
stores. We involved sampling professionals with specialized skills and knowledge who assisted in:

• Evaluating the Company’s design of a sampling method and key parameters used; and
• Testing the Company’s application of a sampling model by evaluating formulas and calculations.

Fair value of customer relationships intangible asset

As discussed in Note 12 to the consolidated financial statements, on December 24, 2020, the Company acquired
HD Supply Holdings, Inc. (HDS) in a business combination. As a result of the transaction, the Company acquired
a customer relationships intangible asset associated with the generation of future income from existing
customers. The preliminary, estimated acquisition-date fair value for the customer relationships intangible asset
was approximately $2.6 billion. The Company used an income approach to determine the estimated fair value of
the customer relationships intangible asset.

We identified the evaluation of the fair value of the customer relationships intangible asset acquired in the HDS
business combination as a critical audit matter. There was a high degree of subjective auditor judgment related
to certain assumptions used in the valuation model. Significant assumptions included the amount and timing of
future cash flows, growth rates, customer attrition rate, and the discount rate applied. Changes in these
assumptions could have a significant impact on the fair value of the customer relationships intangible asset.
Professionals with specialized skill and knowledge were also required to assess significant assumptions and
evaluate evidence obtained.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the
design and tested the operating effectiveness of certain internal controls over the Company’s acquisition-date
valuation process, including controls related to the development of the above assumptions. We evaluated the
amount and timing of future cash flows and growth rates used by the Company by comparing projected cash
flows to certain publicly available information for comparable companies, industry reports, and historical
revenues achieved. We performed sensitivity analyses over the Company’s assumptions used to determine the
preliminary, estimated fair value of the customer relationships intangible asset to assess the impact changes in
those assumptions would have on the Company’s determination of fair value. We involved valuation
professionals with specialized skills and knowledge, who assisted in evaluating:

• Long term growth rates used to project future cash flows by comparing to certain nationwide economic
trend data such as GDP, inflation, and relevant industry data;

• Expected customer attrition rate applied by developing an independent attrition rate using historical sales
data; and

• Discount rate applied by developing an independent discount rate and comparing inputs to certain
publicly available market data for comparable entities.

/s/ KPMG LLP

We have served as the Company’s auditor since 1979.

Atlanta, Georgia
March 24, 2021

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38

THE HOME DEPOT, INC.
CONSOLIDATED BALANCE SHEETS

in millions, except per share data
January 31,

2021
February 2,

2020

Assets
Current assets:
Cash and cash equivalents $ 7,895 $ 2,133
Receivables, net 2,992 2,106
Merchandise inventories 16,627 14,531
Other current assets 963 1,040

Total current assets 28,477 19,810
Net property and equipment 24,705 22,770
Operating lease right-of-use assets 5,962 5,595
Goodwill 7,126 2,254
Other assets 4,311 807

Total assets $ 70,581 $ 51,236

Liabilities and Stockholders’ Equity
Current liabilities:
Short-term debt $ — $ 974
Accounts payable 11,606 7,787
Accrued salaries and related expenses 2,463 1,494
Sales taxes payable 774 605
Deferred revenue 2,823 2,116
Income taxes payable 193 55
Current installments of long-term debt 1,416 1,839
Current operating lease liabilities 828 828
Other accrued expenses 3,063 2,677

Total current liabilities 23,166 18,375
Long-term debt, excluding current installments 35,822 28,670
Long-term operating lease liabilities 5,356 5,066
Deferred income taxes 1,131 706
Other long-term liabilities 1,807 1,535

Total liabilities 67,282 54,352

Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,789 shares
at January 31, 2021 and 1,786 shares at February 2, 2020; outstanding: 1,077
shares at January 31, 2021 and February 2, 2020 89 89

Paid-in capital 11,540 11,001
Retained earnings 58,134 51,729
Accumulated other comprehensive loss (671) (739)
Treasury stock, at cost, 712 shares at January 31, 2021 and 709 shares at

February 2, 2020 (65,793) (65,196)
Total stockholders’ equity (deficit) 3,299 (3,116)
Total liabilities and stockholders’ equity $ 70,581 $ 51,236

—————
See accompanying notes to consolidated financial statements.

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39

THE HOME DEPOT, INC.
CONSOLIDATED STATEMENTS OF EARNINGS

in millions, except per share data
Fiscal Fiscal Fiscal
2020 2019 2018

Net sales $ 132,110 $ 110,225 $ 108,203
Cost of sales 87,257 72,653 71,043

Gross profit 44,853 37,572 37,160
Operating expenses:

Selling, general and administrative 24,447 19,740 19,513
Depreciation and amortization 2,128 1,989 1,870
Impairment loss — — 247
Total operating expenses 26,575 21,729 21,630

Operating income 18,278 15,843 15,530
Interest and other (income) expense:
Interest and investment income (47) (73) (93)
Interest expense 1,347 1,201 1,051
Other — — 16

Interest and other, net 1,300 1,128 974
Earnings before provision for income taxes 16,978 14,715 14,556
Provision for income taxes 4,112 3,473 3,435
Net earnings $ 12,866 $ 11,242 $ 11,121

Basic weighted average common shares 1,074 1,093 1,137
Basic earnings per share $ 11.98 $ 10.29 $ 9.78

Diluted weighted average common shares 1,078 1,097 1,143
Diluted earnings per share $ 11.94 $ 10.25 $ 9.73

—————
Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks.
See accompanying notes to consolidated financial statements.

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40

THE HOME DEPOT, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Fiscal Fiscal Fiscal
in millions 2020 2019 2018
Net earnings $ 12,866 $ 11,242 $ 11,121
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments 60 53 (267)
Cash flow hedges 8 8 53
Other — 3 8

Total other comprehensive income (loss) 68 64 (206)
Comprehensive income $ 12,934 $ 11,306 $ 10,915

—————
Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks.
See accompanying notes to consolidated financial statements.

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41

THE HOME DEPOT, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

in millions
Fiscal Fiscal Fiscal
2020 2019 2018

Common Stock:
Balance at beginning of year $ 89 $ 89 $ 89
Shares issued under employee stock plans — — —

Balance at end of year 89 89 89

Paid-in Capital:
Balance at beginning of year 11,001 10,578 10,192
Shares issued under employee stock plans 229 172 104
Stock-based compensation expense 310 251 282

Balance at end of year 11,540 11,001 10,578

Retained Earnings:
Balance at beginning of year 51,729 46,423 39,935
Cumulative effect of accounting changes — 26 75
Net earnings 12,866 11,242 11,121
Cash dividends (6,451) (5,958) (4,704)
Other (10) (4) (4)

Balance at end of year 58,134 51,729 46,423

Accumulated Other Comprehensive Income (Loss):
Balance at beginning of year (739) (772) (566)
Cumulative effect of accounting changes — (31) —
Foreign currency translation adjustments, net of tax 60 53 (267)
Cash flow hedges, net of tax 8 8 53
Other, net of tax — 3 8

Balance at end of year (671) (739) (772)

Treasury Stock:
Balance at beginning of year (65,196) (58,196) (48,196)
Repurchases of common stock (597) (7,000) (10,000)

Balance at end of year (65,793) (65,196) (58,196)
Total stockholders’ equity (deficit) $ 3,299 $ (3,116) $ (1,878)

—————
Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks.
See accompanying notes to consolidated financial statements.

Table of Contents

42

THE HOME DEPOT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Fiscal Fiscal Fiscal
in millions 2020 2019 2018
Cash Flows from Operating Activities:
Net earnings $ 12,866 $ 11,242 $ 11,121
Reconciliation of net earnings to net cash provided by operating

activities:
Depreciation and amortization 2,519 2,296 2,152
Stock-based compensation expense 310 251 282
Impairment loss — — 247
Changes in receivables, net (465) (170) 33
Changes in merchandise inventories (1,657) (593) (1,244)
Changes in other current assets 43 (135) (257)
Changes in accounts payable and accrued expenses 5,118 32 870
Changes in deferred revenue 702 334 80
Changes in income taxes payable (149) 44 (42)
Changes in deferred income taxes (569) 202 26
Other operating activities 121 184 (103)

Net cash provided by operating activities 18,839 13,687 13,165

Cash Flows from Investing Activities:
Capital expenditures (2,463) (2,678) (2,442)
Payments for businesses acquired, net (7,780) — (21)
Other investing activities 73 25 47

Net cash used in investing activities (10,170) (2,653) (2,416)

Cash Flows from Financing Activities:
Repayments of short-term debt, net (974) (365) (220)
Proceeds from long-term debt, net of discounts and premiums 7,933 3,420 3,466
Repayments of long-term debt (2,872) (1,070) (1,209)
Repurchases of common stock (791) (6,965) (9,963)
Proceeds from sales of common stock 326 280 236
Cash dividends (6,451) (5,958) (4,704)
Other financing activities (154) (140) (153)

Net cash used in financing activities (2,983) (10,798) (12,547)
Change in cash and cash equivalents 5,686 236 (1,798)
Effect of exchange rate changes on cash and cash equivalents 76 119 (19)
Cash and cash equivalents at beginning of year 2,133 1,778 3,595

Cash and cash equivalents at end of year $ 7,895 $ 2,133 $ 1,778

Supplemental Disclosures:
Cash paid for income taxes $ 4,654 $ 3,220 $ 3,774
Cash paid for interest, net of interest capitalized 1,241 1,112 1,035
Non-cash capital expenditures 274 136 248

—————
Fiscal 2020 and fiscal 2019 include 52 weeks. Fiscal 2018 includes 53 weeks.
See accompanying notes to consolidated financial statements.

Table of Contents

43

THE HOME DEPOT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business

The Home Depot, Inc., together with its subsidiaries (the “Company,” “Home Depot,” “we,” “our” or “us”), is a home
improvement retailer that sells a wide assortment of building materials, home improvement products, lawn and
garden products, décor items, and facilities maintenance, repair and operations products, and provides a number of
services, in stores and online. We operate in the U.S. (including the Commonwealth of Puerto Rico and the
territories of the U.S. Virgin Islands and Guam), Canada, and Mexico.

Consolidation and Presentation

Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries.
Intercompany transactions are eliminated in consolidation. Our fiscal year is a 52- or 53-week period ending on the
Sunday nearest to January 31st. Fiscal 2020 and fiscal 2019 include 52 weeks while fiscal 2018 includes 53 weeks.

Impact of COVID-19

The outbreak of the COVID-19 coronavirus, which was declared a pandemic by the World Health Organization in
March 2020, has led to adverse impacts on the U.S. and global economies and has impacted and continues to
impact our supply chain, operations, and customer demand. Even though the Company has taken measures to
adapt to operating in this challenging environment, the pandemic could further affect our operations and the
operations of our suppliers and vendors as a result of additional shut-downs or other governmental orders;
restrictions and limitations on travel, logistics and other business activities; potential product and labor shortages;
limitations on store or facility operations up to and including closures; and other governmental, business or
consumer actions.

In response to COVID-19, we expanded our associate pay and benefits to provide additional paid time off, weekly
bonuses and other benefits. To continue to support our associates, we transitioned away from these temporary
programs and implemented permanent compensation enhancements for frontline, hourly associates beginning in
the third quarter of fiscal 2020. These expanded pay and benefits are included in SG&A in the consolidated
statements of earnings.

Use of Estimates

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the
disclosure of contingent assets and liabilities, and reported amounts of revenues and expenses in preparing these
financial statements in conformity with GAAP. While we believe these estimates and assumptions are reasonable,
actual results could differ from these estimates, including changes due to uncertainty in the current economic
environment resulting from the COVID-19 pandemic.

Cash Equivalents

We consider all highly liquid investments purchased with original maturities of three months or less to be cash
equivalents. Our cash equivalents are carried at fair market value and consist primarily of money market funds.

Receivables

The components of receivables, net, follow:

in millions
January 31,

2021
February 2,

2020

Card receivables $ 992 $ 778
Rebate receivables 987 668
Customer receivables 571 292
Other receivables 442 368

Receivables, net $ 2,992 $ 2,106

Card receivables consist of payments due from financial institutions for the settlement of credit card and debit card
transactions. Rebate receivables represent amounts due from vendors for volume and co-op advertising rebates.
Customer receivables relate to credit extended directly to certain customers in the ordinary course of business. The

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44

valuation allowance related to these receivables was not material to our consolidated financial statements at the
end of fiscal 2020 or fiscal 2019.

Merchandise Inventories

The majority of our merchandise inventories are stated at the lower of cost (first-in, first-out) or market, as
determined by the retail inventory method, which is based on a number of factors such as markups, markdowns,
and inventory losses (or shrink). As the inventory retail value is adjusted regularly to reflect market conditions,
inventory valued using the retail method approximates the lower of cost or market. Certain subsidiaries, including
retail operations in Canada and Mexico, and distribution centers, record merchandise inventories at the lower of
cost or net realizable value, as determined by a cost method. These merchandise inventories represent
approximately 36% of the total merchandise inventories balance. We evaluate the inventory valued using a cost
method at the end of each quarter to ensure that it is carried at the lower of cost or net realizable value. The
valuation allowance for merchandise inventories valued under a cost method was not material to our consolidated
financial statements at the end of fiscal 2020 or fiscal 2019.

Physical inventory counts or cycle counts are taken on a regular basis in each store and distribution center to
ensure that amounts reflected in merchandise inventories are properly stated. Shrink (or in the case of excess
inventory, swell) is the difference between the recorded amount of inventory and the physical inventory count. We
calculate shrink based on actual inventory losses identified as a result of physical inventory counts during each
fiscal period and estimated inventory losses between physical inventory counts. The estimate for shrink occurring in
the interim period between physical inventory counts is calculated on a store-specific basis and is primarily based
on recent shrink results. Due to changes in operating conditions during fiscal 2020 as a result of the COVID-19
pandemic, we used the results from a sample of stores that were able to conduct physical inventories as a basis for
estimating shrink for those stores at which physical inventory counts were temporarily suspended during the year.
We believe the sample of stores that were selected for inventory counts in the current year provides a reasonable
basis for estimating shrink where a physical inventory count was not performed in fiscal 2020. Historically, the
difference between estimated shrink and actual inventory losses has not been material to our annual financial
results.

Property and Equipment

Buildings, furniture, fixtures, and equipment are recorded at cost and depreciated using the straight-line method
over their estimated useful lives. Leasehold improvements are amortized using the straight-line method over the
original term of the lease or the useful life of the improvement, whichever is shorter.

The estimated useful lives of our property and equipment follow:

Life

Buildings 5 – 45 years
Furniture, fixtures and equipment 2 – 20 years
Leasehold improvements 5 – 45 years

We capitalize certain costs, including interest, related to construction in progress and the acquisition and
development of software. Costs associated with the acquisition and development of software are amortized using
the straight-line method over the estimated useful life of the software, which is three to six years. Certain
development costs not meeting the criteria for capitalization are expensed as incurred.

We evaluate our long-lived assets each quarter for indicators of potential impairment. Indicators of impairment
include current period losses combined with a history of losses, our decision to relocate or close a store or other
location before the end of its previously estimated useful life, or when changes in other circumstances indicate the
carrying amount of an asset may not be recoverable. The evaluation for long-lived assets is performed at the lowest
level of identifiable cash flows, which is generally the individual store level. The assets of a store with indicators of
impairment are evaluated for recoverability by comparing its undiscounted future cash flows with its carrying value.
If the carrying value is greater than the undiscounted future cash flows, we then measure the asset’s fair value to
determine whether an impairment loss should be recognized. If the resulting fair value is less than the carrying
value, an impairment loss is recognized for the difference between the carrying value and the estimated fair value.
Impairment losses on property and equipment are recorded as a component of SG&A. Impairment charges for long-
lived assets were not material to our consolidated financial statements in fiscal 2020, fiscal 2019, or fiscal 2018.

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45

Leases

On February 4, 2019, we adopted the new leases standard using the modified retrospective transition method.

We enter into contractual arrangements for the utilization of certain non-owned assets which are evaluated as
finance or operating leases upon commencement, and are accounted for accordingly. Specifically, a contract is or
contains a lease when (1) the contract contains an explicitly or implicitly identified asset and (2) we obtain
substantially all of the economic benefits from the use of that underlying asset and direct how and for what purpose
the asset is used during the term of the contract in exchange for consideration. We assess whether an arrangement
is or contains a lease at inception of the contract.

We lease certain retail locations, warehouse and distribution space, office space, equipment, and vehicles. A
substantial majority of our leases have remaining lease terms of one to 20 years, typically with the option to extend
the leases for five-year terms. Some of our leases may include the option to terminate in less than five years. The
lease term used to calculate the right-of-use asset and lease liability at commencement includes the impacts of
options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When
determining whether it is reasonably certain that we will exercise an option at commencement, we consider various
existing economic factors, including market conditions, real estate strategies, the nature, length, and terms of the
agreement, as well as the uncertainty of the condition of leased equipment at the end of the lease term. Based on
these determinations, we generally conclude that the exercise of renewal options would not be reasonably certain in
determining the lease term at commencement.

The discount rate used to calculate the present value of lease payments is the rate implicit in the lease, when
readily determinable. As the rate implicit in the lease is rarely readily determinable, we use a secured incremental
borrowing rate, which is updated on a quarterly basis, as the discount rate for the present value of lease payments.

Real estate taxes, insurance, maintenance, and operating expenses applicable to the leased property are generally
our obligations under our lease agreements. In instances where these payments are fixed, they are included in the
measurement of our lease liabilities, and when variable, are excluded and recognized in the period in which the
obligation for those payments is incurred. Certain of our lease agreements also include rental payments based on
an index or rate and others include rental payments based on a percentage of sales. For variable payments
dependent upon an index or rate, we apply the active index or rate as of the lease commencement date. Variable
lease payments not based on an index or rate are not included in the measurement of our lease liabilities as they
cannot be reasonably estimated, and are recognized in the period in which the obligation for those payments is
incurred.

Leases that have a term of twelve months or less upon commencement are considered short-term in nature.
Accordingly, short-term leases are not included on the consolidated balance sheets and are expensed on a straight-
line basis over the lease term. We have also elected to not separate lease and non-lease components for certain
classes of assets including real estate and certain equipment.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Business Combinations

The assets and liabilities of acquired businesses are recorded at their fair values at the date of acquisition. The
excess of the purchase price over the fair values of the identifiable assets acquired and liabilities assumed is
recorded as goodwill. During the measurement period, which is up to one year from the acquisition date, we may
record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon
conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Goodwill

Goodwill represents the excess of purchase price over the fair value of net assets acquired. We do not amortize
goodwill, but assess the recoverability of goodwill in the third quarter of each fiscal year, or more often if indicators
warrant, by determining whether the fair value of each reporting unit supports its carrying value. Each fiscal year, we
may assess qualitative factors to determine whether it is more likely than not that the fair value of each reporting
unit is less than its carrying amount as a basis for determining whether it is necessary to complete quantitative
impairment assessments, with a quantitative assessment completed at least once every three years. We completed
our last quantitative assessment in fiscal 2019 and concluded that the fair value of our reporting units substantially
exceeded their respective carrying values, including goodwill.

During the third quarter of fiscal 2020, we completed our annual assessment of the recoverability of goodwill for our
U.S., Canada, and Mexico reporting units based on qualitative factors. As part of this analysis, we assessed the
current environment to determine if there were any indicators of impairment as a result of the operating conditions

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46

resulting from COVID-19 or otherwise and concluded that while there have been events and circumstances in the
macro-environment that have impacted us, we have not experienced any entity-specific indicators of impairment of
goodwill or other indefinite-lived intangibles that would require us to perform a quantitative impairment assessment.
There were no impairment charges related to goodwill for fiscal 2020, fiscal 2019, or fiscal 2018.

Changes in the carrying amount of our goodwill follow:

in millions
Fiscal Fiscal
2020 2019

Goodwill,

Accounting homework help

I. INTRODUCTION

Founded in 1927, The Maryland-National Capital Park and Planning Commission is a bicounty agency serving Prince George’s and Montgomery counties in Maryland, located just to the north and east of Washington, DC. The original purpose of the Commission, or M-NCPPC, was to practice “long-range planning and park acquisition and development.” Since its inception, however, the Commission’s responsibilities have expanded to include administration of Prince George’s County’s public recreation program (M-NCPPC, n.d.)

A well-respected leader in the field, the Prince George’s County Department of Parks and Recreation provides quality recreation programs, facilities, and services for residents and visitors. The Commission operates and maintains more than 26,000 acres of parkland throughout the county, including land developed to provide parks, picnic areas, athletic fields, historic sites, community centers, and recreation facilities. In an effort to maintain the county’s natural beauty, a large percentage of the land has been left undeveloped to serve as buffers and to provide natural open spaces (M-NCPPC, n.d.).

With cooperation and input from diverse communities throughout Prince George’s County, the Department operates a comprehensive park and recreation system that offers programs and facilities designed to meet the needs and interests of patrons of all ages. Outdoor festivals, live performances, trips, self-improvement classes, teen and senior activities, summer camps, fitness and sports programs, art and nature programs, and more than 40 miles of hiker/biker/equestrian trails are just a few of the recreational amenities offered (M-NCPPC, n.d.).

The Comprehensive Annual Financial Report of the City of The Maryland Park and Planning Commission (MPPC) is for the fiscal year ended June 30, 2015 was submitted on December 22, 2015. The responsibility for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with MPPC. The CAFR consists of management’s representations concerning the finances of MPPC. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this CAFR. MPPC has established a comprehensive internal control framework that is designed both to protect MPPC’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of MPPC’s financial statements in conformity with GAAP. MCCP’s comprehensive framework of internal controls has been designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept reasonable assurance recognizes that (i) the cost of a control should not exceed the benefits likely to be derived, and (ii) the evaluation of costs and benefits requires business judgment by management (CAFR Reports 2003-2015).

II. CAFR REPORTS

A comprehensive annual financial report serves a number of purposes for the general public, investors and other interested groups. One of the most significant purposes of a comprehensive financial report is that it provides a valuable insight into how city or state officials manage public finances. While the formats and contents can vary, these reports present the financial statements of the governmental entity, as well as important analysis tools like the management’s discussion and analysis (MD&A) and the notes to the financial statements. CAFRs are done according to GAAP and Governmental Accounting Standards Board (GASB) regulations (Comprehensive Annual Financial Report, n.d.).

CAFRs often present financial information for individual funds (or at least significant funds) as well as government-wide financial statements that show the position of the government as a whole. Governments use modified accrual accounting for their statements, and include reconciliations explaining how they made the switch from cash-basis accounting (typically used throughout the year) to the modified accrual basis they report in (Navigating Government And Nonprofit Financial Statements, 2007).

The CAFR is presented in three sections (Comprehensive Annual Financial Report, n.d.):

(i) Introductory section – includes transmittal letter.

(ii) Financial section – includes the independent auditor’s report and contains management’s discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, required supplementary information, combining financial statements, and schedules.

(iii) Statistical section – includes additional financial, economic, and demographic information.

III. Clearly identify who the actual intended audience/users of a CAFR/ACFR report are outside those the CAFR/ACFR report itself is addressed to

NO SAMPLE for THIS PART. WRITE YOUR OWN.

IV. THE NEED FOR BOTH

The CAFR serves as one of the financial reports that GASB utilizes to accomplish its mission and to provide reliable financial data for users. Additionally, by providing a full disclosure of financial data, the CAFR shows how a government spends tax dollars. A CAFR could not be and should not be replaced by a Citizen-Centric Report. A CAFR is still a very much needed document to provide in-depth financial data for a government and helps to fulfill the missions of GASB in improving government reporting (Governmental Accounting Standards Series, April, 1994).

While the Citizen-Centric Report’s four page layout lends itself to user friendliness it could never contain all the vital information of a CAFR report that is almost always over a hundred pages in length. Thus, the Citizen-Centric Report should be considered a complement to the CAFR, by taking the information included within a CAFR and repurposing it so that it may serve a much broader audience. The inclusion of a link within the Citizen-Centric Report to the CAFR may potentially increase the readership of the CAFR as well by first sparking an interest in citizens of the city’s finances and then giving the more interested citizens the opportunity to view a CAFR for complete financial data. The Citizen-Centric Report does wonders at reducing and simplifying the content of a CAFR, the Citizen-Centric Report’s aim is not to replace the CAFR but rather to serve as a complement; spreading the information contained within a CAFR to a broader audience (Citizen-Centric Reports, n.d.).

References

About M-NCPPC. (n.d.). Retrieved February 27, 2016, from http://www.mncppc.org/About_MNCPPC.

html

CAFR Reports 2003-2015. (n.d.). Retrieved February 27, 2016, from

http://www.mncppc.org/Our_Departments/Central_Administrative_Services/Finance/CA

FR/CAFR2015.html

Citizen-Centric Reporting (CCR). (n.d.). Retrieved February 27, 2016, from

https://www.agacgfm.org/Resources/Performance-Accountability/CCR.aspx

Comprehensive Annual Financial Report. (n.d.). Retrieved April 21, 2015, from

http://www.ofm.wa.gov/cafr/

Governmental Accounting Standards Series (April, 1994). Retrieved February, 27, 2016, from

http://www.gasb.org/cs/BlobServer?

blobkey=id&blobnocache=true&blobwhere=1175824063642&blobheader=application/p

df&blobcol=urldata&blobtable=MungoBlobs

Navigating Government And Nonprofit Financial Statements | Investopedia. (2007). Retrieved

February 27, 2016, from

http://www.investopedia.com/articles/basics/07/government_nonprofit_statements.asp

Accounting homework help

AU

.

SP22 Comprehensive Problem 2 v2
Name: ____________________________________________

Okay Co., a new startup business, is preparing their budget for the first quarter 2022
ending March 31.

• Budgeted sales of the company’s only product for the next five months are:

January 8,700 units
February 6,000 units
March 8,300 units
April 5,300 units
May 6,200 units

• The selling price is $56 per unit.

Prepare the following elements of the master budget for this problem: (150 points)

1. Sales budget (a. with a schedule of expected cash collections).
2. Production budget.
3. Direct materials budget (b. with a schedule of expected cash disbursements

for materials).
4. Direct labor budget.
5. Manufacturing overhead budget.
6. Ending finished goods inventory budget.
7. Selling and administrative expense budget.
8. Cash budget.
9. Budgeted income statement.
10. Budgeted balance sheet. (beginning and ending balance sheet)

SCHEDULE OF EXPECTED CASH COLLECTIONS

• All Sales are on account.

• The company collects 60% of credit sales in the month of the sale, 35% of credit
sales in the following month and 5% remain uncollectible.

• The accounts receivable balance on January 1 was $0.

PRODUCTION BUDGET

• The company desires to have inventory on hand at the end of each month equal to
20% of the following month’s budgeted unit sales.

• On December 31, 0 units were on hand.

DIRECT MATERIALS BUDGET

• 6.0 pounds of material are required per unit of product.

• Management desires to have materials on hand at the end of each month equal to
10% of the following month’s production needs.

• The beginning materials inventory was 0 pounds.

AU

.

• The material costs $.55 per pound.

SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL

• 60% of a month’s purchases are paid for in the month of purchase; 40% is paid for in
the following month.

• No discounts are given for early payment.

• The accounts payable balance on December 31 was $0.

DIRECT LABOR BUDGET

• Each unit produced requires .69 hours of direct labor.

• Each hour of direct labor costs the company $14.00.

• Management fully adjusts the workforce to the workload each month.

MANUFACTURING OVERHEAD BUDGET

• Variable manufacturing overhead is $3.20 per direct labor-hour.

• Fixed manufacturing overhead is $91,000 per month. This includes $15,000 in
depreciation, which is not a cash outflow.

ENDING FINISHED GOODS INVENTORY BUDGET

• Okay, a new startup business, uses absorption costing in its budgeted income
statement and balance sheet.

• Manufacturing overhead is applied to units of product on the basis of direct labor-
hours.

• The company has no work in process inventories.

SELLING AND ADMINISTRATIVE EXPENSE BUDGET

• Variable selling and administrative expenses are $1.10 per unit sold.

• Fixed selling and administrative expenses are $62,000 per month and include $8,000
in depreciation.

CASH BUDGET

1. A line of credit is available at a local bank.

a. All borrowing occurs at the beginning of the month, and all repayments occur
at the end of the month. Borrowing occurs in increments of $1,000.

b. Any interest incurred during the first quarter will be paid at the end of the
quarter. The interest rate is 18% per year.

2. Okay, a new startup business, desires a cash balance of at least $30,000 at the
end of each month. The cash balance at the beginning of January was $18,000.

3. Cash dividends of $34,000 are to be paid to stockholders in February.

4. Equipment purchases of $122,000 are scheduled for January and $110,000 for
February. This equipment will be installed and tested during the first quarter and
will not become operational until April, when depreciation charges will commence.

AU

.

Additional Information:

The following balances exist on January 1:
Land $300,000
Equipment $162,000
Common Stock $480,000

Required:

Part I
A. Complete the Master Budget (ALL parts plus schedules) in Excel.

B. Answer the following questions:

1. What are the budgeted sales for February?

2. What are the expected cash collections for February?

3. What is the accounts receivable balance at the end of March?

4. What is the estimated cost of raw materials purchases for February?

5. What is the estimated accounts payable balance at the end of March?

6. What is the estimated finished goods inventory balance at the end of March?

7 What is the estimated cost of goods sold and gross margin for March?

8. What is the estimated total selling and administrative expense for February?

9. What is the estimated net operating income for March?

10. What is the estimated retained earnings balance for March?

Part II (Chapter 25) (50 points)

I have provided templates based on my calculations and my answers. You may use

them or create your own. Show all work/calculations to justify your decision. Label

your work appropriately. If I can’t understand it, I can’t grade it.

C. Assume that Okay expects to produce and sell 90,000 units during the current

year. One of Okay’s sales representatives has found a new customer that is willing to

buy 8,000 additional units for a price of $43 per unit. If they accept the customer’s offer,

it will decrease unit sales to regular customers by 5,000 units. Should they accept this

special order? Show all work/calculations to justify your decision. Label your

work appropriately. If I can’t understand it, I can’t grade it.

AU

.

D. Assume that Okay expects to produce and sell 23,000 units during the current

quarter. A supplier has offered to manufacture and deliver 23,000 units for a price of

$25 per unit. Should Okay accept this offer? How much will profit’s increase or

decrease? Show all work/calculations to justify your decision. Label your work

appropriately. If I can’t understand it, I can’t grade it.

This assignment is due no later than 11:59 pm on April 28, 2022. The master

budget must be completed in Excel in the exact format as the template given (and

the example presented in class) and all assignment requirements uploaded to the

assignment folder in D2L in one workbook. Please consolidate all answers into

one workbook. Multiple worksheets are allowed but label each appropriately. No

late assignments will be accepted!

When naming your Excel file, please include your first name, last name and

assignment version in that name.

Accounting homework help

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.

Capital budgeting
Chen, Theodore
Financial Management; Mar 2006; ProQuest Central
pg. 41

Accounting homework help

CLOSING
THE
DIVERSITY
GAP

A comprehensive study finds that greater
equity and inclusion are needed to close the
diversity gap within the U.S. accounting
profession and its leadership.

BY LOREAL JILES, BRAD MONTERIO, AND
DIANE JULES, CPA, CGMA

February 2021 / ST R AT E G I C F I N A N C E / 31

32 / ST R AT E G I C F I N A N C E / February 2021

T
he accounting profession in the United
States, encompassing public accounting and
management accounting (accounting and
financial professionals working in organiza-
tions), faces a crisis of growing proportion—a
diversity gap—particularly at the leadership
levels. This crisis contributes to the various

challenges that prevent the profession from achieving
longer-term sustainability, greater innovation, and its full
potential to serve and protect the public interest.

IMA® (Institute of Management Accountants) and CalCPA
(California Society of CPAs), working collaboratively with
research partners, contributors, and advisors, recently con-
ducted a study to look into diversity, equity, and inclusion
(DE&I) in the accounting profession (see “Diversifying U.S.
Accounting Talent”). The first in a multipart global series,
this study explores race and ethnicity, gender, and LGBTQIA
(lesbian, gay, bisexual, transgender, queer, intersex, and
asexual) orientation in the U.S. accounting profession
through an analysis of:
n Demographic population and workforce statistics,
n Almost 3,200 survey responses from current and former

accounting professionals, and
n In-depth interviews of nearly 60 practitioners and aca-

demics.
To provide context for ways to close the diversity gap, it’s

first important to understand the current state of DE&I
across the accounting profession in the U.S. and the role of
ethics as a foundation of DE&I good practices.

THE DIVERSITY GAP
Once closed to persons of diverse demographic back-
grounds, the U.S. accounting profession is now majority
female and more than one-fifth nonwhite. Females and
Asian Americans comprise a greater proportion of the pro-
fession than is seen in the U.S. population. African Ameri-
can, Hispanic, and Latino persons, however, are

underrepresented in the profession, and the diversity
progress made more broadly across the profession doesn’t
manifest at senior levels (see Table 1). Men comprise 86% of
the CFOs of Fortune 500 and S&P 500 companies as well as
77% of partners in accounting or finance functions at U.S.
CPA firms. And more than 90% of the profession’s executive
leadership are white, non-Hispanic.

Persons who identify as LGBTQIA can elect to disclose
their status or keep it private, which affects the ability to
make accurate assessments around this segment’s repre-
sentation within the overall population as well as the
accounting profession. A 2017 Gallup poll (bit.ly/2MCCICe)
estimates that approximately 4.5% of American adults
identify as lesbian, gay, bisexual, or transgender, and
McKinsey’s 2020 publication, How the LGBTQ+ community
fares in the workplace (mck.co/38qNbJx), reports that
LGBTQ+ persons are underrepresented in corporate Amer-
ica and its senior leadership roles. While there’s a lack of
current research that provides a reliable estimate of the
representation of LGBTQIA persons in the accounting pro-
fession, and the U.S. Census doesn’t collect LGBTQIA status,
our study didn’t identify evidence to suggest that the U.S.
accounting profession differs materially in this composition
from the broader business workforce.

With greater demographic diversity broadly across the
profession, the dramatically low presence of diverse talent
among executive leadership ranks reveals a diversity gap at
senior levels.

EQUITY AND INCLUSION:
POWERFUL ENABLERS
Societal influences, attitudes, and norms have affected the
U.S. accounting profession just as all other business disci-
plines. A long history of systemic racism, misogyny, and
LGBTQIA discrimination fostered a culture of exclusion,
segregation, oppression, and even violence against margin-
alized groups in the U.S.

Consistent with broader workforce trends over recent
decades, the U.S. accounting profession has responded to
societal pressure, legal reform, and significant increases in
diversity in America’s population. Members of the profes-
sion today typically benefit from well-intentioned corpo-
rate policies that seek to close the diversity gap through
various means, for example, policies that allow for safe
reporting of inappropriate workplace behavior without
concern for retaliation, forums and special interest groups
for respectful internal discussion and community building,
the removal of artificial barriers that inhibit advancement,
and new standards to ensure fair recruitment practices.

Despite these improvements, our study found that
inequities and exclusive behaviors inhibiting the closing of
the diversity gap still persist in many workplaces. We thus
recognized that this study couldn’t simply look at the role of
diversity; it must also examine the powerful impact of
equity and inclusion on closing the gap. (Figure 1 contains
the definitions of diversity, equity, and inclusion used for
the purposes of this article.) Based on our results, it appears
that although there has been some progress made in diver-
sifying the accounting workforce broadly, the profession

DIVERSIFYING U.S.
ACCOUNTING TALENT
This article is based on the forthcoming IMA and
CalCPA study, Diversifying U.S. Accounting Talent:
A Critical Imperative to Achieve Transformational
Outcomes. The full report presents key survey
findings, oral histories of the study’s participants,
and a discrete look at race and ethnicity, gender,
and LGBTQIA. The report also examines the role
of ethics in the profession’s DE&I progress and
solutions to drive change as presented by the
study’s participants. The report will be available
at myima.org/DEI when published.

February 2021 / ST R AT E G I C F I N A N C E / 33

TABLE 1: THE DIVERSITY GAP IN ACCOUNTING LEADERSHIP

2 0 1 9 2 0 1 8 PA R T N E R S I N
U . S . A C C O U N TA N T S 2 0 1 9 S I T T I N G C F O s A C C O U N T I N G / F I N A N C E
2 0 1 9 A N D A U D I T O R S O F FORTUNE 5 0 0 F U N C T I O N S O F
U . S . P O P U L AT I O N W O R K F O R C E A N D S & P 5 0 0 C O M PA N I E S U . S . C PA F I R M S

Females 50.8% 61.7% 13.9% 23.0%

Hispanic or Latino* 18.5% 8.9% 1.6% 2.0%

Black or African American 13.4% 8.5% 1.4% 1.0%

Asian 5.9% 12.0% 4.9% 4.0%

American Indian and
Alaska Native, alone 1.3% Data not available Data not available 0.2%

*As the U.S. government recognizes Hispanic or Latino as an ethnicity rather than race, it’s possible that there is overlap across the other
races presented because persons can select Hispanic or Latino in addition to a race when responding to government surveys.

Sources: U.S. Census Bureau, American Community Survey, “Population estimates, July 1, 2019, (V2019),” 2019, bit.ly/35EomYY; U.S.
Bureau of Labor Statistics, “Labor Force Statistics from the Current Population Survey,” 2019, Household Data Annual Averages, Table 11:
Employed persons by detailed occupation, sex, race, and Hispanic or Latino ethnicity, bit.ly/2fky4Dv; Crist | Kolder Associates, Crist |
Kolder Volatility Report 2019, 2019, bit.ly/3sqa3AT; and AICPA, 2019 Trends in the supply of accounting graduates and the demand for public
accounting recruits, 2019, bit.ly/3bEdw8S.

FIGURE 1: DE&I DEFINITIONS

DIVERSITY
Any dimension that can be used to differentiate groups and people from one
another. These dimensions, such as age, ethnicity, and gender, can be
visible or tangible; or they may be invisible or intangible, such as thoughts,
perspective, experiences, belief systems, faith, culture, and sexual orientation.

EQUITY
The promotion of justice, impartiality, and fairness within the procedures,
processes, and distribution of resources.

INCLUSION
A state of being valued, respected, and supported.

34 / ST R AT E G I C F I N A N C E / February 2021

has much ground to cover in relation to equity and inclu-
sion. Only half of respondents of all backgrounds view the
profession as equitable or inclusive, and an even smaller
proportion of demographically diverse respondents share
this view (see Table 2).

On average, less than one-third of nonwhite, Hispanic,
Latino, female, and LGBTQIA respondents report that, within
the accounting profession, their particular demographic:
n Receives equitable treatment,
n Has access to the same opportunities, information, sup-

port, and resources as non-Hispanic white, male, and
non-LGBTQIA counterparts, and

n Believes senior leaders provide an inclusive environment
in their organizations.
When asked to identify the factors that contribute to

underrepresentation of their respective demographic groups
in senior leadership roles, participants point to firsthand
observations or experience of inequitable practices and
exclusive behaviors. Respondents and interviewees cite
contemporary instances of bias affecting recruitment,
assignments, peer-to-peer interactions, promotions, com-
pensation, mentoring and sponsorship, and retention
efforts. Some respondents noted that, in their view, con-
cerns about a lack of equity and inclusion harmed their
careers and advancement in significant and meaningful
ways.

We also found that there is a measurable talent drain
from the accounting profession due to a lack of effective
diversity, equity, and/or inclusion practices, policies, and
programs. As many as 55% of accountants from underrepre-
sented groups leave their employers, and as many as 18% of
them leave the accounting profession altogether. The oppor-
tunity cost to the profession—and society—is significant.

These findings suggest that the lack of effective DE&I
programs and the persistence of inequitable and exclusive
workplace practices have a direct effect on the retention

and promotion of diverse talent. By decreasing human capi-
tal contributions to business, the lack of DE&I affects
turnover within an organization’s accounting and finance
functions as well as the strength, stability, and long-term
sustainability of the U.S. accounting profession’s talent
pipeline.

THE IMPETUS FOR CHANGE
Heightened global interconnectivity, technological
advances, and renewed attention to accountants’ pivotal
societal role create a mandate for a broad-based conception
of talent through enhanced DE&I, particularly among senior
leadership. The current transformation that’s redefining the
profession requires not only reconsidering individual
behavior but also collective action by the profession as a
whole.

Research has shown that teams with greater diversity,
equity, and inclusion—particularly among their leadership—
realize more innovation and stronger financial results.
Greater demographic diversity and, consequently, varied
experiences, perspectives, and thoughts yield greater suc-
cess for teams and organizations.

Additionally, according to the U.S. Census Bureau’s 2020
report Demographic Turning Points for the United States:
Population Projections for 2020 to 2060 (bit.ly/38seIKF), by
2045, persons who identify as non-Hispanic white are pro-
jected to become the minority of the U.S. population. The
composition of the accounting workforce and its leadership
doesn’t reflect the current demographic makeup of the
population. The aging segments of the profession are at or
close to retirement age, and younger talent in the U.S. is
growing more diverse. The accounting profession needs to
innovate to determine how to best attract, motivate, and
retain diverse talent for the next generation of leadership.

The diversity gap among executive leaders and insights

TABLE 2: IS THE ACCOUNTING PROFESSION EQUITABLE AND INCLUSIVE?

I B E L I E V E T H E P R O F E S S I O N I S E Q U I TA B L E . I B E L I E V E T H E P R O F E S S I O N I S I N C LU S I V E .

All 48% 50%

White males (non-LGBTQIA) 67% 69%

Nonwhite, Hispanic, or Latino 26% 30%

Females (all ethnicities) 33% 37%

LGBTQIA (both male and female) 54% 55%

February 2021 / ST R AT E G I C F I N A N C E / 35

garnered from practitioners and academics in our research
study reveal unmet challenges around retention and pro-
motion. Yet the study also revealed that the accounting pro-
fession already has the tools and ideas for attracting,
retaining, and promoting diverse talent to innovate and
meet evolving business demands. First, accountancy has
always depended on ethical principles that value unbiased,
information-based thinking, and accountants are already
guided by responsibilities related to trust and accountability
to the public. Second, as our one-on-one interviews
revealed, some members of the profession already have
ideas for driving change to develop talented and capable
people to the top of the profession, regardless of demo-
graphic background, and are working to create change.

Let’s take a closer look at both.

ETHICAL PRINCIPLES
A hallmark of the accounting profession is adherence to
ethical standards. Businesses, governments, and other
organizations rely on and place confidence in accountants’
work because of their commitment to act ethically, objec-
tively, and in the public interest (see Figure 2).

The International Code of Ethics for Professional Account-
ants (including International Independence Standards) (the
Code, bit.ly/3q4jP9O) from the International Ethics Stan-
dards Board for Accountants (IESBA) requires accountants
to comply with five fundamental principles of ethics:

integrity, objectivity, professional competence and due care,
confidentiality, and professional behavior. (IFAC’s publica-
tion series, Exploring the IESBA Code (bit.ly/2LADDTi),
explains the important concepts in the Code, including the
fundamental principles, the conceptual framework, and the
role and mind-set expected of accountants.) Among other
attributes, ethical accountants:
n Act with integrity by being straightforward, honest, and

fair in all professional and business relationships.
n Are objective and exercise professional or business judg-

ment without being compromised by bias.
n Behave in a manner consistent with the profession’s

responsibility to act in the public interest in all profes-
sional activities and business relationships.

n Avoid any conduct that might discredit the accounting
profession as a whole.
In the context of this study, the Code promotes the

behavior expected of professional accountants. Professional
accountants must comply with a robust set of ethics
requirements, including the principles of ethics that help in
fulfilling their public interest responsibility. Although the
Code doesn’t expressly address DE&I, organizational cul-
tures that are aligned to the Code can help support the
effectiveness of DE&I programs.

Further, recent changes to the Code enjoin all account-
ants to use an open and inquiring mind that involves
remaining alert to circumstances that demand further
investigation. These changes also explain that bias affects

PROFESSIONAL

COMPETENCE AND
DUE CARE

CONFIDENTIALITY

PROFESSIONAL
BEHAVIOR

INTEGRITY

OBJECTIVITYPRINCIPLES
OF

ETHICS

FIGURE 2: ETHICAL PRINCIPLES FOR ACCOUNTANTS

36 / ST R AT E G I C F I N A N C E / February 2021

the exercise of professional judgment when identifying,
evaluating, and addressing threats to compliance with prin-
ciples of ethics. (These recent changes to the Code were
released in October 2020 and will go into effect in Decem-
ber 2021.)

Our study found that, when paired with equitable treat-
ment, an organization with an inclusive work culture helps
to ensure that individuals remain fully engaged and moti-
vated toward strong performance and value delivery. It’s
important that leaders recognize that each employee has
unique skills, talents, and experiences. Therefore, rather
than a “check the box” approach to human resources, it’s
beneficial to tailor processes that support, develop, and
coach each employee in a way that allows for nurturing tal-
ent toward its best use. To this end, ethical leaders in the
accounting profession—moved by a responsibility to act
with integrity, objectivity, competence and due care—are
well positioned to serve as credible and trustworthy
enablers and champions of DE&I.

A BROADER EFFORT
IS NEEDED
Influential leaders in the U.S. accounting profession and,
more broadly, in the corporate sector, are working to create
more diverse, equitable, and inclusive workplaces. For
example, CEO Action for Diversity & Inclusion is the largest
CEO-driven business commitment to advance diversity and
inclusion in the workplace. It currently has more than 1,600

CEO signatories (representing more than 85 industries and
13 million U.S. employees) to its pledge.

Our one-on-one conversations revealed observable pos-
itive movement in DE&I initiatives, particularly at larger
organizations, in larger metropolitan centers, and in smaller
organizations with leaders who are passionate about DE&I
progress. Champions within the profession are proactively
implementing DE&I-related corporate social responsibility
initiatives and making significant contributions to increas-
ing diversity in business school classrooms, educating
youth from underserved communities, and building diverse
candidate pools.

New scrutiny is being brought to the effectiveness of
training and awareness-raising programs to recognize, pro-
mote, and include more diverse talent. Interviewees
pointed out that about 10 years ago, the U.S. accounting
profession made a conscious effort to recruit more women,
and the demographics improved: More women joined the
profession.

Taking this further, some organizations reward senior
leaders who champion gender parity in their corporate
ranks. Study participants believe that commitment to tar-
geted actions that recruit, empower, coach, mentor, and
sponsor more racial and ethnic minorities, LGBTQIA pro-
fessionals, and females into leadership positions will result
in positive progress and forward momentum.

Yet despite the changes brought about from these vari-
ous efforts, interviewees and survey respondents state that
previous initiatives haven’t brought about adequate results

Raise
awareness

by identifying and
mitigating

unconscious bias so
people of all

backgrounds are
recognized and

valued.

Attract
diverse talent
by promoting the
profession as a
desirable career
path for people
regardless of

gender, ethnicity,
race, or LGBTQIA

identification.

Drive career
promotion

by taking specific
steps to ensure that

people of diverse
backgrounds have

equitable access to
the factors that
enable career
advancement.

Increase
accountability

for progress
by defining,

transparently
reporting, and

linking performance
to DE&I metrics.

FIGURE 3: COLLABORATING TO CLOSE THE DIVERSITY GAP

February 2021 / ST R AT E G I C F I N A N C E / 37

and that the status quo is unlikely to close the diversity gap
at senior levels of the U.S. accounting profession. Without
expansive targeted efforts across the entire accounting
ecosystem, the profession risks being unable to attract and
develop the human capital needed to meet transformational
demands.

Study participants indicated that it will “take a village”

to generate the change needed for widespread, positive
impact. We found that, in addition to CPA firm partners,
accounting and finance function leaders, professional
accountancy organizations, standard setters, and regulators,
members of “the village” should include students, parents,
high school teachers, guidance counselors, university
admissions officers, professors, administrators, hiring per-
sonnel, practitioners, and accounting professionals at all
levels within the organization. Study participants believe
that, together, these groups and persons form the account-
ing ecosystem and can engage in collaborative efforts to
close the diversity gap in several ways (see Figure 3):
n Raise awareness of how to identify and mitigate uncon-

scious bias so talent of all backgrounds is recognized and
valued,

n Attract diverse talent to the profession,
n Drive career advancement to develop more diverse

leaders, and
n Increase accountability for DE&I progress across the

profession and at the highest level of leadership.

CHANGE THE STATUS QUO
The diversity gap must be closed or narrowed to strengthen
the profession’s value contribution into the 21st Century.
The sponsoring, partnering, and contributing organizations
involved in this study are committed to championing the
continuous improvement of diversity, equity, and inclusion
in the global accounting profession. These organizations are
collaborating with other members of the accounting
ecosystem to define the priorities, principles, and metrics
needed to reshape the profession’s talent pipeline and pro-
pel its transformation forward.

The researchers of this study recognize there will be
more questions to ask and issues to uncover related to DE&I
in the accounting profession, in particular defining metrics
for equity and inclusion, examining other aspects of diver-
sity, and exploring jurisdictions outside the U.S. We must
continue to ask more questions to uncover systemic DE&I
issues, find answers that explain their existence, and design
and implement effective, sustainable solutions that will
eliminate these barriers to a vibrant, future-proof account-
ing profession. Be part of this change: Ask questions, find
answers, and create solutions. SF

Loreal Jiles is director of research—digital technology and finance
transformation at IMA. She is also the staff liaison to IMA’s Committee
on Academic Relations and a member of IMA’s San Gabriel Valley
Chapter. She can be reached at loreal.jiles@imanet.org.

Brad Monterio is chief learning officer of CalCPA and a member
of the IMA Global Board of Directors. He can be reached at
brad.monterio@calcpa.org.

Diane Jules, CPA, CGMA, is deputy director of the International Ethics
Standards Board for Accountants (IESBA). She can be reached at
dianejules@ethicsboard.org.

RESEARCH STUDY
ENGAGEMENT
COSPONSORS
IMA® (Institute of Management Accountants)
CalCPA (California Society of CPAs)

GLOBAL RESEARCH PARTNER
International Federation of Accountants
(IFAC)

RESEARCH PARTNERS
Association of Latino Professionals For
America (ALPFA)
National Association of Black Accountants
(NABA)
National Society of Black CPAs (NSBCPA)

RESEARCH CONTRIBUTORS
Connecticut Society of CPAs
Colorado Society of CPAs
Florida Institute of CPAs
Illinois CPA Society
Maryland Association of CPAs
Massachusetts Society of CPAs
The Ohio Society of CPAs
Pennsylvania Institute of CPAs
Texas Society of CPAs
The PhD Project

RESEARCH ADVISORS
Sandra Richtermeyer, Ph.D., CMA, CPA
(inactive)
Henock Louis, Ph.D.

Reproduced with permission of copyright owner. Further reproduction
prohibited without permission.

Accounting homework help

Case Study – Peloton

As you read the case study, be attentive to Peloton’s successful strategy, the market potential and
the strategic direction of Peloton. Answer the questions below based on the case study. Your
answers should fit in the lines below each question. Be sure to include all the elements mentioned
in the article as well as your own knowledge about the fitness industry.

1. At its current valuation of $8 billion, what do you think contributed to Peloton’s success?

2. The case focuses on pricing concerns. Are Peloton prices justifiable? Should Peloton change its pricing
strategy? Consider how the stock crashed in 2022 and the concerns that surfaced at that time.

How Peloton exercise bikes became a $4 billion fitness start-up with a cult following

Peloton is a bonafide fitness phenomenon — it has a million impassioned users to whom its bikes and original

streaming workouts are a way of life, making it much more than a company that sells exercise equipment, though it

does that too. In fact, Peloton has sold over 400,000 bikes so far and started delivering its first treadmills in late 2018,

the company tells CNBC Make It. Peloton is changing the way America works out.

“People are pretty obsessed with Peloton — myself included,” Robin Arzon, Peloton’s head instructor and vice

president of fitness programming, tells CNBC Make It. Arzon joined in 2014 after reading an article about Peloton

that made her feel like she was seeing the future of fitness.

“From the beginning, I drank the Kool-Aid,” she says.

She’s not alone. The convenience of being able to take a top-notch studio cycling class on a high tech bike at home

any time you want, combined with motivational instructors and a supportive but competitive community of users has

created a devoted following willing to pay $1,995 for an exercise bike, not including the $250 delivery fee or the $39-

per-month subscription to stream the company’s live and on-demand classes.

Over 440,000 people follow Peloton’s official Facebook page, where users connect, posting photos of themselves and

their bikes along with updates on their workout regimens, and superfans have even gotten tattoos of the company’s

logo. You can even count more than a few famous faces among the Peloton community, including actor Hugh

Jackman, Olympic champion sprinter Usain Bolt and even billionaire Virgin Group founder Richard Branson.

Investors are enamored too, pouring $994 million into Peloton. In fact, the company was valued at a whopping $4.15

billion after its latest funding round of $550 million in August 2018, Peloton confirmed to CNBC Make It.

Peloton’s impressive growth — the company says it’s on track to reach $700 million in revenue for the fiscal year

ending in February after tallying $370 million in sales the previous year — and valuation even has public investors

salivating at the idea of a potential Peloton IPO, which could come as soon as this year, though the company declined

to comment on that matter to CNBC Make It.

Secret sauce

If you ask Peloton’s founders, it’s actually a media-technology-retail-logistics company. In fact it’s been dubbed the

“Apple of fitness,” but it could also be compared to Amazon, for the way it aims to control every aspect of your

workout, from designing and building the bike or treadmill you’re using to training the instructors encouraging you

to pick up the pace and even the music playing in the background. Not to mention creating its own content and

designing and building the hardware and software that lets you stream those fitness classes on a tablet affixed to a

machine that was delivered to your home by Peloton’s own “dedicated team of professionals.”

“We did talk a lot about Apple early on, and we talk about Netflix and Amazon,” Tom Cortese, one of Peloton’s five

co-founders and COO, tells CNBC Make It. “When you think about these game-changer companies who have this

focus on user experience, that is where we looked for inspiration.”

He says the co-founders realized “we just had to touch so many different areas.”

“All of that is part of this, sort of, holistic member experience that our people have come to love, and that is such a

core part of what we do and what makes Peloton special.”

In particular, Peloton’s instructors are part of the secret sauce.

“The way that Peloton has built their instructors into their brand, with many of their instructors achieving a sort of

cult status among the Peloton following, I’d say is definitely one of their biggest advantages over alternative at-home

fitness equipment and gym and cycling classes,” Marisa Lifschutz, lead industry analyst at research firm IBISWorld,

tells CNBC Make It.

Indeed, popular instructors like Arzon are one of the main draws, as evidenced by her the nearly 200,000 people who

follow her on Instagram. Arzon is known for her high energy, motivational style and her catch phrase, “sweat with

swagger,” which is also the name of the tribe of Peloton users who specifically follow her classes. She calls Peloton’s

group of instructors “a team of superheroes” whose job it is to inspire and lead the community.

“We’ve also built a socially engaging platform in the workouts themselves,” Arzon says. “So whether you’re getting

a high-five from a fellow rider or you’re getting a shout-out on your first run … there’s an intimacy there that doesn’t

exist most places, certainly not in a space where you’re interacting digitally, and instructors are kind of breaki ng that

fourth wall and in people’s homes. That’s really powerful stuff.”

The feeling seems to be mutual. Sara Richards, 44, a medical writer and mother of four who lives in Los Angeles, tells

CNBC Make It that she’d tried SoulCycle a few times, but “was not very impressed with any of the instructors.” After

she tried Peloton last year, Richards says, she felt more of a “personal connection” with the instructors, especially

Arzon. “When she is talking to that screen, she is talking to me,” Richards says.

(A SoulCycle spokesperson tells CNBC Make It, “Our growth in consumers and in revenue shows nothing can

replicate our immersive and category-defining experience.”)

The idea of feeling connected to the Peloton community is also a big draw for Richards, she says, as it is for Crystal

O’Keefe, a 40-year-old project manager at a healthcare organization in St. Louis who hosts a Peloton-themed podcast,

called “The Clip Out,” with her husband, Tom.

After buying her Peloton bike in 2016, O’Keefe immediately loved the competition aspect of Peloton, including

watching herself rise up the leaderboard in real-time on her bike’s touchscreen. And once she started posting in the

Peloton Facebook group, she felt embraced by the community to the point that she’s formed friendships with riders in

other cities. O’Keefe, who says she’s struggled with weight loss her entire adult life, has lost about 30 pounds since

she started using Peloton.

“I never found time to work out consistently before, and between the community and the total availability of the

classes — I mean, it is nothing for me to work out seven hours a week,” O’Keefe tells CNBC Make It.

Of course, Peloton isn’t without its critics. The most frequent knock seems to be its price point, as not everyone can

pay thousands of dollars along with a monthly membership fee and the cost of equipment (like Peloton cycling shoes

that cost $125 a pair).

On Amazon, standard exercise bikes and treadmills can start selling for just a few hundred dollars. Meanwhile, there

are also other at-home fitness apps available on the market, such as personal trainer Kayla Itsines’ Sweat app, which

offers streaming workouts and a robust social media community at a cost of less than $120 for a full-year membership.

But there are also plenty of other high-end equipment options that cost thousands (like the $2,000 NordicTrack bike or

a nearly $5,000 treadmill from Matrix), even without the option to livestream classes. Studio cycling classes can also

be expensive, even without buying your own bike, with SoulCycle charging anywhere from $28 to $36 per cycling

class at various locations around the country.

Still, thousands of Twitter users recently swarmed to a thread of posts mocking both Peloton’s price tag and a series

of advertisements that feature Peloton products being used only perfect people in their luxurious homes and

apartments. The viral Twitter thread suggests the ads paint Peloton as little more than a bougie exercise bike for rich

people staring out of their penthouse windows at the poor wretches trying to do yoga in a public park.

“That thread demonstrated that Peloton has officially become part of the cultural conversation,” a Peloton

spokesperson told CNBC Make It.

However, Cortese points out “We’ve strived to find different entry points into the Peloton system for different folks,”

noting that you can sign up for the monthly Peloton subscription and stream it on a phone or tablet without buying the

Peloton bike or treadmill and, if you live in New York, you can take classes at the Peloton studios for $26 each.

Peloton also offers a 39-month financing option to buy its bike that costs $58 per month, which is also the average

monthly cost of a gym membership in the US.

How it all started

It’s been over seven years since current CEO and co-founder John Foley invited his former colleague Cortese over for

dinner in 2011 to pitch him on the idea that technology could make it possible for time-strapped people to get the full

experience of working out in a high-end studio cycling class in their homes.

At the time, Foley was in his early 40s and married with two young children and a demanding job as an executive at

Barnes & Noble in New York, where he’d grown fed up with trying to fit studio cycling classes into his busy schedule.

Foley also noticed that what seemed to draw people to those expensive cycling classes was usually a favorite instructor

or music playlist more than the brand itself. He wondered if he could make the whole experience more accessible.

“John kept talking about this idea that it was difficult to find time to fit [fitness] in, it was difficult to find time with a

great instructor at a great class, and it was incredibly expensive to pay this per-class fee,” Cortese says.

Foley and Cortese agreed that an at-home exercise bike outfitted with some sort of screen could allow customers to

stream their favorite cycling classes anytime, anywhere.

At the time, Cortese, who is now 39, was really getting into fitness himself, training for triathlons and cycling races,

and he’d also recently become engaged and started to think about how fitness would fit continue to into his lifestyle.

“it just clicked,” Cortese says.

Peloton co-founder and COO Tom Cortese.

“We were going to shift this fitness industry from these commercial gym environments into the most convenient place

on earth,” he says.

Foley secured $400,000 in seed funding from a group of angel investors and the company was officially founded at

the beginning of 2012, with Foley taking a French term for a pack of bicycle racers, “peloton,” to name their new

creation. From there, it took Foley, Cortese and their three fellow co-founders — Graham Stanton, Hisao

Kushi and Yony Feng — nearly a year to build a test bike using off-the-shelf hardware, including an Android tablet

for the bike’s touchscreen.

By the end of 2012, that test bike proved to be enough to show investors that a high-tech, connected stationary bike

that tracks the riders’ metrics while live-streaming video could work, allowing Peloton to raise another $3.5 million.

They built a real prototype Peloton bike and launched a Kickstarter campaign in the summer of 2013 to create buzz

around the bike.

It only took about a month for Peloton to top its Kickstarter funding goal of $250,000, but at $1,500 apiece, Peloton

had still pre-sold fewer than 200 bike, so wanting to appeal to suburban consumers who wouldn’t have as much access

to brands like SoulCycle and FlyWheel, Peloton set up a pop-up store in the Mall at Short Hills in Millburn, New

Jersey, a luxury shopping mall roughly a 40-minute drive from Manhattan.

Cortese remembers “high-fiving that we had sold, maybe, five units in a single day,” he jokes. “But it … allowed us

to be in there providing our message to every customer who walked by.”

Slowly, buzz for the brand started to build. Over the next year, Peloton opened seven stores in California, New York,

Massachusetts and Virginia, while sales continued to tick upward. Peloton’s sales in the first two months of 2015

more than doubled the company’s expectations, and that spring Foley said that he expected to have sold a total of

10,000 bikes by the end of the year.

As the company continued to grow, more investors took notice. Two separate funding rounds in 2015 raised a total of

$105 million, which was roughly seven times the company’s total prior fundraising.

By 2016, Peloton had booked $60 million in annual revenue, and Cortese now tells CNBC Make It that Peloton’s

sales “essentially double or triple every single year” going back to 2014.

“What’s amazing about our growth is just this past year, 2018, we had at least one day where we sold as many units

in that single day as we did in that first year of 2014,” Cortese says.

Changing the industry

Peloton now has 70 brick-and-mortar Peloton locations across the US, Canada and UK and three Manhattan studios

for live-streamed and on-demand classes, and the company has plans to open a new, 35,000-square-foot flagship

location in Manhattan this coming fall to house several fitness studios.

A Peloton instructor leads a cycling class at the company’s studio.

Source: Peloton

The company already employs 26 total instructors, streams over 20 live classes per day and offers over 10,000 classes

on-demand (varying in length from 15 minute workouts to hour-long sessions) — with plans to continue expanding

into new fitness areas after recently adding running, yoga and strength training classes.

The running classes started in May 2018 to complement the newly-released Peloton Tread, a $3,995 treadmill that the

company started shipping to customers in the fall. The company has not released sales numbers for the Tread yet, but

Cortese says the product has had an “overwhelming early reception” from customers.

Still, much like Peloton’s bikes, the Tread has been criticized for its price tag, with one review calling it “prohibitively

expensive.” Peloton stands by the value of its product, though. “We believe our product is comparable, if not a much

better value, than other high-end treadmills on the market,” said the Peloton spokesperson.

Analyst Lifschutz notes that Peloton’s market share in the gym and exercise equipment manufacturing industry has

grown from essentially nothing when it launched in 2014 to 7.3 percent by 2019. IBISWorld forecasts for Peloton to

grow its annual revenue to more than $999 million in 2019. And Lifschutz adds that “Peloton just represents the

direction the industry’s heading towards.”

Peloton’s influence on its competitors is already clear. Rivals like NordicTrack and Flywheel have launched their own

subscription services to stream cycling classes at home. In the case of Flywheel’s FLY Anywhere service, its 2017

arrival spurred a 2018 lawsuit from Peloton that claims the company copied its proprietary design, which Flywheel

has denied.

(Peloton declined to comment on ongoing litigation. A Flywheel spokesperson said, “Flywheel firmly denies the

claims raised by Peloton and strongly believes that its Anywhere product does not infringe any valid claim of Peloton’s

patents” and it intends to “vigorously stand up for ourselves against Peloton’s claims.”)

Meanwhile, multiple other at-home fitness brands have sprung up in recent years, offering a similar message of

convenient workouts through technology, including Mirror, Tonal and connected rowing machine startups Hydrow

and CityRow.

Looking ahead, Peloton has no plans to stop growing. In addition to expanding the number of types of fitness classes

it streams to users, Peloton has also been trying to reach its users in new places. Peloton launched in the UK and

Canada for the first time in the fall, and the company has even dipped its toes into the hospitality industry through a

2017 partnership with Marriott’s Westin Hotels & Resorts that puts Peloton bikes into dozens of hotels throughout the

US.

Say Cortese, “We think we are just at the beginning of this business.”

Disclosure: CNBC parent Comcast-NBCUniversal is an investor in Peloton.

Accounting homework help



Sample Court Visitation submitted by a previous student

Court Visitation

I.
Lucas County Courthouse (Courtroom 6-fourth floor)

II.
April 16, 2007

III.
Judge Denise Ann Dartt

IV. Different arraignments observed

• The first case I saw involved a man who worked in with the CTF and they wanted him terminated. There was a supervisor from the CTF present and came forward with an issue that involved the defendant that morning. She said that he had started another inappropriate argument with another person right before they came to court.

He had also violated his community control. He was placed on community control for possession of crack cocaine. He had allegedly not complied with the correction treatment program due to behavior problems. The judge ordered that he must comply with his supervisor.

• The next case that was brought up was where the defendant requested that his record be expunged. The defendant had not yet provided restitution. The motion to expunge was granted. The motion to expunge was not based on the unknown restitution.

• There were several cases brought up where they just set the date for the pre-trial.

• The next defendant that was brought up had been convicted of a 4th degree felony from carrying a weapon. He was not accompanied by an attorney. The judge said that he needs to get an attorney before his trial. He was let go because he had posted bond earlier.

• The next case was a man whose case was from 1994. He did not have a lawyer and asked the court to appoint one for him. Judge Dartt asked questions to him to find out if he really could not provide for a lawyer. He said that he has a job where he makes $250 a week and has to provide child support of $62.50 a week also. He was then appointed a lawyer by the court.

• The next case that was brought up was a guy who had been arrested on charges that happened a long time before. The judge said he was a fugitive and he said that he had already served his time. He said that he was in New Jersey and committed a crime there and served time there for that crime and for crime in Toledo. The judge said that she can not prove it so he will need to appoint a lawyer. The judge said the court would provide one if he couldn’t and he turned it down and said he doesn’t need one. The judge repeatedly said he has to have a lawyer to prove that he has already served his time and

he refuses. The judge then proceeds to yell at the defendant telling him he must have a lawyer then he accepts and goes on.

• Another defendant had originally convicted of a felony of 3rd degree

(burglary), and had prior violations of his probation. He was recently caught riding his sister’s bike in south Toledo after visiting his friend. At his friends house he began an argument with a neighbor and yelled at them, they then called the police and that was how he was caught violating community control by not completing his correction treatment which was an order by the court. He admitted to violating community control and said he has medical problems. The defendant then asked for a second chance and said that he would go along with any probation the court gave him. He was denied and the court ordered the original sentence of 3 years and he would get credit for any days already served.

• The next defendant was brought in on charges of theft and making false alarms which was said to be a 5th degree felony. She was given one week to meet with a lawyer. She was then booked, finger printed and bond was posted. I later saw this same lady walking on the street when I left the courthouse.

• The next defendant was a 21 year old man who was brought in on alleged violation of community control. He was told he had a right to a hearing but he denied it and admitted. His lawyer spoke for him saying; he knows he is getting a sentence but would like a sentence that he can get an education and help with his drug problems. From the first day of his original arraignment he had an electronic monitoring device placed around his ankle, but he cut it off. The crime he committed to put him on community control with a monitoring device was possession of crack cocaine. He was convicted of robbery; he had robbed three different places by using a gun to force people to follow his instructions. The judge sentenced him to three years for each count of robbery and one year for violating his community control. The first two counts of robbery and the one year for community control will be served consecutively for a total of seven consecutive years in prison.

• The last defendant I saw was about the partner in crime of the previous guy. He had the same charges also; armed robbery. His lawyer also spoke for him and said; he knows he will receive a sentence and would like if he could also help support his wife and kids while serving time. The lawyer also brought up that the defendant only had one prior felony (aggravated trespassing). The judge then asked the defendant if he had anything to say and he apologized to the court and his family, then Judge Dartt said what about the people you pointed a gun at, the people life you held in their had because you had a gun pointed at them, what about the people that were working, trying to make a little money and you were there to rob them. He then apologized to everyone

else. He also received the sentence with three years per count of robbery with the first two counts being served consecutively.

V. Student outlook on court visit

I found this experience to be very educational. I had never even been to a courthouse before, especially to see actual criminals being convicted of crimes. The people who were working at the courthouse were very nice. When I walked in, after I went through the metal detector they asked me if I needed help finding anything and I told them what I was there for and they told me that about the only thing going on was on the fourth floor and it had just gotten started. I thought this was very helpful since there were many floors of courtrooms and I had no idea what I was doing or looking for when I went in. Then there was a lady standing outside the door of the courtroom only allowing a certain number of people in and I talked to her and she made sure that I got my chance to go in and watch.

I found it interesting that some of the defendants were brought in, in custody and some came in on their own and would meet their lawyer or be appointed one in the courtroom. It was also interesting that they would only allow very little number of people other than the people in custody inside the courtroom. There were only two rows of seats for people to observe the courtroom. I had to wait outside the courtroom for a while before a seat opened up and I was allowed in. The hearings with the last two men were the most interesting and were also very disturbing. It was awkward knowing that those two men had gone into a restaurant and pointed a gun at the employees and customers ordering them to get on the ground and then robbed them. It was also uncomfortable in the courtroom because everyone other than me was a family member or close friend of the two defendants and they were somewhat emotional when the judge ordered them to be

Accounting homework help

RR ee dd CC oo mm pp aa nn yy 11 55 ee – PP rr oo jj ee cc tt RR ee gg ii ss tt rr aa tt ii oo nn SS ll ii pp

Annual Report Project

1. Fill in the boxes below

2. Turn in this slip – as directed by your instructor

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This is your Software ID Code you received in an email
when you purchased Red Company, or on your Software
ID Code sheet that was provided to you by your instructor.

Your: First Name

Last Name

Assigned ARP Company:

Instructor:

Class Time:

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Seat or ID#:

  1. Textfield-1:
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Accounting homework help

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

93

CAPITAL BUDGETING IN HEALTH ORGANIZATIONS:

APPLICATION OF THE MULTICRITERIA METHOD
PROMETHEE V

1

A.S. Fernández Castro

1
The author wishes to thank the comments of an anonymous referee.

There are two outstanding
characteristics of the capital budgeting
process in health organizations:
qualitative factors are considered in the
decision process, and organizations are
subject to severe financial constraints.
The first of these characteristics
suggests multicritera methods to be
applied to the problem, and the second
one recommends using mathematical
programming techniques to select the

feasible subset of alternatives that
maximizes benefits. The proposal in this
paper is to use the multicriteria method
PROMETHEE V, based on a fuzzy
outranking relationship, which meets
both requirements. The analysis of the
advantages and limitations of the method
is illustrated with an application to an
actual case.

Keywords: capital budgeting, multicriteria, outranking, PROMETHEE, hospitals.

1. INTRODUCTION

Analysis of the health sector and inspection of published experts’ testimonies show
that the capital budgeting process in health organizations has two outstanding
characteristics: qualitative factors are considered in the decision process and
organizations are subject to severe financial constraints. The first of these
characteristics suggests multicritera methods to be applied to the problem, and the
second one recommends using mathematical programming techniques to select
the feasible subset of alternatives that maximizes benefits. The proposal in this
paper is to use the multicriteria method PROMETHEE V, based on a fuzzy
outranking relationship, which meets both requirements. It has the additional
advantage that different versions may be specified in order to adapt the model to
the constraints affecting the choice and to different ways to compare the
characteristics of the alternatives.

Capital budgeting in health organizations: application of the…

94

The aforementioned characteristics of investment selection in health organizations
will be analyzed in the next section. Then, PROMETHEE V is presented, in order to
highlight its utility in our context. The proposal is exemplified with an application of
the model to a published real case, which illustrates the flexibility of this method.
Finally, conclusions of the analysis are summarized.

2. CAPITAL BUDGETING IN HEALTH ORGANIZATIONS

Most health organizations consider qualitative factors in the capital budgeting
process. Kamath and Elmer (1989) find that hospital managers have lower
confidence in qualitative factors than in previous research. Nonetheless, 98% of
respondents still take them into account. Moreover, 96.5% answer that qualitative
factors determine more than 10% of the decisions, and 53% say that they are
decisive in more than 51% of cases.

Several works analyzing which factors are and must be accounted for in investment
selection, such as Campbell (1994), Kleinmuntz and Kleinmuntz (1999) and
Hofmann (2000), highlight the importance, among the non-economic factors, of
opinions of the different groups interested in the decision process, namely,
physicians, patients, regulators and so on. Other kinds of factors are also included,
e. g., strategic factors or ethical considerations.

These peculiarities of the health sector make extremely difficult, or rather
impossible, to summarize all factors affecting project selection into their financial
consequences. Among these peculiarities, the following ones deserve to be
mentioned:

• There are many groups involved in the decision process (management,
physicians, nurses, other employees, regulators, patients, community,…) and
their interests are very diverse (interest of patients in services provided, of
doctors in technology, of managers in the relationship between resources and
activity, and in the conflicts among the interests of the different parts, …).
Besides, interaction among those groups is very complex, with physicians
occupying a powerful position, deciding the level of the consumption of clients
and strongly influencing the choice of resources.

• The final good produced is health (and, ultimately, human life), whose
social valuation in monetary terms is extremely cumbersome, and which brings
about important ethical considerations.

• Forecasts of future benefits from an investment are usually very imprecise,
due, partly, to the technological complexity of the productive process, which
makes difficult to quantify the marginal effect of a particular resource, and also
to the continuous technological advance.

The constant technological advance of the sector, together with the insatiability of
the demand of health services, influence the other main characteristic of capital
budgeting in health organizations, namely, the scarcity of available resources
compared to desirable investments. In the case study that we will analyze in detail

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

95

in the fourth section, Kleinmuntz and Kleinmuntz (1999), the proposal of the authors
is to use the benefit/cost ratio to rank investment alternatives. This proposal is
similar to the profitability index of Lorie and Savage (1955), with the peculiarity that
benefits are not simple financial values, but an aggregation of the scorings obtained
on the different factors evaluated. Validity of this sort of solution is limited to cases
where there is just one financial constraint and projects may be undertaken
fractionally. These conditions, especially the latter, are hardly met in our context.

The existence of highly restrictive budgets is a possible explanation for the
extension of the use of the benefit-cost ratio in hospitals. According to Kamath and
Elmer (1989), the popularity of this indicator in hospitals (it reaches 35% of use) is
much higher that in other sectors, in spite of the above limitations. Nevertheless,
this method has the advantage of simplicity compared to most rigorous alternatives,
and this may be decisive since, as Steffen and Nystrom (1988) conclude, hospital
managers are less prone to use mathematical models than other managers.

3. THE MULTICRITERIA METHOD PROMETHEE V

The name PROMETHEE comes from “Preference Ranking Organization METHods
for Enrichment Evaluations”. This family of methods was presented in Brans et al.
(1984). They are based on a fuzzy outranking relationship, from which
PROMETHEE I constructs a partial preorder, and PROMETHEE II develops a
complete one (i.e., a preorder without incomparability relationships). PROMETHEE
III associates an interval to each alternative, and establishes rankings among the
intervals that are not transitive. The last version originally presented was
PROMETHEE IV, developed for the analysis of continuous alternatives. Later on,
Brans and Mareschal (1992) presented PROMETHEE V, a model that uses both
the results of PROMETHEE II and Integer Linear Programming, which allows
introduction of constraints into the problem.

PROMETHEE methods evaluate the intensity of the preference between each pair
of alternatives in each criterion through a fuzzy number in the 0-1 interval. This is
done by means of six functions expressing the value of the preference of a on b
regarding criterion j, Pj(a, b), depending on the difference between their values or
“distance”:

j jd = (a) – (b)f f

Some of the functions make use of an indifference threshold (q) and/or a
preference threshold (p), representing, respectively, the minimum difference
considered significant and the level above which it is completely significant.

Capital budgeting in health organizations: application of the…

96









 ≤

0 > d , 1

0 d , 0
= b) , (a P

Figure 1. Type I (Usual) criterion









 ≤

q > d , 1

q d , 0
= b) , (a P

Figure 2. Type II (U shaped) criterion









p > d , 1

p d < 0 , p / d

0 d , 0

= b) , (a P

Figure 3. Type III (V shaped) criterion

0

1

P(a, b)

d

1

0 d

P(a, b)

q

1

0

P(a, b)

d p

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

97









p > d , 1

p d < q , 21/

q d , 0

= b) , (a P

Figure 4. Type IV (level) criterion









p > d , 1

p d < q ,
q – p

q – d

q d , 0

= b) , (a P

Figure 5. Type V (V shaped with indifference area) criterion

p < < q

0 > d ,e – 1

0 d ,0

= b) ,(a P
d

σ

σ 




 ≤


2

2

2

Figure 6. Type VI (Gaussian) criterion

1/2

1

0 d

P(a, b)

p q

1

0 d

P(a, b)

p q

0

1

d

P(a, b)

Capital budgeting in health organizations: application of the…

98

Once the preference index for each criterion has been computed, a global
preference index of alternative a on b is calculated, using information about relative
weights (w j ) of criteria:

Π

n

j j

j= 1

m

j

j= 1

(a , b)w P

(a , b) =

w

The outranking character of an alternative is evaluated through the positive
outranking flow or leaving flow, which is the summation of those indexes that

+

Πφ ∑

b A

(a) = (a , b)

evaluate the preference of the alternative on all the other ones.

Similarly, the outranked character is evaluated by means of the negative or entering
flow:

Πφ ∑
_

b A

(a) = (b , a)

In PROMETHEE II a net outranking flow is calculated as the difference between the
leaving and entering flows:

+ −
φ φ φ

(a) = (a) – (a)

PROMETHEE V, using these results, allows to select the most interesting subset of
alternatives (i.e. the subset with the highest aggregate net flow) meeting certain
linear constraints that limit the choice. Denoting the alternatives as ai (i = 1, …, m),
the general formulation of the problem is:

− +

φ∑

α + −∑

∈ ∀

m

ii
i=1

m

iri r r r
i=1

i

Max ( ) · xa

Subject to:

s s = , r = 1,…, sβx

x {0, 1} i

The decision variables, x i , take the zero value if the project is not accepted, and
one if it is undertaken. The constraints have been stated in a generic form, with
slacks and surpluses. If a particular constraint expresses that the sum of the

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

99

resources consumed by the projects cannot exceed the available quantity, i.e., if it
is a “≤” constraint, there is no surplus (s r

+
= 0); if it is of “≥” type, there is no slack (s

r

= 0); and if it is an equality, there are none of them.

4. APPLICATION OF THE METHOD

The case presented in Kleinmuntz and Kleinmuntz (1999) will be used as starting
point to show the utility of PROMETHEE V in the capital budgeting process of
health organizations, and some variants will be developed in order to illustrate the
flexibility of the model. That paper presents the investment selection problem in a
non-for-profit hospital of 300 beds with annual income of 150,000,000 $. The
alternatives considered and the evaluation criteria are the following ones:

ALTERNATIVES

CRITERIA

X1

Scanner

f1

NPV (in 1,000 $)

X2

Desktop hardware

Financial

f2

Market share

X3

EIS (Executive Information System)

f3

Physicians relations

X4

Mammography system

f4

Operating efficiency

X5

Physician answering system

Strategic

f5

Network development

X6

Osteoporosis centre

f6

Patient outcome

Quality

f7

Patient satisfaction

Table 1. Alternatives and criteria

Next, the evaluations obtained by each alternative in each criterion, and the criteria
weights are considered (Table 2).

The aforementioned authors elaborate a scoring aggregating the marks of each
alternative (after normalizing them) using the weights of the criteria. Finally, they
advise ranking the alternatives according to the benefit-cost ratio obtained as
quotient between the scoring and the investment (Table 3).

Capital budgeting in health organizations: application of the…

100

Criterion

f1

f2

f3

F4

f5

f6

f7

Weight:

100

100

80

70

70

100

80

X1

1467

45

60

50

6

50

45

X2

0

0

0

30

60

5

0

X3

-150

5

0

35

70

0

0

X4

251

75

45

50

0

70

65

X5

0

5

40

15

5

0

0

X6

567

75

35

40

5

75

55

Table 2. Evaluations of the different alternatives on the different criteria

SCORING X1 X2 X3 X4 X5 X6

f1 16.7% 1.00 0.09 0.00 0.25 0.09 0.44

f2 16.7% 0.60 0.00 0.07 1.00 0.07 1.00

f3 13.3% 1.00 0.00 0.00 0.75 0.67 0.58

f4 11.7% 1.00 0.43 0.57 1.00 0.00 0.71

f5 11.7% 0.09 0.86 1.00 0.00 0.07 0.07

f6 16.7% 0.67 0.07 0.00 0.93 0.00 1.00

f7 13.3% 0.69 0.00 0.00 1.00 0.00 0.85

Global Scoring: 73.0 17.7 19.4 71.4 12.4 69.0

Ranking: 1 5 4 2 6 3

Investment
(10

3
$)

1,000 357 300 200 250 275

BENEFIT/ COST: 7.3 4.9 6.5 35.7 5.0 25.1

Ranking: 3 6 4 1 5 2

Table 3. Scoring and benefit-cost ratios for the investment alternatives

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

101

As it has been previously pointed out, for the choice based on the benefit-cost ratio
to be optimal it must be possible to undertake projects fractionally, and this
condition is met neither in the particular case we are studying nor in the general
class of investment problems that we are analyzing. The very authors of the
mentioned paper acknowledge this limitation, and exemplify it setting a 1,400,000$
budget: the optimal solution implies rejecting project X1 , despite its high benefit-
cost ratio, and undertaking all the other investments. Although they recommend the
different possible combinations of projects to be listed and analyzed by means of
the ratios, they recognize that mathematical programming should be used when
there are many alternatives. In fact, modelling and solving this problem by means
of Integer Linear Programming (ILP) is so simple that the heuristic approach is no
longer attractive:

Max 73.0X1+17.7X2+19.4X3+71.4X4+12.4X5+69.0X6

Subject to:

1000X1+357X2+300X3+200X4+250X5+275X6 ≤ 1400

X1 , X2 , X3 , X4 , X5 , X6 ∈ {0, 1}

SOLUTION: (X1, X2, X3, X4, X5, X6) = (0, 1, 1, 1, 1, 1)

The indivisibility of the projects and its consequence, the possibility that idle funds
exist, invalidate the solution provided by the profitability index, thus the relative
importance of the error is lower when individual projects are small compared to
available funds. But this reasoning can hardly be used to justify the use of the
rough solution in the health sector, since the initial outlay of many projects is quite
onerous, e.g. the 1,000,000$ scanner in our case study.

On the other hand, once we assume the need to use a Mathematical Programming
model, it is to some degree incongruous applying it on the bases of such a rough
comparison among alternatives as a simple scoring. Comparisons carried out by
means of the multicriteria method PROMETHEE II are undoubtedly richer:

• It makes modelling of decisor’s preferences more flexible, by means of the
six different types of preference functions.

• It allows grading the outranking relationships, making use, if convenient, of
the concepts of preference and indifference thresholds. This gradation is
especially attractive when comparisons are based on qualitative factors.

• Both the outranking and outranked character (superiority and inferiority
compared to other alternatives) of each option are analyzed separately.

PROMETHEE V conjugates these virtues with the use of the LP, which allows
considering not only the financial constraints, but also other type of limitations that
influence the decision process, such as dependence or sustituibility between
alternatives. As a first approach of PROMETHEE V to the case considered, it is
applied with Type I criteria, because of their simplicity and because they do not

Capital budgeting in health organizations: application of the…

102

need more information than the reference model. The following matrixes express
the superiority of the alternative of the line on that of the column:

f1 (type I) [16.7%] F2 (type I) [16.7%] f3 (type I) [13.3%] f4 (type I) [11.7%]

X1 X2 X3 X4 X5 X6 X1 X2 X3 X4 X5 X6 X1 X2 X3 X4 X5 X6 X1 X2 X3 X4 X5 X6

X1 0 1 1 1 1 1 0 1 1 0 1 0 0 1 1 1 1 1 0 1 1 0 1 1

X2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

X3 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0

X4 0 1 1 0 1 0 1 1 1 0 1 0 0 1 1 0 1 1 0 1 1 0 1 1

X5 0 0 1 0 0 0 0 1 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0

X6 0 1 1 1 1 0 1 1 1 0 1 0 0 1 1 0 0 0 0 1 1 0 1 0

X1 0 0 0 1 1 1 0 1 1 0 1 0 0 1 1 0 1 0

X2 1 0 0 1 1 1 0 0 1 0 1 0 0 0 0 0 0 0

X3 1 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0

X4 0 0 0 0 0 0 1 1 1 0 1 0 1 1 1 0 1 1

X5 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0

X6 0 0 0 1 0 0 1 1 1 1 1 0 1 1 1 0 1 0

f5 (type I) [11.7%] f6 (type I) [16.7%] f7 (type I) [13.3%]

Table 4. Distance between alternatives using Type I criteria

From these valuations and the weights of the approaches (in brackets in the
previous chart) the leaving and entering flows and the net outranking flow are
computed (Table 5).

The LP model is constructed, using these results, pursuing maximization of the
total net outranking flow, subject to the financial constraint:

Maximize 2.55X1 -2.27X2 -2.30X3+2.28X4 –2.42X5+2.15X6

Subject to:

1000X1+357X2+300X3+200X4+250X5+275X6 ≤ 1400

X1 , X2 , X3 , X4 , X5 , X6 ∈ {0, 1}

SOLUTION: (X1 , X2 , X3 , X4 , X5 , X6 ) = (1, 0, 0, 1, 0, 0)

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

103

X1

X2

X3

X4

X5

X6

Φ

+
(x)

X1

0.00

0.88

0.88

0.42

1.00

0.53

3.72

X2

0.12

0.00

0.33

0.12

0.40

0.12

1.08

X3

0.12

0.40

0.00

0.12

0.23

0.12

0.98

X4

0.47

0.88

0.88

0.00

0.88

0.38

3.50

X5

0.00

0.30

0.30

0.12

0.00

0.13

0.85

X6

0.47

0.88

0.88

0.45

0.75

0.00

3.43

Φ


(x)

1.17

3.35

3.28

1.22

3.27

1.28

Φ (x):

2.55

-2.27

-2.30

2.28

-2.42

2.15

Ranking:

1

4

5

2

6

3

Table 5. PROMETHEE II ranking using Type I criteria

The new optimal solution is very far from the one provided by the first model. It
shows a clear difference between the two models: while in the scoring-based model
all the alternatives receive a positive valuation, in PROMETHEE V negative
valuations are given to the alternatives that are outranked by others to a higher
extent that outrank them. Therefore, the valuation obtained in PROMETHEE II is a
statement about the acceptance or rejection of a project. Consequently, project X1
is preferred to the subset of projects X2 , X3 , X5 and X6 , since all the latter projects
except X6 receive negative valuations.

The previous version of the model does not make use of all the possible
advantages of this approach. To illustrate them, a version with type V criteria is
applied, using the indifference and preference thresholds shown in tables 6 and 7.

The main change in the ranking obtained is that the first project goes down from
the first to the third position. The reason is that its superiority on other alternatives,
mainly regarding criteria f3 and f4 , is now graded as partial or relative.

Capital budgeting in health organizations: application of the…

104

f1 (typeV:q=50,p=300) f2 (t. V: q=5, p=25) f3 (type V q=5, p=25) f4 (type V q=5, p=25)

X1 X2 X3 X4 X5 X6 X1 X2 X3 X4 X5 X6 X1 X2 X3 X4 X5 X6 X1 X2 X3 X4 X5 X6

X1 0 1 1 1 1 1 0 1 1 0 1 0 0 1 1 0.5 0.75 1 0 0.75 0.5 0 1 0.25

X2 0 0 0.4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.5 0

X3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.75 0

X4 0 0.8 1 0 0.8 0 1 1 1 0 1 0 0 1 1 0 0 0.25 0 0.75 0.5 0 1 0.25

X5 0 0 0.4 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0

X6 0 1 1 1 1 0 1 1 1 0 1 0 0 1 1 0 0 0 0 0.25 0 0 1 0

X1 0 0 0 0.05 0 0 0 1 1 0 1 0 0 1 1 0 1 0

X2 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0

X3 1 0.25 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0

X4 0 0 0 0 0 0 0.75 1 1 0 1 0 0.75 1 1 0 1 0.25

X5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

X6 0 0 0 0 0 0 1 1 1 0 1 0 0.25 1 1 0 1 0

f5 (type V: q=5, p=25) f6 (t. V: q=5, p=25) f7 (type V: q=5, p=25)

Table 6. Distance between alternatives using Type V criteria

X1 X2 X3 X4 X5 X6 Φ
+

(x)

X1 0.00 0.85 0.83 0.24 0.85 0.33 3.10

X2 0.12 0.00 0.07 0.12 0.18 0.12 0.59

X3 0.12 0.03 0.00 0.12 0.20 0.12 0.58

X4 0.39 0.82 0.83 0.00 0.72 0.10 2.85

X5 0.00 0.13 0.20 0.00 0.00 0.00 0.33

X6 0.37 0.80 0.77 0.17 0.75 0.00 2.85

Φ

(x) 0.99 2.63 2.68 0.64 2.70 0.66

Φ (x): 2.11 -2.04 -2.10 2.21 -2.36 2.19

Ranking: 3 4 5 1 6 2

Table 7. PROMETHEE II ranking using Type V criteria

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

105

Next, the three models presented are applied for each of the three budgets
originally considered:

DECISION MODEL

PROMETHEE V

Type V BUDGET
SCORING & ILP

Type I
Basic Model X2+X3 ≥1 X4+X6 ≤1

X2+X3 ≥1

X4+X6 ≤1

1,400,000$ X2 , X3 , X4 , X5 , X6 X1 , X4 X4 , X6 X2, X4 , X6 X1 , X4 X2 , X4

1,600,000$ X1 , X4 , X6 X1 , X4 , X6 X1 , X4 , X6

1,800,000$ X1 , X3 , X4 , X6 X1 , X4 , X6 X1 , X4 , X6

Table 8. Choices of the different decision models with three different budgets

These results highlight the rejection of alternatives with negative valuations in
PROMETHEE methods: only projects with positive valuations (X1 , X4 and X6) are
selected, even if there are idle funds, unless additional constraints reflect that
projects with negative net outranking flows are specially interesting or necessary.
This is illustrated with the constraints added to the model with Type V criteria, which
show several examples of information that may be included by means of linear
expressions. For instance, it may be considered necessary to invest either in PCs
or in the EIS, because of a strategic focus towards information systems, or
because of the convenience of satisfying people involved on those activities, or for
any other reason. The first constraint in the previous chart reflects this situation,
and the new solution includes X2 . The second constraint would preclude choosing
two projects that would benefit mainly mature women, the mammography system
and the osteoporosis centre.

The fact that the financial constraint becomes non-binding when the budget
suffices to undertake all projects with positive net outranking flows may be
regarded undesirable by decision-makers, since net outranking flows reflect just
relative valuations. There are at least two ways to overcome this drawback.

May be the most obvious solution would be to add a constant to all net flows in
order to make them positive, so the objective function would become:

φ + ∑  
m

ii
i=1

Max ( ) k · xa

Capital budgeting in health organizations: application of the…

106

Despite its intuitiveness, this change is not neutral, but favours solutions consisting
on a higher number of projects, as the following expression of the former function
shows:

+φ∑ ∑
m m

Ki ii
i=1 i=1

Max ( ) · x xa

Therefore, to guarantee that the transformation will not change the solution,
investment should be the same for all projects, so the number of projects would be
determined exclusively by the budget, and there should be no further constraints.
Obviously, these conditions are far from representing the common scenario of our
problem.

A less controversial mechanism to avoid rejection of projects when there are idle
funds is to include a variable expressing that surplus. An upper limit may be set for
the surplus of money, transforming the model into a Mixed-Integer Linear
Programming one; or a “soft” constraint may be added by means of Goal
Programming, including into the objective function a penalty for the low level of
expenditure.

5. CONCLUSIONS

Qualitative factors are usually taken into account in the capital budgeting process of
health organizations. Some of the reasons are the special nature of the good
produced and the complexity of the productive process, which involve groups with
varied interests and is subject to a permanent technological progress. Besides,
these organizations are subject to strongly limitative financial constraints, which can
explain the popularity of the benefit-cost ratio for project selection. From the
analysis of the characteristics of the multicriteria method PROMETHEE V and of its
application in this context, it is concluded that it offers the following contributions:

• It allows modelling the comparisons of alternatives by means of six
different preference functions, and makes possible grading the superiority
relationships.

• It provides an indicator of the degree of preference of an alternative on
others that summarizes the results of two separated analyses of its superiority
and its inferiority. The sign of this index expresses the acceptance or rejection
of each investment.

• Contrary to other heuristic approaches, PROMETHEE V guarantees the
maximum overall satisfaction attainable with the available budget.

• The ILP permits adding a variety of other constraints to the model, such as
those expressing the need of a project or those reflecting incompatibility or
dependence between alternatives.

The meaning of the sign of the PROMETHEE II index, as a statement about
individual acceptance or rejection of a project, may be a controversial characteristic

Vol. VII, No. 2, November 2002 FUZZY ECONOMIC REVIEW

107

of the model when there is a surplus of money after undertaking all projects with
positive net outranking flows. Anyway, several ways to overcome this problem,
transforming the constraints and/or the objective function, have been proposed.

Finally, it is interesting to note that PROMETHEE V may be considered an
alternative to approaches such as cost-effectiveness, cost-utility and cost-benefit
analyses. Nonetheless, the multicriteria nature of PROMETHEE suggests that it
may be not a competitor, but a complement of those techniques. In fact, the need
to include a variety of indicators in the analysis is a consequence of the practical
limitations of the family of tools that evaluate all dimensions of so complex
problems. Therefore, a model that handles multiple criteria in investments selection
may be the vehicle to incorporate the partial results of those other approaches to
the decision making process.

REFERENCES

BRANS, J.P.; MARESCHAL, B.; VINCKE, P. (1984). “PROMETHEE: A new family of outranking methods”, in

Brans, J.P. (Ed.) Operational Research’84, Elsevier Science Publishers B.V., North-Holland, p. 477-
490.

BRANS, J.P.; MARESCHAL, B. (1992). “PROMETHEE V: MCDM problems with segmentation constraints”.
INFOR, 30, p. 85-96.

CAMPBELL, C. (1994). “Hospital plant and equipment replacement decisions: A survey of hospital
financial managers”. Hospital & Health Services Administration, 39 (4), p. 538-556.

HOFMANN, P.B. (2000). “Allocating limited capital resources”. Healthcare Executive, March/April, p. 53-
54.

KAMATH, R.R.; ELMER, J. (1989). “Capital investment decisions in hospitals: Survey results”. Health Care
Management Review, 14(2), p. 45-56.

KLEINMUNTZ, K.E.; KLEINMUNTZ, D.N. (1999). “A strategic approach to a

Accounting homework help

SECTION 1

All responses must be entered in keyboard format.

1. Explain in a general way the scenario topic for research.

1. Identify the kinds of information you will need in order to research information to complete this scenario.

1. Based on your kinds of information you will need, list possible key word combinations you will use to conduct your search for useful information on your general topic. List a minimum of three key word combinations

SECTION 2

Cite each of the sources you have identified in Information Literacy Form 2. You should have located five sources of information. Your sources must include:

1. search engines:

1. databases:

1. E-book or print media:

Keyboard the information on a separate sheet of paper that follows MLA format. Please use the title Works Cited for the page. When you have finished, please attach that sheet to this form.

There are five sources required and each citation is worth 20 pts. Points will be taken off for all errors.

SECTION 3

Search Engines, Databases, and Evaluation of Sources

On this form, you will be expected to gather research from Internet search engines, library databases, ebooks, and traditional print sources.

Type of sources: You must have at least 5 references using any combination of the 3 sources.

1. Use an Internet search engine (Google, Bing, Yahoo) to identify a web page containing information on your topic. **Do not use non-academic sources such as Ask, About, eNotes, Wikipedia, Shmoop, Gradesaver, eHow, or Answers.com. Evaluate the credibility and reliability of the website/ source

1. Use a library database ( ProQuest, Ebsco, Novel, or Public Library database) to identify a source containing information on your topic; preferably from a journal

1. Visit a public library and/or Bruson Hall Library. Ask the librarian for assistance and identify one print source or ebook: a book on your topic

Five sources are required for your project. The five sources must include: An Internet search engine (1), a library database (1), and an e-book or print book (1). Two additional sources are required and can be any combination of the above. Check with your instructor, if you plan to use any other type of source for the two additional references, not listed.

For the remaining 2 sources, select the appropriate source page provided. When you submit your information literacy forms, you should have five forms. You may use your textbook, but the textbook is not to be included in the five sources.

Type of Source:EBSCO

Author(s): None

“Title of Specific Web Page, Article: Topic No. 762 Independent contractor v. employee

Name of Website: Bloomberg.com

Name of Publisher/Sponsor: NA

Date of Posting/Last Updating: February 24, 2022 Retrieval date: None

1. What criteria make this source reliable and credible?

The IRS official website for defining independent contractor for tax purposes

1. How did you use this source in your paper? Explain the kind of information you found that supports your paper.

Helpful in distinguishing the differences between an employee and independent contractor

1. Give one example of a fact you found from the source:

For federal employment tax purposes, the usual common law rules are applicable to determine if a worker is an independent contractor or an employee

1. Give one example of an opinion you found from the source:

You should consider all evidence of the degree of control and independence in this relationship.

1. After examination of this source, identify one direct quote and one paraphrase that you can use (Use signal phrases, quotations marks, and in-text citations.)

Direct Quote #1: Financial Control covers facts that show if the business has a right to direct or control the financial and business aspects of the worker’s job. 

Paraphrase:

Type of Source: Library Database

Evaluate Sources

Use a library database (Plaza Library’s ProQuest, Ebsco, Novel or any Public Library database) to identify a source containing information on your topic

Specify the type of source: Journal, Newspaper, Magazine, etc.

Accessed from a Library’s Database

Author(s): Bryan Casey

“Title of : Uber’s Dilemma: How the ADA May End the On Demand Economy

Name of Journal, Magazine, Newspaper: University of Massachusetts Law Review

Volume number: 12 Issue number: 1

Publication date: January 2017 Retrieval date: None

Name of database service: Google

Name of specific database: Google Search

1. What criteria make this source reliable and credible?

A law school review journal from the University of Massachusetts at Dartmouth

1. How did you use this source in your paper? Explain the kind of information you found that supports your paper.

Helpful in identifying the ethical dilemmas of Uber services concerning consumer safety compliance for drivers who are independent contractors

1. Give one example of a fact you found from the source:

Uber is careful to couch its training materials and disability-related initiatives as “tips,” “suggestions,” or “voluntary” programs, so as not to imply it is actually exerting control over its drivers.

1. Give one example of an opinion you found from the source

The challenge Uber faces in responding to the array of ADA lawsuits brought against it is that handing down a true mandate of compliance would require the company to exert more control over its drivers than merely drafting anti-discriminatory guidelines

After examination of this source, identify one direct quote and one paraphrase that you can use (Use signal phrases, quotations marks, and in-text citations.)

Direct Quote #1:

As stated, (Casey, 2017)

, truly compelling ADA compliance—through more interventionist measures such as mandatory disability training, standardized procedures, or wheelchair-accessible vehicle quotas— would risk jeopardizing the drivers’ classification as independent contractors

Paraphrase: Forcing Uber to comply to ADA requirements requires more control on the part of Uber over its drivers which puts at risk Uber drivers classification as independent contractors.


Type of source: E-Book or Print Book

Visit a public library and/or Bruson Hall Library. Ask the librarian for assistance and identify one print source or ebook: a book on your topic.

Book: Fill in the correct information from the copyright page.

Book Title: _________________________________________________

Author(s): __________________________________________________

Or Editor(s): ________________________________________________

City of Publication: ___________________________________________

Name of Publisher: ___________________________________________

Year of Publication: ___________________________________________

Date of Access (ebooksonly)____________________________________

Source/ Collection/ File type (ebooks only) _________________________

1. What chapter or section of the book did you find most useful? What is the connection to your topic?

1. How did you use this source in your paper? Explain the kind of information you found that supports your paper.

1. After examination of this source, identify one direct quote and one paraphrase that will support your paper (Use signal phrases, quotations marks, and in-text citations.)

Direct Quote #1:

Paraphrase:

Accounting homework help

9 – 1 0 1 – 0 9 2
R E V : A U G U S T 5 , 2 0 0 3

________________________________________________________________________________________________________________

Professor Robert S. Kaplan wrote this updated version of “Destin Brass Products Co.,” HBS No. 190-089, prepared by Professor William J. Bruns,
Jr. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or
illustrations of effective or ineffective management.

Copyright © 2001 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical,
photocopying, recording, or otherwise—without the permission of Harvard Business School.

R O B E R T S . K A P L A N

Wilkerson Company

The decline in our profits has become intolerable. The severe price cutting in pumps has
dropped our pre-tax margin to less than 3%, far below our historical 10% margins. Fortunately,
our competitors are overlooking the opportunities for profit in flow controllers. Our recent
10% price increase in that line has been implemented without losing any business.

Robert Parker, president of the Wilkerson Company, was discussing operating results in the latest
month with Peggy Knight, his controller, and John Scott, his manufacturing manager. The meeting
among the three was taking place in an atmosphere tinged with apprehension because competitors
had been reducing prices on pumps, Wilkerson’s major product line. Since pumps were a
commodity product, Parker had seen no alternative but to match the reduced prices to maintain
volume. But the price cuts had led to declining company profits, especially in the pump line
(summary operating results for the previous month, March 2000, are shown in Exhibits 1 and 2).

Wilkerson supplied products to manufacturers of water purification equipment. The company
had started with a unique design for valves that it could produce to tolerances that were better than
any in the industry. Parker quickly established a loyal customer base because of the high quality of its
manufactured valves. He and Scott realized that Wilkerson’s existing labor skills and machining
equipment could also be used to produce pumps and flow controllers, products that were also
purchased by its customers. They soon established a major presence in the high-volume pump
product line and the more customized flow controller line.

Wilkerson’s production process started with the purchase of semi-finished components from
several suppliers. It machined these parts to the required tolerances and assembled them in the
company’s modern manufacturing facility. The same equipment and labor were used for all three
product lines, and production runs were scheduled to match customer shipping requirements.
Suppliers and customers had agreed to just-in-time deliveries, and products were packed and
shipped as completed.

Valves were produced by assembling four different machined components. Scott had designed
machines that held components in fixtures so that they could be machined automatically. The valves
were standard products and could be produced and shipped in large lots. Although Scott felt several
competitors could now match Parker’s quality in valves, none had tried to gain market share by
cutting price, and gross margins had been maintained at a standard 35%.

This document is authorized for use by Yize Yuan, from 03/14/2022 to 06/10/2022
in the course: SP22 MGTF495-76905: Special Topic in Accounting: Strategic Cost Management & New Technologies (Milone) – MF22, University of California, San Diego

Any unauthorized use or reproduction of this document is strictly prohibited.

101-092 Wilkerson Company

2

The manufacturing process for pumps was practically identical to that for valves. Five
components were machined and then assembled into the final product. The pumps were shipped to
industrial product distributors after assembly. Recently, it seemed as if each month brought new
reports of reduced prices for pumps. Wilkerson had matched the lower prices so that it would not
give up its place as a major pump supplier. Gross margins on pump sales in the latest month had
fallen below 20%, well below the company’s planned gross margin of 35%.

Flow controllers were devices that controlled the rate and direction of flow of chemicals. They
required more components and more labor, than pumps or valves, for each finished unit. Also, there
was much more variety in the types of flow controllers used in industry, so many more production
runs and shipments were performed for this product line than for valves. Wilkerson had recently
raised flow controller prices by more than 10% with no apparent effect on demand.

Wilkerson had always used a simple cost accounting system. Each unit of product was charged
for direct material and labor cost. Material cost was based on the prices paid for components under
annual purchasing agreements. Labor rates, including fringe benefits, were $25 per hour, and were
charged to products based on the standard run times for each product (see Exhibit 3). The company
had only one producing department, in which components were both machined and assembled into
finished products. The overhead costs in this department were allocated to products as a percentage
of production-run direct labor cost. Currently, the rate was 300%. Since direct labor cost had to be
recorded anyway to prepare factory payroll, this was an inexpensive way to allocate overhead costs
to products.

Knight noted that some companies didn’t allocate any overhead costs to products, treating them
as period, not product, expenses. For these companies, product profitability was measured at the
contribution margin level ! price less all variable costs. Wilkerson’s variable costs were only its direct
material and direct labor costs. On that basis, all products, including pumps, would be generating
substantial contribution to overhead and profits. She thought that perhaps some of Wilkerson’s
competitors were following this procedure and pricing to cover variable costs.

Knight had recently led a small task force to study Wilkerson’s overhead costs since they had now
become much larger than the direct labor expenses. The study had revealed the following
information:

1. Workers often operated several of the machines simultaneously once they were set up. For
other operations, however, workers could operate only one machine. Thus machine-related
expenses might relate more to the machine hours of a product than to its production-run labor
hours.

2. A set-up had to be performed each time a batch of components had to be machined in a
production run. Each component in a product required a separate production run to machine
the raw materials or purchased part to the specifications for the product.

3. People in the receiving and production control departments ordered, processed, inspected,
and moved each batch of components for a production run. This work required about the
same amount of time whether the components were for a long or a short production run, or
whether the components were expensive or inexpensive.

4. The work in the packaging and shipping area had increased during the past couple of years as
Wilkerson increased the number of customers it served. Each time products were packaged
and shipped, about the same amount of work was required, regardless of the number of items
in the shipment.

This document is authorized for use by Yize Yuan, from 03/14/2022 to 06/10/2022
in the course: SP22 MGTF495-76905: Special Topic in Accounting: Strategic Cost Management & New Technologies (Milone) – MF22, University of California, San Diego

Any unauthorized use or reproduction of this document is strictly prohibited.

Wilkerson Company 101-092

3

Knight’s team had collected the data shown in Exhibit 4 based on operations in March 2000. The
team felt that this month was typical of ongoing operations. Some people recalled, however, that
when demand was really heavy last year, the machines had worked 12,000 hours in a month and the
factory handled up to 180 production runs and 400 shipments without experiencing any production
delays or use of overtime.

Exhibit 1 Wilkerson Company: Operating Results (March 2000)

Sales $2,152,500 100%
Direct Labor Expense 271,250
Direct Materials Expense 458,000
Manufacturing overhead

Machine-related expenses $336,000
Setup labor 40,000
Receiving and production control 180,000
Engineering 100,000
Packaging and shipping 150,000

Total Manufacturing Overhead 806,000
Gross Margin $617,250 29%
General, Selling & Admin. Expense 559,650
Operating Income (pre-tax) $ 57,600 3%

This document is authorized for use by Yize Yuan, from 03/14/2022 to 06/10/2022
in the course: SP22 MGTF495-76905: Special Topic in Accounting: Strategic Cost Management & New Technologies (Milone) – MF22, University of California, San Diego

Any unauthorized use or reproduction of this document is strictly prohibited.

101-092 Wilkerson Company

4

Exhibit 2 Product Profitability Analysis (March 2000)

Valves Pumps Flow Controllers
Direct labor cost
Direct material cost
Manufacturing overhead (@300%)
Standard unit costs

$10.00
16.00
30.00

$56.00

$12.50
20.00
37.50

$ 70.00

$10.00
22.00
30.00

$ 62.00

Target selling price $86.15 $107.69 $95.38
Planned gross margin (%) 35% 35% 35%

Actual selling price $86.00 $87.00 $105.00
Actual gross margin (%) 34.9% 19.5% 41.0%

Exhibit 3 Product Data

Product Lines Valves Pumps Flow Controllers
Materials per unit 4 components

2 @ $2 = $ 4
2 @ 6 = 12
__________

5 components
3 @ $2 = $ 6
2 @ 7 = 14
__________

10 components
4 @ $1 = $ 4
5 @ 2 = 10
1 @ 8 = 8

Materials cost per unit $16 $20 $22
Direct labor per unit .40 DL hours .50 DL hours .40 DL hours
Direct labor $/unit @ $25/DL hour
(including employee benefits)

$10 $12.50 $10.00

Machine hours per unit 0.5 0.5 0.3

Exhibit 4 Monthly Production and Operating Statistics (March 2000)

Flow
Valves Pumps Controllers Total
Production (units) 7,500 12,500 4,000 24,000
Machine hours 3,750 6,250 1,200 11,200
Production runs 10 50 100 160
Number of shipments 10 70 220 300
Hours of engineering work 250 375 625 1,250

This document is authorized for use by Yize Yuan, from 03/14/2022 to 06/10/2022
in the course: SP22 MGTF495-76905: Special Topic in Accounting: Strategic Cost Management & New Technologies (Milone) – MF22, University of California, San Diego

Any unauthorized use or reproduction of this document is strictly prohibited.

Accounting homework help

New Perspectives Excel 2019 | Module 8: SAM Project 1a

Cairo Consulting

New Perspectives Excel 2019 | Module 8: SAM Project 1a

EXPLORE BUSINESS OPTIONS WITH WHAT-IF TOOLS

GETTING STARTED

Open the file NP_EX19_8a_FirstLastName_1.xlsx, available for download from the SAM website.

Save the file as NP_EX19_8a_FirstLastName_2.xlsx by changing the “1” to a “2”.

If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically.

With the file NP_EX19_8a_FirstLastName_2.xlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet.

If cell B6 does not display your name, delete the file and download a new copy from the SAM website.

This project requires you to use the Solver add-in. If this add-in is not available on the Data tab in the Analyze group (or if the Analyze group is not available), install Solver as follows:

PC – In Excel, click the File tab, and then click the Options button in the left navigation bar. Click the Add-Ins option in the left pane of the Excel Options dialog box. Click the Manage arrow, click the Excel Add-Ins option, and then click the Go button. In the Add-Ins dialog box, click the Solver Add-In check box and then click the OK button. Follow any remaining prompts to install Solver.

Mac – Click Tools, and then click Excel Add-Ins. Click the Solver Add-in option to enable it. Then, click OK.

PROJECT STEPS

Dewayne Lipinski works for Cairo Consulting in Albuquerque, New Mexico. As an intern, he is developing a workbook that includes the financial details of the consulting services that the company offers. Dewayne has been asked to analyze the data to find the most profitable mix of offerings using the most cost-effective service providers. Switch to the Management worksheet. Create a one-variable data table to calculate the sales, expenses, and profit based on the hours of management consulting contracted, as follows:

In cell D5, enter a formula without using a function that references cell B4, which is the expected hours of management consulting contracted.

In cell E5, enter a formula without using a function that references cell B19, which is the expected total sales for management consulting.

In cell F5, enter a formula without using a function that references cell B20, which is the expected total expenses for this product.

In cell G5, enter a formula without using a function that references cell B21, which is the expected gross profit for this product.

Select the range D5:G10 and then complete the one-variable data table, using cell B4 as the Column input cell for your data table.

Create a two-variable data table to calculate the gross profit based on the hours of management consulting contracted and the hourly rate charged:

For the range D14:K19, create a two-variable data table using the hourly rate charged (cell B5) as the Row input cell.

Use the hours of management consulting contracted (cell B4) as the Column input cell.

Apply a custom format to cell D14 to display the text Hours/Price in place of the cell value.

Switch to the Change worksheet. Create a Scatter with Straight Lines chart based on the range D4:F14 in the data table Organizational Change – Break-Even Analysis.

Modify the new chart as follows:

Resize and reposition the chart so that it covers the range D15:H32.

Remove the chart title from the chart.

Add Sales and Expenses as the vertical axis title and Hours Contracted as the horizontal axis title.

Change the Bounds Axis Options as follows:

Change the Minimum Bounds of the vertical axis to 1,000,000 and leave the Maximum Bounds at 2,000,000.

Change the Number format of the vertical axis to Currency with 0 Decimal places and $ as the Symbol.

Change the Minimum Bounds of the horizontal axis to 3,000 and the Maximum Bounds to 5,000.

Create two scenarios to compare the costs for standard consultants and consultants with change certification as follows:

In the Scenario Manager, add two scenarios using the data shown in bold in Table 1 below.

The changing cells for both scenarios are the nonadjacent cells B11 and B14.

Close the Scenario Manager without showing any of the scenarios.

Table 1: Organizational Change Scenario Values

Values

Scenario 1

Scenario 2

Scenario Name

Standard

Certified

Variable_Cost_Per_Hour_Change (B11)

380

420

Total_Fixed_Cost_Change (B14)

380,000

335,000

Switch to the Process worksheet. Create a Scatter with Straight Lines chart based on range D6:I14 in the data table Process Consulting – Net Income Analysis.

Modify the new chart as follows:

Resize and reposition the chart so that it covers the range D15:I32.

Remove the chart title from the chart.

Reposition the chart legend to the right of the chart.

Add Net Income as the vertical axis title and Hours Contracted as the horizontal axis title.

Change the colors of the chart to Monochromatic Palette 1 (1st row in the Monochromatic palette).

Change the Bounds Axis Options for the new chart as follows:

Change the Minimum Bounds of the vertical axis to -100,000 and the Maximum Bounds to 650,000.

Set the horizontal axis to cross at the axis value -100,000.

Change the Number format of the vertical axis to Currency with 0 Decimal places and $ as the Symbol.

Change the Minimum Bounds of the horizontal axis to 3,500 and the Maximum Bounds to 7,500.

Edit the chart series names as follows:

For Series 1, use cell E5 as the series name.

For Series 2, use cell F5 as the series name.

For Series 3, use cell G5 as the series name.

For Series 4, use cell H5 as the series name.

For Series 5, use cell I5 as the series name.

Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to the Process Providers worksheet, and then run Solver to solve this problem as follows:

Set the objective as minimizing the value in cell E10 (Total Costs).

Use the range B4:D4 as the changing variable cells.
Adjust the hours provided by each company using the following constraints:

E4=5500, the total hours of process consulting signed

E10 is less than or equal to 1350000, the maximum third-party fees

B4:D4 is less than or equal to 5000, the maximum hours provided by a single third-party provider

B4:D4 should be an Integer

Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range A14:A21, and then close the Solver Parameters dialog box.

Switch to the All Types worksheet. Use the Scenario Manager to create a Scenario Summary report that summarizes the effect of the Status Quo, Third Party, and Raise Rates scenarios. Use the range B17:D17 as the result cells.

Switch back to the All Types worksheet. Use the Scenario Manager as follows to compare the profit per hour in each scenario:

Create a Scenario PivotTable report for result cells B17:D17.

Remove the Filter field from the PivotTable.

Change the Number format of the Profit_Per_Hour_Contracted_Mana, Profit_Per_Hour_Contracted_Chan, and Profit_Per_Hour_Contracted_Proc fields (located in the Values box of the PivotTable Field List) to Currency with 2 Decimal places and $ as the Symbol.

Use Management as the row label value in cell B3, Change as the value in cell C3, and Process as the value in cell D3.

In cell A1, use Profit Per Hour Contracted as the report title.

Format the report title using the Title cell style.

Resize columns A–D to 15.00.

Add a PivotChart to the Scenario PivotTable worksheet as follows:

Create a Clustered Column PivotChart based on the PivotTable.

Resize and reposition the chart so that it covers the range A8:D20.

Hide the field buttons in the chart. [Mac Hint: The Field Buttons option is not available on Excel 2019 for the Mac, so Mac users can ignore this instruction.]

Your workbook should look like the Final Figures on the following pages. Save your changes, close the workbook, and then exit Excel. Follow the directions on the SAM website to submit your completed project.

Final Figure 1: Management Worksheet

Final Figure 2: Change Worksheet

Final Figure 3: Process Worksheet

Final Figure 4: Process Providers Worksheet

Final Figure 5: Scenario Summary Worksheet

Final Figure 6: Scenario PivotTable Worksheet

Final Figure 7: All Types Worksheet

2

Accounting homework help

Question #4: IRS Bypass of the Taxpayer Representative

A CPA’s corporate client has IRS tax difficulties that are related to a myriad of payroll tax and income tax liabilities. After trying for more than a year to handle the situation on its own, the corporation finally decided that it needed the CPA firm’s assistance to resolve the matter.

THE FACTS

1. The corporation contacted the CPA firm on March 2, 2020. The CPA accepted the engagement reluctantly because he was in the midst of the busy tax filing season.

2. The CPA represented the client at the first meeting with the IRS, which was held on March 9th. While discussing the situation with the revenue agent, the CPA immediately got the impression that this IRS employee was not concerned with the taxpayer’s needs and even less concerned with his needs as a very busy CPA during the filing season.

a. The revenue agent was rather abrupt during the meeting.

b. He told the CPA that this matter had been assigned to him for resolution and had been in his case inventory for about five months.

c. He gave the CPA an in-depth list of information that he needed from the taxpayer to ‘determine if the taxpayer would be allowed to have an installment agreement. (The corporation had already prepared a Form 433-B financial statement.)

3. When the agent told the CPA that he wanted all of the information submitted to him by March 16th, the CPA was shocked.

a. The agent did not seem to comprehend what the CPA would be doing during the next week to meet the needs of his other clients.

b. He asked for an extension of time until the end of March to gather the information.

c. Grudgingly, the revenue agent gave him the requested extension.

4. After the filing season ended, the CPA contacted the corporation. When he explained that he would need to present the requested information to the revenue agent at the end of March, the taxpayer replied that it would have the controller gather the information.

5. A week later, just a week before the March 30 date for the submission of the materials, the CPA received a call from the taxpayer stating that the controller had a family emergency and was presently unable to put the information together. The taxpayer would need additional time to put the information together.

6. The CPA contacted the revenue agent and explained that he would not have the information available by the expected date because the corporation’s controller was involved with a family emergency. In a very abrupt manner, the agent replied that it appeared that the CPA was stalling the completion of the investigation, and he demanded to know when the CPA could get the information to him so that he could conclude his work.

a. After apologizing for the delays, the CPA asked the revenue agent to give him an additional 15 days to get the information from the taxpayer.

b. The revenue agent told the CPA that he would think about the extension and would get back to him in the next few days.

7. Several days later the CPA was sitting at his desk when he received a phone call from the taxpayer. The IRS revenue agent had come to the taxpayer’s offices, where he complained that the investigation had been unreasonably delayed because the CPA was hindering the examination by his failure to furnish the required information after repeated requests.

8. The CPA was understandably very embarrassed by the agent’s actions. He wondered what right the revenue agent had to bypass his power of attorney.

You are to write a memorandum to answer question#4, no more than 2 pages.

QUESTIONS:

1. What are the requirements before an IRS agent may bypass a taxpayer representative?

2. Did the IRS agent improperly bypass the taxpayer’s representative? What is the support for your conclusion?

Accounting homework help

The Global Oil Company

The Global Oil Company is an international producer, refiner, transporter and distributor of oil, gasoline and petrochemicals. Global Oil is a holding company with subsidiary operating companies that are wholly or partially owned. A major problem for Global Oil is to coordinate the actions of these various subsidiaries into an overall corporate plan, while at the same time maintaining a reasonable amount of operating autonomy for the subsidiary companies.

To deal with this dilemma, Global Oil Headquarters develops an annual corporate-wide plan that provides the pattern of shipments among the various subsidiaries. The plan sets annual targets for each of the subsidiaries. It does not detail their day-to-day operations. Within the framework of this annual plan, the operating companies can make their own decisions and plans. This corporate-wide plan is presently done on a trial and error basis and, unfortunately, this has several drawbacks. First, the management of the subsidiaries often complains that the plan does not reflect properly the operating conditions under which the subsidiary operates. The plan sometimes calls for operations or distribution plans that are impossible to accomplish. Second, Global Oil’s CEO Pedro Kemikol is concerned that the plan does not optimize for the total company.

In fact, Pedro Kemikol has made it his top priority to optimize the entire supply chain, from the procurement of crude oil to the distribution of gasoline at the pump. Global Oil has hired recently some young graduates from the Northwestern. They have hinted to Pedro that linear programming can be used to optimize the flow of raw materials and finished products by averaging over a year. This way, they argued, a corporate-wide annual plan would be generated based on a sound quantitative approach. Although Pedro is somewhat skeptical, he is open minded and willing to give it a try. Before embarking on the development of a world-wide model, Pedro Kemikol asks you to build a model of the Far Eastern Operations. The details of the Year 2006 planning model for the Far Eastern Operations are now described.

(
1
)

Far Eastern Operations

There are two sources of crude oil, Saudi Arabia and Borneo. The Saudi crude is relatively heavier (24 API), and the Far Eastern sector could obtain as much as 80,000 barrels per day (b/d) at a cost of $62 per barrel during Year 2006. A second source of crude is from the Brunei fields in Borneo. This is a light crude oil (36 API). Under the terms of an agreement with the Netherlands Petroleum Company in Borneo, a fixed quantity of 30,000 b/d of Brunei crude, at a cost of $67 per barrel is to be supplied during Year 2006.

There are two subsidiaries that have refining operations. The first is in Australia, operating a refinery in Sydney with the capacity of processing 30,000 b/d of crude. The Australian subsidiary markets its refined products throughout Australia, as well as having a surplus available for shipment to other subsidiaries. The Australian subsidiary does not import refined products.

The second subsidiary is in Japan, which operates a 50,000 b/d capacity refinery. Refined products are marketed in Japan, and excess production is available for shipment to other Far Eastern subsidiaries. The Japanese subsidiary does not import refined products.

In addition, there are two marketing subsidiaries without refining capacity of their own. One of these is in New Zealand and the other is in the Philippines. Their needs can be supplied by shipments from Australia, Japan, or the Global Oil subsidiary in the United States. The latter is not a regular part of the Far Eastern Operations, but may be used as a source of refined products.

Finally, the company has a fleet of tankers that move the crude oil and refined products among the subsidiaries.

Refinery Operations

The operation of a refinery is a complex process. The characteristics of the crudes available, the desired output, the specific technology of the refinery, etc., make it difficult to use a simple model to describe the process. In fact, management at both Australia and Japan have complex linear programming models involving approximately 300 variables and 100 constraints for making detailed decisions on a daily or weekly basis.

For annual planning purposes the refinery model is greatly simplified. The two crudes (Saudi and Brunei) are input. Two general products are output – (a) gasoline products and (b) other products such as distillate, fuel oil, etc. In addition, although the refinery has processing flexibility that permits a wide range of yields, for planning purposes it was decided to include only the values at highest and lowest conversion rates (process intensity). Each refinery could use any combination of the two extreme intensities. These yields are shown in Table 1.

The costs of operating the refinery depend somewhat upon the type of crude and process intensity. These costs are shown in Table 1. Also shown are the transportation costs from either Borneo or Saudi Arabia.

Table 1: Refinery Operations

Australia

Japan

Capacity (b/d of input)

30000

50000

Saudi Crude

Transportation Cost ($/b)

0.75

0.8

High Process Intensity ($/b)

1.19

1.26

Yield of Gasoline

0.31

0.3

Yield of Distillate

0.61

0.62

Low Process Intensity ($/b)

0.89

0.88

Yield of Gasoline

0.19

0.18

Yield of Distillate

0.76

0.77

Brunei Crude

Transportation Cost ($/b)

0.35

0.35

High Process Intensity ($/b)

0.93

0.91

Yield of Gasoline

0.36

0.35

Yield of Distillate

0.58

0.59

Low Process Intensity ($/b)

0.61

0.55

Yield of Gasoline

0.26

0.25

Yield of Distillate

0.72

0.73

Marketing Operations

Marketing is conducted in two home areas (Australia and Japan) as well as in New Zealand and the Philippines. Demand for gasoline and distillate in all areas has been estimated for Year 2006.

Year 2006 Demand

Area (thous. of b/d)

Gasoline

Distillate

Australia

6

15

Japan

8

21

New Zealand

5.4

14

Philippines

3

8

TOTAL

22.4

58

The variable costs of supplying refined products to New Zealand and the Philippines are as follows:

(
Variable

costs

of

shipment

of

gasoline/distillate

in
$/b
To:
New

Zealand
Philippines
From:
Australia
0.2
0.2
Japan
0.45
0.25
)

Tanker Operations

Tankers are used to bring crude from Saudi Arabia and Borneo to Australia and Japan and to transport refined products from Australia and Japan to New Zealand and the Philippines. The variable costs of these operations are included above.

However, there is a limited capacity of tankers available. The fleet has a capacity of 6.5 equivalent (standard sized) tankers.

The amount of capacity needed to deliver one barrel from one destination to another depends upon the distance traveled, port time, and other factors. The table below lists the fraction of one standard sized tanker needed to deliver 1,000 b/d over the indicated routes.

Tanker Usage Factors

(Fraction of Standard Sized Tanker Needed to Deliver 1000 b/d)

Between

and

Australia

Japan

Saudi Arabia

0.11

0.14

Borneo

0.05

0.05

New Zealand

0.04

0.08

Philippines

0.05

0.04

It is also possible to charter independent tankers. The rate for this is $8,500 per day for a standard sized tanker.

United States Supply

United States operations on the West Coast expect a surplus of 12,000 b/d of distillate during Year 2006. The cost of distillate at the loading port of Los Angeles is $74 per barrel. There is no excess gasoline capacity. The estimated variable shipping costs and tanker requirements of distillate shipments from the United States are:

Variable costs

of shipments

Tanker requirements

New Zealand

1.3

0.15

Philippines

1.2

0.13

Your Job

Formulate a linear program which can be used to generate a comprehensive plan for the whole Far Eastern Operations. Clearly define every variable used in your formulation, and clearly write the objective and constraints in algebraic form. Then you need to use EXCEL SOLVER (or ANALYTICAL SOLVER PLATFORM) to find the optimal decision and value. Your entire report should be at most 4 pages long (Times New Roman, 12pt, double spaced). Please submit your report and Excel file digitally via Blackboard link.

Accounting homework help

Shelly Cashman Excel 2019 | Module 3: SAM Project 1a

Raybridge Recruiting

Shelly Cashman Excel 2019 | Module 3: SAM Project 1a

CREATE A SALES REPORT

GETTING STARTED

Open the file SC_EX19_3a_FirstLastName_1.xlsx, available for download from the SAM website.

Save the file as SC_EX19_3a_FirstLastName_2.xlsx by changing the “1” to a “2”.

If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically.

With the file SC_EX19_3a_FirstLastName_2.xlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet.

If cell B6 does not display your name, delete the file and download a new copy from the SAM website.

PROJECT STEPS

Lindsey Sawyer is the director of recruiting and business development for Raybridge Recruiting in Washington, D.C. She has been analyzing sales and commissions for recruiters in an Excel workbook and has asked you to help her complete the analysis.

Go to the Sales worksheet. Rename the Sales worksheet as Sales and Commissions, which is a more accurate name.

Unfreeze column A so it is not displayed when you scroll horizontally.

Middle-align the contents of the merged cell A1 to improve the appearance of the worksheet title.

In cell B3, insert a formula that uses the NOW function to display today’s date.

Fill the range C6:G10 with the formatting from the range B6:B10 to use a consistent number format for the sales data.

Lindsey wants to show the sales trend for each position and month from January to June. Provide this information as follows:

In cell H6, insert a Line sparkline based on the data in the range B6:G6.

Use the Fill Handle to fill the range H7:H10 without formatting based on the contents of cell H6.

Change the color of the sparklines in the range H6:H10 to Dark Purple, Text 2 (4th column, 1st row of the Theme Colors palette) to emphasize them.

Show a High Point and a Low Point in the sparklines to make those values easy to identify.

Copy the formula in cell I6 and paste it in the range I7:I10, pasting only the formula and number formatting, to include sales totals.

Lindsey wants to determine how the sales of each month contributed to the total sales. Calculate this information for her as follows:

In cell B13, insert a formula without using a function that divides the total sales for January (cell B10) by the total sales to date (cell I10).

Use an absolute reference to cell I10 in the formula.

Use the Fill Handle to fill the range C13:G13 with the formula in cell B13.

Lindsey also needs to calculate the commissions earned each month. If the company earns $200,000 or more in a month, the commission is 35% of the sales. If the company earns less than $200,000 in a month, the commission is 27% of the sales. Calculate the commissions as follows:

In cell B17, enter a formula that uses the IF function and tests whether the total sales for January (cell B10) is greater than or equal to 200000.

If the condition is true, multiply the total sales for January (cell B10) by 0.35 to calculate a commission of 35%.

If the condition is false, multiply the total sales for January (cell B10) by 0.27 to calculate a commission of 27%.

Use the Fill Handle to fill the range C17:G17 with the formula in cell B17 to calculate the commissions for February through June.

Change the sparklines in the range H17:H18 as follows to use a more meaningful format:

Change the Column sparklines to Line sparklines.

Apply the sparkline style Dark Gray, Sparkline Style Dark #3 (3rd column, 5th row of the Sparkline Styles palette) to make the sparklines easier to see.

Lindsey would like to increase the average number of placements per month. Because executive placements are the most profitable, Lindsey wants to know how many executive placements she needs to reach the goal of 30 placements per month.

Use Goal Seek to set the average number of placements for all positions (cell I27) to the value of 30 by changing the average number of executive placements (cell I23).

Format the text in cell J22 to clarify what it refers to as follows:

Merge and center the range J22:J27.

Rotate the text down to -90 degrees in the merged cell so that the text reads from top to bottom.

Change the width of column J to 6.00.

Delete row 35, which contains information Lindsey does not need anymore.

Lindsey also wants to compare the estimated sales of July and December. Insert a chart that provides this information as follows:

Create a Clustered Column chart based on the nonadjacent ranges A22:B26 and G22:G26.

Enter Estimated Sales: July and December as the chart title.

Resize and reposition the chart so its upper-left corner is in cell A35 and its lower-right corner is in cell E49.

Change the chart layout to Layout 2 to display the data values above the bars instead of including a vertical axis.

Your workbook should look like the Final Figures on the following pages. The value in cell B3 has been intentionally blurred as it will never be constant. Save your changes, close the workbook, and then exit Excel. Follow the directions on the SAM website to submit your completed project.

Final Figure 1: Sales and Commissions Worksheet

© Elzipo/Shutterstock.com

2

Accounting homework help

Intermediate Accounting 1:

Assignment

Submission via blackboard

Deadline: Sunday 10th April

(SUBMISSION AFTER THE DEADLINE WILL NOT BE MARKED)

Q1: Balance Sheet

The following is a December 31, 2020, post-closing trial balance for the Alexandria Exploration Corporation.

Account Title

Debits

Credits

Cash

52,000

Accounts receivable

223,000

Allowance for uncollectible accounts

15,000

Inventories

200,000

Supplies

3,000

Investments

140,000

Land

100,000

Buildings

500,000

Accumulated depreciation – buildings

150,000

Machinery

250,000

Accumulated depreciation – machinery

80,000

Goodwill

36,000

Accounts payable

125,000

Bonds payable

500,000

Interest payable

40,000

Common stock

500,000

Retained earnings

94,000

Totals

1,504,000

1,504,000

Additional information:

1. Accounts receivable includes a $50,000 note receivable received from a customer that is due in 2022. Also included is interest on the note of $3,000 that is due in six months.

2. The land account includes land that cost $20,000 that the company has not used and is currently listed for sale.

3. The investment account includes a $10,000, 3-month certificate of deposit due in 40 days. The remaining investments will be sold within the next year.

4. The bonds payable account consists of the following:

a. a $200,000 issue due in six months.

b. a $300,000 issue due in six years.

5. The common stock account represents 500,000 shares of no par value common stock issued and outstanding. The corporation has 1,000,000 shares authorized.

Required:

Prepare a classified balance sheet for Alexandria at December 31, 2020.

Q2: Ratio Analysis

The year 2020 balance sheet for the Tomassini Corporation is shown below.

Tomassini Corporation

Balance Sheet

December 31, 2020

Assets: ($ in 000s)

Cash $ 150

Accounts receivable 400

Inventories 500

Property, plant, and equipment (net) 1,200

Total assets $2,250

Liabilities and Shareholders’ Equity:

Current liabilities $ 600

Long-term liabilities 500

Paid-in capital 1,000

Retained earnings 150

Total liabilities and shareholders’ equity $2,250

The company’s 2020 income statement reported the following amounts ($ in thousands):

Net sales $6,600

Interest expense 30

Income tax expense 200

Net income 260

Required:

Determine the following ratios for 2020:

a. current ratio

b. acid-test ratio

c. debt to equity ratio

d. times interest earned ratio

Sol: a) Current ratio = Current assets/ Current Liabilities = (150+400+500)/600 = 1.75 times

b) Acid-test ratio = (Current Assets-Inventory)/ Current Liabilities = (150+400)/600 = 0.917 times

c) Debt to Equity Ratio = Total Liabilities/Total Equity = (600+500)/ (1000+150) = 0.9565 or 95.65%

d) Times Interest expense ratio = EBIT/Interest Expense = (260+200+30)/30 = 16.33 times

Q3: Statement of cashflows

Presented below are the 2020 income statement and comparative balance sheet information for Siegfried & Royce (S&G).

Siegfried & Royce

Income Statement

For the Year Ended December 31, 2020

($ in thousands)

Sales revenue

$12,500

Operating expenses:

Cost of goods sold $7,300

Depreciation 400

Rent 250

Administrative and other 2,200

Total operating expenses

10,150

Income before income taxes

2,350

Income tax expense

940

Net income

$ 1,410

Balance Sheet information ($ in thousands)


Dec. 31, 2020


Dec. 31, 2019

Assets:

Cash

$3,280

$1,300

Accounts receivable

1,250

980

Inventory

980

900

Prepaid rent

150

100

Plant & equipment

3,000

2,600

Less: Accumulated depreciation

(1,200)

(800)

Total assets

$7,460

$5,080

Liabilities and shareholders’ equity:

Accounts payable

$ 500

$ 580

Payables for administrative and other expenses

650

700

Income taxes payable

450

350

Note payable (due 12/31/2017)

2,500

2,000

Common stock

1,500

1,000

Retained earnings

1,860

450

Total liabilities and shareholders’ equity

$7,460

$5,080

Required:

1. Prepare S&G’s 2020 statement of cash flows, using the indirect method to present cash flows from operating activities.

2. Prepare the cash flows from operating activities section of S&G’s 2020 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable.

Q4: International Financial Reporting Standards

Discuss the reporting standards by distinguishing the difference between US GAAP and IFRS. Your discussion should include the reporting of comprehensive income statement and statement of cashflow. Marks will be based on critical evaluation of the matter.

Accounting homework help

Student Name

Finance 135 – Spring 2021

Analysis of:

Johnson & Johnson (JNJ)

Vanguard Equity-Income Fund Investor Shares (VEIPX)

Stock Report

1.Provide the name and ticker symbol of a publicly listed company

(“Company”)with at least 5yearsof historical data

o Company name: Johnson & Johnson

o Company Ticker (JNJ)

2.Provide a brief description of the Company1

o Johnson & Johnson is an American multinational corporation that is the largest

healthcare company in the world and has developed and manufacturing

pharmaceutical and consumer good as well as conducting research and

development on medical devices. Johnson & Johnson was founded in 1886 by

three brother named James, Edward Mead and Robert Johnson who created the

first commercial first aid kits that revolutionized wound care and is today known

as the world most valuable companies and has over 250 subsidiary companies

with operation in over 60 countries and sell their product to over 175 countries

around the world. The company operate in three different segments in the market

which are Consumer Health, Medical Devices and pharmaceuticals. Johnson &

Johnson is also a major company that is distributing the COVID-19 vaccine to

American and people around the world.

3.Describe the Company’s key products and/or services

1 Information found on: https://www.google.com/finance/quote/JNJ:NYSE

Consumer Health products:2

o Johnson& Johnson has developed and created unique personal health by

delivering a majority of their product being rooted to science and is the leading

healthcare company that has created close partnerships with dermatologist and

skin care expert to work on the next generation science to create high performing

product for healthy skin. According to their website their “Innovations include:

personalized skin health assessments, treatments for acne and eczema, gentle

skin-loving cleansers, moisturizers that repair the skin barrier and rebalance the

skin’s microbiome, and sunscreens that protect and defend against inflammation,

premature aging, 3and skin cancer.” Their commitment is to use quality

ingredients that is safe and efficient Some of their top selling company in this

segment are NEUTROGENA ®, AVEENO® which are skin care brands. As well

as self-care products that offers their patients the power to take their health into

their own hands with natural healthy and wellness product that range between

medical and non-medical solution. The most well-known company that

incorporates with Johnson and Johnson is BENADRYL® and TYLENOL® which

provide solution to health symptoms brought by sicknesses. Johnson & Johnson

also has sells essential health products for every stage of their consumer’s daily

routine such as wound care and oral care. The most well-known essential health

product is LISTERINE® and BAND-AID®.

2 Information was found at :https://www.jnj.com/healthcare-products

3 Data was found on https://www.jnj.com/our-heritage/meet-the-innovative-brothers-who-founded-johnson-
johnson-in-1886 &on https://finance.yahoo.com/quote/JNJ/profile?p=JNJ

Medical Devices:

o Johnson & Johnson have used their scale and experience to reimagine the way

that they can help people live longer and healthier lives in this troubling time.

According to their website”4 As pioneers in medical devices, we continually focus

on elevating the standard of care—working to expand patient access, improve

outcomes, reduce health system costs and drive value.” Johnson & Johnson are

making medical devices by connecting science and technology to have expertise

in surgery and other departments like vision, orthopedics and interventional

solutions. Their medical devices help Orthopedics by helping patient that have

suffered from trauma and spine damage and helping their 56consumers to return

to living active and healthy lives. Johnson& Johnson devices are used in the

surgical field by providing biosurgery technology to minimize complications as

well creating wound closure material call Ethicon that is the leading advancement

in closing comprehensive wounds.

Pharmaceutical Products:

o Johnson& Johnson has been actively developing treatments for six different

therapeutic area: Cardiovascular & Metabolism, Immunology, Infectious

Diseases & Vaccines, Neuroscience, Oncology and Pulmonary Hypertension and

have decided to redefine treatment for patients with autoimmune disorders

According to their website “Through our ongoing efforts in discovery, biomarkers,

4 Information was found on https://www.jnj.com/healthcare-products/medical-devices#orthopaedics

clinical research and external innovation, we are poised for continued leadership

and growth, bringing transformational medicines to patients and healthcare

professionals around the world.” The company mission plan is be as transparent

to their client as possible with the help of medicine and science. Johnson &

Johnson is working on creating vaccine to cure infectious disease worldwide and

make the world free of life threating diseases. So far Johnson& Johnson has

developed therapies and vaccine for diseases like HIV and Ebola and currently

Covid-19. The pharmaceutical company also has a mission to reduce

neuropsychiatric diseases and studies in oncology so that their scientist can

create a cure to reduce the number of people who are diagnosed to have cancer.

4.Provide current market cap, current price per share, 1-year target price, average

volume, and beta

As of Date of 5/13/20217

o Current market cap: $447.57 Billion

o Current price per share: $169.96

o 1-year Target price: 187.00

o Average Volume: 7,662,827

o Beta: 0.71

7 Data was found on: https://finance.yahoo.com/quote/JNJ?p=JNJ

5.Discuss current and forward-looking macroeconomic environment and assess

Political influence8

o The concept of political influence a concept that can go both way the outcome

can be positive or can have a negative impact on the macroeconomic

environment. Political influence is important because it help make decision for

company on the way they trade with other countries in the trade market and

global market. The way that Johnson & Johnson is a global company that works

with different governments and providers and stakeholder worldwide to ensure

that their consumers are able to get affordable and safe health care. They are

informed and actively supporting participation in policy making and political

processes. The global government affair teams on Johnson & Johnson team is

responsible for helping with advocacy activities within the government. According

to their website “In the interest of advancing sound public policy, we support

those persons who serve the public by seeking elected office. Where permitted

8Information was found on : https://www.investor.jnj.com/gov/contributions.cfm

by law in the U.S., Canada, Australia, and Japan, our Company makes corporate

political contributions, primarily to the electoral campaigns of individual

candidates.” Johnson & Johnson have said that when it comes to interaction with

government candidate and officials that they conduct legal and ethical manner

when it comes to company policy’s and applicable laws to follow government

ethic laws, the Foreign corrupt practices act and the U.S anti-kickback statues.

GDP:

o GDP is a good indication of the economy total production of good and services is

the statistics used to describe the macroeconomic environment. The concept of

GDP is important because investor use it to make decision on whether it’s a good

time to invest their money into the market. When there is an increase in the GDP

there is a rise in interest rate and helps expansionary fiscal policy which

stimulates the market. Johnson& Johnson has had a solid financial record from

the year 2014 and continue to make investment to make higher growth in long-

term investment which will help the GDP to go higher. The company Johnson &

Johnson reinvest their money to have a strong and consistent business plan that

allows them to creates more opportunity for growth in every segment they

operate and have enough money to put into programs like research and

developing new product and vaccines.

Fiscal Policy:

o This is the use of government spending ad tax policies that have a direct impact

on the macroeconomic environment and the economic conditions. Fiscal policy

includes the economic growth of the business to earn more money and

aggregate demand for goods and service, inflation and new employments. Many

would argue that the government is in charge because they can help business

stabilize and can keep the economic growth to be regulated. The way that this

would impact the company Johnson& Johnson is that they can open up more

broader advantages if they decide to partner up the government and help keep

the economy strong by providing hundred of new job to people as Johnson &

Johnson expand their reach and start to get connection to partner with more

public health organization as well as creating expediential opportunities to help

the government earn more money by keeping more jobs here in America then

sending job to foreign country. The way that Covid crisis has affect the U.S is that

the government had to figure out way that they were going to fight the pandemic

and allowed the company Johnson & Johnson to sell more of their product that

are used to fight of disease and the government had to ask for help on getting

PPE for hospital so they had to turn to company like Johnson & Johnson to help

supply hospital with available equipment and help with the increase of

unemployment in the U.S the last year.

Creating a better Future

o The goals of Johnson & Johnson is to create a world were everyone has equal

acess to medicine and healthcare. They want their patients to live longer and

healthier lives and they want to create vaccine and cure for diseases that have

plagued the world like HIV and Covid-19 and slow killing diseases like cancer.

Johnson & Johnson want to help people live longer and healthier lives and

remain transparent with their science and the use of their expertise’s. They want

to rid the world of disease that have killed thousand in the past they want to use

their research and development to make vaccine that can be use worldwide and

help create a more healthier future.

6. Name at least two key competitors

o Eli Lilly and Co (LLY)

o Merck & C. Inc. (MRK)

o Pfizer (PFE)

7.Provide a chart of 5-year trend analysis on key valuation metrics such as P/E,

P/Book, P/Sales, P/Cash flow ratios and compare with at least two key

competitors. Provide commentary about the chart regarding relative valuation of

your Company versus key competitors. As of 5/12/2021

9Data taken from https://www.morningstar.com/stocks/xnys/jnj/financials(5/12/2021)
10Data taken from https://www.morningstar.com/stocks/xnys/lly/financials(5/12/2021)
11Data taken from https://www.morningstar.com/stocks/xnys/mrk/financials(5/12/2021)
12Data taken from https://www.morningstar.com/stocks/xnys/pfe/financials(5/12/2021)

Johnson& Johnson

9(JNJ)

Eli Lilly and Co

(LLY)10

Merck & Co Inc.

(MRK)11

Pfizer (PFE)12

P/E Ratio: 30.0 P/E Ratio: 29.15 P/E Ratio: 28.41 P/E Ratio: 26.88

P/Book

Ratio:

6.80 P/Book

Ratio:

27.10 P/Book

Ratio:

7.40 P/Book

Ratio:

3.54

P/Sales

Ratio:

5.39 P/Sales

Ratio:

6.98 P/Sales

Ratio:

4.16 P/Sales

Ratio:

5.09

P/Cash

Ratio:

18.73 P/Cash

Ratio:

22.78 P/Cash

Ratio:

17.64 P/Cash

Ratio:

15.72

Johnson & Johnson (JNJ) Stock Report 5 Year Trend Analysis Charts. ( As of

5/12/2021)13

13 https://www.morningstar.com/stocks/xnys/jnj/quote

Eli Lilly and Co (LLY) Stock Report 5 Year Trend Analysis Charts. ( As of

5/12/202114)

14 https://www.morningstar.com/stocks/xnys/lly/quote

Merck & Co Inc (MRK) Stock Report 5 Year Trend Analysis Charts. (As of

5/12/2021)15

15 https://www.morningstar.com/stocks/xnys/mrk/quote

Pfizer (PFE)Stock Report 5 Year Trend Analysis Charts. (As of 5/12/2021)16

16Data was found on : https://www.morningstar.com/stocks/xnys/pfe/quote

Commentary:

Price- to -earnings Ratio:

o Company might have a negative P/E ration are company that are losing a heavy

amount of money and have negative earnings per share. Since Johnson &

Johnson has the highest price per earnings ratio when you are comparing them

to their competitor such as Elli lily company and Pfizer and Merck Company. The

price to earnings ratio for Johnson and Johnson is 30.0 overall compared the

lowest company that was Pfizer that ratio was in low 26.88. The ratio is the value

that a company measure it current share price and divides it from the per share

earnings. If the P/E ratio is high than that means that company stock is being

considered be overvalued and the investor in the company are expecting a

higher growth rate. When the company has a low P/E ratio then the stock is

being undervalued and is losing money. The Johnson & Jonson has a higher

ratio when comparing the stock to Elli Lilly company by a small portion that is.85

point away from each other and is 1.59 point away from it next competitor Merck

Company. The ratio that Johnson & Johnson has is a good one because it

means that it doing very well when it to price per earning.

Price-to-Book Ratio

o Price/Book ratio very useful if a company has negative or unstable earning

like Elli Lilly company. The P/Book ratio can be uses to compare a firm

market capital to its book value. The way that it is calculated is that it

divided the company price per stock by the book value per share. The book

value is found on the balance sheet and companies use it to net their asset

against accumulated depreciation found with in the company. The book

value is the gross of expense and trading cost that it cost the company to

sell it at in the stock market. A lower price/Book ratio mean that the stock is

being undervalued this is found in the company of Pfizer that has a 3.54%

when it comes to price /Book ratio compared to the highest Price/book

ratio which is The Elli Lilly Company that has a 27.10 % when comparing all

four-company found on the chart. The Price/Book ratio reflects the value

that the market is when it come the company equity to the book value. For

Company like Johnson & Johnson they must expense the part of company

that has to do with research and development cost and that causes them to

reduce the company book value. The Johnson and Johnson company has

a higher Price/Book value when you compare it to the lowest which is

Pfizer currently, But Johnson& Johnson has less book value than Merck by

.6 which is small difference. When You see the ratio of Johnson & Johnson

and Elli Lilly company there is a difference of 20.3 Because the Elli Lilly

company has more investor that bid up the price of a the Elli Lilly company

and they get better return on their equity. During the last 12 months of

Johnson& Johnson has had the book value of 7.40 per year and rank lower

because of the covid 19 problem that have come into the new recently

about how their vaccine was put on pause because of complication and

that had dropped their rating when compared to other company that have

more book value than Johnson& Johnson.

Price-to-sales Ratio

o Price/Sales ratio is the value ratio that compares a company selling price to

it revenues. It is the price that the financial market has placed on each

dollar the company makes in sales and revenues. The ratio show how

much a investor is willing to pay for that particular stock. The Calculation

on how to get the price-to sale-ration is calculated by dividing the stock

selling price by the company sales per share.The price-to sale ration also

help see whether a company will make money or no earn any earning in the

year. A low ratio would imply that a stock is being undervalued and a high

ratio would mean that a stock is being overvalued in the financial market.

When looking at the 5 year chart it show the different variation between

each company .When comparing the company Johnson & Johnson has a

ratio of 5.39 over the past 5year which is higher than their competitor Pfizer

and Merck Company that had 4.16 and Pfizer that had a ratio of 5.09. But

that ratio is taken when their calculations of the stock selling price to its

revenue over the last 5 years. The company that has a value that is being

over valued is the company Elli Lilly company that has a ration of 6.98.

Johnson & Johnson has been the recent year been put their money back

into their company and investing in more research and developments

project their competitor Pfizer and Merck company. But Elli lilly has been

selling more pharmaceutical drug to the market which allow them to have a

higher selling price than compared to the stock of Johnson & Johnson. I

believe that in the next few year their will be a bigger price-to sales ratio for

Johnson& Johnson because they have release some new vaccination that

are hitting the health market and are continual coming out with products.

Price-To cash flow ratio-

The price to cash flow ratio is the comparision of the company market value and their

operating flow per share.The companies have large non cash expesnes that are called

depreciations and a low Price to cash flow mean that a stockis being undervalued and if

the stock has a higher price to cash flow than it is being over valued . When comparing

Johnson& Johnson stocks It has a moderate ratio when it comes to its key competitors.

When you look at the key competitor and Johnson & johnson it is clear that Elli lilly

company has a higher cash flow then johnson& johnson that a diferenc of 4.05 . But

Johnson& Johnson has a higher cash flow than Merck that has a ratio of 17.84 which is

a difference of 4.94 when looking at the ash value that these company provide. I would

say that Johnson & Johnson is doing very well and is being valued fairly .

Mutual Fund Report:

1.Providethe name and ticker symbol of a mutual fund (“fund”)with at least10

years of historical data

o Mutual Fund Name: Vanguard Equity-Income Fund Investor Shares

o Ticker symbol :(VEIPX)

2.Providefund category, fund family name, net assets, YTD return, Morningstar

rating, inception date, and NAV per share1718

o Fund Category: Large Value

o Fund Family Name: Vanguard Group

o Net asset: 47.23 Billion

o Year to date ( YTD) returns: 16.38%

o Morningstar Rating ★★★★★

o Inception date: Mar 21,19988

o NAV per share(of 5/13/2021):$43.73

o NAV change( 5/13/2021) : +$0.63(1.46%)19

3.Provide fund strategy (i.e., fund summary )and its associated benchmark20

17 https://www.gurufocus.com/term/pb/JNJ/PB-Ratio/Johnson–Johnson
18 Date was found on this website : https://investor.vanguard.com/mutual-funds/profile/overview/veipx

19 Information was also gathered form :https://advisors.vanguard.com/investments/products/veipx/vanguard-
equity-income-fund-investor-shares

20 Fund summary information found on :https://finance.yahoo.com/quote/VEIPX/performance?p=VEIPX

o Fund Summary: The fund normally invests at least 80% of its assets in equity

securities. That fund is used to multiply for the investment advisors and is

invested mainly in common stock in large companies as well as mid-size

companies. These stocks usually pay above average level of dividend and get a

reasonable long-term capital appreciation.

o Benchmark21- The benchmark for VEIPX is based on is Spliced Equity Income

Index*and Lipper lease is part of The NASDAQ which is the growth of a

hypothetical $10,000 investment in this fund with the growth.

21 The benchmark is found: https://investor.vanguard.com/mutual-funds/profile/performance/veipx

5.Provide fund’s expense ratio, 12b-1 fee, front-end load, and back-end load

Expense ratio:

o Gross expense ratio:.28%

o Net expense ratio:.28%

o 12b-1 fee:None

o Front-end load-None

o Back-end load:None

6.22Provide overall portfolio composition sand sector weightings

22 Chart can be found on https://finance.yahoo.com/quote/VEIPX/holdings?p=VEIPX

7.Provide names of top 10 holdings and the aggregate percentage of Total Assets

8.Provide performance data of 1-year, 3-year, 5-year, and 10-year returns and

compare with its benchmark / category and discuss how did this mutual fund

performed relative to its category23

Performance Data : As of 5/13/2021

1 year return:49.12%

Category: 46.33%

3-year return:12.43%

Category: 11.71%

5-year return: 11.21%

Category:12.01%

10-year return: 12.27%

Category:10.42%

o The performance for the mutual fund VEIPX is found on the chart above and it

shows the 2,3,5,and 10 years of the company performance data. The company

1-year performance It was above the benchmark of its competitor and has a

higher return performance out of all the 10 year that are shown on the graph. The

3 year performance was very good as well because it stayed in the positive

position and the Vanguard Equity-income Fund investor share did very well in the

financial and healthcare services that they provide and and had a small change

when looking at the 5 year return chart that showed a return of 11.21 which is

23 The chart information was found on https://finance.yahoo.com/quote/VEIPX/performance?p=VEIPX

decrease of 1.22 % when comparing the two years of difference between them.

The chart also show that the 10 year return it did very well also staying in the

positive mark when it came to return and good sign for a mutual fund

performance. The best yield when looking at these chart is the 1 year return

which is more than triple the amount of return from the last ten years . The lost

return when looking at the chart is found on year 5 were it is performing very well

but not as well at 1 year of returns. But looking at 1 year return it has out

performed when compared to other mutual fund.

9.Provide 5-year risk statistics data: alpha, beta, R-squared, standard deviation,

Sharpe ratio, and Treynor ratio24

VEIPX 5-year risk statistic data; As of

5/13/2021

Alpha -2.93

Beta 0.90

R square 91.22

Standard deviation 14.17

Sharpe ratio 0.82

24 Information for Chart was found on: http://performance.morningstar.com/fund/ratings-
risk.action?t=RPBAX&region=usa&culture=en-US

www

Treynor Ratio 12.49

10.Discuss merits and concerns regarding this mutual fund

o When it come to looking at this mutual fund Vanguard Equity-Income Fund

Investor Shares (VEIPX) historical performance and risk statistics I can conclude

that it has underperformed as of 5/13/2021 when l

Accounting homework help

Production Plan

Pork-Rinds Fried Peanuts
Units Produced:

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell
Resources Req’d: Used: Available:
Fryer Capacity 1 1
A satisfied Microsoft Office user: Constraint cell
600
Labor 1 0.5
A satisfied Microsoft Office user: Constraint cell
960
Total Profit:

A satisfied Microsoft Office user: Objective cell

Carnival Confections

Accounting homework help

BRAND ANALYSIS AND IMPLICATIONS

Johnathon Davis

MBA 645

Professor Sauers

April 10, 2022

Brand Equity

2

Importance of brand equity

Social value

Revenue from Goodwill

Price negotiation power

Positive implications

3

Emotional connection with customers

Increase in profits

Competitive edge

Long term customer sustainability

Safety concerns

4

Safety concerns communicated

Community support

Local government support

Employee support

Negative implications

5

Social media negative reaction

Employees concerns

Operational concerns

Strategic communication plan

6

Stakeholders

Communication needs

Mode of communication

Stakeholder’s Interest

7

Employees

Customers

Government agencies

Mode of communication

Mode of communication to customers via EMAILS and Social Marketing

Mode of communication to employees via meetings and emails

Mode of communication to government agencies via meetings

8

Impact of reopening

9

Impact of reopening to customers

Impact of reopening to employees

Impact of reopening to government agencies.

Functional departments

10

Marketing department

Safety department

Operational department

Roles and responsibilities

11

Marketing department roles and responsibility

Safety department roles and responsibility

Operation department roles and responsibility

Feedback from shareholder

12

Legal issues in reopening

Ethical issue in reopening

Guidelines

Frequency of meetings

13

Feedback from shareholders

Quarterly meetings

Annual meetings

References

Aaker, D. A. (2009). Managing brand equity. simon and schuster.

Hoover, C. (2010). The strategic communication plan. FBI L. Enforcement Bull., 79, 16.

14

Accounting homework help

Ship Loading

Total Max Total Max
1 2 3 4 Weight Weight Volume Volume
Forward
Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell
3000 145000
Center
Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell
6000 180000
Rear
Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell
4000 155000
Loaded

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell
Available 4800 2500 1200 1700
Volume / ton 40 25 60 55
Profit / ton $70.0 $50.0 $60.0 $80.0
Total Profit

Cliff Ragsdale: Objective cell
Weight Balance Constraints
min max
Forward 0 0 within 10% of rear
Center 0 0 between 40 to 60% of total
Binary Variables 1 2 3 4 Sum
Forward

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell
Center

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell
Rear

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Variable cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Variable cell
Linking Constraints 1 2 3 4
Forward

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell
Center

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell
Rear

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

Cliff Ragsdale: Constraint cell

ICC

Accounting homework help

AutoInsuranceRisk_trainingnew_c

ContractId Age Gender Children Profession Customer Type Multiple cars Driving Licence Years Car category Annual Kilometers Gearbox Fuel
1 55 Woman 4+ Retired Agency No 14 Saloon 24074 Automatic Diesel
2 58 Man 1 Unemployed Agency No 13 Sport 19328 Manual Diesel
3 26 Woman 4+ Independant Agency No 3 Sport 21141 Automatic Diesel
4 47 Woman 1 Unemployed Agency No 22 Estate 41040 Manual Petrol
5 54 Woman 2 Private Sector – Manager On-line No 18 Estate 31620 Manual Diesel
6 78 Man 4+ Public Sector – Manager Agency No 18 Estate 17837 Manual Diesel
7 39 Man 2 Independant On-line No 21 Saloon 20065 Automatic Diesel
8 43 Woman 2 Retired Agency No 11 Saloon 35688 Automatic Diesel
9 51 Woman 0 Private Sector – Employee Agency Yes 20 Sport 24503 Manual Diesel
10 42 Woman 0 Public Sector – Manager Agency Yes 18 Estate 24053 Manual Diesel
11 52 Woman 1 Student Agency Yes 18 Estate 27859 Automatic Diesel
13 38 Man 3 Public Sector – Director Agency No 20 Sport 21000 Automatic Diesel
15 20 Woman 2 Independant Agency No 2 Saloon 19898 Automatic Diesel
16 36 Man 0 Independant Agency No 18 Sport 22955 Manual Diesel
17 46 Man 2 Independant On-line No 7 Saloon 18803 Manual Petrol
18 43 Man 0 Private Sector – Employee Agency Yes 13 Saloon 21278 Automatic Diesel
22 73 Man 4+ Private Sector – Director Agency No 19 Estate 23840 Automatic Petrol
24 72 Man 1 Public Sector – Director Agency No 15 Sport 19236 Manual Petrol
25 51 Man 2 Retired Agency No 17 Saloon 52001 Automatic Petrol
26 26 Man 1 Private Sector – Employee On-line No 8 Saloon 14524 Automatic Petrol
27 54 Woman 0 Government Agency No 9 Sport 25546 Manual Diesel
29 26 Man 2 Independant Agency No 8 Saloon 21365 Automatic Petrol
31 70 Woman 4+ Public Sector – Manager Agency No 21 Sport 26608 Manual Diesel
32 57 Man 4+ Private Sector – Employee On-line No 14 Saloon 37656 Automatic Diesel
33 38 Woman 2 Student Agency No 11 Sport 19971 Automatic Diesel
34 47 Man 2 Private Sector – Manager On-line No 12 Estate 20428 Manual Petrol
35 55 Man 0 Independant On-line Yes 8 Estate 40589 Automatic Diesel
36 54 Woman 1 Private Sector – Director Agency No 15 Estate 9710 Manual Diesel
37 53 Man 2 Independant Agency Yes 5 Sport 26288 Manual Petrol
38 83 Man 4+ Independant Agency No 13 Estate 33856 Automatic Diesel
39 25 Man 4+ Private Sector – Director Agency No 7 Saloon 13183 Automatic Diesel
40 56 Man 1 Independant Agency No 14 Saloon 17741 Automatic Diesel
41 54 Woman 2 Public Sector – Director Agency No 19 Sport 48351 Automatic Diesel
42 78 Man 0 Student On-line Yes 19 Saloon 37625 Automatic Diesel
43 59 Man 2 Private Sector – Employee On-line Yes 19 Estate 16191 Manual Petrol
44 75 Man 4+ Public Sector – Employee Agency Yes 4 Saloon 18688 Automatic Diesel
45 40 Man 4+ Private Sector – Employee Agency No 16 Saloon 34814 Automatic Diesel
46 21 Woman 2 Unemployed Agency Yes 3 Saloon 39791 Automatic Petrol
48 66 Woman 0 Retired Agency Yes 18 Estate 26830 Automatic Diesel
49 25 Woman 1 Public Sector – Director Agency No 7 Estate 25235 Automatic Diesel
50 55 Woman 4+ Student Agency Yes 14 Sport 30189 Automatic Petrol
51 53 Man 1 Student On-line No 12 Saloon 35683 Automatic Diesel
53 55 Man 1 Student Agency Yes 21 Saloon 18550 Manual Diesel
55 20 Man 1 Private Sector – Director On-line No 2 Saloon 16763 Automatic Diesel
56 36 Man 1 Independant On-line No 7 Estate 21494 Automatic Petrol
57 27 Woman 2 Retired Agency No 9 Estate 20177 Manual Petrol
58 68 Woman 2 Public Sector – Manager Agency No 5 Sport 26839 Automatic Petrol
59 50 Man 4+ Private Sector – Director On-line No 12 Estate 20091 Automatic Diesel
60 56 Man 3 Independant Agency No 11 Sport 18844 Automatic Diesel
61 26 Man 4+ Private Sector – Director Agency No 7 Sport 25453 Automatic Petrol
62 42 Woman 4+ Independant On-line No 16 Sport 28603 Automatic Diesel
63 45 Woman 0 Private Sector – Employee Agency No 21 Estate 10306 Automatic Diesel
64 19 Woman 2 Retired On-line No 1 Estate 28924 Manual Petrol
65 53 Man 4+ Private Sector – Manager Agency No 6 Sport 34010 Manual Diesel
66 83 Man 4+ Private Sector – Director Agency No 10 Sport 21559 Manual Diesel
67 38 Woman 1 Government On-line Yes 7 Saloon 21245 Automatic Petrol
68 36 Woman 2 Public Sector – Director Agency Yes 7 Sport 23797 Automatic Petrol
69 68 Man 0 Retired Agency No 17 Saloon 29629 Automatic Diesel
71 35 Woman 2 Government Agency Yes 11 Sport 30757 Automatic Diesel
72 51 Woman 1 Student On-line No 9 Saloon 24296 Manual Diesel
74 43 Man 4+ Independant Agency No 16 Saloon 21687 Automatic Petrol
75 57 Woman 0 Private Sector – Manager Agency No 3 Estate 30438 Automatic Petrol
76 39 Man 1 Private Sector – Employee Agency No 10 Sport 24527 Automatic Diesel
77 30 Woman 2 Retired Agency No 5 Saloon 29537 Automatic Diesel
78 41 Woman 0 Public Sector – Manager Agency Yes 17 Saloon 39170 Automatic Petrol
79 56 Woman 4+ Private Sector – Employee Agency No 19 Saloon 24929 Manual Petrol
80 74 Woman 1 Unemployed Agency Yes 18 Sport 37547 Manual Diesel
82 48 Woman 1 Unemployed Agency No 13 Saloon 33769 Automatic Petrol
84 61 Woman 4+ Unemployed Agency No 11 Sport 38288 Automatic Diesel
85 52 Woman 2 Public Sector – Employee Agency No 6 Saloon 14332 Automatic Petrol
86 63 Woman 2 Independant Agency Yes 11 Saloon 33021 Automatic Diesel
87 62 Woman 0 Public Sector – Manager Agency Yes 4 Saloon 22515 Manual Diesel
88 29 Man 2 Student On-line No 6 Saloon 23352 Automatic Petrol
89 76 Man 2 Public Sector – Employee On-line No 8 Estate 27173 Automatic Diesel
91 19 Woman 1 Private Sector – Manager Agency No 1 Sport 40747 Manual Diesel
92 49 Man 4+ Student On-line Yes 4 Estate 22400 Automatic Diesel
93 65 Woman 2 Public Sector – Employee Agency Yes 8 Estate 30616 Manual Diesel
94 74 Woman 1 Unemployed Agency Yes 10 Saloon 23009 Automatic Diesel
95 49 Man 4+ Private Sector – Director Agency No 3 Sport 21716 Manual Petrol
96 57 Man 4+ Unemployed On-line No 16 Estate 40367 Manual Petrol
97 58 Man 4+ Private Sector – Employee On-line No 11 Saloon 15537 Manual Diesel
98 18 Woman 4+ Public Sector – Manager Agency No 0 Saloon 9370 Automatic Diesel
99 26 Woman 1 Retired On-line No 8 Estate 18995 Automatic Petrol
100 30 Woman 1 Private Sector – Employee Agency No 4 Saloon 17937 Manual Petrol
104 48 Woman 1 Retired Agency No 9 Saloon 21626 Automatic Diesel
105 47 Man 2 Retired Agency No 14 Saloon 30187 Automatic Petrol
106 27 Man 0 Private Sector – Employee Agency Yes 9 Saloon 20286 Automatic Diesel
108 45 Woman 2 Independant Agency Yes 19 Estate 20701 Automatic Diesel
109 51 Woman 2 Independant Agency Yes 12 Sport 25541 Automatic Diesel
110 71 Woman 4+ Public Sector – Director Agency Yes 16 Estate 18166 Manual Diesel
111 21 Man 1 Retired On-line No 3 Sport 17754 Automatic Petrol
112 51 Woman 4+ Government Agency Yes 9 Sport 30954 Automatic Diesel
113 70 Woman 1 Private Sector – Employee Agency No 14 Sport 21169 Automatic Diesel
114 36 Man 1 Public Sector – Manager Agency Yes 18 Sport 20327 Manual Petrol
115 38 Woman 0 Student Agency No 12 Sport 20794 Manual Diesel
117 76 Woman 4+ Independant Agency No 3 Saloon 38745 Automatic Diesel
118 30 Man 4+ Unemployed On-line No 12 Saloon 23208 Manual Diesel
119 54 Woman 0 Private Sector – Director Agency Yes 21 Estate 35790 Automatic Diesel
120 82 Man 2 Independant Agency Yes 5 Estate 33814 Manual Petrol
121 53 Man 2 Independant On-line No 17 Estate 23467 Automatic Petrol
122 18 Woman 3 Public Sector – Director Agency Yes 0 Sport 22000 Automatic Petrol
123 55 Man 2 Student Agency No 12 Sport 26619 Manual Diesel
124 22 Woman 2 Independant On-line No 4 Estate 21835 Automatic Petrol
125 80 Man 4+ Government On-line No 16 Saloon 26491 Manual Diesel
126 22 Woman 2 Independant On-line No 4 Estate 39606 Manual Petrol
128 61 Woman 4+ Retired Agency No 5 Estate 15464 Automatic Diesel
129 43 Woman 4+ Student On-line No 16 Estate 21605 Automatic Petrol
130 43 Woman 4+ Public Sector – Manager On-line No 4 Estate 22893 Automatic Diesel
131 36 Man 2 Private Sector – Manager Agency No 18 Sport 24057 Manual Petrol
133 36 Woman 4+ Private Sector – Employee Agency Yes 4 Estate 41685 Automatic Diesel
135 49 Man 4+ Public Sector – Employee Agency No 8 Saloon 33443 Manual Diesel
136 74 Man 0 Private Sector – Employee Agency Yes 19 Saloon 39943 Manual Petrol
137 22 Man 0 Independant Agency No 4 Estate 19982 Manual Diesel
138 44 Woman 1 Independant Agency Yes 16 Saloon 28571 Automatic Petrol
139 18 Woman 0 Retired On-line No 0 Estate 26881 Automatic Petrol
140 19 Man 4+ Government Agency Yes 1 Estate 9482 Automatic Diesel
141 48 Woman 2 Retired Agency No 16 Estate 31431 Automatic Diesel
142 25 Man 0 Unemployed Agency Yes 7 Sport 26395 Automatic Diesel
143 66 Woman 4+ Independant On-line Yes 18 Saloon 37910 Automatic Diesel
144 52 Woman 4+ Independant Agency No 21 Saloon 33799 Manual Diesel
145 60 Woman 4+ Public Sector – Director Agency Yes 7 Estate 15591 Manual Diesel
146 71 Man 4+ Retired Agency Yes 7 Sport 19663 Manual Petrol
149 56 Woman 1 Private Sector – Director Agency No 12 Sport 32438 Automatic Petrol
150 40 Man 0 Public Sector – Manager Agency No 8 Sport 17199 Manual Petrol
151 53 Man 1 Public Sector – Manager Agency No 17 Estate 33180 Manual Petrol
152 70 Man 2 Private Sector – Director Agency Yes 13 Sport 36895 Manual Diesel
153 79 Man 0 Independant Agency No 20 Saloon 31377 Automatic Diesel
154 46 Woman 0 Government On-line No 11 Saloon 25713 Automatic Petrol
155 68 Woman 4+ Government Agency Yes 14 Estate 21438 Automatic Diesel
156 50 Man 3 Retired On-line No 22 Saloon 21283 Automatic Diesel
157 48 Woman 3 Private Sector – Employee Agency No 6 Estate 43644 Automatic Petrol
159 56 Woman 0 Student Agency Yes 5 Sport 22048 Automatic Diesel
160 73 Woman 0 Public Sector – Manager Agency No 14 Saloon 42358 Automatic Petrol
161 22 Woman 0 Public Sector – Director Agency No 4 Estate 24228 Automatic Diesel
162 68 Man 4+ Public Sector – Manager On-line No 14 Sport 19253 Automatic Diesel
163 50 Man 4+ Independant Agency No 13 Saloon 19699 Automatic Diesel
164 27 Man 2 Public Sector – Employee Agency No 3 Sport 20639 Automatic Diesel
165 49 Woman 4+ Retired Agency Yes 9 Saloon 28542 Manual Diesel
166 71 Man 4+ Student On-line No 9 Estate 15395 Automatic Petrol
167 20 Man 2 Independant Agency No 2 Sport 26061 Manual Diesel
168 79 Man 4+ Retired On-line No 14 Estate 26160 Automatic Petrol
169 28 Man 4+ Private Sector – Employee Agency Yes 7 Saloon 17970 Manual Petrol
171 27 Woman 2 Government Agency No 9 Estate 29047 Automatic Diesel
172 65 Man 1 Government On-line Yes 5 Estate 23365 Manual Diesel
173 39 Man 1 Public Sector – Director Agency Yes 9 Estate 34653 Automatic Petrol
175 48 Woman 4+ Public Sector – Director Agency No 3 Sport 29139 Automatic Diesel
178 69 Woman 4+ Independant Agency Yes 18 Estate 25604 Automatic Diesel
179 74 Woman 2 Public Sector – Director Agency Yes 22 Sport 31623 Automatic Diesel
180 27 Woman 4+ Retired Agency Yes 9 Saloon 44720 Automatic Diesel
181 20 Man 2 Independant Agency No 2 Sport 21202 Manual Diesel
182 23 Man 0 Public Sector – Director Agency Yes 5 Estate 20176 Manual Diesel
183 19 Woman 2 Private Sector – Director Agency Yes 1 Sport 21031 Automatic Petrol
187 23 Woman 4+ Private Sector – Director Agency Yes 5 Saloon 27503 Automatic Diesel
188 21 Woman 2 Private Sector – Employee Agency Yes 3 Sport 17136 Automatic Diesel
189 84 Man 4+ Private Sector – Employee Agency Yes 10 Sport 30109 Automatic Diesel
190 55 Woman 1 Government Agency No 20 Saloon 19465 Automatic Diesel
191 46 Man 3 Independant On-line No 4 Saloon 34425 Manual Diesel
193 80 Man 4+ Private Sector – Manager Agency No 19 Estate 33826 Automatic Diesel
194 20 Woman 1 Private Sector – Director On-line No 2 Sport 31174 Automatic Diesel
195 69 Man 2 Public Sector – Director Agency No 6 Estate 30211 Automatic Diesel
196 39 Woman 2 Private Sector – Director On-line Yes 12 Sport 23538 Manual Diesel
197 53 Woman 0 Private Sector – Director Agency No 22 Saloon 27802 Automatic Diesel
200 64 Man 0 Private Sector – Manager Agency No 3 Sport 24338 Manual Diesel
201 56 Man 2 Public Sector – Employee Agency Yes 7 Saloon 38863 Manual Diesel
202 27 Man 4+ Government On-line No 9 Sport 16252 Manual Diesel
204 36 Woman 0 Independant On-line Yes 16 Estate 38289 Manual Diesel
205 66 Woman 0 Student Agency No 13 Estate 24890 Automatic Diesel
206 40 Woman 4+ Government Agency No 16 Sport 17198 Automatic Diesel
207 32 Woman 3 Student Agency Yes 12 Estate 42812 Manual Diesel
208 47 Woman 2 Gover

Accounting homework help

Chapter 20

Accounting and Finance in the International Business

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

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Learning Objectives 1 of 2

LO 20-1 Discuss the national differences in accounting standards.

LO 20-2 Explain the implications of the rise of international accounting standards.

LO 20-3 Explain how accounting systems affect control systems within the multinational enterprise. 

LO 20-4 Discuss how operating in different nations affects investment decisions within the multinational enterprise.

©McGraw-Hill Education.

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Learning Objectives 2 of 2

LO 20-5 Discuss the different financing options available to the foreign subsidiary of a multinational enterprise.

LO 20-6 Understand how money management in the international business can be used to minimize cash balances, transaction costs, and taxation.

LO 20-7 Understand the basic techniques for global money management.

©McGraw-Hill Education.

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Introduction

Accounting

“The language of business”

Profit and loss statements, balance sheets, budgets, investment analysis, and tax analysis

Financial Management

Investment decisions: decisions about what activities to finance

Financing decisions: decisions about how to finance those activities

Money management decisions: decisions about how to manage the firm’s financial resources most efficiently

©McGraw-Hill Education.

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National Differences in Accounting Standards

Learning Objective 20-1 Discuss the national differences in accounting standards.

Accounting Standards

Rules for preparing financial statements

Define what is useful accounting information

Auditing Standards

Specify the rules for performing an audit

National differences in accounting and auditing standards can make it difficult to compare financial reports from one country to another

©McGraw-Hill Education.

Accounting standards are rules for preparing financial statements.

Auditing standards are rules for performing an audit.

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International Accounting Standards 1 of 2

Learning Objective 20-2 Explain the implications of the rise of international accounting standards.

Benefits

Global providers of capital are demanding consistency in reporting of financial results.

Adoption of common accounting standards will facilitate the development of global capital markets.

©McGraw-Hill Education.

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International Accounting Standards 2 of 2

International Accounting Standards Board (IASB)

International Financial Reporting Standards (IFRS)

Compliance is voluntary

May replace GAAP in the U.S.

European Union

Mandated harmonization of accounting principles of member states

©McGraw-Hill Education.

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Accounting Aspects of Control Systems 1 of 5

Learning Objective 20-3 Explain how accounting systems affect control systems within the multinational enterprise.

Control Process

Head office and subunit management jointly determine subunit goals for the coming year.

Throughout the year, the head office monitors subunit performance against the agreed goals .

If a subunit fails to achieve its goals, the head office intervenes in the subunit to learn why the shortfall occurred, taking corrective action when appropriate.

©McGraw-Hill Education.

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Accounting Aspects of Control Systems 2 of 5

Accounting Process Assumes a Critical Role

Budget

Subsidiaries’ profits and ROI

©McGraw-Hill Education.

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Accounting Aspects of Control Systems 3 of 5

Exchange Rate Changes and Control Systems

The Lessard-Lorange Model

Three exchange rates that can be used to translate foreign currencies into the corporate currency

Initial rate

Projected rate

Ending rate

Internal forward rate

©McGraw-Hill Education.

Internal forward rate refers to a company-generated forecast of future spot rates.

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Accounting Aspects of Control Systems 4 of 5

Transfer Pricing and Control Systems

How should goods and services transferred between subsidiary companies in a multinational firm be priced?

The price at which goods are transferred is the transfer price

©McGraw-Hill Education.

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Accounting Aspects of Control Systems 5 of 5

Separation of Subsidiary and Manager Performance

May not be appropriate to use ROI for comparing and evaluating the managers of different subsidiaries.

The evaluation of a subsidiary should be kept separate from the evaluation of its manager.

©McGraw-Hill Education.

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Financial Management: The Investment Decision 1 of 6

Learning Objective 20-4 Discuss how operating in different nations affects investment decisions within the multinational enterprise.

Capital Budgeting

Used to quantify the benefits, costs, and risks of an investment

Enables managers to compare different investment alternatives within and across countries

©McGraw-Hill Education.

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Financial Management: The Investment Decision 2 of 6

Capital Budgeting Process

Estimate the cash flows associated with the project over time.

Once the cash flows have been estimated, they must be discounted to determine their net present value using an appropriate discount rate.

If the net present value of the discounted cash flows is greater than zero, the firm should go ahead with the project.

©McGraw-Hill Education.

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Financial Management: The Investment Decision 3 of 6

Project and Parent Cash Flows

The project may not be able to remit all its cash flows to the parent.

Cash flows may be blocked from repatriation by the host-country government.

Cash flows may be taxed at an unfavorable rate.

The host government may require that a certain percentage of the cash flows generated from the project be reinvested within the host nation.

©McGraw-Hill Education.

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Financial Management: The Investment Decision 4 of 6

Adjusting for Political and Economic Risk

Political risk

May result in the expropriation of foreign firms’ assets

Political and social unrest may also result in economic collapse, which can render worthless a firm’s assets.

May result in increased tax rates, the imposition of exchange controls that limit or block a subsidiary’s ability to remit earnings to its parent company, the imposition of price controls, and government interference in existing contracts

©McGraw-Hill Education.

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Financial Management: The Investment Decision 5 of 6

Adjusting for Political and Economic Risk continued

Economic risk

The biggest problem arising from mismanagement has been inflation.

Studies have shown a long-run relationship between a country’s relative inflation rate and changes in exchange rates.

However, this relationship is not totally reliable.

©McGraw-Hill Education.

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Financial Management: The Investment Decision 6 of 6

Risk and Capital Budgeting

Can treat all risk as a single problem by increasing the discount rate applicable to foreign projects in countries where political and economic risks are perceived as high

May penalize early cash flows too heavily and not penalize distant cash flows enough

Can revise future cash flows from the project downward to reflect the possibility of adverse political or economic changes sometime in the future

©McGraw-Hill Education.

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Financial Management: The Financing Decision

Learning Objective 20-5 Discuss the different financing options available to the foreign subsidiary of a multinational enterprise.

How will the foreign investment will be financed?

Use global capital market or borrow from sources in the host country

Cost of capital is typically lower in the global capital market, but host-country government restrictions may rule out this option.

Some governments court foreign investment by offering foreign firms low-interest loans, lowering the cost of capital.

Local debt financing

©McGraw-Hill Education.

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Financial Management: Global Money Management 1 of 4

Learning Objective 20-6 Understand how money management in the international business can be used to minimize cash balances, transaction costs, and taxation.

Minimizing Cash Balances

Firms generally prefer to hold cash balances at a centralized depository for three reasons:

The firm can deposit larger amounts.

If the centralized depository is located in a major financial center, it should have access to information about good short-term investment opportunities that the typical foreign subsidiary would lack.

The firm can reduce the total size of the cash pool it must hold in highly liquid accounts.

©McGraw-Hill Education.

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Financial Management: Global Money Management 2 of 4

Reducing Transaction Costs

Commissions to foreign exchange dealers

Transfer fees

Multilateral netting

Bilateral netting

©McGraw-Hill Education.

Transaction costs are costs of exchange.

Transfer fees are a bank charge for moving cash from one location to another.

Multilateral netting is a technique used to reduce the number of transactions between subsidiaries of the firm, thereby reducing the total transaction costs arising from foreign exchange dealings and transfer fees.

Bilateral netting is a settlement in which the amount one subsidiary owes another can be cancelled by the debt the second subsidiary owes the first.

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Figure 20.2 Cash flows before multilateral netting

©McGraw-Hill Education.

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Figure 20.4 Cash flows after multilateral netting

©McGraw-Hill Education.

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Financial Management: Global Money Management 3 of 4

Managing the Tax Burden

Double taxation

Occurs when the income of a foreign subsidiary is taxed both by the host-country government and by the parent company’s home government

Tax credit

Tax treaty

Deferral principle

Tax havens

©McGraw-Hill Education.

Tax credit allows a firm to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government.

Tax treaty is an agreement between two countries specifying which items of income will be taxed by the authorities of the country where the income is earned.

Deferral principle refers to the fact that parent companies are not taxed on the income of a foreign subsidiary until they actually receive a dividend from that subsidiary.

Tax haven is a country with an exceptionally low, or even no, income tax.

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Financial Management: Global Money Management 4 of 4

Learning Objective 2-7 Understand the basic techniques for global money management.

Moving Money across Borders

Dividend remittances

Royalty payments and fees

Transfer prices

Fronting loans

Unbundling

©McGraw-Hill Education.

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Figure 20.5 An example of the tax aspects of a fronting loan

©McGraw-Hill Education.

26

Appendix of Image Long Descriptions

©McGraw-Hill Education.

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Appendix 1 Figure 20.2 Cash flows before multilateral netting

A rectangle is created out of four subsidiaries (one in each corner): the Korean subsidiary, the Chinese subsidiary, the Taiwanese subsidiary, and the Japanese subsidiary. A series of arrows travel back and forth between each.

The Korean subsidiary sent 4 million dollars to the Chinese subsidiary, 5 million dollars to the Japanese subsidiary, and 6 million dollars to the Taiwanese subsidiary.

The Chinese subsidiary sent 3 million dollars to the Korean subsidiary, 5 million dollars to the Taiwanese subsidiary, and 3 million dollars to the Japanese subsidiary.

The Taiwanese subsidiary sent 3 million dollars to the Chinese subsidiary, 1 million dollars to the Japanese subsidiary, and 5 million dollars to the Korean subsidiary.

The Japanese subsidiary sent 2 million dollars to the Taiwanese subsidiary, 4 million dollars to the Korean subsidiary, and 2 million dollars to the Chinese subsidiary.

Return to original slide

©McGraw-Hill Education.

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Appendix 2 Figure 20.4 Cash flows after multilateral netting

The Korean subsidiary pays 3 million dollars to the Taiwanese subsidiary. The Chinese subsidiary pays 1 million dollars to the Taiwanese subsidiary. The Chinese subsidiary also pays 1 million dollars to the Japanese subsidiary.

Return to original slide

©McGraw-Hill Education.

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Appendix 3 Figure 20.5 An example of the tax aspects of a fronting loan

The Tax Haven Subsidiary deposits 1 million dollars into the London Bank. The London Bank loans 1 million dollars to the Foreign Operating Subsidiary. The Foreign Operating Subsidiary pays 9 percent interest (tax-deductible) to the London Bank. The London Bank pays 8 percent interest (tax-free) to the Tax Haven Subsidiary.

Return to original slide

©McGraw-Hill Education.

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Accounting homework help

1

2

Week 3 Strategic Management and Strategic Competitiveness Assignment

Student’s Full Name

Strayer University

BUS499 Business Administration Capstone

Professor’s Name

Date

Template Instructions (delete this page before submitting)

This template is provided to help you meet the assignment requirements.

This page should NOT be submitted with your assignment, as it is not part of an academically written paper. Note the “Clarity, writing mechanics, and formatting requirements” section of the grading rubric.


HOW TO USE THIS TEMPLATE

· Read the explanations provided in the template for each section of your paper.

· The explanations are in blue font below.

· You should have already read the assignment instructions in Blackboard.

· Type your response to each of the assignment requirements within the designated sections.

· Each assignment requirement is identified using a section Heading that is in black font

· DO NOT add extra spaces between sections.

· DO NOT change the margins.

· You are required to have a heading for each of the sections in your paper.

· The required headings have been provided for you.

· DO NOT delete, alter, or add anything to the section Headings.

· DO NOT type the assignment instructions into the sections.

· After typing your responses, change the font color to black and make sure it is not in bold.

· Be sure to change the font color on the title page to black after typing your name, professor’s name, and date.

· Everything in blue font below should be deleted and replaced with your responses.

· DELETE this entire page before you submit your assignment to avoid losing points.


REMINDERS

· The assignment is due in week 3.

· Do not copy content from previous assignments in this class or others.

· Late submissions negatively impact your grade.

· Include at least 4 full and complete academically written pages that address the requirements. The title page, this instruction page, and the source page do not count.

· Use at least 3 quality sources, one of which MUST be the course textbook.

· Strayer uses SafeAssign – an automated plagiarism checker. It is advised that you do your own writing and use external resources to support what you have written in your own words.

Week 3 Strategic Management and Strategic Competitiveness Assignment

Write your introduction here. Include one (1) paragraph (not more than 6 lines of text) that explains what your paper will discuss. Much of your introduction may be taken from the assignment instructions (in your own words). Read all assignment resources to understand what should be included in your paper. Be sure to review the assignment instructions in Blackboard, the grading rubric, and the recorded writing workshop to understand the requirements. Do not exceed 6 lines of text in this introduction. There should be no direct quotes in this section. After reading these instructions, replace this blue text with your introduction and change the font color to black.

Globalization

Thoroughly assess how globalization has impacted the public corporation you researched. Provide a thoughtful and well researched response. Consider for example, how your chosen company has been involved in expanding globally, how it has been impacted by global competition, and the global economy. Do not simply define the term globalization. If your company has locations in other countries, do not just state that your corporation has locations in other countries or simply list the various countries in which the company does business. You need to assess the impact globalization has had on your selected corporation.

Your assessment should demonstrate that you have read, understand, and can apply the globalization concepts covered in the textbook and course resources. You must consider the various aspects of globalization discussed in the course and make judgments about their impacts to your selected corporation. Do not write about globalization in general terms. Your assessment should be directly related to your selected corporation. Your writing here should thoroughly assess how globalization has impacted your chosen corporation. Do not Google “globalization”. You must display an understanding based on what is studied in this course and demonstrate an ability to apply the concepts in a real-world assessment of a corporation. Your textbook must be a source along with other credible sources that support the globalization concepts covered in this course. Read chapters 1-3 in the course textbook as each chapter provides a solid background on Globalization that applies to this section. Review the Week 1 & 2 Learn Readings for supporting content. Properly cite your sources and avoid the use of direct quotes. After reading these instructions, replace this blue text with your assessment and change the font color to black.

Technology

Thoroughly assess how technological changes have impacted the public corporation you researched. Provide a thoughtful and well researched response. Consider for example, how the company has been impacted by cloud computing, social media, crowdfunding, program apps, email, texting, websites, mobile, automation, robotics, IOT (Internet of Things), AI (Artificial Intelligence), e-commerce, data and analytics, etc. Research how the company may have been impacted by diffusion and disruptive technologies as explained in the textbook. Do not simply define the term technology. You will need to assess the impact changes in technology have had on your selected corporation.

Your assessment should demonstrate that you have read, understand, and can apply the technology concepts covered in the textbook and course resources. You must consider the various aspects of technological changes discussed in the course and make judgments about their impacts to your selected corporation. Do not write about technology in general terms. Your assessment should be directly related to your selected public corporation. If your company is technologically advanced, do not simply list the various technologies they possess but rather assess how changes in technology have impacted the corporation. You must display an understanding based on what is studied in this course and demonstrate an ability to apply the concepts in a real-world assessment of a corporation. Do not Google “technology”. Your writing here should thoroughly assess how changes in technology have impacted your chosen corporation.

Your textbook must be a source along with other credible sources that support the technology concepts covered in this course. You must display an understanding based on what is studied in this course. Read chapters 1-3 in the course textbook as each chapter provides a solid background on Technology that applies to this section. Review the Week 1 & 2 Learn Readings for supporting content. Cite your sources and avoid the use of direct quotes. After reading these instructions, replace this blue text with your assessment and change the font color to black.

Industrial Organization Model

Thoroughly apply the industrial organization model to determine how your corporation could earn above-average returns (i.e. revenue). This model is based upon the corporation’s external environment which is anything outside of the corporation that can influence or impact its business (macro)/operations (micro). Your application should walk through the components the model suggests are needed to earn above average returns. Hint: see Figure 1.2 in the textbook. Do not Google “Industrial Organization Model” or simply provide a definition or write in general terms. Your writing here should apply the components of the model, as described in the course material, to your specific corporation, demonstrate your understanding of the concepts, as described in this course, and demonstrate your ability to apply those concepts to a real-world corporation. Read chapter 1 as it provides a solid background on this model. Review the Week 1 Learn Readings for supporting content. Cite your sources and avoid the use of direct quotes. After reading these instructions, replace this blue text with your application and change the font color to black.

Resource-Based Model

Thoroughly apply the resource-based model to determine how your corporation could earn above-average returns (i.e. revenue). Consider the corporation’s unique resources (corporate culture, land, location, equipment, brand, reputation, trademarks, patents, etc.) and capabilities (skills, experience, etc.) that set it apart from its competition. Your application should walk through the components the model suggests are needed to earn superior returns. Hint: See Figure 1.3 in the textbook. Do not Google “Resource-Based Model” or simply provide a definition or write in general terms. Your writing here should apply the components of the model, as described in the course material, to your specific corporation, demonstrate your understanding of the concepts, as described in this course, and demonstrate your ability to apply those concepts to a real-world corporation. Read chapter 1 as it provides a solid background on this model. Review the Week 1 Learn Readings for supporting content. Cite your sources and avoid the use of direct quotes. After reading these instructions, replace this blue text with your application and change the font color to black.

Vision


Thoroughly assess how the vision statement of the corporation influences its overall success. Include the actual vision statement for your chosen company (be sure to quote and cite your source). Consider the key concepts discussed in chapter 1 regarding vision in your assessment of your selected corporation’s vision statement. Do not simply provide a definition of vision or make general statements. Do not simply copy and paste the vision statement. In addition to the actual vision statement for your corporation, your writing must demonstrate that you understand the concept of vision, as discussed in this course, and can assess the impact your corporation’s vision statement has on its overall success. You must consider the various aspects of vision statements discussed in the course and make judgments about their impacts to your selected corporation. The assessment is critical to this assignment requirement. Without an assessment you have not met the requirements. Read chapter 1 as it provides a solid background on vision. Review the Week 1 Learn Reading for supporting content. Cite your sources. After reading these instructions, replace this blue text with your assessment and change the font color to black.

Mission

Thoroughly assess how the mission statement of the corporation influences its overall success. Include the actual mission statement for your chosen company (be sure to quote and cite your source). Consider the key concepts discussed in chapter 1 regarding mission in your assessment of your selected corporation’s mission statement. Do not simply provide a definition of mission or make general statements. Do not simply copy and paste the mission statement. In addition to the actual mission statement of your selected corporation, your writing must demonstrate that you understand the concept of mission, as discussed in this course, and can assess the impact your corporation’s mission statement has on its overall success. You must consider the various aspects of mission statements discussed in the course and make judgments about their impacts to your selected corporation. The assessment is critical to this assignment requirement. Without an assessment you have not met the requirements. Read chapter 1 as it provides a solid background on missions. Review the Week 1 Learn Reading for supporting content. Cite your sources. After reading these instructions, replace this blue text with your assessment and change the font color to black.

Stakeholders

Thoroughly evaluate how each category of stakeholder, described in the textbook, impacts the overall success of your selected corporation. Do not Google “stakeholders” or simply provide a definition or list of stakeholders. You must provide an evaluation that demonstrates your understanding of each classification of stakeholders, as described in this course. Hint: See Figure 1.4. Do not write in general terms about stakeholders. Your evaluation must thoroughly and specifically describe how each classification of stakeholders impacts your selected corporation’s success. It is critical that you display your understanding of stakeholder classifications. Without the identification and evaluation of each of the stakeholder classifications, discussed in the course, you have not met the requirements. Read chapter 1 for additional background on Stakeholders and the Classifications, as it provides a solid background that applies to this section. Review the Week 1 Learn Reading for supporting content. Cite your sources and avoid the use of direct quotes. After reading these instructions, replace this blue text with your evaluation and change the font color to black.

Sources

1. Michael A. Hitt. 2020. Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th ed. Cengage Learning.

2. Author. Publication Date. Title. Page # (written as p. #). How to Find (e.g. web address)

3. Author. Publication Date. Title. Page # (written as p. #). How to Find (e.g. web address)

Accounting homework help

1

ACC 309 Final Project Guidelines and Rubric

Overview
In the accounting field, you will often be expected to both enter calculations accurately and articulate what this informatio n means to internal and external
stakeholders. In addition, you will be expected to propose financial solutions when a company is faced with a policy change, or when the company’s regulations
change. For this project, imagine that you have just started in a new role as a financial accountant preparing for a year -end audit. In addition, you are charged
with showing the financial impacts of the company’s recent initiatives. You will revise year-end financial statements to reflect these changes, compose notes to
the financial statements, and compose an executive summary to explain the impacts to stakeholders. You will create these documents based on information in
the Final Project Scenario and Final Project Workbook.

In this assignment, you will demonstrate your mastery of the following course competencies:

 ACC-309-01: Revise financial statements in accordance with applicable rules and regulations
 ACC-309-02: Analyze the financial impact of changes to an organization by internal and external factors

 ACC-309-03: Demonstrate ethical conduct in the process of correcting accounting records

Prompt
Specifically, the following critical elements must be addressed. Most of the critical elements align with a particular course competency (shown in brackets).

I. Workbook: Calculate relevant ratios, payouts, obligations, and prepare appropriate adjusting entries and revised financial statements. Be sure to
complete all tabs in the spreadsheet.

A. Calculate capital lease obligations for determining debt and depreciation. [ACC-309-02]
B. Calculate pension payouts to determine the company’s financial obligations. [ACC-309-01]
C. Prepare appropriate adjusting entries. [ACC-309-01]
D. Complete the Adjusted Trial Balance. [ACC-309-01]
E. Prepare revised financial statements for year-end audit that flow logically within the document. [ACC-309-01]
F. Prepare a statement of comprehensive income to ensure alignment with applicable rules and regulations. [ACC-309-01]
G. Determine the impact on earnings per share [ACC-309-02]
H. Prepare financial statements for year-end audit with appropriate changes that flow logically within the document. [ACC-309-01]

2

II. Notes to the Financial Statements
A. Compose appropriate footnotes within a statement of comprehensive income in accordance with applicable accounting standards, such as

GAAP, International Financial Reporting Standards, and SEC, as applicable. [ACC-309-03]

III. Executive Summary: Compose a report that appropriately communicates the impact of revisions to stakeholders.
A. Identify sources of other comprehensive income not included in net income. [ACC-309-01]
B. Explain rationale for inclusion as comprehensive income (as opposed to net income) of nondisclosure within notes. [ACC-309-02]
C. Evaluate impacts of company goals and finances for their implications on stockholder equity, using financial information to support claims.

[ACC-309-02]
D. Evaluate impacts of company goals and finances for their implications on retained earnings per share, using financial information to support

claims. [ACC-309-02]
E. Explain the impact of issuing preferred stock or debt for determining changes to equity structures. [ACC-309-02]
F. Assess the impact of changes to current tax structure for articulating changes relevant to the company. [ACC-309-02]
G. Explain the implications of capital lease based on how it relates to the company’s equipment usage. [ACC-30-02]
H. Explain how postretirement plans will impact the company financially in the short and long term, using examples from the workbook to support

claims. [ACC-309-02]
I. Evaluate the company’s current performance based on the outcomes of relevant ratio analysis. [ACC-309-02]
J. Discuss types of accounting changes encountered and when retrospective and prospective approaches should be used. [ACC-309-02]
K. Predict the impact of new credit policies or a change in product or markets based on relevant ratio analysis. [ACC-309-02]
L. Discuss relevant accounting standards for informing the company’s financial reporting strategies. [ACC-309-03]
M. Explain how the four-step process was used for effectively correcting and reporting errors in the revision process. [ACC-309-03]

Milestones
Milestone One
In Module Three, you will develop a portion of the workbook and a brief memo to management explaining the impacts to stockholder equity and the impact of
tax structures. This milestone will be graded with the Milestone One Rubric.

Milestone Two
In Module Five, you will develop a portion of the workbook and a brief memo to management explaining the impacts of accounting for postretirement benefits
and revision processes. This milestone will be graded with the Milestone Two Rubric.

Final Project Submission: Workbook, Notes to the Financial Statements, and Executive Summary
In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should
reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.

Zachary Higgs

3

In addition to revising your milestone work, make sure that you include the following elements from the prompt above, which were not included in the
milestones:

I. Workbook
A. Prepare appropriate adjusting entries and complete the Adjusted Trial Balance. [ACC-309-01]
B. Prepare revised financial statements for year-end audit that flow logically within the document. [ACC-309-01]
C. Determine the impact on earnings per share [ACC-309-02]

II. Notes to the Financial Statements

A. Compose appropriate footnotes within a statement of comprehensive income in accordance with applicable accounting standards, such as
GAAP, International Financial Reporting Standards, and SEC, as applicable. [ACC-309-03]

III. Executive Summary
A. Evaluate the company’s current performance based on the outcomes of relevant ratio analysis. [ACC-309-02]
B. Discuss types of accounting changes encountered and when retrospective and prospective approaches should be used. [ACC-309-02]
C. Predict the impact of new credit policies or a change in product or markets based on relevant ratio analysis. [ACC-309-02]
D. Discuss relevant accounting standards for informing the company’s financial reporting strategies. [ACC-309-03]
E. Explain how the four-step process was used for effectively correcting and reporting errors in the revision process. [ACC-309-03]

Final Project Rubric
Guidelines for Submission: Your workbook must be submitted as a MS Excel Document, and your Executive Summary must be 2–3 pages in length and must be
written in APA format. Use double spacing, 12-point Times New Roman font, and one-inch margins.

Critical Elements Exemplary Proficient Needs Improvement Not Evident Value

Workbook: Capital
Lease Obligations

[ACC-309-02]

Calculate capital lease
obligations for determining
debt and depreciation (100%)

Calculates capital lease
obligations, but calculations are
inaccurate or incomplete (55%)

Does not identify sources of
other comprehensive income
not included in net income (0%)

3.12

Workbook: Pension
Payouts

[ACC-309-01]

Calculates pension payouts for
determining the company’s
financial obligations (100%)

Calculates pension payouts, but
calculations are inaccurate or
incomplete (55%)

Does not calculate pension
payouts (0%)

5.28

Workbook: Adjusting
Entries

[ACC-309-01]

Prepare appropriate adjusting
entries (100%)

Prepares appropriate adjusting
entries, but calculations are
inaccurate or incomplete (55%)

Does prepare adjusting entries
(0%)

5.28

Zachary Higgs

4

Critical Elements Exemplary Proficient Needs Improvement Not Evident Value

Workbook: Adjusted
Trial Balance
[ACC-309-01]

Completes the Adjusted Trial
Balance (100%)

Completes the Adjusted Trial
Balance, but calculations are
inaccurate or incomplete (55%)

Does not complete adjusted
trial balance (0%)

5.28

Workbook: Revised
Financial Statements

[ACC-309-01]

Prepares revised financial
statements for year-end audit
that flow logically within the
document. (100%)

Prepares revised financial
statements for year-end audit,
but the statements do not flow
logically within the document,
or revisions contain
inaccuracies (55%)

Does not prepare revised
financial statements for year-
end audit (0%)

5.28

Workbook:
Statement of

Comprehensive
Income

[ACC-309-01]

Prepares a statement of
comprehensive income to
ensure alignment with
applicable rules and regulations
(100%)

Prepares a statement of
comprehensive income, but
statement does not align with
applicable rules and
regulations, contains
inaccuracies or is missing key
elements (55%)

Does not prepare a statement
of comprehensive income (0%)

5.28

Workbook:
Earnings per Share

[ACC-309-02]

Determines the impact on
earnings per share (100%)

Determines the impact on
earnings per share, but
calculations are inaccurate or
incomplete (55%)

Does not determine the impact
on earnings per share (0%)

3.12

Notes to Financial
Statements:
Footnotes

[ACC-309-03]

Meets proficient criteria and
footnotes included
demonstrate a keen grasp of
applicable accounting
standards (100%)

Composes appropriate
footnotes within a statement of
comprehensive income in
accordance with applicable
accounting standards, such as
GAAP, International Financial
Reporting Standards, and SEC,
as applicable (85%)

Composes appropriate
footnotes within a statement of
comprehensive income in
accordance with applicable
accounting standards, such as
GAAP, International Financial
Reporting Standards, and SEC,
as applicable, but footnotes
lack detail, are illogical or are
missing key elements (55%)

Does not compose appropriate
footnotes within a statement of
comprehensive income (0%)

10.56

Executive Summary:
Comprehensive

Income
[ACC-309-01]

Meets proficient criteria, and
explanation demonstrates a
sophisticated awareness of
topic (100%)

Explains rationale for inclusion
as comprehensive income or
other comprehensive income
(as opposed to net income) of
nondisclosure within notes
(85%)

Explains rationale for inclusion
as comprehensive income (as
opposed to net income) of
nondisclosure within notes, but
notes are inaccurate or missing
key elements (55%)

Does not explain rationale for
inclusion as comprehensive
income (0%)

5.28

5

Critical Elements Exemplary Proficient Needs Improvement Not Evident Value

Executive Summary:
Stockholder Equity

[ACC-309-02]

Meets proficient criteria, and
financial information used to
support claims demonstrates a
complex grasp of implications
on stockholder equity and
retained earnings per share
(100%)

Describes impacts of company
goals and finances for their
implications on stockholder
equity, including retained
earnings per share, using
financial information to support
claims (85%)

Describes impacts of company
goals and finances for their
implications on stockholder
equity, but explanation or
information used to support
claims is illogical or contains
inaccuracies (55%)

Does not evaluate impacts of
company goals and finances for
their implications on
stockholder equity (0%)

3.12

Executive Summary:
Preferred Stock or

Debt
[ACC-309-02]

Meets proficient criteria and
explanation demonstrates a
sophisticated awareness of the
impact of issuing preferred
stock or debt for determining
changes to equity structures
(100%)

Explains the impact of issuing
preferred stock or debt for
determining changes to equity
structures (85%)

Explains the impact of issuing
preferred stock or debt for
determining changes to equity
structures, but explanation is
cursory or illogical (55%)

Does not explain the impact of
issuing preferred stock or debt
(0%)

3.12

Executive Summary:
Current Tax

Structure
[ACC-309-02]

Meets proficient criteria and
assessment of relevant changes
demonstrates a sophisticated
awareness of taxation impacts
(100%)

Assesses the impact of changes
to current tax structure for
articulating changes relevant to
the company (85%)

Assesses the impact of changes
to current tax structure for
articulating changes relevant to
the company, but assessment is
cursory or illogical (55%)

Does not assess the impact of
changes to current tax
structure (0%)

3.12

Executive Summary:
Capital Lease
[ACC-309-02]

Meets proficient criteria and
explanation demonstrates a
sophisticated awareness of the
implications of capital lease
(100%)

Explains the implications of
capital lease based on how it
relates to the company’s
equipment usage (85%)

Explains the implications of
capital lease based on how it
relates to the company’s
equipment usage, but
explanation is cursory or
illogical (55%)

Does not explain the
implications of capital lease
(0%)

3.12

Executive Summary:
Post-retirement

Plans
[ACC-309-02]

Meets proficient criteria and
examples used to support ideas
demonstrate a nuanced
understanding of how post
retirement plans will impact the
company financially (100%)

Explains how post-retirement
plans will impact the company
financially short and long-term,
using examples from the
balance sheet to support claims
(85%)

Explains how post retirement
plans will impact the company
financially, but examples
provided are cursory or illogical
(55%)

Does not explain how post-
retirement plans will impact the
company (0%)

3.12

Executive Summary:
Current Performance

[ACC-309-02]

Meets proficient criteria and
evaluation and supporting
information demonstrates a
nuanced understanding of
topics (100%)

Evaluates the company’s
current performance based on
the outcomes of relevant ratio
analysis (85%)

Evaluates the company’s
current performance, but use
of relevant ratio analysis to
support evaluation is cursory,
illogical or inaccurate (55%)

Does not evaluate the
company’s current
performance (0%)

3.12

6

Critical Elements Exemplary Proficient Needs Improvement Not Evident Value

Executive Summary:
Retrospective and

Prospective
Approaches

[ACC-309-02]

Meets proficient criteria and
discussion of changes
encountered and retrospective
and prospective approaches
demonstrates a nuanced
understanding of accounting
approaches (100%)

Discusses types of accounting
changes encountered for
informing when retrospective
and prospective approaches
should be used (85%)

Discusses types of accounting
changes encountered, but
explanation of when
retrospective and prospective
approaches should be used is
cursory, illogical or contains
inaccuracies (55%)

Does not discuss types of
accounting changes
encountered (0%)

3.12

Executive Summary:
New Credit Policies

[ACC-309-02]

Meets proficient criteria and
relevant ratio analysis used
demonstrates a sophisticated
awareness of impacts on credit
policies, and change in product
or markets (100%)

Predicts the impact of new
credit policies, change in
product or markets based on
relevant ratio analysis (85%)

Predicts the impact of new
credit policies, change in
product or markets, but
relevant ratio analysis used is
illogical or contains
inaccuracies (55%)

Does not predict the impact of
new credit policies or change in
products or markets (0%)

3.12

Executive Summary:
Accounting
Standards

[ACC-309-03]

Meets proficient criteria and
Discussion of relevant
accounting standards
demonstrates sophisticated
awareness of how accounting
standards apply to financial
reporting (100%)

Discusses relevant accounting
standards for informing the
company’s financial reporting
strategies (85%)

Discusses relevant accounting
standards for informing the
company’s financial reporting
strategies, but application is
cursory illogical or contains
inaccuracies (55%)

Does not discuss relevant
accounting standards (0%)

10.56

Executive Summary:
Four-Step Process

[ACC-309-03]

Meets proficient criteria and
explanation of how the four
step process was used
demonstrates a nuanced
understanding of the process
(100%)

Explains how the four step
process was used for effectively
correcting and reporting errors
in the revision process (85%)

Explains how the four-step
process was used for correcting
and reporting errors, but
explanation is cursory, illogical
or contains inaccuracies (55%)

Does not explain how the four
step process was used to
correct and report errors (0%)

10.56

Articulation of
Response

Submission has no major errors
related to, grammar, spelling,
syntax, or organization (100%)

Submission has few minor
errors related to organization,
grammar and style (85%)

Submission has several errors
related to, grammar, spelling,
syntax, or organization (55%)

Submission has major errors
related to, grammar, spelling,
syntax, or organization that
negatively impact readability
and articulation of main ideas
(0%)

5.44

Total 100%

Accounting homework help

A621, Managerial Accounting

Term paper using an accounting software

Procedures:

Step 1: You should select one of the following topics:

i. Product cost calculation in hospitals and other healthcare facilities industries

ii. Product cost calculation in construction companies

iii. Product cost calculation in software companies

iv. Break-even point calculation in hospitals and other healthcare facilities

industries

v. Break-even point calculation in construction companies

vi. Break-even point analysis

vii. Break-even point calculation in software companies

viii. Budgetting specific issues in hospitals and other healthcare facilities industries

ix. Budgetting specific issues in construction companies

x. Budgetting specific issues in software companies

xi. Product pricing specific issues in multinational corporations

xii. Product costing specific issues in multinational corporations

xiii. Variance analysis

Step 2: You should find accounting/business software that clearly has an option to perform your

selected topic.

Step 3: You should write a term paper that includes the following sections:

A. Explanation of your topic and its application for managerial decision-making. You

should review and cite at least three scholarly papers listed on Google Scholar or

ProQuest/ABI Inform database, which is available on the library website. You cannot

copy and past from these papers, but you can explain what the author(s) says in

support of your argument. The style of citing the papers in the text and the

reference section shall be compatible with the APA format.

B. Explanation of the selected software and how you can perform you selected topics

using your selected software. Include several screenshots of the software in the

areas when you are explaining your selected software and topic.

C. Explanation of any suggestion to improve the application of your selected topic and

the software for the practice.

Step 4: Prepare a 15-minute class presentation (the last class).

Step 5: Upload your term paper and presentation PPS to Canvas using a link that will be posted.

Good Luck

Accounting homework help

96

Myšková, R., & Hájek, P. (2017). Comprehensive assessment of firm financial
performance using financial ratios and linguistic analysis of annual reports. Journal
of International Studies, 10(4), 96-108. doi:10.14254/2071-8330.2017/10-4/7

Comprehensive assessment of firm
financial performance using financial
ratios and linguistic analysis of annual
reports

Renáta Myšková

Institute of Business Economics and Management, Faculty of

Economics and Administration, University of Pardubice

Czech Republic

renata.myskova@upce.cz

Petr Hájek

Institute of System Engineering and Informatics, Faculty of Economics

and Administration, University of Pardubice,

Czech Republic

petr.hajekl@upce.cz

Abstract. Indicators of financial performance, especially financial ratio analysis, have

become important financial decision-support information used by firm

management and other stakeholders to assess financial stability and growth

potential. However, additional information may be hidden in management

communication. The article deals with the analysis of the annual reports of U.S.

firms from both points of view, a financial one based on a set of financial ratios,

and a linguistic one based on the analysis of other information presented by

firms in their annual reports. Spearman correlation coefficient is used to

compare the values of financial and linguistic indicators. For the purpose of the

comprehensive assessment, novel word lists are proposed, specifically designed

for each category of financial analysis. The aim is to assess the information

ability of annual reports and whether successful firms present their results

precisely or not. The results show that the proposed topic dictionaries can be

beneficial, especially for the assessment of cash flow and leverage ratios.

Keywords: financial ratio, financial analysis, topic analysis, dictionary, word list.

JEL Classification: C34, G31, G33

Received:
May, 2017

1st Revision:
July, 2017

Accepted:
October, 2017

DOI:
10.14254/2071-

8330.2017/10-4/7

Journal
of International

Studies

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© Foundation
of International

Studies, 2017
© CSR, 2017

Renáta Myšková, Petr Hájek
Comprehensive assessment of firm financial

performance using financial ratios and …

97

1. INTRODUCTION

Financial stability of a firm is associated with its ability to generate profit, increase the value of

invested capital and at the same time repay its short- and long-term liabilities. Assessment of financial

performance is primarily based on various methods of financial analysis. The choice of methods is mainly

influenced by the purpose of use, time criteria, character of information resources or the degree of

algorithm development. The aim is to achieve the desired level of complexity in evaluating firm and its

activities.

In the practise of financial analysis, financial ratios are mainly used for their simplicity and additional

information value. These ratios make it possible to analyze the evolution of the financial situation of a

firm (trend analysis), cross-sectional analysis and comparative analysis. Financial ratios can be categorized

into the indicators of productivity, profitability, cost, liquidity, solvency, capital structure, and capital

market indicators. Financial ratios are the most popular and most widely used methods of financial

analysis also because they can be used as input data of more complex mathematical models. On the other

hand, some authors prefer purposeful selection of indicators, for example, as in DuPont decomposition

(Burns et al., 2008), creditworthiness (diagnostic) models or bankruptcy (predictive) models (Beaver et al.,

2010; Apergis et al., 2011). Predictive models based on the real-life financial data are considered essential,

such as Altman model and its modifications as well as Ohlson model.

To assess the results and to predict future financial development of a firm it is necessary to connect

data from financial analysis and other information that the firm itself presents mainly in its annual report.

This is mainly a verbal analysis of the causes that led to the attainment of positive or negative financial

results. Annual reports also present company’s managerial priorities.

Assuming that firm management monitors all aspects of financial health through financial analysis, a

set of indicators cannot only be chosen to evaluate financial performance, but it should also be monitored

and assessed whether the results achieved are commented and explained in the textual sections of annual

reports. The aim of this article is to assess the information ability of firm annual reports in terms of

comments on financial performance using both existing and novel dictionaries proposed by the authors.

The novelty of this approach lies in the proposal of several dictionaries specifically for financial analysis.

In addition, it is examined how the frequency of words related to financial analysis correlates with the

firms’ financial performance in terms of financial ratios. The performance of these dictionaries is

compared with those proposed by Loughran and McDonald (2011) and demonstrate that our novel

dictionaries performed better for liquidity and leverage ratios, in particular.

The remainder of this paper has been organized as follows. The next section reviews the related

literature. Next, research methodology is introduced. Section 3 describes the process of data collection

and their descriptive statistics. Section 4 examines the correlations between the proposed word lists and

financial indicators. Our conclusions and future research directions are drawn in the final section.

2. LITERATURE REVIEW

The potential of financial analysis in assessing the financial health of the firm and its performance has

attracted considerable attention in recent literature (e.g. Kotane & Kuzmina-Merlino, 2012; Beaver et al.,

2010; Kovárík & Klímek, 2012; Brendea, 2014; Lee, 2014; Kubenka, 2016). However, the linguistic

evaluation of firm activities has been increasingly important for the overall evaluation of financial

performance due to the loss of informative value of financial indicators (Beaver et al., 2005). Moreover,

the comments provided by the firm management are also important for the correct interpretation of

financial results.

Journal of International Studies

Vol.10, No.4, 2017

98

Financial results have recently been studied together with linguistic information to achieve more

accurate financial decision-making models (Loughran & McDonald, 2011; Davis et al., 2012; Engelberg

et al., 2012; Zuchewicz, 2012; Deaconu et al., 2016; Achim, 2016). Thus, financial performance can be

examined in relation to managerial behaviour (Merkl-Davies et al., 2011) and the expected reactions of

stakeholders (Yekini, Wisniewski, & Yuval, 2016). The necessity of merging qualitative and quantitative

assessment is mentioned in the evaluation of all types of firms, financial (Belás, 2012; Todea & Lazar,

2012) and non-financial (Cardinaels & van Veen-Dirks, 2010; Golas & Kurzawa, 2016), although a bias

resulting from the subjectivity of the qualitative assessment has been referred to by several authors (Hitz,

2007; Gottdiener, 2008).

Previous research on textual analysis of company related texts was surveyed by Kearney and Liu

(2014), Nassirtoussi et al. (2014) and Loughran and McDonald (2016). Significant differences of word

categories has been observed for firms with low/high earnings and stock returns (Li, 2008), stock market

volatility (Loughran & McDonald, 2011), market-to-book ratio (Myskova & Hajek, 2016), return on assets

(Davis et al, 2012), credit ratings (Hajek & Olej, 2013), Altman Z-score (Hajek et al., 2014). However, the

dictionaries used previously are mostly limited with the focus on general linguistic categories, particularly

on positive and negative sentiment. Dictionaries focused on specific areas of financial decision-making has

been used only rarely (Myskova & Hajek, 2015).

3. METHODOLOGY

To achieve the objective defined in the previous section, the following hypothesis can be posed: the

management of the firm with better financial results comments the firm’s financial performance in their

annual reports in more detail compared with those performing financially worse. To test this hypothesis,

the following research methodology was used:

1. Create a subset of financial ratios and perform the financial analysis;

2. Develop dictionaries (word lists) to assess the scope and structure of managerial comments

to the financial ratios in annual reports,

3. Apply the novel dictionaries, together with existing dictionaries, to a dataset of annual

reports test the hypothesis. The analysis was performed using Spearman correlation

coefficient due to the absence of normal distribution for financial and linguistic variables.

The source of information for financial analysis was a set of annual reports for 1380 U.S. firms listed

in major U.S. stock exchanges for the year 2013 (www.sec.gov/edgar.shtml). In the year 2013, major U.S.

stock exchanges returned to growth. Investor sentiment was also more optimistic compared with previous

years. This trend has remained to the present day. Therefore, it can be expected that with better financial

performance, the managerial comments will also be more optimistic and more focused on financial ratios.

On the other hand, the results for more recent years should be analysed with caution as managers begin to

be aware of the importance of the sentiment and content of their comments on stakeholders’ behaviour.

Financial analysis includes the selection of appropriate financial ratios and their calculation for the

reporting period. The overall financial evaluation was based on the following points of view:

1. operating – the ratios of profitability, capital return and capital turnover – to predict and plan

future financial performance,

2. investment – indicators to determine firm attractiveness for investors,

3. financial structure and solvency – indicators evaluating firm structure in terms of ability to

meet obligations – short-term (liquidity) and long-term (gearing).

The problem in assessing the indicators of profitability may be the use of different profit

modifications. Preference in expressing earnings can be characterized as follows. Earnings After Taxes

Renáta Myšková, Petr Hájek
Comprehensive assessment of firm financial

performance using financial ratios and …

99

(EAT) is important from the perspective of the owner because it represents a profit to be distributed. On

the other hand, Earnings Before Taxes (EBT) is preferable in terms of comparability of firms from

countries with different taxation or changes in tax rates over time. When accentuating the growth in

revenue and cost control, Earnings Before Interest and Taxes (EBIT) is usually applied. Return on Equity

(ROE), Return on Assets (ROA) and Return on Sales (ROS) were selected to represent profitability ratios.

The ROE is widely used in practice although it is sometimes criticized for not taking into account the

problem of risk associated with business activities and the size of the initial capital invested or future

income (Brigham & Houston, 2006; Parrino & Kidwell, 2009), so it is difficult to correctly assess the

effect on shareholder value. ROE value (usually expressed in percentage) should be higher than the

interest at which the firm can borrow external capital. ROA is the ratio of EBIT to total assets invested in

the business. It allows us to compare firms with different proportions of debt in financial resources.

According to the theory of corporate finance, the value of ROA can be assessed as follows: > 15%

denotes a very good position of the firm, 12%-15% a good position, 8%-12% a moderate position, < 8%

a poor position, and at 0% is the firm’s existence at risk. ROS reflects the firm’s profit margin and is

calculated with EBIT because it eliminates the effect of various capital structures and possibly a different

level of taxation.

Activity indicators were represented by Total Assets Turnover Ratio. The value of this ratio greater

than 1 is usually deemed acceptable, while the optimum recommended value is 1.5. Firms with lower

values of this ratio should consider the reduction of assets.

For the purpose of market evaluation, indicators were selected as follows: price to equity (P/E),

market price to book value (PBV) (also referred as Market-to-Book Ratio), and payout ratio. When

assessing the optimal level of P/E, the relatively high value of the indicator signals the possibility of a

larger dividend growth, whereas lower value of the P/E may indicate a greater risk or low growth

potential. The advantage of the PBV is its focus on multiple components of equity, not only on net

income. The PBV indicator should be higher than 1.

Payout ratio is basically a market indicator, but it can significantly boost investor interest because it

shows what portion of the net income is paid out to shareholders in the form of dividends.

The financial structure of the firm was assessed in terms of liquidity. Given that the liquidity of the

firm is related to a certain amount of relatively free capital, the indicator of Net Working Capital (NWC)

was monitored relatively to total assets. Liquidity was also assessed with respect to cash to total assets ratio

(the portion of a firm’s assets held in cash or marketable securities).

Other selected cash flow indicators were free cash flow to the firm (FCFF) and free cash flow to the

equity (FCFE). The fact that the company has the necessary capital to invest can be assessed, among

others, in the form of retained earnings for further development. Therefore, the ratio of retained earnings

to total assets (RetEar/TA) was monitored.

Total leverage (also referred to as an indicator of credit risk) is determined by the ratio of total debt

to total assets of the firm. The average value of the total debt should reach 0.3 to 0.5. Lower values are

considered ineffective, while values above 0.7 are deemed risky. Book value of debt includes short-term

and long-term liabilities, but trade payables and accrued liabilities are not taken into account.

The long-term debt was also investigated as a ratio of long-term debt to equity and financial leverage.

In the U.S., financial leverage is monitored in terms of shareholders’ equity, so as the ratio of long-term

(total) liabilities / shareholder’s funds. Generally, the leverage ratio is based on the fact that external

capital is usually cheaper than the internal one until the firm is able to increase the value of every dollar of

capital more than the interest rate on the debt. The index of financial leverage, this is the ratio of ROE to

ROA, should always be greater than 1.

Journal of International Studies

Vol.10, No.4, 2017

100

To create dictionaries for assessing the extent and structure of the comments on the financial ratios

in annual reports, it was necessary to define a list of keywords for each category of financial indicators.

Sample list of these words for the financial analysis is presented in Table 1. It is clear that just as strong

correlations can be expected between the indicators of financial analysis, overlaps also exist in the case of

the proposed dictionaries. In fact, several words (phrases) are included in multiple categories. From the

proposed word lists it is also clear that the purpose of these dictionaries is not to obtain a

positive/negative context.

Table 1

Word lists for financial analysis (FA)

Category Word list

FA-Profitability profit, earnings, return on, margin, income

FA-Activity

additions to assets, revaluation of assets, devaluation of assets, capital acquisition,

assets acquisition, payback, debtors turnover, debtors days, stock day ration, average

collection period, stock turnover, inventory turnover, stock turnover, credit day ratio,

debt payment period, debt service coverage , total assets turnover, turnover of fixed

assets, asset turnover, commitments turnover, capital productivity, capacity utilization

rate, capital turnover, sales per employee, revenue per employee, operating cycle,

operational performance, operating performance, days inventory, days sales, days

payable, operating revenue to total assets, working capital to sales, sales to total assets,

enterprise value to sales

FA-Market

dividend cover, dividend yield, per share, payout ratio, plowback ratio, sustainable

growth rate, market-to-book, price-to-book, ordinary share, preferred share, proposed

dividend, share value above par, total return, current share price, price earnings, price-

to-earnings, price cash flow, price to cash flow, e.p.s., equity investor, growth

investor, value investor, profit attributable to ordinary shareholders, ordinary shares in

issue, common shares outstanding, earnings per ordinary share, rate of return,

earnings yield, capital gearing ratio, debentures, valuation ratio, earnings growth, stock

price, market value, P/E, earnings per share, growth stock, PEG ratio, price sales,

price to sales, enterprise value, market capitalization, retained earnings, reinvestment

rate, payout ratio, beta

FA-Liquidity
liquidity, cash position, current ratio, current savings, net working capital, non-cash

working capital, cash ratio, quick ratio, acid-test, cash conversion cycle, liquid assets

FA-Cash flow
cash return, cash value added, cash payments, average collection period, cash-flow,

cash requirements, repayments of existing loans, cash shortfall, cash flow

FA-Leverage

interest coverage, insolvency, debt ratio, equity ratio, debt-equity ratio, debt to equity,

fixed charge coverage, collateral to debt, acquire to pay, acquire to repay, long-term

solvency, long-term liabilities, current liabilities, noncurrent liabilities, short-term

liabilities, cash payments, book debt, book value to equity, market value to equity,

book value to capital, market value to capital, total debt, net gearing, leverage ratio,

capitalization ratio, interest coverage, cash flow to debt, indebtedness, total liabilities

The overall frequency of words in a given category only shows how much attention the firm’s

management devoted to this category in its communication with stakeholders. In the next section the

hypothesis will be verified that the better results the firm in the category reached, the more space is

devoted to this category in the associated text of the annual report. To demonstrate the benefits of topic

analysis in the text of the annual reports, the results will also be compared with commonly used

Renáta Myšková, Petr Hájek
Comprehensive assessment of firm financial

performance using financial ratios and …

101

dictionaries proposed in previous studies not only for the general analysis of the text but also specifically

for the analysis of financial texts. Dependencies between the dictionaries of financial analysis and other

tested dictionaries will also be showed.

The set of financial ratios presented in the previous section was collected for the year 2013 from the

financial statements of the annual reports of 1380 U.S. firms listed on the New York Stock Exchange

(NYSE) or Nasdaq (source: http://www.reuters.com/finance/global-market-data). Specifically, financial

ratios from the following categories were included: (1) profitability (ROA, ROE, and ROS), (2) activity

(S/TA), (3) market (P/E, PBV, payout ratio, and dividend yield), (4) liquidity (cash/TA, and NWC/TA),

(5) cash flow (FCFF, FCFE, and RetEar/TA), and (6) leverage ratios (BD/TA, and MVEq/BVdebt). For

basic descriptive statistics, see Table 2.

Table 2

Descriptive statistics of financial ratios

Category Financial ratio Mean St.Dev.

Profitability ROA 0.365 3.881

ROE 0.152 2.108

ROS 0.025 2.043

Activity S/TA 0.842 11.240

Market P/E 45.3 238.6

PBV 6.505 54.558

Payout ratio 0.537 3.083

Dividend yield 0.014 0.023

Liquidity Cash/TA 0.073 0.093

NWC/TA 0.281 3.840

Cash flow FCFF -212.1 5387.2

FCFE -57.8 4150.0

RetEar/TA 2.037 29.672

Leverage BD/TA 0.482 0.202

MVEq/BVdebt 1.979 5.825

Legend: ROA is return on assets, ROE is return on equity, ROS is return on sales, S are sales, TA are total

assets, P/E is price to equity, PBV is market price to book value, NWC is net working capital, FCFF is free cash

flow to the firm, FCFE is free cash flow to the equity, RetEar are retained earnings, BD is book debt, MVEq is

market value of equity, BVdebt is book value of debt.

In addition to the financial statements, the textual communication of management with stakeholders

in annual reports (Item 7. Management’s Discussion and Analysis (MD&A) of Financial Condition and

Results of Operations in 10-K filings) was also pre-processed. The MD&A section is considered the most

important part of 10-K filing in previous literature (Kearney and Liu, 2014).

To compare the performance of the dictionaries proposed in this study specifically for financial

analysis, other dictionaries were also used that were predominantly employed in previous studies. The

general dictionaries were represented by five general semantic features of Diction 7.0 (Hart, 2001), namely

certainty, optimism, realism, activity, and commonality. These features were calculated from the series of

35 word categories. Diction 7.0 and more related resources can be obtained at

http://www.dictionsoftware.com/.

However, general dictionaries performed relatively poorly in previous related studies (Loughran &

McDonald, 2011; Henry & Leone, 2016). Therefore, several finance-specific dictionaries have been

developed to address specific needs of financial texts. A set of extensive dictionaries were developed by

Journal of International Studies

Vol.10, No.4, 2017

102

Loughran and McDonald (2011). These dictionaries have received much interest in recent related

literature (Hajek et al., 2014; Myskova & Hajek, 2016; Henry & Leone, 2016). The following categories are

included in these finance-specific dictionaries: positive, negative, uncertainty, litigious, and modal. Word

lists for each of these dictionaries can be downloaded at http://www3.nd.edu/~mcdonald/

Word_Lists.html. To address the ambiguous use of positive words, a collocation analysis was performed

of negation words (no, not, none, neither, never, and nobody) occurring within three words preceding a

positive word. Additionally, the net positive category was calculated as (Positive – Negative) / (Positive +

Negative) (Henry, 2008). In agreement with previous studies (Engelberg et al., 2012; Garcia, 2013), the

raw term frequency of word categories was divided by the length of the MD&A. Thus, the length of

documents was considered and all words in each category was treated as synonyms. The descriptive

statistics of the dictionaries from prior studies are presented in Table 3.

Table 3

Descriptive statistics of dictionaries

Source Dictionary Mean St.Dev.

Loughran and McDonald (2011) POSITIVE 0.013 0.002

NEGATIVE 0.027 0.005

UNCERTAINTY 0.014 0.003

LITIGIOUS 0.011 0.003

MODAL 0.001 0.000

NETPOSITIVE -0.342 0.098

DICTION 7.0 (Hart, 2001) CERTAINTY 0.018 0.007

OPTIMISM 0.020 0.004

REALISM 0.300 0.029

ACTIVITY 0.023 0.006

COMMONALITY 0.028 0.004

Similarly to the previously introduced general and finance-specific dictionaries, the raw term

frequency of word categories for financial analysis were normalized to the length of documents.

Descriptive statistics of the dictionaries are presented in Table 4. On average, words related to leverage

ratios were present most frequently, followed by activity and market ratios.

Table 4

Descriptive statistics of dictionaries for financial analysis

Dictionary Mean St.Dev.

FA-PROFITABILITY 0.007 0.002

FA-ACTIVITY 0.019 0.004

FA-MARKET 0.009 0.002

FA-LIQUIDITY 0.002 0.001

FA-CASH FLOW 0.006 0.004

FA-Leverage 0.030 0.005

4. EMPIRICAL RESULTS AND DISCUSSION

The analysis of relationships between financial ratios and dictionary frequencies was performed using

Spearman correlation coefficients. First, the financial ratios were compared with the finance-specific

dictionaries proposed by Loughran and McDonald (2011). Table 5 shows that positive (and net positive)

Renáta Myšková, Petr Hájek
Comprehensive assessment of firm financial

performance using financial ratios and …

103

word categories were strongly correlated with all categories of financial ratios, except liquidity ratios.

Specifically, profitability and activity ratios were positively correlated with positive words. Moreover,

profitability ratios were also negatively correlated with negative and modal words. In terms of assessing

financial indicators, therefore, this dictionary is particularly suited to looking for positive or negative

comments, not only with respect to the results presented in Table 5 but also due to the occurrence of the

monitored words (see Table 3).

Table 5

Spearman correlation coefficients between financial ratios and finance-specific dictionaries

POSITIVE NEGATIVE UNCERTAINTY LITIGIOUS MODAL NETPOSITIVE

ROA 0.282 -0.056 0.015 -0.158 -0.260 0.275

ROE 0.106 -0.188 -0.065 -0.091 -0.177 0.240

ROS 0.025 -0.124 -0.037 -0.032 -0.182 0.125

S/TA 0.448 0.112 0.049 -0.225 -0.265 0.283

P/E 0.158 0.048 0.142 -0.059 -0.020 0.111

PBV 0.295 -0.017 0.080 -0.046 -0.157 0.272

Payout ratio -0.128 -0.114 -0.117 0.036 -0.037 -0.009

Dividend yield -0.162 -0.178 -0.173 -0.009 -0.074 0.018

Cash/TA -0.003 0.091 -0.008 0.111 0.098 -0.086

NWC/TA -0.005 0.093 -0.008 0.109 0.097 -0.087

FCFF 0.230 0.040 -0.019 -0.066 -0.095 0.157

FCFE 0.145 -0.050 0.003 -0.018 -0.073 0.160

RetEar/TA -0.088 -0.145 -0.018 0.007 0.013 0.039

BD/TA -0.142 -0.020 -0.078 0.087 0.052 -0.101

MVEq/BVdebt 0.139 0.022 0.075 -0.088 -0.053 0.097

Legend: significant correlations at P=0.05 are marked in bold.

In the second run of experiments, the correlations between financial ratios and the frequencies of

general Diction 7.0 word lists were calculated. Table 6 shows that activity ratios were strongly correlated

with active words, and liquidity ratios were positively correlated with optimism in MD&A communication.

Furthermore, a higher frequency of realistic words was positively associated with higher leverage. The

negative correlations between realism and profitability ratios also suggest that realism cannot be simply

considered positive in the text of managerial communication. Therefore, if the dictionary is used,

comments on profitability cannot be considered very objective, but it is possible to obtain additional

information about the cash-flow management activities and the use of external resources.

Thirdly, the correlations between the financial ratios and the proposed dictionaries for financial

analysis were examined. Table 7 presents the Spearman correlation coefficients for these word lists. Most

strikingly, profitability, activity, liquidity and leverage dictionaries were positively correlated with the

corresponding financial ratios. These results correspond to our hypothesis.

However, market ratios were strongly correlated with the word list for activity, instead of market

dictionary. The reason could be that the comments focused on justifying the level of market indicators in

terms of asset management, respectively in terms of turnover or tied-up capital, as the majority

shareholders are particularly interested in this area. The development of market indicators responds to

investors’ expectations. Managers are aware of this, which may be the reason why there was no such

interdependence between market indicators and the market dictionary in the monitored annual reports.

Journal of International Studies

Vol.10, No.4, 2017

104

Table 6

Spearman correlation coefficients between financial ratios and general Diction 7.0 dictionaries

CERTAINTY OPTIMISM REALISM ACTIVITY COMMONALITY

ROA -0.002 0.016 -0.155 0.143 0.048

ROE -0.006 0.010 -0.118 0.044 -0.042

ROS 0.006 -0.087 -0.125 0.047 0.085

S/TA -0.044 -0.010 -0.060 0.260 0.06

Accounting homework help

Production Plan

Pork-Rinds Fried Peanuts
Units Produced:

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell
Resources Req’d: Used: Available:
Fryer Capacity 1 1
A satisfied Microsoft Office user: Constraint cell
600
Labor 1 0.5
A satisfied Microsoft Office user: Constraint cell
960
Total Profit:

A satisfied Microsoft Office user: Objective cell

Carnival Confections

SMDA

Accounting homework help

Infrast

Domain: IT Infrastructure Date:
Business Process: Version:
Author:
Cntrl
Nmbr
Business
Process
Process Objectives Risks Control Activities Test Procedures
INF_01 Server: File & Print Services; User Subdirectories 1)
2)
3)
1)
2)
3)
1)
2)
3)
1)
2)
3)
Design General IT Control
1)
2)
3)
Effective
INF_02 Server: Domain Name Server (DNS)
(Hint: DNS role in LAN)
1)
2)
3)
1)
2)
3)
1)
2)
3)
1)
2)
3)
Design General IT Control
1)
2)
3)
Effective
INF_03 Server: Application Servers 1)
2)
3)
1)
2)
3)
1)
2)
3)
1)
2)
3)
Design General IT Control
1)
2)
3)
Effective
INF_04 Server: Database Servers
(Hint: Database often deployed on its own severs.)
1)
2)
3)
1)
2)
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1)
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3)
1)
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Design General IT Control
1)
2)
3)
Effective
INF_05 Storage: On Server 1)
2)
3)
1)
2)
3)
1)
2)
3)
1)
2)
3)
Design General IT Control
1)
2)
3)
Effective
INF_06 Storage: NAS 1)
2)
3)
1)
2)
3)
1)
2)
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1)
2)
3)
Design General IT Control
1)
2)
3)
Effective
INF_07 Network Switches & Routers 1)
2)
3)
1)
2)
3)
1)
2)
3)
1)
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3)
Design General IT Control
1)
2)
3)
Effective
INF_08 WiFi Access Points 1)
2)
3)
1)
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3)
1)
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3)
1)
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Design General IT Control
1)
2)
3)
Effective
INF_09 Local Area Network (LAN) 1)
2)
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1)
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Design General IT Control
1)
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Effective
INF_10 Firewall(s) 1)
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Design General IT Control
1)
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3)
Effective
INF_11 Intrusion Protection/ Intrustion Detection (IPS/IDS) 1)
2)
3)
1)
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1)
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1)
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Design General IT Control
1)
2)
3)
Effective
INF_12 Internet Connection 1)
2)
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1)
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1)
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Design General IT Control
1)
2)
3)
Effective
INF_13 Desktops &
Workstations
1)
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1)
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Design General IT Control
1)
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Effective
INF_14 Voice Over IP (VOIP) 1)
2)
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1)
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3)
1)
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Design General IT Control
1)
2)
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Effective
INF_15 Back Ups 1)
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1)
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Design General IT Control
1)
2)
3)
Effective
INF_16 Cloud Infrastructure
(IaaS/PaaS)
1)
2)
3)
1)
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1)
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Design General IT Control
1)
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Effective
INF_17 unused 1)
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Design General IT Control
1)
2)
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INF_18 EXAMPLE:

Data Center (Server Room) containing Servers, Switches, Racks, special IT infrastructure

1) Protect Physical Assets from loss by theft or damage
2)
3)
1a) Loss by Theft
1b) Loss by damage
2)
3)
1a1) Place servers in secure room.
1a2) Place physical Locks on the room to control access.
1a3) Monitor access with CCTV
1b1) Provide adequate A/C to prevent overheating.
1b1) Provide non-water fire suppression to contain fire.
2)
3)

(Could use automated access system to control entry which automatically records room entries, including when and who.)

1a1) Confirm that design is appropriate and adequate.
1a2) Confirm that design is appropriate and adequate.
1a3) Confirm that design is appropriate and adequate.
1b1) Confirm that design is appropriate and adequate.
1b2) Confirm that design is appropriate and adequate.
2)
3)
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1a1) Confirm facility is secure continuously over the period under audit.
1a2) Confirm physical locks are operational and used and not defeated.
1a3) Confirm CCTV is continuously operational and tested periodically.
1b1) Confirm a/c is continually operational and tested periodically.
1b2) Confirm fire suppression system is continuously operational and inspected periodically.
1) Determine if any incidents occurred during the audit period;
Determine if the incidents identify any deficiencies.
2)
3)
[Note: If access logs are used, review them.]
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INF_20
INF_21
INF_22
This assignment was completed in compliance with the University’s Academic Integrity Policy. This work is entirely my own work written in my own words completely independent of anyone else. /s/ ____________________
Other Potential Topics: Cabling,

&”-,Bold”&14IT Auditing and Assurance
Infrastructure Risk and Control Matrix

&”-,Bold”&10&Z&F &”-,Bold”&10Page &P of &N &”-,Bold”&10Illustration for Educational Puposes Only

Accounting homework help

Business Problem Solving Case How Supply Chain Management Problems Killed Target Canada

Target is one of the world’s most successful general merchandise retailers, with 1,795 retail store locations
and a powerful brand image as a fashion-forward discounter. It is not as big or far-flung as Walmart, with $70

billion in annual revenue compared with $485 billion for Walmart, and all of its stores are located in the
United States. (Walmart has 11,695 stores all over the world.) Target is very good at what it does and,

ideally, would to like to grow like Walmart. In 2011 it decided to make its first foray into global expansion by
opening up retail stores in Canada. That year Target acquired the leaseholds of 189 locations operated by

Hudson’s Bay Company’s Zellers discount chain for $1.8 billion, hoping to open Target stores in 124 of these
sites by the end of 2013. This was a very ambitious—and possibly unrealistic—timetable.

Target opened its first Canadian stores in March 2013. Target’s expansion into Canada was highly
anticipated by consumers and feared by rivals, but it failed miserably. On January 15, 2015, Target Canada

filed for bankruptcy protection, announcing that it would close all of its 133 Canadian stores, and began
liquidating their inventory. All Target Canada stores were closed by April 12, 2015. Some experts consider

Target Canada a case study in what retailers should not do when they enter a new market.

Target quickly moved to build three new gigantic distribution centers in Canada. (A distribution center is
where all the products from thousands of vendors are sorted and prepared for shipment to individual stores.)

Unfortunately, Target Canada was unable to keep track of its products or make sure that the right amounts
of products were being ordered, stored, and shipped. At first too few products were arriving at the

distribution centers, leaving store shelves bare and Canadian customers empty-handed. Later the
distribution centers became overwhelmed with too much product. Target’s information systems could not

properly compute shelving locations. Target had the stock, but it was stuck in the distribution centers and
store shelves still remained empty. Making matters worse, the retail store checkout system was unreliable

and didn’t process transactions properly. And Target Canada also had higher product prices and less
product selection than U.S. Target stores. Canadian sales never took off, and Target had to end its business

in Canada.

How could this have happened? First, Target’s business was geared to operating domestically in the United

States. To operate in Canada, its information systems would have to be able to calculate prices in Canadian
currency, which is worth about 75 percent of a U.S. dollar, with the conversion rate constantly fluctuating.

Canada also uses the metric system, so the system would have to convert inches and feet into centimeters
and meters as well. Knowing the size of an item and the size of packaging is essential for stocking shelves

and inventory management. Target’s supply chain management and pricing software would have to be
modified to handle multiple measurement systems and currencies. Adding to the complexity, products for

Target’s Canadian market might have different dimensions from those for the United States. A box of shower
curtain hooks for the U.S. market might be 12 inches long but only 11 ½ inches for Canada, expressed in

centimeters. In other words, internationalizing systems takes a great deal of work and planning.

Target’s U.S. operations used custom-built systems for ordering products from vendors, moving goods

through warehouses, and stocking store shelves. These systems worked very well, and Target’s IT staff and
business end users were highly experienced in using them. Target’s management had to decide whether to

customize these domestic systems so they could work abroad or move to completely new systems for

Canada. Because it would require considerable time and effort to internationalize these systems, Target’s
management opted for a new ready-made software package solution, thinking that it could be implemented

faster, even if the company had little experience actually using the new system.

SAP was selected because of its functionality in enterprise resource planning (ERP) and supply chain
management as well as capabilities for supporting different languages and currencies. Data on the products

in Target’s Canadian stores would be fed from the SAP system to other systems to forecast demand for
products, manage its distribution centers, and replenish stock in the stores. Target hoped that eventually it

could replace its custom homegrown systems with SAP so that the entire company would have the same set
of systems worldwide. However, SAP implementations in large companies typically take a long time—often

three to five years—and many millions of dollars. Target wanted to go live with SAP in only two years. This
was exceedingly, if not unrealistically, ambitious, but management thought using consultants from Accenture

who were highly experienced in SAP implementations would speed things up.

In 2012, once Target began ordering items for its pending Canadian launch, items sourced overseas with

long lead times were stalled. Products weren’t fitting into shipping containers as expected, and tariff codes
were missing or incomplete. Other items weren’t able to fit properly onto store shelves. The data used by

Target’s supply chain software was full of flaws, and the system required correct data to function properly
and ensure products moved as anticipated Product dimensions were in inches, not centimeters, or entered

in the wrong order. Sometimes the wrong currency was used. Important information was missing, and there
were numerous typos.

Target’s rush to launch pressured suppliers to enter data quickly into SAP for roughly 75,000 different
products. The data had to either be imported from other systems or entered from scratch. A record for a

single item might have dozens of fields to fill out, such as fields for the manufacturer, the model, the
dimensions, the weight, and how many units can fit into a shipping case. Much of the data were entered

incorrectly. Widths were entered instead of lengths, and prices and item descriptions were entered
incorrectly as well. Young merchandising assistants in charge of obtaining the details from suppliers were

often not experienced enough to challenge vendors on the accuracy of the product information they
provided. Information in Target’s system was estimated to be only 30 percent accurate, compared with an

accuracy rate of 98 to 99 percent for similar data in U.S. firms.

It also turned out that Manhattan, the company’s software for running its warehouses, did not communicate

well with SAP. For example, an employee at headquarters might have ordered 1,000 toothbrushes but
mistakenly entered into SAP data that the shipment would be packaged as 10 boxes of 100 toothbrushes

each. But the shipment might actually be configured differently as four large packages containing 250
toothbrushes each. Target’s distribution system would treat this shipment as if it didn’t exist and couldn’t

process the information. It would identify the shipment as a “problem area.” These kinds of problems crop up
at any warehouse, but at Target Canada, they occurred way too often.

Target had purchased a sophisticated and highly regarded system from JDA Software for supply chain
forecasting and replenishment. However, this software typically requires years of historical data before it can

provide accurate sales forecasts. Lacking such data to feed the system, Target’s buying team instead used

wildly optimistic projections, which assumed Canadian store sales from the start would be as high as

operational stores in the United States even though Target Canada was not yet that well established.

Adding to Target Canada’s system woes, the point-of-sale (POS) system was not working properly.
Terminals for cash payments took too long to boot up and sometimes froze, items wouldn’t scan, the self-

checkout stations gave incorrect change, or the POS system would not provide the correct price. Target
Canada had purchased POS software from an Israeli company called Retalix. Unlike SAP, Retalix is not an

industry standard. It is believed that Target chose this software package because of touted capabilities for
processing payments on mobile devices. Target Canada didn’t have time to replace this software and kept

going with all these bugs.

By fall of 2013, Target’s three distribution centers were overflowing with goods. Target had to rent additional

storage facilities to accommodate the inventory overflow, making it even more difficult to track down items.
Target stores might end up with too much of some products and too little of others. The auto-replenishment

system, which kept track of what a store had in stock, wasn’t functioning properly, either. Target Canada’s
system required data about the exact dimensions of every product and every shelf in order to calculate

whether employees needed to fill an empty rack. Much of the data were still incorrect, so the system couldn’t
make accurate calculations. The auto-replenishment system performed so badly that Target shut off the

system at its three test stores and had employees replenish shelves manually. Auto-replenishment wasn’t
reinstated until months later.

There was another reason for the discrepancies between what items appeared to be in stock at
headquarters and were actually missing from stores. Target Canada’s replenishment system had a feature

to notify distribution centers to ship more product when a store ran out. Some of the business analysts
responsible for this function, however, were purposely turning it off. These business analysts were judged

based on the percentage of their products that were in stock at any given time. When the auto-
replenishment switch was turned off, the system wouldn’t report an item as out of stock, so the analyst’s

numbers would look good on paper. To prevent further gaming the system, Target’s IT team built a tool that
reported when the system was turned on or off and determined whether there was a legitimate reason for it

to be turned off (for example, if an item was seasonal.) The analysts were denied access to these controls.

In 2014 Target’s IT staff was finally able to install an automatic verification tool to catch bad data before they

could enter SAP. The system wouldn’t allow a purchase order to proceed until an employee entered product
code data that were correct. The problem was that the verification tool was deployed too late. On January

15, 2015, Target Canada announced it was filing for bankruptcy protection. The company had already spent
$7 billion on expanding into Canada and was not projected to show a profit until 2021 at the earliest. All of

Target Canada’s 133 stores were closed, and 17,600 employees lost their jobs.

Sources: David Gewirtz, “Billion Dollar Mistake: How Inferior IT Killed Target Canada,” ZDNet, February 11, 2016; Joe Castaldo, “The Last Days of Target,”

www.canadianbusiness.com, accessed April 10, 2017; www.target.com, accessed March 1, 2017; and Marc Wulfraat, “The Aftermath of Target Canada’s Collapse,”

Canadian Grocer, March 10, 2015.

Case Study Questions

MyLab MIS

Go to the Assignments section of MyLab MIS to complete these writing exercises.

9-13 How important was supply chain management for Target Canada? How did it relate to its

business model? Explain your answer.
9-14 Identify all the problems Target Canada encountered that prevented it from becoming a

successful retailer. What were the people, organization, and technology factors that contributed to
these problems?

9-15 How much of Target Canada’s problems were technology based? Explain your answer.
9-16 How responsible was management for Target Canada’s problems? Explain your answer.

9-17 What things should Target Canada have done differently to be successful?

9-18 What are three reasons a company would want to implement an enterprise resource

planning (ERP) system and two reasons it might not want to do so?
9-19 What are the sources of data for analytical CRM systems? Provide three examples of

outputs from analytical CRM systems.

Chapter 9 References

Bozarth, Cecil, and Robert B. Handfield. Introduction to Operations and Supply Chain Management, 4th ed.
(Upper Saddle River, NJ: Prentice-Hall, 2016.)

D’Avanzo, Robert, Hans von Lewinski, and Luk N. van Wassenhove. “The Link Between Supply Chain and
Financial Performance.” Supply Chain Management Review (November 1, 2003).

Davenport, Thomas H. Mission Critical: Realizing the Promise of Enterprise Systems. (Boston: Harvard
Business School Press, 2000.)

Davenport, Thomas H., Leandro Dalle Mule, and John Lucke. “Know What Your Customers Want Before

They Do.” Harvard Business Review (December 2011).

Hitt, Lorin, D. J. Wu, and Xiaoge Zhou. “Investment in Enterprise Resource Planning: Business Impact and

Productivity Measures.” Journal of Management Information Systems 19, No. 1 (Summer 2002).

Hu, Michael, and Sean T. Monahan. “Sharing Supply Chain Data in the Digital Era.” MIT Sloan Management
Review (Fall 2015).

Kanaracus, Chris. “ERP Software Project Woes Continue to Mount, Survey Says.” IT World (February 20,
2013).

Kimberling, Eric. “5 Lessons from Successful CRM Implementations.” Panorama-consulting.com (January
28, 2015).

Klein, Richard, and Arun Rai. “Interfirm Strategic Information Flows in Logistics Supply Chain Relationships.”

MIS Quarterly 33, No. 4 (December 2009).

Laudon, Kenneth C. “The Promise and Potential of Enterprise Systems and Industrial Networks.” Working
paper, The Concours Group. Copyright Kenneth C. Laudon (1999).

Lee, Hau L., V. Padmanabhan, and Seugin Whang. “The Bullwhip Effect in Supply Chains.” Sloan
Management Review (Spring 1997).

Accounting homework help

ACC 307 Final Project Part II: Ratio Analysis Report

Alexis Waterman

Southern New Hampshire University

Ratio Analysis Report

Financial analysis is suitable for planning and ensures that decisions are based on the organization’s performance. The section will look into some of the significant financial ratios, including the quick ratio, gross margin, net margin, and return on Equity. The analysis indicates that the organization has been reducing its profit levels, which poses a significant risk. This calls for proper analysis of the organization’s performance.

This section outlines the financial analysis of the organization. It includes the quick ratio, gross margin, net margin, and return on Equity. The financial years range from 2015 to 2017, which also consists of an industrial standard of each financial ratio. The quick ratio indicates the ability of the organization to meet its short-term obligations with its liquid assets (Wijaya & Sedana, 2020). Organizations prefer to have a higher quick ratio that enables them to be more efficient in their operations. Gross margin is a financial indicator of organizational performance as it looks into the proportion of the gross profit to the net sales.

Organizations prefer to have reduced costs of goods sold to have high gross margin levels. The net margin is close to the gross margin; other than that, it looks into the proportion of the net income to the sales level (Nariswari & Nugraha, 2020). The net income margin will be high if the organization makes more net profit than the sales level. Return on Equity is a financial metric that looks into the percentage of net profit to the shareholder’s Equity (Hidajat, 2018). An organization will be more efficient if it has a higher return on Equity.

Comparison Ratios:

2017

2016

2015

Industry Standard

Quick Ratio

1.66

2.2

2.8

1.75

Gross Margin

0.59

0.55

0.7

0.7

Net Margin

0.23

0.22

0.32

0.24

Return on Equity

0.89

0.9

0.78

0.8

Based on the table above, the quick ratio has decreased over the years. This indicates that the financial liquidity of the organization is at a greater risk. As of 2017, the temporary ratio levels reduced to beneath the industrial standard. This calls for a proper assessment of the organization’s performance. The gross profit margin levels are below the industrial standards and decrease the group. This is an indicator of reduced profit levels, which increased costs of goods sold can bring about the net margin (Wahlen, Jones & Pagach, 2017). The levels reduced drastically from 2015 to 2016. They also declined from 2016 to 2017. This calls for an assessment of the organization’s expenses which may be carrying down the organization.

The net profit as of 2015 was doing better than the industry standard, but it has reduced, which poses a significant risk to the organization. The return on equity levels has improved across the years. The ROE levels improved drastically from 2015 to 2016. They are trying to stagnate from 2016 to 2017. This indicates that the organization has reduced its leverage levels as the ROE levels are above the industrial standard (Wahlen, Jones & Pagach, 2017).

The financial aspect of the organization requires proper scrutiny as the organization is increasing its risk levels which affect the organization in several ways. Organizations need to ensure that the quick ratio levels are way higher than the industrial standards as they will have a competitive advantage (Wahlen, Jones & Pagach, 2017). As the risk levels increase across the years, the organization will be unable to advance its operations or meet financial needs when a financial emergency pops up.

References

Wahlen, J. M., Jones, J. P., & Pagach, D. P. (2017). Intermediate accounting: Reporting and analysis (2nd ed.). Boston, MA: Cengage Learning.

Wijaya, D. P., & Sedana, I. B. P. (2020). Effects of quick ratio, return on assets and exchange rates on stock returns. Am. J. Humanities Soc. Sci. Res4, 323-329.

Nariswari, T. N., & Nugraha, N. M. (2020). Profit growth: impact of net profit margin, gross profit margin and total assets turnover. International Journal of Finance & Banking Studies (2147-4486)9(4), 87-96.

Hidajat, N. C. (2018). Pengaruh return on equity, earnings per share, economic value added, dan market value added terhadap return saham perusahaan sektor pertanian yang terdaftar di bursa efek indonesia periode 2010-2016. Jurnal Ekonomi23(1), 62-75.

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225

sch87956_ch10_223-248.indd 225 11/12/18 10:34 AM

Chapter Ten

Organizing for
Innovation
Organizing for Innovation at Google
Google was founded in 1998 by two Stanford Ph.D. students, Sergey Brin and
Larry Page, who had developed a formula for rank ordering random search
results by relevancy. Their formula gave rise to an incredibly powerful Internet
search engine that rapidly attracted a loyal following. The search engine enabled
users to quickly find information through a simple and intuitive user interface.
It also enabled Google to sell highly targeted advertising space.

The company grew rapidly. In 2001, Brin and Page hired Eric Schmidt, former
CTO of Sun Microsystems and former CEO of Novell, to be Google’s CEO. In
2004, the company went public, raising $1.6 billion in one of the most highly
anticipated IPOs ever. Under Schmidt, the company adhered to a broad yet dis-
ciplined mission: “To organize the world’s information and make it universally
accessible and useful.” This led the company to leverage its core search and
advertising capabilities into blogging, online payments, social networks, and
other information-driven businesses.

By 2014, Google had sales of over $66 billion, and employed more than
57,000 people. Despite this size, however, the company eschewed hierarchy
and bureaucracy and sought to maintain a small-company feel. As noted by
Schmidt during an interview, “Innovation always has been driven by a person or
a small team that has the luxury of thinking of a new idea and pursuing it. There
are no counter examples. It was true 100 years ago and it’ll be true for the next
100 years. Innovation is something that comes when you’re not under the gun.
So it’s important that, even if you don’t have balance in your life, you have some
time for reflection. So that you could say, ‘Well, maybe I’m not working on the
right thing.’ Or, ‘maybe I should have this new idea.’ The creative parts of one’s
mind are not on schedule.”a

In accordance with this belief, Google’s engineers were organized into small
technology teams with considerable decision-making authority. Every aspect of
the headquarters, from the shared offices with couches, to the recreation facilities
and the large communal cafe known as “Charlie’s Place,” was designed to foster

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sch87956_ch10_223-248.indd 226 11/12/18 10:34 AM

226 Part Three Implementing Technological Innovation Strategy

informal communication and collaboration.b Managers referred to Google as a flex-
ible and flat “technocracy,” where resources and control were allocated based on
the quality of people’s ideas rather than seniority or hierarchical status. Schmidt
remarked, “One of the things that we’ve tried very hard to avoid at Google is the
sort of divisional structure that prevents collaboration across units. It’s difficult. So I
understand why people want to build business units, and have their presidents. But
by doing that you cut down the informal ties that, in an open culture, drive so much
collaboration. If people in the organization understand the values of the company,
they should be able to self-organize to work on the most interesting problems.”c

A key ingredient in Google’s organization is an incentive system that requires
all technical personnel to spend 20 percent of their time on innovative proj-
ects of their own choosing. This budget for innovation is not merely a device
for creating slack in the organization for creative employees—it is an aggres-
sive mandate that employees develop new product ideas. As noted by one
Google engineer, “This isn’t a matter of doing something in your spare time, but
more of actively making time for it. Heck, I don’t have a good 20% project yet
and I need one. If I don’t come up with something I’m sure it could negatively
impact my review.”d Managers face similar incentives. Each manager is required
to spend 70  percent of his or her time on the core business, 20 percent on
related-but- different projects, and 10 percent on entirely new products. Accord-
ing to Marissa Mayer, Google’s head of search products and user experience, a
significant portion of Google’s new products and features (including Gmail and
AdSense) resulted from the 20 percent time investments of Google engineers.

In 2015, the company was reorganized into Alphabet Inc., a holding com-
pany, wherein Google and other divisions such as Access, Calico, CapitalG,
Nest, and others were wholly owned subsidiaries. The divisions retained their
flat and flexible reporting structures.e

In a podcast interview at Stanford University, Andy Grove (former CEO of Intel)
remarked that the company’s organization appeared chaotic, even noting “From
the outside it looks like Google’s organizational structure is best described by . . .
Brownian motion in an expanding model” and questioned whether Schmidt
believed this model would continue to work forever. In his response, Schmidt
responded, “There’s an important secret to tell, which is there are parts of the
company that are not run chaotically. Our legal department, our finances. Our
sales force has normal sales quotas. Our normal strategic planning activities, our
normal investment activities, our M&A activities are run in a very traditional way.
So the part of Google that gets all the attention is the creative side, the part where
new products are being built and designed, and that is different. And it looks to
us like that model will scale for quite some time . . . it looks like small teams can
run ahead and that we can replicate that model for that part of the company.”f

Discussion Questions

1. What are the advantages and disadvantages of the creative side of Google
being run as a flexible and flat “technocracy”?

2. How does Google’s culture influence the kind of employees it can attract
and retain?

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  • Part Three: Implementing Technological Innovation Strategy
    • Chapter 10: Organizing for Innovation
      • Organizing for Innovation at Google

Accounting homework help

ACC228 S22 Team Report Assignment 3     
 

ACC228 S22 – Taxes and Business Strategy (Huels) 

TEAM Assignment 3 – S‐Corporations 

Due 3:25pm 4/21/22 (via Blackboard assignment submission) 

Assignment is worth 50 points total (and will constitute 3.33% of the Quarter grade) 

Objective: 

 Compute the various S‐Corporation pass through items and account balances 

Facts: 

 Hudson Corp., is a calendar year S corporation 
 Hudson’s Form 1120S shows non‐separately stated ordinary income of $500,000 for the year 
 Kate owns 25% of the Hudson stock throughout the year 
 The following information for the year is obtained from the corporate records: 

 
   
   
   

 

Assignment: 

As a team:   

1) Compute Hudson’s book income or loss (NOTE: this will require being able to distinguish what 
items of income and expense above are separately vs. nonseparately stated; the nonseparately 
stated items are already included in the $500,000 – there is no need to adjust that number) 

2) Compute Kate’s ending stock basis 

3) Calculate Hudson’s ending AAA balance 

Report guidelines: 

 Include a cover page identifying the report and team members 
 The report should be type written (Excel, Word) and can be submitted in any electronic format 

(pdf, Word, Excel) – be sure any submitted files are formatted for printing 

 Support any necessary computations to be eligible for partial credit 

Tax exempt interest income 23,000$    

Salary paid to Kate (310,000)  

Charitable contributions (25,000)     

Dividends received from a non‐US corporation 30,000      

Short‐term capital loss (25,000)     

Depreciation recapture income 58,000      

Refund of prior state income taxes 26,000      

Cost of goods sold (305,000)  

Long‐term capital loss (36,000)     

Administrative expenses (110,000)  

Long‐term capital gain 60,000      

Selling expenses (48,000)     

Kate’s beginning stock basis 151,000    

Kate’s additional Hudson stock purchases 60,000      

Beginning AAA 143,000    

Kate’s loan to Hudson 110,000    

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Production Schedule

Variable Binary Linking
Machine Fixed Cost Cost Capacity Quantity Variable Constraint
1 $1,000 $21 500

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Variable cell
2 $950 $23 600

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Variable cell
3 $875 $25 750

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Variable cell
4 $850 $24 400

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Variable cell
5 $800 $20 600

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Variable cell
6 $700 $26 800

A satisfied Microsoft Office user: Variable cell

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Variable cell
Available

A satisfied Microsoft Office user: Constraint cell

A satisfied Microsoft Office user: Constraint cell
Required 1800
Total Variable Cost $0
Total Fixed Cost $0
Total Cost

A satisfied Microsoft Office user: Objective cell

Radford Castings

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Course Home


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Support

Week 2 – Assignment: Evaluate Assessment and Ethics in Public Budgetary Procedures

 

Instructions

For this assignment, you will develop a needs assessment chart and a brief paper that examines the needs assessment procedures and ethical considerations of your selected governmental entity to produce the most recent budget.

Be sure your chart addresses the following:

· Diagram the prevalent categories that describe budgetary needs over the last 3 fiscal years. Annotate the chart with the methods used by the entity to research needs.

· Add notes for the factors which were discussed and negotiated.

· Discuss the ethical dilemmas faced by decision-makers.

· Evaluate their impact on funding decisions.

· Provide specific examples where appropriate.

Assess the presence and effectiveness of ethical and professional codes of conduct in this process.

Length: 2 to 3-page paper, not including title and reference pages with the Needs Assessment Chart

References: Include a minimum of 3 scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.

The completed assignment should address all the assignment requirements, exhibit evidence of concept knowledge, and demonstrate thoughtful consideration of the content presented in the course. The diagram should be clear, the writing should integrate scholarly resources, reflect academic expectations, and current APA standards, and adhere to Northcentral University’s Academic Integrity Policy.

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UNIT 4 ASSIGNMENT: BUILD A PROFESSIONAL LINKEDIN PROFILE

Name:

Date:

Use the following template to craft a professional LinkedIn profile for the Unit 4 assignment. Leave the headings in bold, and remove the information below in parentheses when you add your own information.

Headline: Write an informative profile headline.

(Your headline is a short, memorable professional slogan. For example, “Honors student seeking marketing position.” Check out the profiles of students and recent alumni you admire for ideas in PG Career Network.)

Photo: Pick an appropriate photo.

(LinkedIn isn’t Facebook. Insert a high-quality photo [your profile will be 7x more likely to be viewed] of you alone, professionally dressed. No party shots, cartoon avatars, or puppy pics!)

Education: Show off your education.

(Include all your schools, major(s) and minor, courses, and study abroad or summer programs. Don’t be shy — LinkedIn is an appropriate place to show off your GPA, test scores, and honors or awards.)

Summary: Develop a professional summary.

(Your summary statement is like the first few paragraphs of your best-written cover letter — concise and confident about your qualifications and goals. Include relevant work and extracurriculars.)

Skills and expertise: Fill “Skills & Expertise” with keywords.

(This section is the place to include 3-5 keywords and phrases that recruiters search for [i.e. Successful multitasker, Fluent in English, Russian, Spanish, and French]. Find relevant ones in job listings that appeal to you and profiles of people who have the kinds of roles you want.)

1.

2.

3.

4.

5.

Connectedness: Show your connectedness with groups.

(Groups you join appear at the bottom of your profile. Joining some shows that you want to engage in professional communities and learn the lingo. Start with your university and industry groups.

For this assignment, list 3-5 professional groups you would like to include in your profile. Here is a good resource (https://jobstars.com/professional-associations-organizations/) that lists many professional organizations by industry.)

1.

2.

3.

4.

5.

Examples of work: Share your abilities.

(First, write a paragraph discussing your work abilities. This will be a one paragraph professional summary detailing your work experience. This will include a summary detailing your work experience, volunteer experience, awards, recognitions, projects completed, and professional interests.

Second, you will include two actual examples of your writing, design work, or other accomplishments on your profile, where you can insert rich media or documents. What better way to sell your skills than to show employers exactly what you can produce?

This can be projects completed, designs created, work recognition and awards, and even work from your previous classes such as papers, presentations, videos, etc. There should be no links or embedded attachments. The information should be copied and pasted directly into this document, or you can take a screenshot and insert the image.)

Accounting homework help

Base Case & Scenario

Accounting homework help


Title of the Document

Student’s Name

American Intercontinental University

Running head: STUDENT’S TOPIC

STUDENT’S RESEARCH TOPIC 4

Introduction (1/2 to 3/4 page)

In the introduction, paraphrase the below scenario using APA format and describe what steps you will take to prepare the master budget for June.

You are the managerial accountant at Reliable Company and are part of the organization’s budgeting committee. You have been assigned to support the marketing department and manage its master budget. The marketing department is responsible for the following:

· Managing the firm’s marketing

· Hiring subcontractors

· Selling the consulting expertise to smaller outside firms

The department’s expenses are as follows:

· Salaries and benefits of $48,000/month

· Web site operations of $21,000/ month

· Online advertising expenses of $15,000/month

· Miscellaneous expenses of $3,500/month

The sales forecast for its consulting services are as follows:

· April: $190,000

· May: $200,000

· June: $205,000

The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.

Background (1/2 page)

Discuss the benefits and limitations of the master budgeting process, the budgets included in the master budgeting process and the steps that the marketing department will take to prepare the master budget.

Scenario Analysis (1 page)

Market Department Master Budget – June (complete the below schedules)

#1 ORIGINAL PORTFOLIO: BASE CASE #1 ORIGINAL PORTFOLIO: BASE CASE
I. Spreads Market Spreads Base Case Spreads Spread Changes
AA A BBB AA A BBB AA A BBB
Spreads to UST Short-Term: 0.60% 0.85% 1.10% 0.60% 0.85% 1.10% 0.00% 0.00% 0.00%
Spreads to UST Intermediate-Term: 0.70% 0.95% 1.20% 0.70% 0.95% 1.20% 0.00% 0.00% 0.00%
Spreads to UST Long-Term: 0.90% 1.15% 1.40% 0.90% 1.15% 1.40% 0.00% 0.00% 0.00%
II. Portfolio II. Portfolio Individual Contr to Individual Contr to
V V Bond Portfolio Bond Portfolio
Issue Settlement Maturity Credit Coupon Payment Payment UST Spread Clean Last Next # of days # of days # of days Issue Settlement Maturity Credit minus plus Duration Duration Convexity Convexity
Name Date Date Rating Rate Frequency Basis Bench to UST Yield Price Coupon Coupon in Coupon from Last to Next Accrued Full Par Market Name Date Date Rating
Payment Payment Period to Settle Coupon Interest Price Amount Value Δy = 0.20%
UST Short 4/5/22 2/15/24 AAA 2.875% 2 1 2.890% 99.97093 2/15/22 8/15/22 181 49 132 0.0039 99.9748 50,000,000 49,987,409 UST Short 4/5/22 2/15/24 AAA 100.3363 99.6150 1.8035 0.1212 2.0877 0.1403
UST Inter 4/5/22 2/15/29 AAA 3.000% 2 1 3.050% 99.69018 2/15/22 8/15/22 181 49 132 0.0041 99.6942 50,000,000 49,847,122 UST Inter 4/5/22 2/15/29 AAA 100.9312 98.4745 6.1606 0.4127 21.6353 1.4495
UST Long 4/5/22 2/15/52 AAA 3.375% 2 1 3.360% 100.27862 2/15/22 8/15/22 181 49 132 0.0046 100.2832 50,000,000 50,141,595 UST Long 4/5/22 2/15/52 AAA 104.1383 96.6165 18.7512 1.2637 234.8898 15.8302
A 4/5/22 2/15/24 AA 3.375% 2 1 2.875% 0.600% 3.475% 99.81808 2/15/22 8/15/22 181 49 132 0.0046 99.8227 50,000,000 49,911,326 A 4/5/22 2/15/24 AA 100.1813 99.4656 1.7924 0.1202 2.0665 0.1386
B 4/5/22 2/15/24 AA 3.375% 2 1 2.875% 0.600% 3.475% 99.81808 2/15/22 8/15/22 181 49 132 0.0046 99.8227 50,000,000 49,911,326 B 4/5/22 2/15/24 AA 100.1813 99.4656 1.7924 0.1202 2.0665 0.1386
C 4/5/22 2/15/24 A 3.625% 2 1 2.875% 0.850% 3.725% 99.81817 2/15/22 8/15/22 181 49 132 0.0049 99.8231 50,000,000 49,911,537 C 4/5/22 2/15/24 A 100.1807 99.4671 1.7873 0.1199 2.0568 0.1380
D 4/5/22 2/15/24 BBB 4.000% 2 1 2.875% 1.000% 3.875% 100.21900 2/15/22 8/15/22 181 49 132 0.0054 100.2244 50,000,000 50,112,208 D 4/5/22 2/15/24 BBB 100.5824 99.8681 1.7818 0.1200 2.0472 0.1379
E 4/5/22 2/15/29 AA 3.625% 2 1 3.000% 0.700% 3.700% 99.54571 2/15/22 8/15/22 181 49 132 0.0049 99.5506 50,000,000 49,775,310 E 4/5/22 2/15/29 AA 100.7587 98.3592 6.0260 0.4031 20.9521 1.4017
F 4/5/22 2/15/29 AA 3.625% 2 1 3.000% 0.700% 3.700% 99.54571 2/15/22 8/15/22 181 49 132 0.0049 99.5506 50,000,000 49,775,310 F 4/5/22 2/15/29 AA 100.7587 98.3592 6.0260 0.4031 20.9521 1.4017
G 4/5/22 2/15/29 A 3.875% 2 1 3.000% 0.950% 3.950% 99.54915 2/15/22 8/15/22 181 49 132 0.0052 99.5544 50,000,000 49,777,196 G 4/5/22 2/15/29 A 100.7521 98.3732 5.9739 0.3997 20.6891 1.3842
H 4/5/22 2/15/29 BBB 4.125% 2 1 3.000% 1.200% 4.200% 99.55250 2/15/22 8/15/22 181 49 132 0.0056 99.5581 50,000,000 49,779,043 H 4/5/22 2/15/29 BBB 100.7455 98.3870 5.9224 0.3962 20.4301 1.3669
I 4/5/22 2/15/52 AA 4.125% 2 1 3.375% 0.900% 4.275% 97.47897 2/15/22 8/15/22 181 49 132 0.0056 97.4846 50,000,000 48,742,275 I 4/5/22 2/15/52 AA 100.8607 94.2656 16.9131 1.1080 201.5406 13.2036
J 4/5/22 2/15/52 AA 4.125% 2 1 3.375% 0.900% 4.275% 97.47897 2/15/22 8/15/22 181 49 132 0.0056 97.4846 50,000,000 48,742,275 J 4/5/22 2/15/52 AA 100.8607 94.2656 16.9131 1.1080 201.5406 13.2036
K 4/5/22 2/15/52 A 4.375% 2 1 3.375% 1.150% 4.525% 97.55146 2/15/22 8/15/22 181 49 132 0.0059 97.5574 50,000,000 48,778,692 K 4/5/22 2/15/52 A 100.8353 94.4298 16.4145 1.0762 192.6335 12.6295
L 4/5/22 2/15/52 BBB 4.625% 2 1 3.375% 1.400% 4.775% 97.62076 2/15/22 8/15/22 181 49 132 0.0063 97.6270 50,000,000 48,813,509 L 4/5/22 2/15/52 BBB 100.8109 94.5870 15.9382 1.0457 184.1992 12.0851
Portfolio Total 750,000,000 744,006,132 8.2182 74.6494
#2 ORIGINAL PORTFOLIO: BASE CASE AFTER SPREADS CHANGE. #2 ORIGINAL PORTFOLIO: BASE CASE AFTER SPREADS CHANGE.
I. Spreads Market Spreads Base Case Spreads Spread Changes
AA A BBB AA A BBB AA A BBB
Spreads to UST Short-Term: 0.60% 0.85% 1.10% 0.60% 0.85% 1.10% 0.00% 0.00% 0.00%
Spreads to UST Intermediate-Term: 0.70% 0.95% 1.20% 0.70% 0.95% 1.20% 0.00% 0.00% 0.00%
Spreads to UST Long-Term: 0.90% 1.15% 1.40% 0.90% 1.15% 1.40% 0.00% 0.00% 0.00%
II. Portfolio II. Portfolio Individual Contr to Individual Contr to
V V Bond Portfolio Bond Portfolio
Issue Settlement Maturity Credit Coupon Payment Payment UST Spread Clean Last Next # of days # of days # of days Issue Settlement Maturity Credit minus plus Duration Duration Convexity Convexity
Name Date Date Rating Rate Frequency Basis Bench to UST Yield Price Coupon Coupon in Coupon from Last to Next Accrued Full Par Market Name Date Date Rating
Payment Payment Period to Settle Coupon Interest Price Amount Value Δy = 0.20%
UST Short 4/5/22 2/15/24 AAA 2.875% 2 1 2.890% 99.97093 2/15/22 8/15/22 181 49 132 0.0039 99.9748 50,000,000 49,987,409 UST Short 4/5/22 2/15/24 AAA 100.3363 99.6150 1.8035 0.1212 2.0877 0.1403
UST Inter 4/5/22 2/15/29 AAA 3.000% 2 1 3.050% 99.69018 2/15/22 8/15/22 181 49 132 0.0041 99.6942 50,000,000 49,847,122 UST Inter 4/5/22 2/15/29 AAA 100.9312 98.4745 6.1606 0.4127 21.6353 1.4495
UST Long 4/5/22 2/15/52 AAA 3.375% 2 1 3.360% 100.27862 2/15/22 8/15/22 181 49 132 0.0046 100.2832 50,000,000 50,141,595 UST Long 4/5/22 2/15/52 AAA 104.1383 96.6165 18.7512 1.2637 234.8898 15.8302
A 4/5/22 2/15/24 AA 3.375% 2 1 2.875% 0.600% 3.475% 99.81808 2/15/22 8/15/22 181 49 132 0.0046 99.8227 50,000,000 49,911,326 A 4/5/22 2/15/24 AA 100.1813 99.4656 1.7924 0.1202 2.0665 0.1386
B 4/5/22 2/15/24 AA 3.375% 2 1 2.875% 0.600% 3.475% 99.81808 2/15/22 8/15/22 181 49 132 0.0046 99.8227 50,000,000 49,911,326 B 4/5/22 2/15/24 AA 100.1813 99.4656 1.7924 0.1202 2.0665 0.1386
C 4/5/22 2/15/24 A 3.625% 2 1 2.875% 0.850% 3.725% 99.81817 2/15/22 8/15/22 181 49 132 0.0049 99.8231 50,000,000 49,911,537 C 4/5/22 2/15/24 A 100.1807 99.4671 1.7873 0.1199 2.0568 0.1380
D 4/5/22 2/15/24 BBB 4.000% 2 1 2.875% 1.000% 3.875% 100.21900 2/15/22 8/15/22 181 49 132 0.0054 100.2244 50,000,000 50,112,208 * D 4/5/22 2/15/24 BBB 100.5824 99.8681 1.7818 0.1200 2.0472 0.1379
E 4/5/22 2/15/29 AA 3.625% 2 1 3.000% 0.700% 3.700% 99.54571 2/15/22 8/15/22 181 49 132 0.0049 99.5506 50,000,000 49,775,310 E 4/5/22 2/15/29 AA 100.7587 98.3592 6.0260 0.4031 20.9521 1.4017
F 4/5/22 2/15/29 AA 3.625% 2 1 3.000% 0.700% 3.700% 99.54571 2/15/22 8/15/22 181 49 132 0.0049 99.5506 50,000,000 49,775,310 F 4/5/22 2/15/29 AA 100.7587 98.3592 6.0260 0.4031 20.9521 1.4017
G 4/5/22 2/15/29 A 3.875% 2 1 3.000% 0.950% 3.950% 99.54915 2/15/22 8/15/22 181 49 132 0.0052 99.5544 50,000,000 49,777,196 G 4/5/22 2/15/29 A 100.7521 98.3732 5.9739 0.3997 20.6891 1.3842
H 4/5/22 2/15/29 BBB 4.125% 2 1 3.000% 1.200% 4.200% 99.55250 2/15/22 8/15/22 181 49 132 0.0056 99.5581 50,000,000 49,779,043 H 4/5/22 2/15/29 BBB 100.7455 98.3870 5.9224 0.3962 20.4301 1.3669
I 4/5/22 2/15/52 AA 4.125% 2 1 3.375% 0.900% 4.275% 97.47897 2/15/22 8/15/22 181 49 132 0.0056 97.4846 50,000,000 48,742,275 I 4/5/22 2/15/52 AA 100.8607 94.2656 16.9131 1.1080 201.5406 13.2036
J 4/5/22 2/15/52 AA 4.125% 2 1 3.375% 0.900% 4.275% 97.47897 2/15/22 8/15/22 181 49 132 0.0056 97.4846 50,000,000 48,742,275 J 4/5/22 2/15/52 AA 100.8607 94.2656 16.9131 1.1080 201.5406 13.2036
K 4/5/22 2/15/52 A 4.375% 2 1 3.375% 1.150% 4.525% 97.55146 2/15/22 8/15/22 181 49 132 0.0059 97.5574 50,000,000 48,778,692 K 4/5/22 2/15/52 A 100.8353 94.4298 16.4145 1.0762 192.6335 12.6295
L 4/5/22 2/15/52 BBB 4.625% 2 1 3.375% 1.400% 4.775% 97.62076 2/15/22 8/15/22 181 49 132 0.0063 97.6270 50,000,000 48,813,509 L 4/5/22 2/15/52 BBB 100.8109 94.5870 15.9382 1.0457 184.1992 12.0851
Portfolio Total 750,000,000 744,006,132 8.2182 74.6494
#3 ORIGINAL PORTFOLIO WITH NEW ASSET ALLOCATION: BEFORE SPREADS CHANGE. #3 ORIGINAL PORTFOLIO WITH NEW ASSET ALLOCATION: BEFORE SPREADS CHANGE.
I. Spreads Market Spreads Base Case Spreads Spread Changes
AA A BBB AA A BBB AA A BBB
Spreads to UST Short-Term: 0.60% 0.85% 1.10% 0.60% 0.85% 1.10% 0.00% 0.00% 0.00%
Spreads to UST Intermediate-Term: 0.70% 0.95% 1.20% 0.70% 0.95% 1.20% 0.00% 0.00% 0.00% OPTIMIZATION USING
Spreads to UST Long-Term: 0.90% 1.15% 1.40% 0.90% 1.15% 1.40% 0.00% 0.00% 0.00% SOLVER
II. Portfolio II. Portfolio Individual Contr to Individual Contr to Contr to Contr to
V V Bond Portfolio Bond Portfolio Portfolio Portfolio Portfolio
Issue Settlement Maturity Credit Coupon Payment Payment UST Spread Clean Last Next # of days # of days # of days Issue Settlement Maturity Credit minus plus Duration Duration Convexity Convexity Duration Convexity Weight
Name Date Date Rating Rate Frequency Basis Bench to UST Yield Price Coupon Coupon in Coupon from Last to Next Accrued Full Par Market Name Date Date Rating
Payment Payment Period to Settle Coupon Interest Price Amount Value Δy = 0.20%
UST Short 4/5/22 2/15/24 AAA 2.875% 2 1 2.890% 99.97093 2/15/22 8/15/22 181 49 132 0.0039 99.9748 50,000,000 49,987,409 UST Short 4/5/22 2/15/24 AAA 100.3363 99.6150 1.8035 0.1212 2.0877 0.1403 0.1202 0.1392 0.0667
UST Inter 4/5/22 2/15/29 AAA 3.000% 2 1 3.050% 99.69018 2/15/22 8/15/22 181 49 132 0.0041 99.6942 50,000,000 49,847,122 UST Inter 4/5/22 2/15/29 AAA 100.9312 98.4745 6.1606 0.4127 21.6353 1.4495 0.4107 1.4424 0.0667
UST Long 4/5/22 2/15/52 AAA 3.375% 2 1 3.360% 100.27862 2/15/22 8/15/22 181 49 132 0.0046 100.2832 50,000,000 50,141,595 UST Long 4/5/22 2/15/52 AAA 104.1383 96.6165 18.7512 1.2637 234.8898 15.8302 1.2501 15.6593 0.0667
A 4/5/22 2/15/24 AA 3.375% 2 1 2.875% 0.600% 3.475% 99.81808 2/15/22 8/15/22 181 49 132 0.0046 99.8227 50,000,000 49,911,326 A 4/5/22 2/15/24 AA 100.1813 99.4656 1.7924 0.1202 2.0665 0.1386 0.1195 0.1378 0.0667
B 4/5/22 2/15/24 AA 3.375% 2 1 2.875% 0.600% 3.475% 99.81808 2/15/22 8/15/22 181 49 132 0.0046 99.8227 50,000,000 49,911,326 B 4/5/22 2/15/24 AA 100.1813 99.4656 1.7924 0.1202 2.0665 0.1386 0.1195 0.1378 0.0667
C 4/5/22 2/15/24 A 3.625% 2 1 2.875% 0.850% 3.725% 99.81817 2/15/22 8/15/22 181 49 132 0.0049 99.8231 50,000,000 49,911,537 C 4/5/22 2/15/24 A 100.1807 99.4671 1.7873 0.1199 2.0568 0.1380 0.1192 0.1371 0.0667
D 4/5/22 2/15/24 BBB 4.000% 2 1 2.875% 1.000% 3.875% 100.21900 2/15/22 8/15/22 181 49 132 0.0054 100.2244 50,000,000 50,112,208 D 4/5/22 2/15/24 BBB 100.5824 99.8681 1.7818 0.1200 2.0472 0.1379 0.1188 0.1365 0.0667
E 4/5/22 2/15/29 AA 3.625% 2 1 3.000% 0.700% 3.700% 99.54571 2/15/22 8/15/22 181 49 132 0.0049 99.5506 50,000,000 49,775,310 E 4/5/22 2/15/29 AA 100.7587 98.3592 6.0260 0.4031 20.9521 1.4017 0.4017 1.3968 0.0667
F 4/5/22 2/15/29 AA 3.625% 2 1 3.000% 0.700% 3.700% 99.54571 2/15/22 8/15/22 181 49 132 0.0049 99.5506 50,000,000 49,775,310 F 4/5/22 2/15/29 AA 100.7587 98.3592 6.0260 0.4031 20.9521 1.4017 0.4017 1.3968 0.0667
G 4/5/22 2/15/29 A 3.875% 2 1 3.000% 0.950% 3.950% 99.54915 2/15/22 8/15/22 181 49 132 0.0052 99.5544 50,000,000 49,777,196 G 4/5/22 2/15/29 A 100.7521 98.3732 5.9739 0.3997 20.6891 1.3842 0.3983 1.3793 0.0667
H 4/5/22

June

Consulting Revenues (Chapter 20 – PAGE 1005)

Less: Commissions

Less: Subcontractor expenses

 

Net revenues

 

Expenses

Salaries and benefits

Web site operations

Online advertising expenses

Other misc. expenses

 

Total expenses

Net department expenses

 

Expected Cash Collections (Chapter 20 – PAGE 1008-1009)

June collections on account:

April sales

May sales

June sales

Total cash collections

 

Expected Cash Disbursements (Chapter 20 – PAGE 1009-1010)

Salaries and benefits

Web site operations

Other misc. expenses

Online advertising expenses

Sales commissions (5% of sales)

Cost of sales (45% of sales)

Total cash disbursements

 

Net impact on cash

 

Budget Based Recommendations ( ½ to 2 pages)

Use the guiding questions below to develop recommendations based on the June budget to help the manager of the marketing department

· How does the master budget help the manager understand the company’s external environment and the impact the environment have on the marketing department?

· How does the budget help the manager with forecasting?

· How does the budget help the marketing department coordinate their needs with other departments?

· How can the budget be used to evaluate the marketing department’s performance?

Conclusion (1/2 page)

In this section, summarize the results of your analysis and the overall uses and limitations of the budget to the marketing department



References

Double space do not indent, but do alphabetize. Use APA style. If the citation carries over to the next line, the lines will automatically be in hanging indent when you use the following template (overwrite the first two and when you hit <enter> twice after that, the references will fall in hanging indent naturally).

Applebaum, B. C., Zuckerman, M. Y., & Wu, X. (2014). Title of article in sentence case: Subtitle in sentence case. Journal in Title Case, X, 45-56.

O’Hara, C. (1986). Name of book in sentence case: Subtitle in sentence case. City, ST: Name of Publisher.

Accounting homework help

Front Cover Photograph:

Fairfax County Government Center

Back Cover Photograph:

Fairfax County District Map

Annual Comprehensive
Financial Report
For the Fiscal Year Ended June 30, 2021

Department of Finance
12000 Government Center Parkway, Suite 214

Fairfax, Virginia 22035
(703) 324-3120, TTY 711
www.fairfaxcounty.gov

II County of Fairfax, Virginia  Annual Comprehensive Financial Report

III

Table of Contents

County of Fairfax, Virginia
Annual Comprehensive Financial Report

For the Fiscal Year Ended June 30, 2021

Table of Contents

Page

Introductory Section (unaudited)
Letter of Transmittal ……………………………………………………………………………………………………………….. IX
Directory of Officials …………………………………………………………………………………………………………. XXXI
Organizational Chart ……………………………………………………………………………………………………..XXXVIII
Certificate of Achievement for Excellence in Financial Reporting…………………………………………..XXXV

Financial Section
Report of Independent Auditor …………………………………………………………………………………………………… 1
Management’s Discussion and Analysis (unaudited) ……………………………………………………………………. 5
Basic Financial Statements ……………………………………………………………………………………………………… 21

Exhibit
A Statement of Net Position ………………………………………………………………………………… 22
A-1 Statement of Activities …………………………………………………………………………………….. 26
A-2 Balance Sheet – Governmental Funds with Reconciliation …………………………………… 28
A-3 Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds with Reconciliation ……………………………………… 32
A-4 Statement of Net Position – Proprietary Funds ……………………………………………………. 34
A-5 Statement of Revenues, Expenses, and Changes in Net
Position – Proprietary Funds ………………………………………………………………………… 36
A-6 Statement of Cash Flows – Proprietary Funds …………………………………………………….. 37
A-7 Statement of Fiduciary Net Position ………………………………………………………………….. 38
A-8 Statement of Changes in Fiduciary Net Position …………………………………………………. 39
A-9 Combining Statement of Net Position – Component Units …………………………………… 40
A-10 Combining Statement of Activities – Component Units ……………………………………….. 44
Notes to the Financial Statements

A Summary of Significant Accounting Policies ……………………………………………………… 47
B Deposits and Investments…………………………………………………………………………………. 58
C Property Taxes ………………………………………………………………………………………………… 79
D Receivables ……………………………………………………………………………………………………. 80
E Interfund Balances and Transfers ………………………………………………………………………. 81
F Capital Assets …………………………………………………………………………………………………. 83
G Retirement Plans …………………………………………………………………………………………….. 85
H Other Post-Employment Benefits…………………………………………………………………….. 101
I Risk Management ………………………………………………………………………………………… 127
J Long-Term Obligations …………………………………………………………………………………. 129
K Long-Term Commitments ……………………………………………………………………………… 146
L Contingent Liabilities …………………………………………………………………………………….. 150
M Implementation of New Accounting Pronouncements ……………………………………….. 150

IV County of Fairfax, Virginia  Annual Comprehensive Financial Report

Table of Contents

Page

Required Supplementary Information ……………………………………………………………………………………. 153

Budgetary Comparison Schedule – General Fund (Budget Basis) ………………………………………. 153
Schedule of Changes in Net Pension Liability and Related Ratios:
Employees’ Retirement System Last Ten Fiscal Years ……………………………………………………….. 154
Police Officers Retirement System Last Ten Fiscal Years …………………………………………………… 156
Uniformed Retirement System Last Ten Fiscal Years ………………………………………………………… 158
Educational Employees Supplementary Retirement System Last Ten Fiscal Years ……………….. 160
Schedule of Net Pension Liability – Single Employer Plans Last Ten Fiscal Years ………………… 162
Schedule of Employer Contributions – Single Employer Plans Last Ten Fiscal Years ……………. 164
Schedule of Proportionate Share of Net Pension Liability in VRS Pension Plan
Last Ten Fiscal Years ………………………………………………………………………………………………… 166
Schedule of Contributions -VRS Pension Plan Last Ten Fiscal Years ………………………………….. 166
Schedule of Changes in Net OPEB Liability and Related Ratios – Last Ten Fiscal Years ……….. 167
Schedule of Contributions – OPEB Last Ten Fiscal Years ………………………………………………….. 168
Schedule of Investment Returns – OPEB Last Ten Fiscal Years ………………………………………….. 168
Schedule of Changes in the Net OPEB Liability and Related Ratios – Public Schools
OPEB Plan Last Ten Fiscal Years ………………………………………………………………………………. 169
Schedule of Public Schools’ Proportionate Share of Net OPEB Liability – VRS HIC
Last Ten Fiscal Years ………………………………………………………………………………………………… 170
Schedule of Public Schools’ Proportionate Share of Net OPEB Liability – VRS GLI
Last Ten Fiscal Years ……………………………………………………………………………………………….. 170
Schedule of Contributions – Public Schools OPEB Plan Last Ten Fiscal Years …………………….. 171
Schedule of Contributions – Public Schools -VRS HIC Last Ten Fiscal Years ………………………. 171
Schedule of Contributions – Public Schools -VRS GLI Last Ten Fiscal Years ………………………. 172
Schedule of Investment Returns – Public Schools OPEB Plan Last Ten Fiscal Years …………….. 172
Notes to Required Supplementary Information …………………………………………………………………. 173

Other Supplementary Information ………………………………………………………………………………………… 177
Exhibit Governmental Funds
B Budgetary Comparison Schedule Detail – General Fund (Budget Basis) ……………… 178
Budgetary Comparison Schedules – General Fund Group (Budget Basis):
B-1a Consolidated Community Funding Pool Fund (Budget Basis) …………………………….. 181
B-1b Contributory Fund (Budget Basis) …………………………………………………………………… 181
B-1c Northern Virginia Regional Identification System (Budget Basis) ……………………….. 182
B-1d Information Technology Fund (Budget Basis) …………………………………………………… 182
B-1e Revenue Stabilization Fund (Budget Basis) ……………………………………………………… 183
B-1f Economic Opportunity Reserve Fund (Budget Basis) ………………………………………… 183

C Combining Balance Sheet – Nonmajor Governmental Funds ……………………………… 186
C-1 Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds …………………………………………. 187

Special Revenue Funds

D Combining Balance Sheet – Special Revenue Funds …………………………………………. 194
D-1 Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Special Revenue Funds ……………………………………………………………… 200
Budgetary Comparison Schedules – Special Revenue Funds (Budget Basis):
D-2a County Transit Systems Fund (Budget Basis) …………………………………………………… 206

V

Table of Contents

Exhibit Page

D-2b Dulles Rail Phase I Transportation Improvement District Fund (Budget Basis) …….. 206
D-2c Dulles Rail Phase II Transportation Improvement District Fund (Budget Basis)……. 207
D-2d County and Regional Transportation Projects (Budget Basis)……………………………… 207
D-2e Tysons Service District Fund (Budget Basis) ……………………………………………………. 208
D-2f Reston Service District Fund (Budget Basis) ……………………………………………………. 208
D-2G Metrorail Parking System Pledged Revenue (Budget Basis) ……………………………….. 209
D-2H Federal/State Grant Fund (Budget Basis) …………………………………………………………. 209
D-2I Cable Communications Fund (Budget Basis) ……………………………………………………. 210
D-2j Early Childhood Birth to 5 Fund (Budget Basis) ……………………………………………….. 210
D-2K Fairfax-Falls Church Community Services Board Fund (Budget Basis) ……………….. 211
D-2L Reston Community Center Fund (Budget Basis) ……………………………………………….. 211
D-2M McLean Community Center Fund (Budget Basis) …………………………………………….. 212
D-2N Burgundy Village Community Center Fund (Budget Basis) ……………………………….. 212
D-2O E-911 Fund (Budget Basis) ……………………………………………………………………………. 213
D-2P Integrated Pest Management Program Fund (Budget Basis) ……………………………….. 213
D-2Q Stormwater Services Fund (Budget Basis) ……………………………………………………….. 214
D-2R Leaf Collection Fund (Budget Basis)……………………………………………………………….. 214
D-2S Refuse Collection and Recycling Operations Fund (Budget Basis) ……………………… 215
D-2T Refuse Disposal Fund (Budget Basis) ……………………………………………………………… 215
D-2u I-95 Refuse Disposal Fund (Budget Basis) ……………………………………………………….. 216
D-2V Community Development Block Grant Fund (Budget Basis) ……………………………… 216
D-2w Housing Trust Fund (Budget Basis) …………………………………………………………………. 217
D-2x HOME Investment Partnership Grant Fund (Budget Basis) ………………………………… 217

Debt Service Funds
E Combining Balance Sheet – Debt Service Funds ………………………………………………. 220
E-1 Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Debt Service Funds ………………………………………………………….. 221
E-2 Budgetary Comparison Schedule – Debt Service Fund (Budget Basis) ………………… 222

Capital Projects Funds

F Combining Balance Sheet – Capital Projects Funds …………………………………………… 226
F-1 Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Capital Projects Funds ………………………………………………………………. 230

Internal Service Funds

G Combining Statement of Net Position – Internal Service Funds ………………………….. 236
G-1 Combining Statement of Revenues, Expenses, and Changes in
Net Position – Internal Service Funds………………………………………………………….. 238
G-2 Combining Statement of Cash Flows – Internal Service Funds …………………………… 240

Fiduciary Funds

H Combining Statement of Plan Net Position – Trust Funds ………………………………….. 244
H-1 Combining Statement of Changes in Plan Net Position – Trust Funds …………………. 246
H-2 Combining Statement of Fiduciary Assets and Liabilities – Custodial Funds ………… 248
H-3 Combining Statement of Changes in Assets and Liabilities – Custodial Funds ……… 250

VI County of Fairfax, Virginia  Annual Comprehensive Financial Report

Exhibit Page

Component Units

Fairfax County Public Schools:

I Balance Sheet with Reconciliation – Governmental Funds …………………………………. 254
I-1 Statement of Revenues, Expenditures, and Changes in Fund Balances with

Reconciliation – Governmental Funds …………………………………………………………. 256
I-2 Budgetary Comparison Schedule – General Fund (Budget Basis) ……………………….. 259
Budgetary Comparison Schedules – Special Revenue Funds (Budget Basis):
I-3a Food and Nutrition Services Fund (Budget Basis) …………………………………………….. 259
I-3b Grants and Self-Supporting Programs Fund (Budget Basis) ……………………………….. 260
I-3c Adult and Community Education Fund (Budget Basis) ……………………………………… 260
I-4 Combining Statement of Net Position – Internal Service Funds ………………………….. 261
I-5 Combining Statement of Revenues, Expenses, and Changes in Net Position –

Internal Service Funds ………………………………………………………………………………. 262
I-6 Combining Statement of Cash Flows – Internal Service Funds …………………………… 263
I-7 Statement of Fiduciary Net Position – Trust Funds ……………………………………………. 264
I-8 Statement of Changes in Fiduciary Net Position – Trust Funds …………………………… 265
Fairfax County Redevelopment and Housing Authority:
J Statement of Net Position ………………………………………………………………………………. 268
J-1 Statement of Revenues, Expenses, and Changes in Net Position …………………………. 269
J-2 Statement of Cash Flows………………………………………………………………………………… 270
Fairfax County Park Authority:
K Balance Sheet with Reconciliation ………………………………………………………………….. 272
K-1 Statement of Revenues, Expenditures, and Changes in Fund Balances with

Reconciliation ………………………………………………………………………………………….. 274
Budgetary Comparison Schedules (Budget Basis):
K-2a General Fund (Financed by County General Fund) ……………………………………………. 277
K-2b Park Revenue Fund ……………………………………………………………………………………….. 277
Fairfax County Economic Development Authority:
L Balance Sheet with Reconciliation ………………………………………………………………….. 279
L-1 Statement of Revenues, Expenditures, and Changes in Fund Balance with

Reconciliation ………………………………………………………………………………………….. 280
L-2 Budgetary Comparison Schedule – General Fund (Financed by County
General Fund) (Budget Basis)…………………………………………………………………….. 281

Statistical Section (unaudited)
Table

Financial Trends Information

1.1 Net Position by Component, Last Ten Fiscal Years ……………………………………………. 284
1.2 Changes in Net Position, Last Ten Fiscal Years …………………………………………………. 286
1.3 Fund Balances, Governmental Funds, Last Ten Fiscal Years ………………………………. 290
1.4 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years ……………… 292

Table of Contents

VII

Table of Contents

Table Page
Revenue Capacity Information

2.1 Assessed Value and Actual Value of Taxable Real Property,
Last Ten Fiscal Years …………………………………………………………………………………. 294
2.2 Direct and Overlapping Real Property Tax Rates, Last Ten Fiscal Years ………………. 295
2.3 Principal Real Property Taxpayers, Current Year and Nine Years Ago …………………. 296
2.4 Real Property Tax Levies and Collections, Last Ten Fiscal Years ………………………… 296

Debt Capacity Information

3.1 Ratios of Outstanding Debt by Type, Last Ten Fiscal Years ………………………………… 298
3.2 Ratios of General Bonded Debt Outstanding, Last Ten Fiscal Years …………………….. 300
3.3 Direct and Overlapping Governmental Activities Debt ………………………………………. 301
3.4 Self-Imposed Debt Margin Information, Last Ten Fiscal Years …………………………… 302
3.5 Pledged Revenue Coverage for the Integrated Sewer System,
Last Ten Fiscal Years …………………………………………………………………………………. 304

Demographic and Economic Information
4.1 Demographic and Economic Statistics, Last Ten Calendar Years ………………………… 305
4.2 Principal Employers, Current Year and Nine Years Ago …………………………………….. 306

Operating Information
5.1 Full-time Equivalent County Government Employees by Function,
Last Ten Fiscal Years …………………………………………………………………………………. 308
5.2 Operating Indicators by Function, Last Ten Fiscal Years ……………………………………. 310
5.3 Capital Asset Statistics by Function, Last Ten Fiscal Years …………………………………. 314

VIII County of Fairfax, Virginia  Annual Comprehensive Financial Report

Introductory Section

T

he Introductory Section contains the letter of
transmittal, which provides an overview of the

County of Fairfax’s finances, economic prospects,
and achievements. Also, included in this section is
the Certificate of Achievement for Excellence in
Financial Reporting awarded by the Government
Finance Officers Association. It is the highest form
of recognition in governmental financial reporting.

Department of Finance

12000 Government Center Parkway,

Suite 214

Fairfax, VA 22035

703-324-3120, TTY 711

www.fairfaxcounty.gov/finance

November 16, 2021

Honorable Chairman, Members of the Board, and Residents of the County of Fairfax:

We are pleased to submit to you the Annual Comprehensive Financial Report (ACFR) of the County of

Fairfax, Virginia (the County) for Fiscal Year (FY) 2021 (July 1, 2020 – June 30, 2021) in accordance with

the Code of Virginia. The financial statements included in this report conform to generally accepted

accounting principles as promulgated by the Governmental Accounting Standards Board (GASB).

Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all

disclosures, rests with the County management. To the best of our knowledge and belief, the enclosed data

are accurate in all material respects and are reported in a manner that presents fairly the financial position and

results of operations of the various funds and component units of the County. Extensive disclosures have

been included to enable the reader to gain the maximum understanding of the County’s financial and business

affairs.

The following subjects are discussed in this letter:

• Economic Condition and Outlook;

• Major Initiatives and Accomplishments;

• About Fairfax County;

• Financial Information;

• Independent Audit;

• Awards; and

• Acknowledgements.

Important information regarding the financial statements and audit is discussed under the Financial

Information heading located on page XXVII.

ECONOMIC CONDITION AND OUTLOOK

Fairfax County’s Gross County Product, adjusted for inflation, decreased at a rate of 2.6 percent in calendar

year (CY) 2020, following an estimated increase of 3.2 percent in CY 2019, according to economic

forecasting conducted by IHS Markit Ltd. The County’s economy shrank sharply during the first half of the

year as national and local economies were partially shut down to reduce the spread of the novel coronavirus

(COVID-19). During the latter half of the year, the economy gradually reopened, and growth resumed.

C o u n t y o f F a i r f a x , V i r g i n i a

To protect and enrich the quality of life for the people, neighborhoods, and diverse communities of Fairfax

County

To protect and enrich the quality of life for the people, neighborhoods and diverse communities of Fairfax

County

LETTER OF TRANSMITTAL

Introductory Section (Unaudited) X

As the COVID-19 pandemic wanes, and with continued fiscal support and low interest rates, growth is

expected to accelerate in FY 2022. However, there are some potential risks to the forecast. The future course

of Fairfax County’s economic and revenue outlook is highly dependent upon the course of the virus and the

path toward a more normal economic environment. The reopening of the economy, consumers’ accumulated

unspent savings, fiscal stimulus, and COVID-19 related supply constraints appear to have produced inflation

in some key sectors. Compared to a year ago, the August Consumer Price Index increased 5.3 percent and

Federal Reserve Board Chair Jerome Powell has acknowledged that the increase in the rate of inflation is less

transitory than the Fed originally anticipated. The Federal Reserve has announced it expects to discontinue

some of its extraordinary monetary support over the next year, but if inflation continues to run high, the Fed

may have to increase interest rates sooner than expected to slow an overheated economy.

The Board of Supervisors (BOS) and County Executive have been very proactive and fiscally responsible in

monitoring the County’s revenue and economic outlook due to the uncertainty for FY 2022. For the second

year in a row, a special Midyear Budget Review will be conducted to closely review the financial accounts

and fiscal patterns. The impact of economic conditions on FY 2022 revenue will become more apparent in

upcoming months after several months of actual FY 2022 collections have been received.

The Local Economy

Total employment in Fairfax County decreased a net of 30,587 jobs (4.9 percent) in CY 2020, as reported by

the U.S. Bureau of Labor and Statistics. While job losses were spread across the economy, losses were

concentrated in public facing sectors such as the Leisure and Hospitality sector, which includes restaurant and

hotel positions, where the number of jobs fell by 27.1 percent for the year due to pandemic related closures.

Other sectors such as Professional and Business Services, where employees were able to work from home,

were much less impacted. In the Professional and Business Services sector, the total number of jobs fell by

less than 1 percent for CY 2020.

Because the economy of the Washington, D.C., region is knowledge-based, it is somewhat insulated from the

supply-chain manufacturing disruptions affecting other regional economies. Business, Professional, and

Occupational License (BPOL) and Sales Taxes are two revenue sources that are good indicators of economic

activity in the County. In FY 2021, overall BPOL receipts decreased 1.5 percent from the previous year.

Revenues in the combined Consultant and Business Service Occupations categories, which represent almost

45 percent of total BPOL receipts, increased by 4.3 percent. Due to pandemic related closures, the Retail

category decreased 10.7 percent in FY 2021. FY 2021 Sales Tax receipts increased 5.1 percent, thanks to

federal stimulus and the pandemic-related shift toward online spending.

For the commercial real estate market, office vacancy rates increased. According to the Fairfax County

Economic Development Authority (FCEDA), the direct office vacancy rate increased for the first time in six

years, from 13.9 percent in CY 2019 to 14.6 percent as of the end of CY 2020.

Based on information from Bright MLS, the average sales price of homes in Fairfax County rose 8.4 percent

in CY 2020. Home prices continue to increase primarily because of a tight inventory of homes for sale and

unprecedentedly low mortgage interest rates. Since 2009, the average home sales price has risen 56.4

percent, or an average annual growth of 4.1 percent. Bright MLS also reported that home sales in Fairfax

County increased by 3.7 percent compared to CY 2019.

It should be noted that in FY 2021, the County received approximately $111 million in federal stimulus funds

from the American Rescue Plan Act (ARPA) of 2021 to mitigate revenue shortfalls and the negative effects of

the pandemic. The revenue was appropriated in the General Fund to provide the County flexibility in

responding to the pandemic. An additional similarly sized tranche of stimulus funds is expected in FY 2022.

LETTER OF TRANSMITTAL

XI County of Fairfax, Virginia-Annual Comprehensive Financial Report

As illustrated in the following chart, Fairfax County’s unemployment rates, not seasonally adjusted, have

consistently tracked well below both state and national averages. For June of FY 2021, Fairfax County’s

unemployment rate was 4.1 percent. The unemployment rate for the state of Virginia and the United States

was 4.3 percent and 5.9 percent, respectively.

Economic Development

The County supports economic development through promoting a vibrant, diversified business community

and growing job opportunities, while enhancing the commercial tax base. This approach has required quick

maneuvering to respond to the upheaval caused by COVID-19 and the subsequent shutdown of business

operations. Mandated full or partial business closures, health restrictions, and remote working redefined

many business models. Certain business sectors, workers, and communities have faced disproportionate

impacts of the COVID-19 pandemic. The Fairfax County Department of Economic Initiatives (DEI) and the

FCEDA are the lead economic development organizations in Fairfax County.

Fairfax County DEI developed and led several COVID-19 response activities. This includes the following

business support and economic recovery initiatives in FY 2021.

• Overseeing the $1 million Small Business COVID-19 Recovery Microloan Fund and transitioning
that to a revolving loan fund. The original source of funding was the Economic Opportunity Reserve.

• Developing, promoting, and overseeing the Fairfax RISE program: COVID-19 Small Business and
Non-Profit Relief Grant Program, which distributed $52.6 million in grants to 4,809 small businesses.

The primary source of funding was the Coronavirus Aid Relief and Economic Security (CARES) Act

received in late FY 2020.

• In partnership with the FCEDA, leading and launching an Economic Recovery Framework for
business retention and economic competitiveness, and convening Economic Recovery Forums with

more than 15 County agencies to discuss implementation and tracking.

• Developing, promoting, and overseeing the $25 million PIVOT small business recovery grant
program. The source of funding is ARPA funds.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2017 2018 2019 2020 2021

P
e
r
c
e
n

t
a
g

e

Fiscal Year as of June 30

Unemployment Rates
(Source: U.S. Bureau of Labor Statistics, Not Seasonally Adjusted)

United States

Virginia

Fairfax County

LETTER OF TRANSMITTAL

Introductory Section (Unaudited) XII

• Leading the County’s business communication and outreach, including the following: monitoring
and updating the COVID-19 business webpage; answering business questions via emails and phone

calls and, designing and mailing business resources postcards to approximately 30,000 businesses.

• Convening a business continuity working group to coordinate partners across the County in the
response to the COVID-19 crisis impacting the local business community.

FCEDA plays a major role in carrying out the economic development activities of the County. During the

COVID

Accounting homework help

You will work alone on this this project, the purpose of this projects is to make students aware of the various technologies, and how these technologies are enabler for organizations in improving operational efficiencies and strategic competitiveness.

No

Things to Do/Task

Points

1

Use Word 2016/2019 to generate a report with the following specifications:

• The report body should be a maximum of four double-spaced pages (not including the cover page, table of contents, bibliography page, and appendices).

· You will also include a PowerPoint of no more than 6-8 slides

· Cover page will have the Project topic, course number, course description, professor’s name, and University’s name.

5

2

List of the references used should be provided on the last page

10

3

At least three – four pages of project contents, double space, use 12 point Arial font, must include conclusion.

40

4

Provide a list of Tasks (Gantt chart), list all activities with begin and end dates, using MS project.

10

5

Include not more than 6-7 PowerPoint slides related to your project.

10

6

You must include an Audio/video file at least 2 minutes long discussing main features of project components. You can embed this audio/video in your PowerPoints.

20

6

You should be able to answer questions raised during presentation.

5

7

Note: use tables/charts for comparison and clarity in a section titled Appendix

Assignment Specifications:

Project Title:  Cyber Security, Information security and Risk Mitigation

Scope of this Project

Key components will include:

· Cyber Security: provide an overview of the key concepts and practices in cybersecurity and identify how to achieve cyber safety.

· Discuss: the National Institute of Standards and Technology (NIST) Cybersecurity Framework

· Measuring and Mitigating Cyber Risk Exposure: discuss cyber risk management/mitigation policies and practices

· Exploring Ethics in Cybersecurity: discuss tradeoffs between security and privacy

· How Cyber Security relates to Information security and enterprise security

Some of the Sources to be used:

· Nist.gov

· TechRepublic.com

· Gartner.com

· internet

· Splunk.com

· Use Textbook

Sample Report Format

Report Title (cover Page)

Your first name and last name

Other names

Course name and CRN

Due date MM/DD/YY

Table of Contents (start on a new page)

Introduction ……………………….………….…………. Page 1

Report Body Subtopic 1 …………………………………………… Page 1

Report Body Subtopic 2 ……………………………………………… Page 2

Conclusion ………………………………………….…. Page 2

Bibliography ……………………………………………. Page 3

Appendices ……………………………………….…… Page 4

(Report Body – start on a new page)

Report Title

Introduction

In this section provide a paragraph that contains an overview of the report topic. Include citation for all sources (Word, References, and Insert Citation – Use APA format). Include your name and Page number in the page footer (Word, Insert Footer, Edit Footer, and type your last name; Choose Different First Page).

Report Body

In this section explain the research topic in detail. Start with background and/or literature review of the topic. Divide the topic into major subtopics or tasks. Explain each subtopic or task fully, and give examples to support the explanation. Include citation for all sources (Word, References, and Insert Citation).

Conclusion

In this section provide a summary of the report. Include citation for all sources (Word, References, and Insert Citation).

Bibliography (start on a new page)

Use APA format to cite all sources (Word, References, Style: APA, Bibliography). Also, see https://www.uhd.edu/library/help/Pages/citingwriting.aspx, or “Ask a Librarian”http://www.uhd.edu/library/ask.html.

Appendices (start on a new page)

Appendix 1 – You may include screen shots of supporting materials (diagrams, charts, etc.). Include citation for all sources (Word, References, and Insert Citation).

Accounting homework help

Department of Architecture and the Built Environment

University of the West of England

Postgraduate Level

MSc Real Estate Management

Managerial Finance for the Built Environment

Coursework

Managerial Finance for the Built Environment 2021-22

Page | 1 of 6

Purpose

The coursework is intended to provide you with the opportunity to
demonstrate understanding and integration of the various aspects of the

programme and this module. The aim
should be to obtain, analyse and

interpret financial information; assess
the financial viability of a project and

integrate them into a balanced

decision-making framework.

Project Brief:

MF4BE, a leading local housing

developer of the South West is
considering a new housing

development to be built under a quasi-
social housing agreement with a

national house-building firm. Several
sites were identified in the initial

feasibility studies, however, many of
these required substantial demolitions

of existing dwelling houses and
relocation during construction and

have thus been rejected. Source:
http://www.eastofharrystoke.com/proposals/

Managerial Finance for the Built Environment 2021-22

Page | 2 of 6

The proposed development will take place on a site in a new neighbourhood

called East of Harry Stoke (EoHS) situated on the urban edge of north

Bristol near the University of the West of England and close to the M32 and
M4 motorways. This site is mostly owned by Crest Nicholson and South

Gloucestershire Council who intend to deliver about 2000 houses; while
some parts are owned by other private landowners. MF4BE has purchased

3.125 hectares of the EoHS land from the private landowners for £3.5
million per hectare to enable it to carry out this development. MF4BE plans

to develop the site to provide a mix of housing (including family housing,
flats and sheltered accommodation), together with commercial uses in

future and also provide some open spaces. In keeping with this, the
average dwelling per hectare (density) for this development should NOT

exceed 32.

To achieve this undertaking, MF4BE is considering engaging a reputable
construction company or housebuilder from a list of firms that have

expressed interest. MF4BE is also considering taking a stake in a
construction company or housebuilder as part of its long-term expansion

goals of accessing other income.

You are required to provide a report that will contain the following:

Part 1: 60 Marks

Assessment of suitability of the construction or housebuilder firm

(1800 words)

You are required to obtain the most recently published “FULL ANNUAL
REPORT” for an exisiting construction company or housebuilder of your

choice. The annual report must be for a UK PLC that is listed on the UK

Stock Exchange and must be in the English language.

You are required to assess the suitability of the chosen construction

company or housebuilder, both as a building contractor and a potential
investment, by preparing a report on the financial “health” of this company.

This should be done by making use of financial ratios as revealed or implied
by the most recent FULL annual report and its financial statements. Your

report should be clear and succinct as if prepared for your boss (with no

accounting knowledge) who is a very busy person with limited time to read
it before an important meeting. All relevant information in the annual

report should be used as necessary.

The detailed calculations of all ratios must be shown in FULL and must be

attached separately as part of the Appendices either in Microsoft Word or

Microsoft Excel (Note: Please only restrict yourself to the ratios
covered in class). A complete copy of the FULL ANNUAL REPORT must

be attached as a separate file in the submission. Please DO NOT use the

interim (half-year) annual report.

Managerial Finance for the Built Environment 2021-22

Page | 3 of 6

The full annual report can be obtained online from the respective

company’s website or by carrying out a search using your preferred

internet “search engine”. You can use FAME (a database accessible through
the UWE Library webpage) to check that the company is a PLC. Note that

FAME should only be used to compare the ratios but all the ratios should be

calculated manually.

Part 2: 40 Marks

Development decision making (1200 words)

You are required to propose a choice of two (2) housing schemes on the
site for MF4BE to pick from. Decide on the total number of residential

dwellings proposed for this site and the housing mix and types (e.g. 1
bedroom, 2 bedrooms etc). Note: a minimum of three house types is

required for both proposed schemes.

a. Undertake breakeven analyses (charts included) based on only the
development of houses on both of the proposed schemes. Based on the

breakeven analyses, advise MF4BE which of the two schemes is the best.

Market information can be gleaned from a variety of databases e.g.
“Rightmove” that will provide reasonable comparables. Cost information

can be obtained from sources such as the Building Cost Information Service

(BCIS) or Spon’s.

(18 marks)

b. With the use of the information from (a) above, advise MF4BE on the

viability of the two proposed schemes by carrying out capital budgeting
using the Return of Capital Employed (ROCE), Payback Period (PP), Net

Present Value (NPV) and Internal Rate of Return (IRR). Discuss which of
these appraisal methods IS the most suitable for this task and advise

which of the two proposed schemes is the best.

Make appropriate assumptions regarding the timing of the construction and

sale of the units.

(22 marks)

The full report should include, among other things:

• One-page executive summary of both Part 1 and Part 2- containing the

key features and results of the report. This should be on a separate
page placed at the beginning of the report

• A brief introductory section

Managerial Finance for the Built Environment 2021-22

Page | 4 of 6

• Numerical investigation

• Findings – analysis and interpretation of results

• Solutions, conclusions and recommendations
• References (ensure that you use the Harvard System check the UWE

library website for guidance)
• Appendices – these should be used appropriately to show the workings

(Calculations for Part 2 should be done in MS Excel) and should be
limited to information supporting the report. Definitions of ratios should

be within the report while ensuring that important information is not
relegated to the appendices

Style

The typed report should be complete, coherent, clear and concise
(maximum 3,000 words with a 10% allowance – see the University’s policy

on word count) making good use of headings, tables, graphs, diagrams,
page numbers etc., and presented professionally with balanced use of

appendices, contents listings, proper referencing, bibliography, word count,
etc. material in the appendices. The report should be predominately

analytical rather than descriptive.

Coursework hand-in

The coursework should be handed ONLINE (electronically) following

normal Faculty practice BEFORE 14.00hrs on Thursday, April 28th,

2022. Note that you will be penalised if your work is submitted even one

(1) second after the 14.00hrs.

The most significant point to stress at this time is that your submission

must consist of three electronic files: –

1. The report containing both parts 1 and 2 and any appendices MUST

be submitted as a single MS WORD document.
2. A single spreadsheet file (MS Excel or similar) containing (at least)

two (2) separate worksheets (labelled appropriately) for the
appendices of all the calculations.

3. The pdf file of the FULL ANNUAL REPORT

Note: Please DO NOT just paste pictures of extracts of the Excel file since
we will need to see your calculations. Ensure that this Excel file is uploaded

as a separate file and DO NOT EMBED it in the MS WORD file – embedded
files that cannot open will be deemed as missing and therefore making your

work incomplete.

Electronic Submission

Full instructions will be provided about 4 weeks before submission. Ensure

that you read the submission instructions carefully.