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Discussion Question 1:
Budgets Matrix
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Financial Statements
Another response
DQ2
There are many different types of budgetting. For example, there sales
budget which allows management to see how many units that need to
be produced, production budget which will allows everyone to see
how many units are going to be produced in or needed to be produced
in order to meet the inventory for that budget period. One budget that
I can describe in detail is called the direct labor budget and this
budget shows how many people, hours is needed in order to meet the
required budget for that period. This will give management an idea of
how much money is needed such as paying the cost of labor. The
company benefits by each of these budgets because it will help
manage just how much money it will cost the company during this
period. Management can also see if there are different ways to cost
the company out of pocket cost down during this period.
Another response
An example would be, every Easter the bakeries in the Bronx loads up
on Hot Cross Buns. My mother and grandmother would buy these
tasty sweet breads,and eat them for breakfast. I personally would like
to eat them every week but, they are only sold during the Easter
season. Maybe, it has something to do with the glazed cross on the
top.
Every Easter Holiday, there appears these Hot Cross Buns and the
bakeries production department allows for the purchases for items
needed to make the buns. After Easter has gone, Hot Cross Buns are
not included in the budget.
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ACC 291 Final Exam Study Guide
Question 207
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Purpose of Assignment The purpose of this assignment
is to help you understand the basics of financial
statement analysis using financial ratios on the assets
section of the balance sheet, data interpretation, and
how ratios are used to gain insight about the
management of receivable. Assignment Steps
Resources: Capstone Discussion Question: Post
your response to the following:
Think back over what you have studied and
learned in this course. Do you have a new perception of
or appreciation for the field of accounting and how it
contributes to business? Explain.
To be perfectly honest with you I truly had no clue what
accounting did for a company and how important it
was. I always thought that accounting only dealt with
payroll. In fact accounting does much more that just
payroll and monitor company supplies (coffee, paper,
pens & pencils). The accounting sets budgets for the
entire company, monitors outflow and inflow of profits,
plans budgets for each department, and much more.
When I first begun this class I was really nervous, I truly
thought that I was going to have a hard time
understanding the accounting but I happy to say that I
was wrong. I understood every part of this course.
Another response
Accounting has taken a whole new meaning to me in
my vocabulary. Prior to this course, I just took
accounting as a calculator and crunching numbers. I
now have a new respect for accounting and all the
aspects that are involved. I never once took into
consideration profit, sales, revenue, and balance
sheets also being included with accounting. There is so
much more involved with accounting, and had I not
taken this course I would have never known.
Accounting is a very important part of running a
business. I feel that it is imperative to all people
thinking of opening a business should take some type
of accounting class to become more aware of how to
run the accounting part of a business.
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How would you describe the entries to record the disposition of
accounts receivables?
Business Plan
By
Kamilah T. Crooms
The name of my business is called DestinyWear. DestinyWear is
a urban fashion clothing company for woman, men and youth.
DestinyWear specializes in making clothing for every occasion. My
name is Kamilah Crooms and I am the owner and CEO of
DestinyWear.My goal is to ensure that my company will be succesfull
in all areas and in each department. In order for me to make sure that
the company was going to begin in the right direction I had to
priortize what was most important in establishing my business plan.
The main priority is that I had to first choose the appropriate
business structure, a high demanding product, and most of all an
outstanding accounting team.
Business Structure
Upon establishing DestinyWear I had to decide which business
struture that I felt was best for me to pursue. I decided that as a
Entreprenuer the best choice for me abd the direction of the company
would be for me to be sole proprietorship. Sole proprietorship
allowed me to be the sole owner of DestinyWear. The first and most
important reason that I wanted sole proprietorship is because it is
much easier to start a business as sole proprietorships. Sole
proprietorship takes all the profit that and doesn't have to split it
between any other owners or corporations. I also want the power to
make and change decisions along the way without having to first
consult anyone else.
DestinyWear Products
DestinyWear products will range from jeans, shirts, accessories and
shoes. The company will first start off with its most profitable product
and that will be the DestinyWear designer jeans line. The jeans line
has over twenty different jeans designs
from straight leg, baggy, cargo, overalls, shorts and much more. The
jeans line will provide services within the United States and Canada
and will eventually service International customers. The DestinyWear
jeans line will have its own building. In this building the bottom floor
will consist of the factory and the top floor will have the different
departments such as management, marketing and most importantly
the accounting department.
REFERENCES
//http:yourdictionary.com /CVP.org Retrieved 3/20/2010
Thomas, Y. 2005-08-27 Accounting 101 pg. 52 Statements.
March 19, 2010
Drucker, P. Managing in the next society 2002. retrieved march
19,2010
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ACC 291 Week 1 Discussion Question 2
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How are bad debts accounted for under the direct write-off method?
$1,250,000
$1,200,000
$1,100,000
$1,050,000
$1,000,000
$950,000
2006 2007 2008
If we look at the trend in net income of the company we can find that
the company net income looks fluctuating but it has improved it net
income in 2008 as compared to 2007.
Debt ratio as a percentage of total assets:
If we look at the debt ratio as percent of total asset we can find that
the debt ratio is declining in 2008 as compared to 2007 i.e. the
company is increasing equity to finance debt.
Debt as a percentage of total equity:
Debt as percent of total equity
127.00%
126.50%
126.00%
125.50% Debt as percent of
125.00% total equity
124.50%
124.00%
123.50%
123.00%
122.50%
2007 2008
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Wiley Plus Assignment Week 1
E8-4, E8-11, BYP8-1, and BYP8-2 in MS Excel
According to the FASB website the mission of the FASB is to establish and
improve standards of financial accounting and reporting that foster financial
reporting by nongovernmental entities that provides decision-useful information
to investors and other users of financial reports. Since 1973, the Financial
Accounting Standards Board (FASB) has been the designated organization in the
private sector for establishing standards of financial accounting that govern the
preparation of financial reports by nongovernmental entities
The major difference in the SEC and the FASB is that the SEC deals with reporting
of financial statements for all industries while the FASB deals mainly with the
private nongovernmental entities. Both are concerned with the fairness of
financial reports and work in the interest of the public. I believe that the SEC has
more influence over financial statement reporting because they can bring civil
action against companies and individuals for violations of securities laws.
Although according to the FASB website, the Commissions policy has been to
rely on the private sector for this function to the extent that the private sector
demonstrates ability to fulfill the responsibility in the public interest.
Response 2
According to the SECs website The mission of the U.S. Securities and Exchange
Commission is to protect investors, maintain fair, orderly, and efficient markets, and
facilitate capital formation(U.S. Securities and Exchange Commission, 2010, Para. 1).
The main activities of the SEC are to interpret federal securities laws; issue new rules
and amend existing rules; oversee the inspection of securities firms, brokers, investment
advisers, and ratings agencies; oversee private regulatory organizations in the securities,
accounting, and auditing fields; and coordinate U.S. securities regulation with federal,
state, and foreign authorities. (U.S. Securities and Exchange Commission, 2010)
According to the FASBs website The mission of the FASB is to establish and improve
standards of financial accounting and reporting that foster financial reporting by
nongovernmental entities that provides decision-useful information to investors and other
users of financial reports. That mission is accomplished through a comprehensive and
independent process that encourages broad participation, objectively considers all
stakeholder views, and is subject to oversight by the Financial Accounting Foundations
Board of Trustees (Financial Accounting Standards Board, n.d., Para. 3).
The main activities of the FASB are to identify financial reporting issues based on
requests/recommendations from stakeholders or through other means. The FASB
Chairman decides whether to add a project to the technical agenda, after consultation with
FASB Members and others as appropriate, and subject to oversight by the Foundation's
Board of Trustees. The Board deliberates at one or more public meetings the various
reporting issues identified and analyzed by the staff. The Board issues an Exposure Draft
to solicit broad stakeholder input. (In some projects, the Board may issue a Discussion
Paper to obtain input in the early stages of a project) The Board holds a public roundtable
meeting on the Exposure Draft, if necessary. The staff analyzes comment letters, public
roundtable discussion, and any other information obtained through due process activities.
The Board redeliberates the proposed provisions, carefully considering the stakeholder
input received, at one or more public meetings. The Board issues an Accounting Standards
Update describing amendments to the Accounting Standards Codification (Financial
Accounting Standards Board, n.d.).
Both the SEC and the FASB have the same goals of fairness, accuracy, and
understandability of financial accounting and reporting. Both agenecys
accomplish these goals in the best interest of the overall public.
The differences between the SEC and the FASB is that the FASB regulates
financial reporting in the private sector of businesses (but are subject to the rules
and regulations of the SEC) and the SEC deals with regulating the financial
reporting of publicly held corporations.
I believe that the SEC has the greatest influence over financial statements
reporting because they have the final approval on all changes of the rules and
regulations. The Sec can also bring civil or administrative enforcement actions
against individuals and companies in violation of the securities laws.
References
Financial Accounting Standards Board. (n.d.). Facts about FASB. Retrieved July
15, 2010, from Financial Accounting Standards
Board:http://www.fasb.org/facts/index.shtml#mission
U.S. Securities and Exchange Commission. (2010, May 3). The Investors
Advocate: How the SEC Protects Investors, Maintains Market Integrity, and
Facilitates Capital Formation. Retrieved July 15, 2010, from U.S. Securities
and Exchange Commission: http://www.sec.gov/about/whatwedo.shtml
Week 1 DQ 2
Due Thursday, Day 4
Search the Internet or the Online Library for information about the
Sarbanes-Oxley Act. A useful guide to some of these provisions is
located at http://www.soxlaw.com. Summarize at least two
provisions of the law, and discuss your interpretation of these
provisions with your classmates. Do you think this law will make
financial statements more reliable? Also, discuss how Sarbanes-
Oxley establishes boundaries to ensure ethical practices. What
does the law allow or prohibit, and why?
Response 2
Section 802 of the Sarbanes-Oxley Law defines the penalties that may be
assessed against individuals who failed to comply with the Act. An
individual could be subject to 20 years in jail for altering, destroying,
mutilating, concealing, falsifying records, documents or tangible objects.
Guilt is define by the intent to impede a legal investigation. This part of the
law gets to the heart of how Arthur Anderson reacted by destroying
documents important to Worldcom. The law further defines that any
accountant who knowingly violates their ethics by wilfully violates the
requirements of maintenance of all audit or review papers. These papers
are subject to review up to five years.
The second Section that I reviewed was the Section 302. This actually is
my favorite part of the law because it directly holds the officers and
directors accountable for the accuracy of reporting in their financial
statements. It defines that the management must review and understand
the financial statements and sign that they are true and accurate. It also
holds the management accountable for the internal controls, requiring any
deficiencies to be reported. In the past directors of companies relied
heavily on the internal officers, management, to report the company
performance without questioning the accuracy or taking their role on
oversight committees seriously. They could hide behind a veil of trust of
the key leaders. This Section clearly puts the responsibility for the Board to
remain independent of the executives and function more effectively on the
respective oversight committees they serve. The example I would share is
what happened in WorldCom. The company leaders shared what they
wanted to with the Board, who trusted implicitly the top leaders. Had they
questioned their legal representation or auditors, they potentially could
have uncovered the fraud that was committed by the creation of shell
companies, with WorldCom employees as stockholders.
I would love to think this law would protect the investing community.
Financial reporting has improved to some extent. Unfortunately the scams
still continue. Example would be Barney Madoff or what happened in the
financial mortgage industry. These unethical practices were conducted
after Sarbanes Oxley was implemented. Madoff was able to provide false
financial information to investors. Financial industry was allowed to get to
aggressive in underwriting and product suite. Fines and penalties are
deterrents. Ethics still must be inherent in an individual and company.
Laws and requirements are a guide. There will never be enough auditors,
inspectors or oversight boards to catch all of the fraud in the corporate
community.
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P10-5A
Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note
on December 31, 2007. The proceeds from the note are to be used in
financing a new research laboratory. The terms of the note provide
for semiannualinstallment payments, exclusive of real estate taxes
and insurance, of $29,433. Payments are due June 30 and December
31. Lucent Technologies
Reference
Axia College. (2007). Understanding Financial Statements. Retrieved
May 10, 2010 from Axia College, Week 2 Assignment, ACC/230.
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Purpose of Assignment The purpose of this assignment
is to help you understand the basics of financial
statement analysis related to the assets section of the
balance sheet, data interpretation, and how financial
information is obtained to understand how a company
accounts for its long-lived assets. Assignment Steps
Resources: Financial Accounting
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What are the differences among valuation, depreciation, amortization,
and depletion?
The companies net income is profitable when the sales exceed the
cost of goods sold. In this, the gross profit is $761k. This is beneficial
to the company. Though we took the cost of goods away from the net
sales there are still other areas which need to take a piece of the pie.
For this company, once the SG&A and depreciation are taken out, the
company still contains a profit of $290k. But the buck does not stop
there. Once the interest income and interest expense are adjusted the
balance before earnings and taxes is $290k. After taxes are taken out,
the company is left with a net profit of $174k.
In this case I think the company has achieved success with a net profit
of $174k. If the company were unable to be profitable, the company
would eventually go out of business. We would be able to tell if the
company was not profitable by looking at each section individually.
The cost of goods sold is what stands out for me. If we pay more to
make the product then we are actually selling it for, there is no profit
to be made. So, I think it should all start there.
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What types of industries have unearned revenue?
Why is unearned revenue considered a liability?
Week 5 DQ 1
In what ways does the statement of cash flows relate to the balance
sheet and income statement?
Response 2
The cash flow statement relates to the income statement and balance
sheet. The net income from the income statement is listed on the
statement of cash flows. Operating activities are analyzed on the
statement of cash flows; this section of the statement reconciles the
net income to the actual cash the company received from or used
during operations. The second section of the statement of cash Flows
is the cash flow from investing activities which include purchase or
sale of assets. The last section in the Statement of Cash Flows is the
cash flows from financing activities that includes raising cash by
selling stocks/bonds or borrowing from backs; or cash out flows from
paying back loans. The balance sheet shows the different account
balances at the end of the accounting period. The statement of cash
flows reflects changes in the accounts listed on the balance sheet
between accounting periods. The net cash from operating, financing,
and investing activities are added up to calculate the net change in
cash.
Week 5 DQ 2
Response 2
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ACC 291 Week 2 Individual WileyPLUS Assignment Week
Two
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Week 3 DQ 1
Due Tuesday, Day 2
Candela Corporation
Candela Corporation
The cash flow from investing activities shows me that in the last
three years they had large amount of investments in 2002 and 2003
but now they are letting them decrease.
The cash flow from financing activities states that the proceeds
from issuance of common stock have increased significantly from
2002 to 2003 and rose a little more in 2004. The repurchases of
stock has not happened sense 2002 and the principle payment of
long-term debt grew in 2003 from 2002 and shows no activity for
2004. Same goes for the net borrowing on line of credit; it appears
that Candela Corporation is current on payments to line of credit.
So, the net cash from financial activities looks great for 2004. The
cash and cash equivalents for each year have increased steadily.
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Resource:WileyPLUS
Complete the WileyPLUS Week Two Practice Quizzes
for chapters 8, 9, and 10
STOCK DIVIDEND
NET INCOME /
STARTING $ $ $
LINE 315.5 - (1,079.0)
OPERATING $ $ $
ACTIVITIES 1,258.7 (684.7) 79.4
$
INVESTING (1,086. $ $
ACTIVITES 6) (393.3) (2,933.7)
FINANCING $ $ $
ACTIVITIES (184.5) 1,293.4 2,904.0
$ $ $
CASH (11.5) 190.7 49.9
HARLEY
DAVIDSON
RITE AID
200 200
8 7 2006
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Discuss the objectives for Weeks One and Two. Your
discussion should include the topics you feel
comfortable with, any topics you struggled with, and
how the weekly topics relate to application in your
field.
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P8-3A, BE9-11, DI9-5, E9-7, E9-8, BYP9, P9-2A.
Do It! 9-5
Week 7 DQ 1
Due Tuesday, Day 2
Post your answer to Study Question 5.2 on p. 180 (Ch. 5). As you
read your classmates responses, consider the following scenario:
If you compared two different companies that utilized two different
valuation methods, how might the quality of the results differ? Also,
comment on the difficulty of making comparisons between two
firms that use different valuation methods.
Response 2
Post your answer to Study Question 5.2 on p. 180 (Ch. 5). As you read your classmates
responses, consider the following scenario: If you compared two different companies that
utilized two different valuation methods, how might the quality of the results differ? Also,
comment on the difficulty of making comparisons between two firms that use different
valuation methods.
It is very important to understand which inventory valuation method is
being used to determine the profit numbers quality. The balance sheet,
statement of cash flow and income statement can be directly impacted by
the valuation method that used to determine the costs of inventory. The
three methods that are used are FIFO, LIFO and Average Cost. The
valuation ratios can be dramatically affected depending on the inventory
valuation that is being used over a long-term period; especially because
prices are likely to rise. When using FIFO you can increase net income, but
then at the same time raise the amount taxes that business is obligated to
pay. When using LIFO the inventory can be obsolete because they are old
this will result in lower net revenue because the products pricing is
higher. The Average Cost results usually fall between LIFO and FIFO. The
bottom line can be affected mainly by the inventory analysis and the ratio
results that are formed from that analysis. It is easier to compare
companies that are in the same line of business, so I believe that quality of
results would differ tremendously if different valuation methods were
used. If you use LIFO that company may seem unattractive but they are
performing well, as for FIFO it may look good as for profit, but may not be
performing well.
DQ 2
Week 7 DQ 2
Due Thursday, Day 4
Post your answer to Study Question 5.6 on p. 180 (Ch. 5). Discuss
the consequences of poor quality reporting. What has the U.S.
government done to improve the quality of reporting after recent
financial scandals such as Enron?
I think that the significance is that the analysts only see this one
HUGE transaction. The events that actually led up to this large
transaction actually took place over a 2 year period. These items
should have been written off as they occurred. Wall Street would not
have known that the executives refused to write off these accounts
when they should have. Wall Street only see's the one large
transaction. If the company would have been more honest in their
reporting they would have seen (more than likely) that there were
many accounts over a two year period that should have been written
off at different periods. So the analysts would not have seen a
pattern of recurring write-offs. If the analysts only see the one
transaction they are less likely to be able to paint an accurate picture
of the financial standing of the business for investors, or potential
investors. If the investors could see that there were many accounts
that had to be written off maybe their investing decisions would have
been different. The regulation of the accounting field has grown by
leaps and bounds since the Enron scandal. The government has
implemented several agencies and regulations to ensure honesty in
accounting practices. SOX is one example of an agency that has
been put into place to ensure honesty in accounting. SOX
implements things like internal controls, and accountability for CEO's
and CFO's.
Response 2
I believe the impact and importance of this write-off event is a very
big matter. It is obvious how they handled it that it was a scandal
from the start. I think that everyone involved had a big role in how
things played out. To me I think of the investors as a really big hit to
this but also feel that audit committees have to be held responsible
as well. It has been shown over many examples that adit oversights
are happening to financial reporting. Although I do feel they are
getting better and tighter due to conforming tightly with the GAAP
requests. I feel over time the accounts receivable should have been
written off in smaller increments and not all taken by $405 million at
once. Maybe that isn't correct but it would have been easier I would
think to take the receivables over time.
Response 3
Wall Street should have read the footnotes and seen that the write off was for accounts
receivables and should have been reported in the allowance for doubtful accounts. Every
company that allow sales on credit face doubtful accounts; therefore, the write off may
reoccur. The significance of this transaction is that WorldCom want to cover up the $405
million dollars that it was unable to collect from its customers, but WorldCom wrote off a
large sum of money rather recording the write-off as needed and the analyst over looked
it. Depending on how the company policy is for writing off accounts, from 1998 to the
3rd quarter in 2000 is 11 quarters. If the company wrote off bad accounts quarterly it
should have wrote off 36,818,181.82 per quarter. Investors would not want to continue to
invest into a company that has poor collection skills, or poor management. Unusual items
are simply for those items that are not recurring operating expenses. Bad debts do not
fall under this category. Since the Enron and WorldCom scandals many rules and
regulations have been put in place by the government such as SOX. More people are
being held accountable for their actions and consequences follow poor quality reporting
such as fudging the books.
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ACC 291 Week 3 Assignment The Liabilities Section of
OBrians Balance Sheet
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Purpose of Assignment The purpose of this assignment
is to help you understand the balance sheet
presentation for the liabilities of a company.
Assignment Steps Resources: Financial Accounting:
Tools for Business Decision Making Prepare the
liabilities section of OBrians balance sheet using the
following information: Accounts payable $157,000
Presenting to Stakeholders
Axia College of University of Phoenix
Presenting to Stakeholders
Financial statements provide insight into the
companys current status and lead to the development
of policies and strategies for the future (Axia, 2007).
Financial statements and notes to the financial
statements should be used to analyze the company.
For instance, what do the financial statements reveal
about why the company has requested a loan or
purchased items on credit? What is the firms capital
structure and what does the firm have outstanding?
How well can the company pay back debt? What
recourses are used to pay debt? What is the companys
performance record and are there any future
expansions? What are the expected returns and how
successful is the company compared to industry
averages? Which areas of operations contributed to the
companys success, and what are the strengths and
weaknesses of the company? What changes can be
made to improve the future performance of the
company?
Key financial ratios will assist in determining the
information requested. Liquid ratios measure a firms
ability to meet cash needs as they arise. The current
ratio is a good tool to use because it measures the
ability the firm has to pay debts when due. The current
ratio for REC is at 2.4 times for 2007, although it is
down from 2006 the company is still able to pay
current debt when due. Cash flow ratio considers cash
flow from operating activities has increased from 2006,
and this indicates an improvement in short-run
solvency. Average collection period has gone down 5
days within the last year. The cash conversion cycle
gives in-site on why the cash flow has improved or
decreased, in this case the conversion period for REC
has improved by 26 days.
Reference
Axia College. (2007). The Analysis of Financial
Statements. Retrieved June 28, 2010,
from Axia College, Week Eight, ACC 230.
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Why does a company choose to form as a corporation?
Analysis of Scenarios:
Debt Scenario would increase the debt ratios from to 50%. Equity
Scenario would reduce the debt ratio to 40%. With Debt option,
earnings per share would be higher. Interest declines to 2.86 times
with the Debt option while times interest earned increases to 3.75
times with the Equity option. Either option exhibits a good use of
financial leverage because for both, the financial leverage index
being greater than 1. However, it is higher using the Debt option.
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Why is preferred stock referred to as preferred?
Capstone Discussion Question
Due Tuesday, Day 2
Response 2
I have learned that it takes someone that has the patience, tenacity,
and motivation to truly analyze the statements. If you go about it not
wanting to do the work you wont give a good analysis. I found that
you have to be willing to dig deeper than most would to get a full
picture of the company. I found that it is not an easy task to complete.
For me the process is a tedious one. I don't think I would want to go
into that type of accounting where I have to analyze the statements of
a company. I think for me I would be better in specialized accounting
like A/P or A/R. I am better at figuring out problems and figuring out
ways to make them better. I am better at specific tasks so for me I
wouldn't want to analyze the statements. I am glad to have learned
how, because at some point I am sure it will come in handy.
Response 3
All financial statements are essential documents because they tell
what has happened to a business over a period of time but most users
of financial statement are more concerned about what will happen in
the future. Stockholders and creditors are concerned with future
earnings and dividends and company's future ability to repay its
debts. Management is concerned with the company's ability to
finance future expansion.
Working as a bookkeeper I do all the steps in monthly cycles
consisting of entering transactions into the journals, working with
A/R, A/P, payroll and preparing the reports, but I have not been able
to analyze the reports the way I learned in this class. I learned how
important is to monitor and interpret the results. I learned how to
compare financial statements of a company with a company from the
same industry and point out the differences and similarities. This
class taught me the importance of analyzing the Income Statement,
Balance Sheet, Cash Flow Statement and Stockholders Equity each
one individually. I learned how essential is the quality reporting and
how useful this quality is in business decision making. I learned about
key financial ratios: liquidity ratios, activity ratios, leverage ratios,
and profitability ratios. All these ratios are valuable as analytical
tools and will help me indicate the areas of strength and weakness in
a business. Even though I learned the information step by step in this
class I tent to go over every single chapter all over again to better
absorb the material. This class taught us the potential of some
management manipulations of financial statements, thus following the
general accounting rules, being honest, ethical and professional are
the ways on leading to safe and profitable decisions.
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enjoys full advantage of USA as home country, as it has a strong retail network of
273 physical stores whose majority is in USA, beside the E-retail outlet around
the globe. The diversified product portfolio empowers the apple to strive in tough
and Development.
Managements Strategy
It is clear from the financial and the strategic analysis of the Apple Inc.
and product development. It may be the sole reason that why the firm avoids the
cash dividend and rely over the stock options. Besides the hardware business of
system, and all such software application which added the value of its product.
The management is of the view that R&D, integrated marketing channels and its
and advertisement activities; it increases the brand equity, brand loyalty and
awareness about the products. Management also considers focusing on the retail
store as it is the source to remain in contact with customer and a way to market
the product directly; it is also a way to cross sell the market to customer.
improvement in net sales and profitability since 2005 to 2009. In 2008 the net
income increases 75.07% and in 2009 increases 34.58% shown that Apple cop. is
trend. In 2009 basic EPS is 9.22 from 6.94 last year, and it was 4.04 in 2007. It
should be noted that no cash dividend is announced since 2005, although stock
base benefit and compensation is given. An increase in return on asset has been
observed in 2009 i.e.26.96% against 19.33% last year while industries average is
19.8. Hence Apple is leading the Industry from this angle. Return on equity is
18.92% into 2009 lower than 33.40% of industry benchmark, meaning apple is at
lower leverage with a roe increase of 4.03% this year (Hardware Marketplace,
2010).
Financial Risk and Industry
At this stage of our analysis we extend our findings to assessment of risk
associated with the investment opportunities in APPLE Inc. Analyzing the liquidity
we observed that Apple has a sound ability to meet its short term obligation. It is
revealed by the healthy current ratio of 2.74 for the year 2009; it is improved
from 2.46 of the last year 2008. If we had a glace on the industry it reflects a
standard of 2.5. In the computer equipment industry a very low inventory has
been observed. That is why the acid test ratio fall lightly below the current ratio
i.e. acid test ratio is 2.70 for the year 209 in comparison to 2008, which were
2.43. If we compare the acid test of 2009 i.e. 2.70 with industry average, which
situation it is stated that the risk avoider will be glad to look at the
is 0.11 for the year 2009, which is increased from 0.08 of 2008. Here it is
Hence it is apparent that though the APPLE Inc. is more risky in the long run, but
besides other assets, the requirement of the cash also increases in 2009. $1.11
billion is generated from operations, which is 5.87% higher than the last year.
The deferred tax expense in 2009 is v1040 million this noon cash expense last
improve its liquidity, but rather give a room to meet hazardous need of raw
17.434 billion. It is also clear from the cash flow that firm does not announce any
dividend in cash, rather it takes a tax benefit form stock base benefit; secondly,
marks higher price earning ratio of 19.10 times that is greater than Dell and HP,
18.3 times respectively. We analyze the share price to book value it is 5.71 times;
again higher than 4.1 times of Dell and 1.38 times of HP. Cause of higher market
price is the retention of profit and stock base benefits. Apple also has high
observed in emerging market like Brazil, Malaysia, India and China. Triad block
recorded a poor growth. What is going to be with the world economic outlook is
the global economy is going to revive with the V shape pattern or its recovery
the view that Apple Inc. should more focus on the emerging market like India,
China, South Pacific region countries. So Apple needs to exploit more and more
opportunities outside the USA. I am optimistic that the idea of direct marketing
will work out side the USA as well. Hence Apple needs to introduce maximum
means of determining if it is the best time to expand or stay put and to see how
References
Electronista. (2010). Apple only US computer builder to outgrow industry
average. Retrieved
July 2, 2010, from
http://www.electronista.com/articles/10/06/04/isuppli.sees.apple.at.34pc.world.market.share/
Hardware Marketplace. (2010). Computer Hardware. Retrieved July 2, 2010 from
http://www.hardwaremarketplace.com/computer-hardware/
msn.com. (2010). Apple Inc: Key Ratios. Retrieved July 2, 2010 from
http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=PriceRatios&Sy
mbol=AAPL
OnlyHarwareBlog. (2010). Highest debt to equity ratio in the computer hardware
industry
detected in shares of international business machines. Retrieved July 2,
2010 from
http://onlyhardwareblog.com/?p=2107
----------------------------------------------------
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Resource:WileyPLUS
Financial Analysis
Wal-Mart Stores Incorporated operates chain of
retail stores in USA as well as outside the USA.
The first Wal-Mart store was opened by Sam
Walton in Arkansas in USA in 1962. Within a
span of five years; he opened more stores and he
number increased to 24 stores across Arkansas.
The incorporation of Wal-Mart Stores
Incorporated was done in 1969. Wal-Mart grew in
the United States of America by opening of more
stores in to the country. The company not only
opened the stores across Arkansas but also
across the United States of America (Wal-Mart
Corporate, 2010).
Wal-Mart was opposed by the unorganized retail
business holders in the USA as their business
was affected by opening Wal-Mart stores. The
company also opened its first store outside the
USA in South America in 1995. Wal-Mart wanted
to spread itself not only to the USA, but in other
countries as well. In 2006, the company was
having 3800 stores in USA and more than 2980
stores outside USA making it one of the largest
retail chains in the world. This corporation was
also having a vision to establish itself in to a
global entity. Wal-Mart was one of the first
companies to operate in the organized retail
sector (Fishman, 2006). The modes of entry
used by the company were different for different
countries. Wal-Mart used the mode of entry in to
various countries according to the rules and
regulations prevailing in to that country (Wal-
Mart Stores Inc: Financial Statement, 2010).
The sales of the company for the financial year
ending in January 2010 are 413.8 billion dollars
and income for the same period is 14.7 billion
dollars. The quarterly sales growth for the
company has been 5.90%, while the industry
average is 6.80 %. The five-year annual growth
in the sales of the company has been recorded at
7.50 % while five year annual growth of income
is 6.58 %. By analyzing the financial statements
of WalMart Incorporated, we find that debt
equity ratio of Wal-Mart is 0.71 on 31st January
2010, which is 0.68 for the industry. It means
the proportion of debt of the company in its
capital structure is lesser than the equity. The
company is less leveraged so the interest burden
on the company is minimal. Wal-Mart has
capacity to borrow from the market for its CAPEX
in the future. The interest coverage ratio is 13
times in January 2010, which is 21.9 for the
industry. Wal-Mart needs to improve profitability
to improve interest coverage ratio for the
reduction of risk of the lenders of the company
(Wal-Mart Stores Inc: Financial Statement, 2010).
The total revenues received by the organization
in the year ending January 2010 were $408.2
billion whereas revenues in the year ending
January 2009 were $404.3 billion dollars. The
revenues in the year ending January 2008 stood
at $377 billion dollars. Thus, it can be easily
analyzed that the total revenues of the
organization has grown over the years steadily.
This has also impacted the net income of the
organization and thus, increments could also be
seen in the net income of the organization. Net
Income, which stood in the year ending 2008 at
$12.7 billion, increased to $13.4 billion for the
year ending 2009 and again increased to $14.3
billion in the year ending 2010 (Wal-Mart Stores
Inc: Financial Statement, 2010).
Again if cash flow statement of the organization
is analyzed it can easily be viewed that the cash
flow from operating activities have always
increased from the last three years. The cash
flow from operating activities stood at $20.6
billion in the year ending 2008 has increased to
$23.1 billion for the year ending 2009 and too
further increased to $26.2 billion for the year
ending 2010. But the cash flow from investing
and financing activities has seen positive and
negative fluctuations both. Here where net cash
outflow from investing activities has decreased
first and increased later again. For the year
ending 2008, it stood at $15.6 billion which
decreased to $10.7 billion but again increased to
$11.6 billion. Again the net cash outflow from
financing activities increased constantly since at
the end of year 2008, it stood at $7.4 billion
which further for the year ending 2009 increased
to $9.9 billion and further increased to $14.1
billion for the year ending 2010 (Wal-Mart Stores
Inc: Financial Statement, 2010).
Wal-Marts return on equity has improved in the
last three years, which is a good sign for the
shareholders of the company. It was 19.9% in
January 2008, which increased to 20.3 % in 2009
and then again marginally increased to 20.4 % in
2010. The return on asset has also shown the
same trends in the last three years. In 2008 the
return on asset was 7.9 %. It increased to 8.1 %
in 2009 and then further increased to 8.4 % in
2010. It shows the increase in the efficiency in
the utilization of the assets of the company. The
net profit margins have been almost the same in
the last three years in the company. It was 3.4 %
in 2008, 3.3 % in 2009 and 3.5 % in 2010 (Wal-
Mart Stores Inc: Financial Statement, 2010).
The price to sales ratio and price to book value
ratio have shown negative trends in the last
three years, which shows that the stock of the
company is available at cheap price as compare
to the price it was carrying three years back. The
price to sales ratio, which was 0.55 in 2008, was
decreased to 0.46 in 2009 and then improved to
0.51 in 2010. Similarly, price to book value ratio
reduced from 3.12 in 2008 to 2.83 in 2009 and
then improved marginally to 2.86 in 2010. This
represents the better opportunity available for
the shareholders to invest in to the stock of the
company. The book value per share of the
company has also increased in the last three
years. It was 16.26 dollars per share in 2008,
which increased to 16.63 dollars per share in
2009 and further improved to 18.69 dollars per
share in 2010. This represents the increase in
the retained earnings of the shareholders in the
company (Shim & Siegel, 2007).
Wal-Marts current assets level has shown
stability in the last three years for the company,
which shows the lesser investment in current
assets for the company even with the increased
sales. In 2008 the cash and marketable securities
available with the company was 48020 million
dollars, which increased to 48949 million dollars
in 2009 and then decreased to 48331 million
dollars in 2010.
Quantitative Analysis holds huge significance
while evaluating the financial health of the
organization. Three types of techniques are used
for quantitative analysis. The three techniques
are trend analysis, common-size analysis and
ratio analysis. Trend analysis is one of the
significant quantitative analysis tools that assist
in analyzing the financial health of the company
as compared to its previous years. The year on
year trends in the financial statements are
studied to analyze whether organization is
improving upon its past performance or it is
further going down (Brigham & Houston, 2007).
Common-Size analysis is another quantitive
analysis tool again one of another tool that helps
in making evaluation of the financial health of
the company as against its competitors. The
financial statements of the company and its
industry competitors are compared by taking a
common base and then performance is analyzed
as against the competitors. It helps in knowing
whether the organization is performing better
than its competitors or not. Ratio analysis is also
used to evaluate the financial statements of an
organization. This analysis is used to interpret
the performance shown in the financial
statements of the organization. The ratio
analysis helps the organization compare
performance over the years or in the same year
(Brigham & Houston, 2007).
Quantitative Analysis is used by the company
and its stakeholders to analyze the financial
performance of the organization. Trend analysis
is used by the company, the shareholders and
the investors to analyze the performance of the
company over the years. Common-Size analysis
is used by the competitors, management, and
investors to evaluate the organization that is
performing better whereas ratio analysis is used
specifically by all the stakeholders to interpret
clear and well defined results shown in the
financial statements of the company (Brigham &
Houston, 2007).
These techniques help to evaluate the liquidity
or short-term solvency. By using current ratio,
one can analyze the effectiveness of the liquidity
position of the organization. Profitability of the
organization is also analyzed through
profitability ratios, common-size analysis, as it
helps to know the organizations profits earned
by the company as compared to others. Trend
analysis and ratio analysis with the help of
different asset turnover ratios and trends could
easily analyze that assets are effectively used or
not (Brigham & Houston, 2007).
Wal-Marts current stock price is 50.56 dollars.
The stock has gone up as high as 56.27 dollars,
and as low as 47.35 dollars in the last year. The
earnings per share of the company which was
3.16 dollars per share in 2008, was increased to
3.35 dollars in 2009. Earnings per share further
increased to 3.76 dollars in 2010. The analysis
shows the improvement in the earnings of the
company in the last three year. The current price
earnings ratio of the company is 13.2 which is
less than the industry average of P/E ratio of 15
times (Wal-Mart Stores Inc (WMT), 2010).
Analyzing the stock of the company from the
investment point of view, we can estimates that
the fundamentals of the company are very
strong. The stock has return on equity, return on
assets better than the industry average of 22.9
% and 9.1 % respectively. The company has given
a better annual average return on asset and
return on equity in the last five years as
compared to the industry. The company has a
debt equity ratio and net profit margin, which is
less than the industry. However, Wal-Mart is
improving on the efficiency front. As a result,
Wal-Mart stock is recommended for investment.
References
Brigham, E.F. & Houston, J.F. (2007).
Fundamentals of Financial Management. (11th
ed.). Cengage Learning.
Fishman, C. (2006). The Wal-Mart Effect: How the
World Most Powerful Company Really Works--
and How it's Transforming the American
Economy. Penguin Group
Shim, J.K. & Siegel, J.G. (2007). Schaum's Outline
of Financial Management. (3rd ed.). McGraw-Hill
Professional.
Wal-Mart Corporate. (2010). History. Retrieved
July 25, 2010 from
http://walmartstores.com/AboutUs/297.aspx
Wal-Mart Stores Inc: Financial Statement (2010).
Retrieved May 31, 2010, from
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?
Symbol=WMT
Wal-Mart Stores Inc. (WMT) (2010). Retrieved
May 31, 2010, from http://finance.yahoo.com/q/co?
s=WMT+Competitors
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Discuss the objectives for Week Three. Your discussion
should include the topics you feel comfortable with,
any topics you struggled with, and how the weekly
topics relate to application in your field.
For this week's checkpoint we had to look up
three job postings in the field of accounting. I'm
glad that I got this opportunity because it
actually opened my eyes and expanded my
knowledge in the accounting field. The three job
positions are listed below. The first job title was
Senior Internal Auditor. A Senior Internal Auditor
responsibilities is to plan and perform financial,
operational audits, and identify business process
risk. This job position only specified that the pay
was well over 100k a year!!!! Qualifications
BA/BS, and minimum of 3-4 years public
accounting. The second job posting was a Tax
Manager. Tax Manager is responsible for
conducting basic tax research, maintain tax
records and ensure proper tax accounting. This
position requires a BA in Accounting, and a
minimum of 7-8 years of expereience.The job pay
is listed as 120k!!! The third job posting was
Assistant Corporate Controller- SR Management.
Assistant Corporate Controller- SR Management
position Inventory Accounting for North America,
Credit management for North America and
Corporate accounting for Latin America,
responsible for assuring accuracy of inventory
and sales and works closely with external
auditors on receivable audits. The requirements
for this position is as follows, BA/BS, public
accounting experience preferred, Strong verbal
and written communication. For the Assistant
Corporate Controller- SR Management the salary
pay starts at 110k-130k with bonus and benefits.
www.acc291genius.com
P9-7A, E10-5, E10-8, E10-13, E10-22, E10-24,
BYP10, P10-9A, P10-13A, IFRS10-4.
Discussion Question 1:
Based on what you know about accounting, what role do you see it playing in business
operations? How dependent do you think a business is on its accounting department? Why?
Accounting plays many important roles especially when it comes to
business operations. Accounting is mainly responsible for almost all
of the financial needs of the business. It keeps track of all spending,
profit and loss that the company inquires.
The business is very dependent on it accounting department.
Accounting department is responsible for monitoring more than the
cash flow, it also works closely with IRS, government to make sure
that everything is being done correctly (payroll, taxes, etc). The
accounting side of the business can be considered to be the lungs of
the company next to the heart.
Discussion Question 2:
Another response
People bring all their financial information to an accountant who in turn looks
through all of it with a fine tooth comb. People need to know that they can
trust this person with all of their personal information. Most licensed
professionals swear to a code of ethics, whether they follow them or not is up to
that professional. Unfortunately there are many out there that do not and they
ruin the trust for other professionals. Accountants really need to have the
trust of their clients being that they work with peoples taxes and finances and
need much information from their clients.
Another response
Ethics are important in the field of accounting
for several reasons. Ethics mean different
things to differnt depending on the role of the
accountant. If an accountant is hired by an
individual or a business, that accountant is
trusted with the finances of the person or
business. The accountant is trusted to give
an honest account of finances and not to
defraud or jeopardize that individuals or
companies relationship with the government,
creditors of financiers. Individuals and
businesses also trust the ethics of
accountants insofar that they do not disclose
their information to those that do not have a
right to it. Finally, In the accounting
profession, much like many other
professional service professions, an
accountants reputation is the continuing
source of employment. If they are knows to
have a bad or even flexible ethical code then
they can develop a bad reputation and
experience a loss of business.
----------------------------------------------------
ACC 291 Week 4 Discussion Question 1
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Why are companies required to prepare a statement of cash flows?
Financial Statements
Balance Sheet
Income Statement
Reference
----------------------------------------------------
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What are some common ratios used to analyze financial information?
Which are the most important?
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we have another New set of week 4 Willeyplus assignment which
could be found on this link
Current assets
When it comes to a company's classified balance sheets you will
find current assets sheet. Current assets is cash or cash equilivants
that the company will use. What you will find on a current asset
sheet is Cash and equilvants, Short term investments, Accounts
receivables, and other assets.
Long-term investments
Long-term investments when it comes to balance sheet are
investments that the company intends to hold onto. The investments
that are listed are as follows, bonds, stocks and cash. You will also
find short-term investments in the company. The difference between
short-term and long-term investments is that the short-term
investments will be sold and the long-term investments normally the
company will choose to keep it.
Property, plant, and equipment
Property, plant, and equipment are what the company calls "fixed
assets". Property, plant and equipment are assets that can not be
easily converted into cash. These are basically items such as
company car (used to deliver products), computers and copier
machine, and freezer used for restaurants.
Intangible assets
Intangible assets are non-monetary items that can not be seen or
touched. For example, trademarks, copywriters, patents and
goodwill. Intangible assets are normally listed in the separate assets.
references
http://www.investopedia.com/terms/i/intangibleasset.asp
----------------------------------------------------
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Resource:WileyPLUS
For Discussion Question 1: Post your response to
the following:
When reviewing a financial report, why
should information be reliable, relevant,
consistent, and comparable?
In other words, why are these accounting
characteristics important?
What kinds of problems could be created
if a financial report is not reliable, relevant,
consistent, or comparable?
It is extremely vital that the company has
accurate financial reporting. This information
determines whether or not to invest in your
company's stock. This information will help them
decide if it is profitable to invest or not to invest
in your company based what is in your financial
history. The information must be relevant
because it will help the company, investors and
lenders make decisions. It helps answer
questions like, "how stable is your company", or
"what future does this company have". The
information should be reliable. In other words
the information that is reported must be able to
be verified, backed up with truthful information.
Comparable occurs when different companies
use the same accounting principles. This makes
it much easier to compare results between
company's. Consistency happens when the
company uses the same accounting method
every year. When the financial statements are
reported each year, it paints a financial picture of
where the company is headed now and in the
future.
Another response
The main objective of generating financial
information is providing useful information that
can be used in decision-making... only if this
information is relevant, reliable, comparable,
and consistent, can it be useful for decision
makers. (Kieso, 2003).
Relevance gives a basis for making decisions
that will impact the future of a business, and it
confirms and corrects expectations from the
past. If the information makes a difference in
making decisions, it is relevant.
Reliability means that the information can be
depended on and it can be proven to be free of
error, and the information is factual. The
information cannot favor one set of users over
another. CPAs audit financial statements to
ensure reliability.
Comparability is also an important characteristic
of financial reporting... this happens when
different businesses use similar accounting
principles, making it much easier for one to
compare companies, and the method used in a
business must be disclosed to the users of the
information to enable the users to convert the
information as accurately as possible.
Consistency simply means that the business uses
the same accounting principles on a yearly
basis... consistently. This helps decision makers
analyze a company's trends. A company can
change the methods used if they can justify the
change, showing that the new method is more
useful for analysis. If the method is changed, it
must be disclosed in the notes that go with the
statements to show users a lack of consistency.
These characteristics are very important to a
business... decisions cannot be made based on
incorrect information, and everyone involved in a
business venture of any kind, whether they be
management, owners, or investors and creditors,
as well as consumers, etc. must be able to rely
on the financial information provided in order to
make any type of decision. Without this
information, it is difficult to imagine any
business succeeding, even for a short time.
Examples of problems that could occur without
reliable, relevant, consistent, or comparable
information includes not being able to get loans
or investments; management could make
decisions that cause irreparable damage to
entire operations, consumers could easily lose
faith and cut their ties... the possibilities are
endless for companies that lack these qualities in
their financial reporting.
DQ2
For Discussion Question 2: Post your response to
the following:
How does information from financial
reports influence business decisions?
Why is it important for business
managers to understand the information found
on financial reports?
Another response
The information from financial reports influences
business decisions because it shows where the
company stands. The managers use the
information from the financial report compared
to the current year from the previous year,
whether the company growths or losses. It is
very important for business managers to
understand the information found on financial
reports because the information from the
financial reports enables business managers to
see how to improve and keep the business
afloat. It also gives business managers an insight
what came in and went out and the total
operating cost of the company as well as cutting
cost in a certain areas. The information from the
financial reports helps the manager manages the
business accurately.
----------------------------------------------------
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Discuss the objectives for Week Four. Your discussion
should include the topics you feel comfortable with,
any topics you struggled with, and how the weekly
topics relate to application in your field.
Rob, Sue, and Bob all use one register has often
turned into not the best decision ideally for the
company. It can increase the risk for the drawer
being short and it will be hard for the company
to find out which employee or employees had
shorted the register. The internal controls that
are not being followed are Establishment of
responsibility. Happens when the company
assigns one person to be in control of a specific
job or have authority to make decisions (pg 161
Internal Control and Cash). When the company
signs one person to be responsible over the
register it will allow the company to hold that
one person responsible for any shortages.
Sam does the ordering of materials at the
beginning of every month and pays the bill.
In this case Sam is ordering materials and paying
all the bills. This process is actually known as
related activities (pg 162 Internal Control and
Cash). This occurs when one person is doing two
different responsibilities just like Sam. The
internal Control that is not being applied is
Segregation of Duties. It is better for the two to
be a separate responsibility because it will
minimize the billing errors.
http:yourdictionary.com
/accounting_statements.org Retrieved 2/13/2010
Thomas, Y. 2005-08-27 Accounting 101 pg. 52
Statements
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Purpose of Assignment The purpose of this assignment is to
help you become familiar with examining the stockholders'
equity section of the balance sheet. Assignment Steps
Resources: Financial Accounting: Tools for Business Decision
Making Answer the following questions in 1,050 words using
the Lachlin Corporation Balance Sheet (partial) below: Axia
College Material
Appendix B
Directions: Using the matrix, list how each of the principles of internal control works, and give an
example for each. Next, list how each of the principles of cash management works, and give an
example for each.
Segregation of duties This is when the company has more A church- You ha
than one person to control a task or job the offering and
someone who w
what was receiv
Physical, mechanical, and electronic controls Allows the company to control assets Our job has a sy
through physical or electronic based this tracks the e
systems or programs. lunches. Also, m
CSR have been r
Physical control
guard, they requ
to entry.
Independent internal verification Any information that can be reviewed , My job has a wa
compare, and reconciliation by a employee inventory and w
they were short
can go back and
and compare th
system and a ph
determine if the
incorrect
Invest idle cash Occurs when any excess funds or cash My fathers com
needs to be invested, investments and
favor
Plan the timing of major expenditures A company wants to make sure that During the reces
there is money set aside for major cash lower than expe
needs companies pulle
Delay payment of liabilities When a company pays the bills at an Ok, when times
appropriate time not late and not too bills are due I or
soon. which bills need
soonest, becaus
early I will cut o
could be used fo
Keep inventory levels low Happens when a company keeps the Sees Chocolate
inventory low so that it will continue to sure that they a
bring profit or making too m
the company wi
Increase the speed of collection on Money that is owe to the company by When a custome
receivables other people or customers is money product and has
that can not be counted towards the company can no
companies funds theirs until it is
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Do It! 11-1, E11-5, E11-7, BYP11-1, BYP11-2,
P11-5A, P11-8A.
Do It! 11-1
References:
http://www.investopedia.com/terms/r/retainedearnings.asphttp://financial- Retrieved
2/18/2010
statements.suite101.com/article.cfm/financial_statements_the_p_l. Retrieved
2/18/2010
----------------------------------------------------
ACC 291 Week 5 Discussion Question 1
FOR MORE CLASSES VISIT
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Why do corporations buy back their own stock?
DQ2
Discussion Question 2: Post your response to the following:
Select a management function (planning, directing and
motivating, or controlling) and explain how that function relates to
business as a whole. Next, select a different function listed by a
classmate. Discuss with your classmate how the functions you each
selected complement each other.
The management functions that I choose was controlling.
Controlling job is to make sure that the each
department/person is keeping the company's activities or plans on
track and in order to achieve that they must work closely with
Management planning function. Controlling continually compares the
company's performance to make sure that the planned standards
are being met. In my opinion this is known as the "dirty work".
Controlling operations have to know what to look for and how to keep
track of all the company's activities. They have to take actions and
quickly correct any errors and make sure that the company goals are
being achieved in a timely matter or the time that it was planned. If
there are errors it is job of the controlling operations to take quick
action. The controlling operations not only correct errors after it
happens but they also are in charge of foreseeing any potential errors
and act quickly to get that resolved.
Another response
I chose Controlling as part of the management function. The
controlling function relates to business as a whole because it helps
monitoring the firms performance to make sure the planned goals are
being met. Managers need to pay attention to costs versus
performance of the organization. let say, if the company has a goal of
increasing sales by 10% over the next two months, the manager may
check the progress toward the goal at the end of month one. If they
are not reaching the goal the manager must decide what changes are
needed to get back on track.
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Write a 350- to 700-word article analysis in which you
identify situations that might lead to unethical
practices and behavior in accounting.
By
Kamilah Crooms
For example,
The flowers are $10 per unit. The variable cost
per unit is $4.00. The contribution margin will be
($10-$4) = $6. The fixed cost is $3. We subtract
Contribution margin Fixed Cost= Net income.
The net income is $3.00.
Define contribution ratios
The contribution margin ratio is the contribution
margin per unit margin divided by the unit
selling price.
statements.suite101.com/article.cfm/cost_volum
e_profits*the_p_l. Retrieved 2/28/2010
//http:yourdictionary.com /CVP.org Retrieved
2/26/2010
Thomas, Y. 2005-08-27 Accounting 101 pg. 52
Statements
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we have another New set of week 5 Willyplus assignment which
could be found on this link
Resource:WileyPLUS
Complete the following Week Five WileyPLUSExercises and
Problems:
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ACC 291 Week 5 Learning Team Ratio Analysis Memo
FOR MORE CLASSES VISIT
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Resource:Virtual Organizations
Click the Virtual Organization link on the student
website to access the Virtual Organizations.
Select one of the Virtual Organizations as the basis for
the assignment.
Axia College Material
Appendix C
Budgets Matrix
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Discuss the objectives for Week Five. Your discussion
should include the topics you feel comfortable with,
any topics you struggled with, and how the weekly
topics relate to application in your field.
Another response
In a business, a budget helps a business make
good decisions because they are used by the
company to plan for future events and
coordinate the events and duties in the
company. They also gives objectives used to
evaluate the performance of the company on
each level which can help to make future
decisions that will not hurt the company based
on the projected objectives. It can also be used
to alert the company of possible problems or
negative trends in the company that need to be
addressed so that there is a clear picture of the
overall health of the company before decisions
are made. The budget helps the company to be
able to make an informed decision when making
one. It is there in order to make sure that
making a decision like taking on another
company will not hurt the company and is
something that the compnay can sustain based
on the budget.
DQ2
Discussion Question 2: Post your response to the
following:
What are some of the different types of
budgets?
Describe in detail one type of budget
covered in the text.
Describe what the budget is used for and
what information it provides a business.
Then, as you respond to your classmates,
discuss how the budget you described relates to
the budgets they described.
Discuss how a business benefits from
each of the budgets.
There are many different types of budgetting.
For example, there sales budget which allows
management to see how many units that need to
be produced, production budget which will
allows everyone to see how many units are going
to be produced in or needed to be produced in
order to meet the inventory for that budget
period. One budget that I can describe in detail
is called the direct labor budget and this budget
shows how many people, hours is needed in
order to meet the required budget for that
period. This will give management an idea of
how much money is needed such as paying the
cost of labor. The company benefits by each of
these budgets because it will help manage just
how much money it will cost the company during
this period. Management can also see if there
are different ways to cost the company out of
pocket cost down during this period.
Another response
I chose to write about the Production Budget.
The Production Budget shows the cost of each
unit needed to produce an item or manufacture a
product. The formula used by the Production
Budget :