Accounting

Select one type of creditor or investor from the list below: vendor (supplier of goods or products) bank providing short-term financing bank providing long-term loan (10 years or more) bond investor investor in common stock Discuss at least three specific financial ratios that creditors or investors would be most interested in when analyzing financial statements, and why. Embed course material concepts, principles, and theories (requires supporting citations) along with at least one scholarly

Submit both a horizontal and vertical analysis of Starbucks’ accounts receivable, fixed assets, and debt financing. Please be sure that you access the most current annual report (10-K).

1. Describe the main differences between the old standard and the SI standard in the measurement and disclosure of accounting items.  2. Describe expected impacts of the new SI standard on a company’s financial reports. List industries and companies that are most likely to be impacted.  3. For each standard, choose 5-10 companies that you think are more likely impacted to evaluate the application of the standard. For each company, you need to collect data for the impacted accounts and financial statement items from annual and quarterly reports over a period of up to four years, two years before and two years after the new standard took effect.  4. Using the data collected in the Requirement #3, please quantify the impact using data. Are the changes significant? Explain.  5. Calculate the following ratios over the annual reporting periods used in the Requirement #3:  a. Market-to-book (PB) ratio, defined as market value of equity over book value of common equity, on each balance sheet date.  b. Price-to-earnings (PE) ratio, defined as stock price over earnings per share.  c. Rate of return on assets (ROA), defined as net income (loss) over average total assets [(beginning total assets + ending total assets)/2].  6. Do you think the changes in the ratios have anything to do with the new accounting standard? Why or why not? Explain.

The company invoices customers for sales with an expected thirty-day collection period. The invoice is used to post-sales to the accounting system. Checks are received in the mailroom and logged into a deposits journal. The deposit is prepared and taken to the bank. The deposit slip is used as an original document to record cash in the accounting system. A copy of the deposits journal from the mailroom is used to credit customers for their payments. Assume that there are three general ledger accounts: cash, accounts receivable, and revenue. Instructions: The company’s owner reached out to you last month and requested a paid consultation regarding a plan to prevent and deter suspected theft. Given the facts above, present a preferred plan of action. Include brief explanations of at least 2 concepts that might apply to the scenario. After you explain the plan to the owner, he presents you with an alternative that would include hiring one mailroom/office employee, one accounting clerk, and one accounting supervisor (assume no controller, no internal audit, and an annual review and tax compliance—not an annual audit). Redesign an approach to create a robust skimming prevention environment. Include a graphic to depict these activities and their impact on the general ledger accounts. Include the necessary personnel and at least ten fraud prevention and deterrence tools and techniques to PREVENT a skimming scheme, assuming no collusion or management override. Post the personnel and those tools and techniques on the graphic. Length: 12-15 pages, the graphic component for this assignment should fit on 1 page, fit within margins, and have appropriate APA style caption. Use Times New Roman 10-12 point font. Limit the use of color to 3 light shades. References: Include a minimum of 10 scholarly resources.

Complete the cash flow projections and find the NPV for this project. Initial CAPX are $20,000 and depreciated on a 10-year MACRS schedule (the percentages of initial cost allowed for depreciation under the current U.S. tax system). Net working capital required is $5,000 (just a one- time increase) over the life of the project. Incremental sales are $22,000 per year and incremental operating expenses are $18,000 per year. Assume that plant and equipment is disposed of at the end of year 7 (it has no resale value). The tax rate is 30%. Assume a WACC of 9.3%. Note that the spreadsheet is set up so that assumptions (things you can change later) go in the green cells, and that the other cells contain formulas based on the assumptions. 1. Assumptions. Fill in the assumptions section first. Put in the tax rate across the whole row. Put in the MACRS percentages. (The quickest way to do this is to copy them from the MACRS schedule, then go to where you want to paste the values, select Paste Special, click on Values and Transpose, and hit OK.) Enter the WACC and the resale value. 2. Balance sheet items. I find the cash flow projections are easier if we track two balance sheet items, Net Working Capital and Net PPE. In the NWC line, enter the amount that will be required for the project in each year. Note that the NWC must be in place by (the end of) Year 0, and would be gone by (the end of) year 7. Keep in mind that this line is the level of NWC in each year, not the change in NWC. In the Net PPE line, we are going to track the book value of the assets we acquire for this project. So in the green cell (Year 0) put the amount of the initial CAPX. In subsequent years the Net PPE will be Net PPE from the previous year minus depreciation from that year. (Go ahead and enter this formula even though depreciation isn’t entered yet.) 3. Getting EBIT(1–t). Enter sales and expense for Years 1-7. Enter depreciation expense for each year, which is the initial value of PPE times the MACRS percentage for that year. Enter the formula for EBIT, which is sales less operating expenses and depreciation. Enter taxes, which is the tax rate times EBIT, and then enter the formula for EBIT(1–t). Higgins, Analysis for Financial Management 1 4. CAPX. In year 0, CAPX is just equal to the initial value of our PPE, so just enter a formula that references that cell. The other thing we want to account for here is selling PPE at the end of the project. Put this in the next line below CAPX. In Year 7 we get a cash inflow from selling the equipment for resale value (RV), and the we also pay taxes on the gain over book value (BV). Here the RV is given in the assumptions, and the BV is the value of Net PPE in Year 7. So enter a formula in Year 7 under CAPX that reflects: RV– (RV–BV)*t where t is the tax rate. 5. Change in NWC. For the change in NWC (?NWC), for Year 0, we just make it equal to the initial amount of NWC in Year 0 from above. For Years 1-7, the change in NWC is just that year’s NWC minus the previous year’s NWC. 6. Cash Flows. Now we’re ready to calculate cash flow each year, and all we do is apply the formula: EBIT(1–t)+Dep. –CAPX–?NWC. Enter this formula and copy it across for all years 0-7. Then the only change necessary is to also add in the sale of PPE in year 7 to the year 7 cash flows. 7. NPV. Now enter the formula for NPV on the last line. Remember that the NPV function in Excel discounts the first value by one year, so don’t put the initial cash flow inside the NPV function. Add this in separately. Q1: What is the NPV of the project under the given assumptions? ____________ Q2: How low would the initial investment have to be in order to make this project acceptable? ____________

In Innovation as Usual: How to Help Your People Bring Great Ideas to Life (2013), Miller and Wedell-Wedellsborg discuss the importance of establishing systems within organizations that promote not only the creativity that results in innovation, but also make it possible for employees to bring innovative ideas to fruition. Miller and Wedell-Wedellsborg argue that a leader’s primary job “is not to innovate; it is to become an innovation architect, creating a work environment that helps . . . people engage in the key innovation behaviors as part of their daily work” (page 4). Such a work environment must be reinforced by innovation architecture—the structures within an organization that support an innovation, from the brainstorming phase to final realization. The more well developed the architecture and the simpler the processes involved, the more likely employees are to be innovators. For this assignment, you will research the innovation architecture of at least three companies that are well-known for successfully supporting a culture of innovation. Write a 1,500-word paper that addresses the following: What particular elements of each organization’s culture, processes, and management systems and styles work well to support innovation? Why do you think these organizations have been able to capitalize on innovation and intrapreneurship while others have not? Based on what you have learned, what processes and systems might actually stifle innovation and intrapreneurship? Imagine yourself as an innovation architect. What structures or processes would you put in place to foster a culture of innovation within your own organization? Include in-text citations to at least four reputable secondary sources (such as trade journals, academic journals, and professional or industry websites) in your paper. Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

You are a senior manager at Mason & Co.  The audit partner you have been assigned to has asked you to read the above article and prepare a memorandum on the Luckin Coffee fraud.  He intends to use your memo as the basis for making a presentation at a professional meeting.  He has indicated that the quality of the memo will be an important aspect of your annual evaluation.  He has asked that the memo not exceed 1,000 words and cover the following:  1) the red flags, or risk factors, that should have been noted by an auditor in identifying and assessing the risks of material misstatement of Luckin’s financial statements, 2) the general ledger accounts involved in, or related to, the fraud, and 3) several ways in which Tableau, or another ADA, could be used as a risk assessment procedure or substantive procedure to detect the fraud. The memo is a professional document and not a research project, creative writing exercise, essay, or term paper.  You should approach it the way you would in practice in the circumstances described above and prepare a concise, technically accurate, and professional document with no spelling or grammar errors.  Departure from these instructions will reduce your score.  Exceeding the MAXIMUM of  1000 words will be severely penalized.

What accounts are affected by the payment and acquisition cycle? Which are the most important? What are some of the risks associated with the payment and acquisition cycle? What type of assertions pertain to the payment and acquisition cycle and what evidence does the auditor need to collect to support those assertions?

Select a public university system and review the financial statements and audit report for the system.  Write a three to four (3-4) page paper in which you: Identify and analyze the employee pension plan disclosures in the financial statements. Evaluate the impact of the GAASB proposed changes to the pension liabilities on the financial statements of the institution. Identify and analyze the economic conditions that will affect the future growth and success of the institution. Review and evaluate the treatment of federal grants such as Pell grants, supplemental grants, and work study on the revenue reported for the institution. Compare the treatment of endowments, earnings on endowments, and restricted funds with GAASB requirements. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.  The specific course learning outcomes associated with this assignment are: Evaluate the financial reporting of government not for profit organizations and assess the reporting requirements in accordance with governmental accounting standards board (GASB). Use technology and information resources to research issues in government and not-for-profit accounting. Write clearly and concisely about government and not-for-profit accounting using proper writing mechanics.

If your client wanted to start a new business, for example manufacturing watches, and asked you to identify the tax consequences of being in business as a sole proprietor, regular ‘C‘ corporation, S corporation or a partnership, what would you recommend?   Please include:   –       Tax Rates –       Accounting methods –       Computation of income –       Deductions –       Charitable contributions –       Casualty losses –       Ownership –       Net operating loss –       Capital gains and losses –       Dividends / distributions –       Due dates –       Filing   This is not an all-inclusive list. Please site all of your sources. The paper (without the bibliography or cover page) should be at least 7 pages, double spaced.