Tag Archives: ACCOUNTING QUESTIONS

Case 5-1:Harrington Company- Buy your research paper oline [http://customwritings-us.com/orders.php]


 Buy your research paper online [http://customwritings-us.com/orders.php]

To get your Assignment/Homework solutions;

Simply Click ORDER NOW and your paper details. Our support team will review the assignment(s) and assign the right expert whose specialization is same to yours to complete it within your deadline. Our Editor(s) will then review the completed paper (to ensure that it is answered accordingly) before we email you a complete paper 

Email Us for help in writing this paper for you at: support@customwritings-us.com

Case 5-1

  1. A. Harrington Company
  2. A. Harrington Company is a U.S.-based company that prepares its consolidated financial statements in accordance with U.S. GAAP. The company reported income in 2015 of $5,000,000 and stockholders’ equity at December 31, 2015, of $40,000,000.

The CFO of S. A. Harrington has learned that the U.S. Securities and Exchange Commission is considering requiring U.S. companies to use IFRS in preparing consolidated financial statements. The company wishes to determine the impact that a switch to IFRS would have on its financial statements and has engaged you to prepare a reconciliation of income and stockholders’ equity from U.S. GAAP to IFRS. You have identified the following five areas in which S. A. Harrington’s accounting principles based on U.S. GAAP differ from IFRS.

  1. Restructuring
  2. Pension plan
  3. Stock options
  4. Revenue recognition
  5. Bonds payable

The CFO provides the following information with respect to each of these accounting differences.

Restructuring Provision

The company publicly announced a restructuring plan in 2015 that created a valid expectation on the part of the employees to be terminated that the company will carry out the restructuring. The company estimated that the restructuring would cost $300,000. No legal obligation to restructure exists as of December 31, 2015.

Pension Plan

In 2013, the company amended its pension plan, creating a past service cost of $60,000. The past service cost was attributable to already vested employees who had an average remaining service life of 15 years. The company has no retired employees.

Stock Options

Stock options were granted to key officers on January 1, 2015. The grant date fair value per option was $10, and a total of 9,000 options were granted. The options vest in equal installments over three years: one-third vest in 2014, one-third in 2015, and one-third in 2016. The company uses a straight-line method to recognize compensation expense related to stock options.

Revenue Recognition

The company entered into a contract in 2015 to provide engineering services to a long-term customer over a 12-month period. The fixed price is $250,000, and the company estimates with a high degree of reliability that the project is 30 percent complete at the end of 2015.

231

Bonds Payable

On January 1, 2014, the company issued $10,000,000 of 5 percent bonds at par value that mature in five years on December 31, 2018. Costs incurred in issuing the bonds were $500,000. Interest is paid on the bonds annually.

Required

Prepare a reconciliation schedule to reconcile 2015 net income and December 31, 2015, stockholders’ equity from a U.S. GAAP basis to IFRS. Ignore income taxes. Prepare a note to explain each adjustment made in the reconciliation schedule.

 

Buy your research paper oline [http://customwritings-us.com/orders.php]

To get your Assignment/Homework solutions;

Simply Click ORDER NOW and your paper details. Our support team will review the assignment(s) and assign the right expert whose specialization is same to yours to complete it within your deadline. Our Editor(s) will then review the completed paper (to ensure that it is answered accordingly) before we email you a complete paper 

Email Us for help in writing this paper for you at: support@customwritings-us.com

 

 

Advertisements

Need Help-ACC5502 Accounting and Financial Management


Need Help-ACC5502 Accounting and Financial Management 
ACC5502 Accounting and Financial Management

Assignment 2 S3 2016; Due date:  25th January
This assignment is designed to give you an opportunity:  apply management accounting concepts and finance frameworks…to increase the effectiveness of management decision making (Objective 2)  apply management accounting concepts …to help assess the impact on organisational systems (Objective 3)  apply and use management accounting concepts and finance frameworks…to provide solutions to real world problems  (Objective 4)
Part One (60 Marks)
Question One
Corporate budgeting is a joke, and everyone knows it. It consumes a huge amount of executives’ time, forcing them into endless rounds of dull meetings and tense negotiations. It encourages managers to lie and cheat, lowballing targets and inflating results, and it penalizes them for telling the truth. It turns business decisions into elaborate exercises in gaming. It sets colleague against colleague, creating distrust and ill will. And it distorts incentives, motivating people to act in ways that run counter to the best interests of their companies.
Source: Jensen, Michael C. (2001) Corporate Budgeting is Broken – Let’s Fix It, Harvard Business Review, Volume 79, Issue 10, November, p. 94-101.
Required:
1. Critically evaluate the above quote in regards to contemporary budgeting practice.  You should review current business and academic literature relevant to management control and budgeting.  Use appropriate sources to summarise and support your personal views about corporate budgeting.  Ensure you relate your discussion to the above quote.  You should also make a determination as to whether you agree or disagree with Jensen’s view.     (Guideline: 2000 – 2500 words.)
2. Apply the Jensen commentary to a business scenario in which senior management are consistently exceeding financial targets.  In this hypothetical organisation senior management receive significant financial benefits for favourable budget outcomes.  Currently senior management set the budgets with limited input from line personnel.  The organisation uses an incremental budgeting system. Using your knowledge of budgeting processes and performance evaluation systems address the following: (a) Suggest potential reasons for why the managers are able to consistently exceed budgetary targets. (b) Suggest refinements to the budgeting system. (c) Suggest refinements to the performance evaluation system.   (Guideline: 800 – 1000 words)

Part Two (40 Marks)
Answer the following questions:
(1) Complex Resources has a current breakeven point of 93 400 units.  To reduce the break-even point Complex Resources should:
a. increase the variable costs per unit  b. increase fixed costs  c. reduce the sales price per unit  d. increase the contribution margin per unit
(2)  Sanjay Ltd has 1000 units in inventory that cost $2.00 per unit to produce. Due to changing technology, the sales department is having difficulty selling the product. It will cost $500 to scrap the units. What is the minimum price Sanjay should sell these units for?
(3) Leisure Life manufactures various sporting equipment. During the first year of operations the company worked on four jobs. The predetermined overhead application rate was 150% of direct labour cost. Job 104 included direct materials of $20,000 and total costs were $25,000.  Calculate the manufacturing overhead allocated to Job 104 to date.
(4)  Te Rangi Photographic Ltd manufactures digital camera equipment. For each unit $1,475 of direct material is used and there is $1,500 of direct manufacturing labour (at $30 per hour). Manufacturing overhead is allocated at $35 per direct manufacturing labour hour. Calculate the cost of each unit.
(5) Unique Mistique Ltd has fixed costs of $400,000 and variable costs are 75% of the selling price. To realise profits of $100,000 from sales of 500,000 units, the selling price per unit must be?
(6) Diamond Interiors is approached by Mr John Lee, a new customer, to fulfil a one-time only special order for a product similar to those offered to regular customers.  The following per unit data apply for sales to regular customers:
Direct Materials $455 Direct Labour $300 Variable Manufacturing Overhead $45 Fixed Manufacturing Overhead $100 Total Manufacturing Costs $900   Mark Up (60%) $540 Target Sales Price $1440
Diamond Interiors has excess capacity.  Mr Lee wants the cabinet in a metallic finish rather than laminate, so direct materials will increase by $30 per unit.  What is the minimum selling price that Diamond Interiors would accept for this one time only special order?

(7) The mayor of Snowbrook, Western Island, is considering the purchase of a computer system to automate the city’s rate collections. The system costs $75 000 and has an estimated life of five years. The mayor estimates the following savings will result if the system is purchased.

If Snowbrook uses a 10 per cent discount rate for capital budgeting decisions, what is the net present value of the computer system?
(8) A piece of equipment has an estimated five-year life, an internal rate of return of 12 per cent and estimated annual savings of $15 000. What was the cost of the equipment?
(9) Imperial Airways Ltd is planning a project that is expected to last for six years. During that time, the project is expected to generate net cash inflows of $75 000 per annum.  The project will require the purchase of a machine for $280 000. This new machine is expected to have a salvage value of $10 000 at the end of six years. In addition to its annual operating costs, the machine will require an overhaul costing $50 000 at the end of the fourth year. The company presently has a minimum desired rate of return of 12 per cent. Based on this information, the accountant prepared the following analysis:
Therefore, the accountant recommends that the project be rejected, as it does not meet the company’s minimum desired rate of return.
i. Critically assess the accountant’s evaluation of the project.  ii. Use cash flow analysis to determine whether the project should be accepted. Ignore tax effects.  iii. Is the internal rate of return greater or less than 12 per cent?

(10) Cyndy Ltd recently invested $25 000 in equipment with an estimated life of five years. The manager projects the following cash flows.
Calculate the payback period.
General Requirements:
1. Answer each question using a heading indicating the question number.    Part one and part two of the assignment should be answered within the same word document. 2. Full referencing is required in accordance with the USQ preferred Harvard Referencing style. 3. There is no specified word length for this assignment. However, be as concise and efficient in your writing as possible.  Word limit guidelines are provided for part one only. 4. Assignment extensions will only be granted if there are extenuating circumstances.  University policy provides that the maximum extension is 5 business days.   5. The assignment is to be submitted electronically.  Submit the assignment using the link on the study desk.  File types allowed include doc and docx. Only one file will be accepted. If more than one file is uploaded, only the first file listed will be marked.  Do not submit a cover sheet.
(Sources withheld: Questions for this assignment are taken from other sources. Details of this source have been withheld for assessment purposes. This material is reproduced under the provisions of the Section 200 (1) (b) of the Copyright Amendment Act 1980.)

Need Help-ACC5502 Accounting and Financial Management 

Assignment help-BUS ADM 446/646: Advanced Corporation Finance


Assignment help-BUS ADM 446/646: Advanced Corporation Finance

Extra-credit problem (30 Points)
Instructions – Solve the following problems using Microsoft Excel, and submit your Excel File in D2L’s Dropbox .

Show your work in Excel. That is, computation has to be done in Excel and Excel functions that are used to complete the necessary output has to stay (saved) in Excel.

1. You are provided with the following cash flows on a project (15 Points).
Year Cash Flow to Firm  0 -6,000,000 1 3,000,000 2 2,500,000 3 3,250,000 4 1,000,000

a. Compute and plot the NPV profile for this project at discount rates ranging from 0% to 50%, at incremental rate of 2.5%.

b. What is the IRR of the project? Show the IRR for the project in the Excel file.

c. What is the modified IRR (MIRR) for the project if the cost of capital is 10%?
2. You are provided with the following cash flows for two projects (15 Points).
Year Project A Project A 0 -4,000,000 -4,000,000 1 2,000,000 1,000,000 2 1,500,000 1,500,000 3 1,250,000 1,700,000 4 1,000,000 2,400,000

a. Compute and plot the NPV profile for each project at discount rates ranging from 0% to 50%, at incremental rate of 2.5%.

b. Find the IRR of each project.

c. At discount rate of 10% which project would you choose?

d. What is a cross-over rate?

e. At a discount rate that is less than cross-over rate, which project would you choose?  f. At a discount rate that is greater than the cross-over rate, which project would you choose?

 

Assignment help-BUS ADM 446/646: Advanced Corporation Finance


Week 7 Assignment: Financial Analysis

Financial Analysis

To make informed decisions and achieve strategic goals, health care leaders must carefully analyze an organization’s financial position. A ratio analysis, for example, may impact decisions for strategic initiatives such as expansions, consolidations, mergers, and acquisitions. For this Assignment, you calculate financial ratios and consider their implications for organizations.

To prepare:

Review the Week 7 Assignment document in this week’s Learning Resources. Examine the financial data for the health care organizations in each scenario.

Note: Your Assignment should show effective application of triangulation of content and resources in your conclusion and recommendations.

The Assignment

Using the scenarios and financial data provided in the Financial Analysis document, calculate financial ratios and evaluate their implications on organizational decision making.

Week 7 Assignment: Financial Analysis

To make informed decisions and achieve strategic goals, health care leaders must carefully analyze an organization’s financial position. A ratio analysis, for example, may impact decisions for strategic initiatives such as expansions, consolidations, mergers, or acquisitions. For this Assignment, you calculate ratios and consider their implications for organizations. Scenario 1: ABC Hospital ABC Hospital is a rural facility in Medford, Oregon that competes with two other hospitals in delivering quality patient care in the Rogue Valley. One of the competing hospitals provides cancer treatment services similar to ABC Hospital and has been gaining a larger market share in the last 12 months because of its television and billboard ads.
Recently, the local news station covered a story about a report published by an independent research company stating that in the last five years, the Rogue Valley has experienced a steady increase of residents with pancreatic and testicular cancer. In response to this report and because of the shrinking market share, the chief executive officer (CEO) of the hospital has tasked the chief strategy officer (CSO) and the chief financial officer (CFO) with exploring whether it should make additional investments in cancer treatment services that will allow the organization to increase its capacity to serve more patients and gain a larger sector of the market.
Based on their analysis, the CSO and CFO have presented you with the following two options to review prior to the meeting with the CEO:
• Option 1: ABC Hospital invests $11,995,000 in the development of a new state- of-the-art cancer treatment center. Based on their estimates, the first year cash flow will be $2,000,000, the second year cash flow will be $4,000,000, the third year cash flow will be $5,000,000, and the fourth year cash flow will be $8,000,000. The expected return of 8.9% is used as the discount rate.
• Option 2: ABC Hospital invests $5,095,000 in a joint venture with a reputable oncology group and the hospital agrees to a 55% interest in the joint venture. Based on the estimates, the first year cash flow will be $1,500,000, the second year cash flow will be $3,000,000, the third year cash flow will be $4,500,000, and the fourth year cash flow will be $6,500,000. The expected return of 8.9% is used as the discount rate.
The Assignment
Explain which of the two options you would recommend to the CEO. You may only select one option. Support your position and show your calculations. It is essential that you use at least two different financial ratio calculations.
© 2016 Laureate Education, Inc.   Page  of 1 4
Scenario 2: Serenity Health Care Serenity Health Care is a large integrated health care system located in the Midwest. It has a 100-year tradition of providing quality patient care to its customers regardless of their ability to pay for services. Recently, the chair of the board of directors and the chief executive officer (CEO) of Hall Healthcare System, a competitive organization, approached Serenity’s CEO about a partnership because of its inability to continue to compete with Serenity and its declining financial performance.
Because Serenity is three times larger than Hall, the CEO would like to present to his board of directors a proposal in which Serenity acquires Hall Healthcare System. Here is the information that he plans to present to the board:
2015 2014
Current assets Cash and cash equivalents $2,275,884 $7,900,318 Short-term investments $3,945,998 $1,287,932 Receivables, less doubtful accounts $4,958,923 $4,000,891 Other current assets (inventory) $2,667,391 $5,590,076 Total current assets $13,848,196 $18,779,217 Limited-use assets $2,397,421 $4,932,097 Property and equipment $4,510,961 $3,982,018 Other long-term assets $2,301,810 $2,367,809 Total assets $23,058,388 $30,061,141 Liabilities and net assets Current liabilities Current portion of long-term debt $850,000 $1,562,091 Accounts payable $3,120,692 $5,990,128 Estimated third-party settlements $962,908 $1,409,610 Accrued salaries, wages, and fees $5,837,624 $7,903,871 Other accrued liabilities $2,163,187 $2,843,098 Total current liabilities $12,934,411 $19,708,798 Long-term debt, net $2,450,873 $3,906,781 Other noncurrent liabilities $938,578 $1,456,053
© 2016 Laureate Education, Inc.   Page  of 2 4
The Assignment
As a board member, calculate Hall Healthcare System’s current ratio and acid ratio to determine whether you support your CEO’s decision to acquire Hall. Support your position and show your calculations.
Current ratio = Current assets / Current liabilities
Acid ratio = Total current assets less inventory / Total current liabilities Scenario 3: Montgomery Home and Community-Based Services
Montgomery Home and Community-Based Services is considering a major expansion that will enable it to attract a different clientele to its organization. Currently, they serve only 34% of the frail elderly seniors and persons with disabilities in a three county area, with the majority of the residents working for the federal and state government. Montgomery relies 100% on local government funding to provide in home support and homemaker service to their clients. Their new chief executive officer (CEO) would like the organization to expand its revenue stream by investing in a senior multipurpose center serving healthy seniors by offering them arts and crafts and health and wellness programs. The center will also contain an Internet café offering nutritious breakfast and lunch options.
The CEO has commissioned a needs assessment, and the study’s results reveal that there are only 15 retired seniors who would be willing to pay the monthly fees to access the center. Further results reveal that there are approximately 120 seniors who will be retiring from the government in three years who would be willing to become members at the center.
The proposed costs to operate this new facility are as follows:
Monthly Fixed Costs • Utilities: $590 • Health/Wellness Staff: $2,500
Total liabilities $16,323,862 $25,071,632 Net assets Unrestricted $400,000 $3,712,900 Temporarily restricted $600,000 $900,000 Permanently restricted $5,734,526 $376,609 Total net assets $6,734,526 $4,989,509 Total liabilities and net assets $23,058,388 $30,061,141
© 2016 Laureate Education, Inc.   Page  of 3 4
• Arts/Crafts Staff: $2,000 • Supplies: $800 • Fitness Equipment Maintenance Contract: $200
Variable Costs • Monthly Membership Fee: $105 • Monthly Lunch Cost: $25 • Monthly Breakfast Cost: $15
Based on the information above, the initial investment to establish the center is $317,880. The organization anticipates that it will generate $25,700 of revenues in the first year, $40,000 in the second year, $78,000 in the third year, $225,000 in the fourth year, and $310,000 in the fifth year.
The Assignment
The CEO has presented her proposal and financial information to the board of directors, and they have advised her that they are in full support of her strategy if the program is a benefit to the community and if the organization can recoup its investment in three years. Based on the information presented in the scenario, calculate the two analyses below and explain their implications.
1. Perform the break-even analysis to determine how many seniors would need to have full monthly membership and pay for breakfast and lunch for Montgomery Home and Community-Based Services to cover its monthly expenses.

Break-even volume = Total fixed costs / (Average charge per client – Average variable cost per client)
2. Calculate the payback period to determine how long it will take for the organization to recover its initial investment of establishing the senior multipurpose center.

Payback period = A + (B/C)
© 2016 Laureate Education, Inc.   Page  of 4 4

ACCOUNTING QUESTIONS


 ACCOUNTING QUESTIONS

Instruction

Answer the question below, please follow the order to answer and indicate the order. Thanks!

Question:

  1. Two objectives of the system availability are to minimize the risk of system downtime and resume normal operations quick. To achieve these objectives, organizations develop disaster recovery plans and business continuity plans. These plans should reflect the management’s responses to basic questions.
    (a) List those two questions and explain how the answers to these questions achieve the objective of system availability.
    (b) What are the different types of backup procedures? There is a key point that should be addressed regardless of the types of backup procedures. What is that point?

 

  1. A sequence check is a method of testing the sequencing of a batch of data.
    (a) Out of various application controls to maintain the integrity of processing data, what type of control does a sequence check address?
    (b) What are the other controls that can be classified into the same category of application controls?

 

  1. There are six objectives of information systems audits.
    (a) What automated flowcharting programs do? Identify which of the six objectives such automated flowcharting programs achieve. Which other software packages can be used to achieve the same sub-goal of this objective of information systems audits?
    (b) Identify the objective that can be achieved by using a test data generator. Explain how a test data generator can help auditors achieve this objective.

 

  1. Auditing process can be classified into four stages.
    (a) In which stage, is an analytical review approach used? How does an analytical review approach achieve the goal of this audit stage?
    (b) How would you define the term materiality in the context of auditing? How is this term related with the term reasonable assurance?

 

  1. Explain the four steps of the risk-based audit approach, and discuss how they apply to

the overall security of a company

%d bloggers like this: