Why do you think the CEO decided to report 4 ratios instead of the 11 prepared?

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D3: Chapter 13 Ethical Issue

As Beacon Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the following information.

2017 2016 2015
Sales trend percent 147.0% 135.0% 100.0%
Selling expenses to sales 10.1% 14.0% 15.6%
Sales to plant assets ratio 3.8 to 1 3.6 to 1 3.3 to 1
Current ratio 2.9 to 1 2.7 to 1 2.4 to 1
Acid–test ratio 1.1 to 1 1.4 to 1 1.5 to 1
Inventory turnover 7.8 times 9.0 times 10.2 times
Accounts receivable turnover 7.0 times 7.7 times 8.5 times
Total asset turnover 2.9 times 2.9 times 3.3 times
Return on total assets 10.4% 11.0% 13.2%
Return on stockholders’ equity 10.7% 11.5% 14.1%
Profit margin ratio 3.6% 3.8% 4.0%

After the meeting, the company’s CEO holds a press conference with analysts in which she mentions the following ratios.
2017 2016 2015
Sales trend percent 147.0% 135.0% 100.0%
Selling expenses to sales 10.1% 14.0% 15.6%
Sales to plant assets ratio 3.8 to 1 3.6 to 1 3.3 to 1
Current ratio 2.9 to 1 2.7 to 1 2.4 to 1

Required
1. Why do you think the CEO decided to report 4 ratios instead of the 11
prepared?
2. Comment on the possible consequences of the CEO’s reporting of the
ratios selected.

Explain the impact of accounting transactions in financial statements. Describe the elements and purpose of each financial statement. Discuss the components and use of financial analysis.

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Financial statements.

Write a 500 – 750 word paper that addresses the following topic:

Explain the impact of accounting transactions in financial statements.

Describe the elements and purpose of each financial statement.

Discuss the components and use of financial analysis.

Your paper must be formatted according to APA 6th edition guidelines, and you need to use at least one external reference.

Why are you interested in this company and what information did you found useful. Calculate Return on Assets and share what you have learned from this analysis.

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Annual report

Find an annual report for a company of interest (perhaps your employer). Publicly held company annual reports (10K) can be located via a search link at http://www.sec.gov/edgar/searchedgar/webusers.htm

NOTE: To perform the search in the Edgar Archives the best way is to enter the “ticker symbol” for the company. In Yahoo finance (MSN, or other investment websites) enter the company’s name next to the icon “Get Quotes”. For example, Tech Data Corp’s ticker symbol is “TECD” and Bloomin’ Brands ticker symbol is “BLMN”.

Click on the link to “Interactive Data” and then the link to the “Financial Statements”. Locate and review the Income Statement and Balance Sheet. Share in your post why you are interested in this company and information you found useful.
Calculate Return on Assets and share what you have learned from this analysis.

Write a minimum of a 3-page report, single-spaced, one-inch margins, 12-point font, with a double space between paragraphs. This page requirement includes data visualization that you create.

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Report

Write a minimum of a 3-page ( a full-page typically has at least 500 words) report, single-spaced, one-inch margins, 12-point font, with a double space between paragraphs. This page requirement includes data visualization (charts and graphs) that you create.
Page count does not include a title page, tables and exhibits, and reference list.

Explain and apply financial accounting in the preparation of simple financial reports.A template has been provided on the following page to show how you need to demonstrate your learning.

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Accounting for Managers PORTFOLIO

Your portfolio is where you will be able to demonstrate your learning throughout the semester. You need to show that you have achieved each of the BFA526 three learning outcomes:

LO1 Explain and apply management accounting techniques for business planning, control and capital investment decisions.

LO2 Analyse and critically evaluate information from organisations to make decisions and communicate these through written reports.

LO3 Explain and apply financial accounting in the preparation of simple financial reports.A template has been provided on the following page to show how you need to demonstrate your learning.

Transfer this information to your own document and include your own headings and presentation style, but only submit the evidence as stated (and in the order provided). It is critical that you present your own work, it is not correct solutions that we are looking for, it is evidence of your learning. Hence there is no word limit to this portfolio, but to keep you on track, you are limited on what you can submit as evidence for each assessment criterion (called Criterion Description in the Unit Outline – see the list under Assessment Task 3: Portfolio on pp 6-7).

For your convenience, the assessment criteria have been included in the template below. You will see the Learning Outcomes numbered in the first column. The criteria next to each learning outcome tells you what you need to do to demonstrate that you have achieved that learning outcome. Please be very clear when presenting your evidence and list the learning outcome and criterion BEFORE/with the evidence.

Identify differences and similarities in accounting rules (IFRS) and principles (U.S. GAAP), and conclude which financial reports (based on GAAP or IFRS) closely approximate real value in assets (MBA-ACCT).

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Bao, Lee and Romeo Summary

Comparison of U.S. GAAP vs. IFRS Study: Using resources for comparisons of U. S. GAAP with IFRS the student will write a research paper to compare the U.S. GAAP with IFRS in terms of impact on balance sheet items and income statement items. For the purpose of assurance of learning, the student will receive two scores based on:

(1)A2S1: the quality for the analysis of IFRS accounting principles compared and contrasted to U.S. GAAP (MBA-INTERNATIONAL);

(2)A2S2: the ability to identify differences and similarities in accounting rules (IFRS) and principles (U.S. GAAP), and to conclude which financial reports (based on GAAP or IFRS) closely approximate real value in assets (MBA-ACCT).

(3)A2S3: the ability to correctly understand and use the term “earnings management” in U.S. GAAP and IAS using statistical models (MBA-QANT).

Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget.

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Fundamentals of Managerial Accounting Concepts.

This scenario puts you in charge of preparing a budget for the Redmond Management Association annual public relations luncheon.

Read the scenario in the textbook and complete the activity below.

Use Excel—showing all work and formulas—to complete the following:

Prepare a flexible budget.
Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the flexible budget.
Compute flexible budget variances by comparing the flexible budget with the actual results.

Create a 6- to 8-slide presentation for the budget committee meeting. Complete the following in your presentation:

Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget.
Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual results.
Justify the favorable or unfavorable budget variances.
Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.
Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your recommendations.

On what form would the gain or loss originally be reported? What is the amount of gain or loss on the sale? What amount of the gain or loss is subject to ordinary tax rates?

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Antoine sold the following stock in 2020. ABC, Incorporated, is a § 1202 qualified small business (QSB).

Asset Cost Acquired Sale Price Sale Date
ABC, Incorporated, 150 shares $ 108,750 01/10/2009 $ 139,500 04/30/2020
DEF, Incorporated, 124 shares 21,700 11/15/2016 16,120 02/28/2020
GHI, Incorporated, 62 shares 21,700 03/31/2019 19,592 08/30/2020

Required:
Complete the chart.
After netting, what is the total gain or loss?
If Antoine is in the 37% tax rate bracket, at what rate is the net gain or loss taxed?

In 2020, Rosalva sold stock considered short-term for a gain of $1,200 and stock considered long-term for a loss of $3,530. She also had a $3,160 short-term loss carryover from 2019 and a $1,445 long-term loss carryover from 2019.

Required:
What amount will be shown as a short-term gain (loss) for 2020?
What amount will be shown as a long-term gain (loss) for 2020?
How much of the loss is deductible in 2020?
What is the amount of long-term carryover to 2021?

 

Jake purchased a $195,000 crane for his construction business. He sold the crane for $165,000 after taking $109,200 of depreciation. Assume Jake is in the 35% tax rate bracket.

Required:
On what form would the gain or loss originally be reported?
What is the amount of gain or loss on the sale?
What amount of the gain or loss is subject to ordinary tax rates?

Differentiate between the 2 types of budgets, providing an example of the type of business or company that would benefit from using a flexible budget. Also Provide support for your business selection and include the advantage for using a flexible budget over a static budget.

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Week 4 Discussion

Budgeting is a tool used by management for performing the functions of planning, coordinating, and controlling operations of a business. Our textbook, Managing Accounting Concepts, describes 2 main types of budgeting: static budgets and flexible budgets.

Respond to the following in a minimum of 175 words:

Differentiate between the 2 types of budgets.
Provide an example of the type of business or company that would benefit from using a flexible budget.
Provide support for your business selection and include the advantage for using a flexible budget over a static budget.

What were total current assets? What were total current liabilities? What were total assets and total stockholders’ equity ? Calculate working capital and describe how it changed from last year.

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Using the SEC 10-K for your company.

Answer the questions below:

What were total current assets?
What were total current liabilities?
What were total assets and total stockholders’ equity (deficit)?
Calculate working capital (current assets － current liabilities = working capital) and describe how it changed from last year.
If the company has treasury stock, is it increasing or decreasing in value? Remember that the normal balance for treasury stock is a negative value (debit balance).
What is the value for other comprehensive net income (or net loss), accumulated deficit, and/or retained earnings. How are these values changing?