What are the company’s accounting and organizational internal control procedures?

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Think of a company you may have worked for or one that you may be interested in working for. Once you have determined the company, write a paper that answers the following questions:

1.What is the name of the company?
2.What are the company’s accounting and organizational internal control procedures?
3.What are your suggestions for the company on internal controls improvements?
4.Has the company ever experienced fraud?
5.What is the company’s plan to reduce fraud?

Why do some authors think that there is a crisis in public trust in the accounting profession? How can public trust in the accounting profession be improved or repaired?

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Why do some authors think that there is a crisis in public trust in the accounting profession? How can public trust in the accounting profession be improved or repaired?
Key readings:
• Baker, C. R. (2005). What is the meaning of “the public interest”? Examining the ideology of the American public accounting profession. Accounting, Auditing & Accountability Journal, 18(5), 690-703.
• Carnegie, G. D., & Napier, C. J. (2010). Traditional accountants and business professionals: Portraying the accounting profession after Enron. Accounting, Organizations and Society, 35(3), 360-376.

Discuss the overall financial performance of your company in relation to industry averages and a specific competitor. Explain whether the company performed better or worse than the competition using specific numbers and providing an explanation of what the numbers illustrate.

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The purpose of this assignment is to analyze the financial performance of a company to make recommendations to potential investors about the purchase of stock. Studying all aspects of a company’s financial statements is necessary in order to understand the financial performance and health of a company. This is particularly important for investors trying to determine whether to buy stock in the company.

An investor has approached you about whether purchasing stock in the company would be a wise investment. Using your financial analysis of the company, you will send a letter to the investor summarizing your findings and explaining whether you recommend a stock purchase at this time. Refer to the “Annual Reports for Approved Companies” located in the course materials. You will use information in the Form 10-K to complete this assignment. Using the correct formulas and a separate tab for each analysis, calculate the following ratios using Excel

You will use information in the Form 10-K for the company you selected in the Topic 1 to complete this assignment. Using the correct formulas and a separate tab for each analysis, calculate the following ratios using Excel:

Three liquidity ratios for the past 2 years
Three solvency ratios for the past 2 years
Three profitability ratios for the past 2 years
In addition, conduct research about a competitor company within the same sector using IBIS World and other topic resources. Complete a competitor analysis that includes a minimum of three ratios and compares your company to a competitor company using these ratios to determine financial performance as well as how the company compares to overall industry averages. Justify your analysis by explaining your findings.

Using your research findings and analysis of company performance in relation to industry competitors, construct a 500-750 word letter making stock purchase recommendations for a potential investor. In the letter, address the following, referencing specific ratios and comparative numbers as appropriate.

Discuss the overall financial performance of your company in relation to industry averages and a specific competitor. Explain whether the company performed better or worse than the competition using specific numbers and providing an explanation of what the numbers illustrate.
Recommend whether the potential investor should purchase stock in your company and justify your recommendation based upon your research and analysis of the company ratios and industry competition.
Submit the Excel file that contains your ratios and the Word file letter to LoudCloud.

While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines

Evaluate tax consequences between liquidating and non-liquidating corporate distributions for identifying their impact on clients’ tax returns consistent

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The final project for this course is the creation of a memorandum with an appendix of supporting IRS forms and schedules.
Working as an accounting associate in a financial organization requires the ability to apply accounting knowledge in unique ways. Being able to identify issues
and communicate them effectively with members of your team and clients is essential for any financial career working in a privately held enterprise or working
with privately held clients.
In the final project, you will demonstrate your ability to communicate your tax efficient investment and business strategy recommendations to a client. Your
proposed strategy could save the client and his family millions of dollars over time, so it is imperative that you utilize your tax research skills and maintain
compliance with all governing rules and regulations.
The project is divided into four milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, Five, and Seven. The comprehensive memorandum with appendix will be submitted in
Module Nine.
The project will address the following course outcomes:
● Recommend appropriate taxable entities, based on comprehensive tax research, for new businesses resulting in optimum solutions that meet clients’
desired economic outcomes
● Evaluate tax consequences between liquidating and non-liquidating corporate distributions for identifying their impact on clients’ tax returns consistent
with governing rules and regulations
● Apply best practices in accounting and moral reasoning for liquidating a business resulting in the best economic solution for the owner
● Illustrate solutions for addressing tax consequences resulting from gifts and inheritances, while maintaining compliance with governing rules and
regulations
● Prepare appropriate tax returns as they apply to various business entities that result in the best economic solution for clients
Prompt
You are working as an accountant at a mid-size CPA firm. One of your clients is Bob Jones. Bob’s personal information is as follows:
DOB: October 10, 1952
SSN: 444-00-4444
Marital Status: Single
Home Address: 5100 Lakeshore Drive, Pensacola, FL 32502
Bob has a very successful used car business located at 210 Ocean View Drive in Pensacola, Florida. Last year, you filed a Schedule C for Bob that had $1,200,000
in taxable income. The business will have an income growth rate of 10% per year over the next several years. Bob’s personal wealth, including investments in
land, stocks, and bonds, is about $14,000,000.
Last year, he reported interest income of $20,000 and dividend income of $6,000. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for
$450,000. The stocks and bonds have a tax basis of $1,200,000 and they are currently worth $5,000,000. All of the investments have been owned for more than a
year. In addition to his investments, Bob paid $140,000 for his home in 1972 and it is now worth $600,000.
The used car business is currently valued at $53,000,000 including the land and building, which are worth $41,000,000. Bob’s tax basis in the land and building is
$2,000,000 and $400,000, respectively. The inventory is worth $12,000,000, with a cost basis of $10,000,000; the remaining assets, which include office furniture
and equipment, make up the remainder of the business’s total value. The office furniture and equipment are fully depreciated.
Bob wants your professional advice regarding whether he should continue to operate as a sole proprietor or convert the business to a partnership, an S
corporation, or a C corporation. Based on one of the business entities selected, Bob wants to include Mandy—his daughter—in the business as an owner and
manager with a possibility of 40% interest. One of his concerns is what would happen to his business after he passes away.
Mandy’s personal tax information is as follows:
Mandy Jones
DOB: June 30, 1990
SSN: 999-99-9999
Marital Status: Single
Home Address: 5990 Langley Road, Pensacola, FL 35203
You will need to describe the tax and limited liability effects on a chosen business entity should Bob decide to reduce the amount of tax paid per year, as well as
the protection of personal assets should there be a possible claim against the company’s assets.
Prepare a memorandum to the client, recommending a type of business entity, including an appendix of supporting IRS tax schedules and forms.
Specifically, the following critical elements must be addressed:
I. Memorandum
A. Use logical reasoning based on your tax research to explain why the client should choose your recommended business entity. Consider
referencing appropriate tax code and regulations.
B. Defend your business entity recommendation by describing the accounting method. Consider the advantages and disadvantages of the business
entity based on the following:
1. Cash basis vs. accrual
2. The cost to prep the returns
3. The tax benefits
4. The limited liability protection
5. Employee benefits
C. Interpret the tax law pertaining to the type of business recommended and justify your recommendation using details consistent with tax law,
code, and regulations.
D. Explain the tax effect based on providing $180,000 per year for the client’s salary and $70,000 per year for his daughter’s salary if they withdraw
cash from the business or pay dividends as appropriate.
E. Justify the percentage of ownership the client’s daughter should have in the business based on the type of business entity recommended.
Consider the tax law in reference to the recommendation and how the decision will affect the daughter’s tax return.
F. Create a detailed tax planning proposal explaining how the client’s family can experience tax savings should the client pass away. Cite relevant
governing rules and regulations.
G. Illustrate a strategic plan that addresses the need for a will in handling the estate. Detail what happens to the business, land, and investments
consistent with tax codes and regulations. Consider extending the plan to address the client’s estate tax, trust, and charitable contributions
while minimizing estate tax.
H. Recommend estate planning strategies consistent with tax codes and regulations for the purpose of reducing the taxable estate. Be sure to
include gifting property to heirs in your response.
I. Illustrate the best course of action if the client decides to leave the business in three years. Provide some advice to him should he decide to gift
the business to his daughter or transfer the assets or common stock to her, depending on the business entity you have selected.
J. Illustrate the best course of action if the client wishes to sell the business. Consider the tax consequences with regard to capital gains and losses,
ordinary income issues, and selling an existing operating business.
II. Conclusion
A. Compare and contrast the advantages and disadvantages of the sole proprietorship, the partnership, the S corporation, and the C corporation
as a tax vehicle that could meet the client’s need for accounting information about the business. Consider providing justification for why the
client would not necessarily choose the other business entities.
B. Summarize the alternative involving the possibility of liquidating the business using rationale based on tax research, codes, and regulations.
C. Summarize the alternative of transferring the business activity, providing justification based on tax research, codes, and regulations.
III. Appendix: To further justify your professional advice regarding whether the client should continue to operate as a sole proprietor or convert the business
to a partnership, an S corporation, or a C corporation, complete the appropriate tax schedules using the most current tax forms for the requirements
below.
A. Prepare Bob’s Form 1040 with the appropriate tax schedules and Mandy’s Form 1040 (based on the salary he wanted to pay her, $70,000 per
year). Assume that you are filing the tax returns using sole proprietorship for the business entity and treating Mandy as an employee, regardless
of your initial recommendation for this client.
B. Prepare the appropriate forms in the event that the client decides to convert the business to a partnership, an S corporation, or a C corporation
based on your recommendation. Also, include the tax effect, if any, of the money that the client and his daughter are taking from the business
for their personal expenses. Include the owners’ personal 1040 forms as well.
C. Justify your recommendation using schedules and tax forms you completed by explaining how the forms and schedules result in the best
economic solution for the client consistent with IRS code and regulations.

Discuss the criteria which can be used to distinguish employment from self-employment in the UK

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Discuss the criteria which can be used to distinguish employment from self-employment in the UK

Criticality evaluate and contrast the use of incremental budgeting versus zero base budgeting explain the two and mention their advantages and disadvantages over one another

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In the part A;The report should evaluate the performance of the business in five evaluation areas. The report should be supported by the calculations of ratio. It is important to show all the calculations . In terms of evaluation , you will explain and comment on the implications of number you calculated and state the causes of the number. What is the potential implications of the number for the business , how can the business improve and what steps could be taken to improve the situation. Then critically evaluate the limitations of ratio analysis.

Part B ; criticality evaluate and contrast the use of incremental budgeting versus zero base budgeting explain the two and mention their advantages and disadvantages over one another

2000 +/_ words for both sides. Use appendix for calculations and summary table of ratio

Part A – Marine Time Plc2

You are a financial analyst at Marine Time Plc; a public limited company specialising in manufacturing and distributing medical equipment. The Board of Directors have looked into the financial statements of the company for the last two years and have raised concerns regarding both the company’s profitability and liquidity. The financial statements of Marine Time for the last two years are given below:

Statement of Comprehensive Income for the year ended 31 December

2020 2019
£000 £000 £000 £000
Revenue 19,345 17,890
Less: Cost of sales:
     Opening Inventory 1,000 1,185
     Manufacturing costs 10,340 7,855
11,340 9,040
     Less: Closing Inventory (1,480) (1,000)
(9,860) (8,040)
Gross profit 9,485 9,850
Less: Expenses
Selling & distribution expenses 2,225 1,795
Administrative expenses 985 965
Bad debts written off 565 480
(3,775) (3,240)
Operating profit 5,710 6,610
Less: Interest payable (2,160) (1,565)
Profit before tax 3,550 5,045
Less: Income tax (990) (875)
Profit after tax 2,560 4,170
Less: Dividends paid (1,980) (2,225)
Retained profit for the year     580 1,945

Statement of Financial Position as at 31 December

 

2020 2019
£000 £000
ASSETS

Non-Current Assets (net)
Land and building 15,115 12,250
Equipment 2,350 1,815
Motor vehicles     1,175 680
18,640 14,745
Current Assets
Inventory 1,480      1,000
Trade Receivables 2,650 2,115
Cash          0    675
  4,130 3,790
           
Total Assets   22,770     18,535
           
           
EQUITYAND  LIABILITIES          
Equity
Ordinary shares of £1 each 8,010 8,010
Retained earnings (reserves) 2,150 1,570
10,160 9,580
           
Non-current liabilities
Loan stock (9,300) (6,400)
 

 

Current liabilities
Trade Payables   1,925   1,655
Taxation   1,025      900
Bank overdraft      360            0
    3,310     2,555
           
Total Equity and Liabilities   22,770     18,535
   
           
           
 

Required:

  1. Prepare a report for the Board of Marine Time Plc. that evaluates the performance of Marine Time Plc in relation to profitability, liquidity, gearing, efficiency (asset utilisation) and investor potential. Your report must be supported by the calculation of relevant ratios in the five evaluation areas mentioned above.                                                                                                                            (30%
  2. Calculate the Working Capital Cycle in days for Marine Time Plc based on the information above, assuming 365 days, for the years 2020 and 2019 AND briefly comment on the company’s liquidity position in 2020 compared to 2019. (round to the nearest day)                                                                                                             (10%)
  3. Critically evaluate the limitations of using ratio analysis for both cross-sectional and time-series comparison                                   (10%

All calculations should be clearly shown including all appropriate workings, and should be made to the nearest £000 or two decimal places where required.

Total for Part A: 50%

Part B

Required:

Critically evaluate and contrast the use of traditional budgeting methods in today’s contemporary business environment with another method of your choice. Illustrative examples including numerical or case studies may be used

Total for Paper: 100%

 Notes:

  1. To obtain a high mark, you should:
  2. Make your report concise, precise and well presented and structured;
  3. Draw logical conclusions from accounting information;
  4. Synthesise information in a coherent and useful way;
  5. Show evidence of key text and background reading;
  6. Incorporate your knowledge into an integrated piece of work;
  7. Demonstrate critical understanding of financial management.
  8. Harvard standard referencing is required for the report

2,000 words overall. (plus or minus 10%)

 

 

 

 

Discuss the importance of senior management in setting the tone at the top for honesty and integrity within a company.

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Compare the existing internal control environment at Microsoft to its management’s responsibility for designing effective internal controls, outlined in Case 5 of Graduate Accounting Capstone Cases, and identify the deficiencies that existed.

Speculate on which types of internal controls could have been designed to detect the accounting irregularities, and provide at least two reasons why the internal controls in place at Microsoft were not effective in detecting the accounting errors. Provide specific examples.

Discuss the importance of senior management in setting the tone at the top for honesty and integrity within a company.

Identify at least two consequences of management’s not establishing a code of ethics, and describe the effect on the internal control environment. Provide examples.

Compute the value of the following bonds assuming a 3% discount rate (required rate of return):

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This assignment is in a different direction than your Module 1 Case in that it is mostly computational in nature. Before starting this assignment, work through some of the examples in the background readings to make sure you understand all of the steps involved in future value and present value, including use of present value formulas to compute the value of a bond.

Case Assignment
Please download the Case 2 Template. You will type your answers into this document. Save the document with your last name and submit to the dropbox. Note that you will get partial credit if you show your work even if the answers are incorrect.

Compute the future value for the following:
$2,000 after being invested for two years in a savings account with 3% interest rate
$5,000 after being invested for ten years in a savings account with a 1% interest rate
$3,500 after being invested for nine years in a savings account with an 11% interest rate
Compute the present value for the following:
$3,000 to be paid in one year with a 9% discount rate
$3,000 to be paid in three years with a 9% discount rate
$4,000 to be paid in ten years with a 5% discount rate
Compute the present value for the following:
An investment that will pay you $1,000 in one year, another $1,000 in two years, and a third payment of $1,000 in three years (e.g., three payments of $1,000 to be paid once a year for three years). The discount rate is 4%.
The same three $1,000 payments as in part a) above, but with a 6% discount rate
An investment that will pay you $2,000 in one year, another $1,500 in two years, and a third payment of $3,000 in three years. The discount rate is 4%.
Compute the value of the following bonds assuming a 3% discount rate (required rate of return):
A zero-coupon bond that pays $1,000 in five years
A bond that pays $1,000 in five years, with five annual coupon payments of $20 each
What is the coupon rate if coupon payments are $20 per year? At what discount rate would the value of the bond be “at par” (e.g., be worth $1,000?). Explain your reasoning.
This part of the assignment is purely conceptual with no computations required. Explain the following with references to the required readings:
What is likely to happen to interest rates if the rate of inflation suddenly increases?
Suppose there are two bonds each with coupon payments of $50. The first bond pays $1,000 in five years, and the other one pays $1,000 in ten years. If interest rates increased, would the value of the bonds increase or decrease? Which of the two bonds would have their value change more after the increase in interest rates? Explain your reasoning.

What non-financial performance indicators might you consider in relation to strategy 2 and what would be the advantages of using those

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Aviation Ltd has just finished a two-day retreat where they revised and updated their mission and vision statements and drafted a strategic plan. The organisation’s vision statement is:

“To be a leader in the development and supply of aviation products in the leisure and surveillance space”

The mission statement is:

“To maximise financial returns by delivering quality products and customer service excellence”

During their retreat, the board and leadership team identified the following strategies to pursue the upcoming year.

  1. Operate in the black with 5% margin by increasing revenues and market share and reducing waste and energy costs
  2. Improve staff health and well-being in order to motivate, recognize and retain staff
  3. Provide high quality products and services to increase customer satisfaction and knowledge of product capabilities
  4. Improve design and technology capability

The CEO has enlisted your help to implement a Balanced Scorecard.

  1. Place the strategies into their appropriate perspectives of the BSC. Once strategies are categorized according to the four perspectives. Determine the causal linkages between the strategies and visually portray how these strategies support the organisation’s mission and
  2. Complete the Balanced Scorecard in order to help Aviation Ltd focus its activities. (Use Self Evaluation Activity 1 as an example on page 593 of your text). Identify 2 measures per perspective that the organisation should use to track its progress in accomplishing each strategy.
  3. Consider the advantages and disadvantages of implementing a team based reward structure to achieve business outcomes and how might that work in an organisation. Relate to Aviation Ltd OR reflect on a personal experience in the workplace.
  4. What non-financial performance indicators might you consider in relation to strategy 2 and what would be the advantages of using those

Discuss 3 reasons why the management of HiFields may have requested a detailed budget for the forthcoming months?

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You manage a large suburban store for HiFields Sports and Recreation which carries a range of sporting and recreational goods including drones. Head Office has asked for your input into the budgeting process for the store for the months of October, November, and December which is peak period for sales activity. The Divisional Manager and Assistant Chief Financial Officer will be on site from next week to review the budget with you.
As a starting point you review the Balance Sheet for the store as at the 30th September, 2019:

Assets
Current Assets Liabilities
Current Liabilities
Cash at Bank 15,000 Accounts Payable 16,800
Accounts Receivable net 16,000 Wages Payable 4,250
Inventory 48,000 Total liabilities 21,050
Prepaid Insurance 1,800
Total Current Assets 80,800
Non-current Assets
Equipment & Fixtures
32,000 Owner’ Equity
Owners’ Equity
78,950
Less Accumulated Depreciation (12800)
Total Non-current Assets 19 200
TOTAL ASSETS $100,000 TOTAL LIABILITIES & OE $100,000

Working with staff, you gather the following information to prepare the budget:

1. Sales in September were $40000. Monthly sales are projected by the sales team as follows:
October $50000
November $82000
December $64000
January $55000
Sales are 60% cash and 40% on credit. All accounts receivable are collected in the month following sale. ($16000 of accounts receivable at 30th September arose from credit sales made in September. Bad Debts are not significant).

2. HiFields inventory policy is to maintain inventory equal to $20000 plus 80% of the budgeted cost of sales for the following month. (All these percentages are drawn from the business’s past experience.) Cost of sales averages 70% of sales. These data explain why the inventory on 30th September is $48000, calculated as follows:
30 September inventory = $20000 + 0.80 x (0.70 x October sales $50000)
The store pays for inventory 50% during the month of purchase and 50% in the following month. Accounts Payable consist of inventory purchases only. September purchases were $33 600 so accounts payable at the end of September in the Balance Sheet totalled $16800 ($33600 x 0.50).
3. Monthly payroll consists of two parts: fixed wages of $2500 plus sales commissions equal to 15% of sales. Policy is to pay half of this in the current month and half in the month following. As an indication:

September payroll = Fixed wages $2500 + commission $6000 (0.15 x 40000)
= $8500
This led to the Wages Payable in the Balance Sheet of $4250 (0.50 x $8500)

4. Other monthly expenses are:
Rent Expense $2000 paid monthly Depreciation Expense incl Truck 500
Insurance Expense 200 expiration of prepaid
Miscellaneous Expense 5% of sales paid monthly

5. A used delivery truck will be purchased in October for $3000 cash.

6. Hifields policy is to maintain a cash balance of $10 000 at the end of each month. If necessary the business can use a short term loans in multiples of
$1000 at an annual interest rate of 12%. Management borrows no more money than the amount needed to maintain the $10000 minimum cash balance. The loans require six equal monthly payments consisting of principal plus monthly interest on the entire unpaid principal. Borrowing an all principal and interest payments occur at the end of the month.

7. Tax in the responsibility of head office so can be ignored.

You have been asked to prepare the following. (Note use the excel template provided to prepare the budget schedules):

(i) Sales budget (Schedule A)
(ii) Budgeted cash collections from customers (Schedule B)
(iii) Purchases, cost of sales and inventory budget (Schedule C)
(iv) Budgeted cash payments for purchases (Schedule D)
(v) Operating expense budget (Schedule E)
(vi) Budgeted cash payments for operating expenses (Schedule F)
(vii) Statement of budgeted cash receipts and payments by month for the three months ended 31st December, 2019 (Schedule G)
After preparing the budget schedules answer the following questions:

a. The budget suggests a cash deficiency in October. Suggest 2 ways in which a modification of plans could overcome this problem.

b. Discuss 3 reasons why the management of HiFields may have requested a detailed budget for the forthcoming months?

c. Why is it crucial that those responsible for delivering targets to have input into the budget process.

d. What is wrong with comparing actual performance with past performance or the performance of others in an effort to exercise control?

e. What is management by exception? For example, if sales volume in any month falls below expectations what actions might be taken?

f. Based on your readings in the course and/or your own experience in 300 words:

(i) outline the process that you will undertake to prepare the budgets.

(ii) reflect on the process and list any points that should be included in the system or routine to enable control through budgets to be effective.