Prepare the batch of budgeted documents (balance sheet, income statement, and cash flow forecast) to test the validity of your decisions

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DECISIONS TO BE TAKEN BY THE BOARD
See Appendix 1.
PROCEDURE FOR A ONE-YEAR SIMULATION
A – Prepare the batch of budgeted documents (balance sheet, income statement, and cash flow forecast) to test the validity of your decisions (see Appendix 2).
B – Hand-in your decision sheet to the instructor.
C – The instructor will advise each firm of the volume of its actual sales for the period. This amount is a maximum figure. If a business has not planned to produce enough to meet the revealed demand, that firm’s sales will be limited to the quantities available for shipment (production of the period plus available beginning inventory). The calculation of the potential maximum sales available to any firm reflects the decisions taken by both the firm itself and its competitors.
D – Once each firm knows its actual demand, each management team will prepare the resulting definitive accounting documents (balance sheet, income statement (or P&L), statement of cash flows), which will be presented to the shareholders. These documents have to be certified by the statutory auditor.

Identify and discuss the client acceptance considerations that need to be assessed prior to accepting the audit engagement.

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.Identify and discuss the client acceptance considerations that need to be assessed prior to accepting the audit engagement. Tie to both technical and case facts.

2.Discuss any fraud concerns noted. These should be discussed using a WIR approach.

3.Discuss any ethical concerns noted. Tie to both technical and case facts

Which system do you think is better: perpetual or periodic?

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Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of European mixers. The owner of Kzinski Supply Company has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified.
Natalie has come to you for your advice on how to account for these mixers and asks you the questions below, which you must address.
Would you consider these mixers to be inventory, or should these mixers be classified as supplies or equipment?
Which inventory tracking system should Natalie use: perpetual or periodic?
Which system do you think is better: perpetual or periodic?
Which system would you recommend for the type of inventory that Natalie wants to sell?
How often does Natalie need to count inventory if she maintains it using the perpetual system? In contrast, does she need to count inventory at all?
Provide your responses to the questions in a Word document. Use the unit lesson, required unit resources, and suggested unit resources to formulate your response. Your response should be a minimum of two pages in length and include at least two references. Adhere to APA Style when creating citations and references for this assignment.
Part II
Natalie is busy establishing both divisions of her business (cookie classes and mixer sales), and she is completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week.
The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with the owner of Kzinski Supply Company, which will include shipping costs in the negotiated purchase price (mixers will be shipped free on board (FOB) destination). Assume that Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. The transactions listed below occur in February to May 2020.
Feb. 2: Natalie buys two deluxe mixers on account from Mixer Supply Company for $1,200 ($600 each), FOB destination, terms n/30.
Feb. 16: She sells one deluxe mixer for $1,150 cash.
Feb. 25: She pays the amount owed to Mixer Supply Company.
Mar. 2: She buys one deluxe mixer on account from Mixer Supply Company for $618, FOB destination, terms n/30.
Mar. 30 : Natalie sells two deluxe mixers for a total of $2,300 cash.
Mar. 31: She pays the amount owed to Kzinski Supply Company.
Apr. 1 : She buys two deluxe mixers on account from Mixer Supply Company for $1,224 ($612 each), FOB destination, terms n/30.
Apr. 13: She sells three deluxe mixers for a total of $3,450 cash.
Apr. 30: Natalie pays the amount owed to Mixer Supply Company.
May 4: She buys three deluxe mixers on account from Mixer Supply Company for $1,875 ($625 each), FOB destination, terms n/30.
May 27: She sells one deluxe mixer for $1,150 cash.
For Part II, determine the cost of goods available for sale. You will recall from Chapter 5 (see Part I above) that at the end of January, Cookie Creations had three mixers on hand at a cost of $575 each. For Part II of the assignment, you will calculate the following items: ·
ending inventory,
cost of goods sold,
gross profit, and
gross profit rate under each of the following methods: last-in, first-out (LIFO); first-in, first-out (FIFO); and average cost.
Submit Part I and Part II in a single Word document. Your total combined submission should include two pages for Part I and the solutions to Part II.

Describe at least two challenges / concerns with upgrading / replacing AIS

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Accounting information systems discussion.

At some point, your firm will have to replace (or upgrade) their AIS applications. They may have to do it for technology reasons (aging hardware, decommission software, etc.) or for compliance reasons (AICPA guidelines, regulatory changes, etc.). Using the firm that you work for (or if you are not working, use a firm that you used to work for or a firm that you are familiar with), describe at least two challenges / concerns with upgrading / replacing AIS applications. To support your response, perform a search on the Internet to find an article that supports your recommendation (excluding the readings from this class). Be sure to include (a) the title of the article; (b) a link to it; and (c) a two-sentence summary of the article.

 

Examine the relationship between risk and return of two stocks over time and present your findings as a formal written report (detailing your calculations and findings).

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You have been asked by your client to recommend which of two available stocks will perform better over time, relative to risk. In this assignment, you examine the relationship between risk and return of two stocks over time and present your findings as a formal written report (detailing your calculations and findings).

Why is the ABC costing method used to manufacture small planes?

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Part 3: Activity-Based Costing: Activity-Based Costing Video Link: How Small Planes are manufactured http://www.youtube.com/watch?v=4LhN_T5tGK8 Requirement 1: Questions to be answered:

1. Discuss the Activity-Based (ABC) concept:

• Define Activity-Based Costing (ABC) concept.

• Describe how the ABC costing method works.

• Why is the ABC costing method used to manufacture small planes?

2. List at least 6 activities that is included in the manufacturing process for building small planes.

3. List at least 6 items that is included in Direct Materials (items needed to manufacture small planes).

4. List at least 3 items that is included in Manufacturing Overhead (items needed by employees as they manufacture small planes).

Part 4: Quality Management and Just-In-Time Management: Quality Management/Just-In-Time Management Video Link: How Chocolate is Made http://www.youtube.com/watch?v=rdTpA0luD2U&feature=PlayList&p=3FF6723AA74606C0&index=19 Requirement 2: Questions to be answered:

1. Discuss the Total Quality Management concept.

• Define the Total Quality Management concept.

• Describe how the Total Quality Management method works.

• Why is this method used when manufacturing chocolates?

2. Discuss the Just-In-Time Management concept.

• Define the Just-In-Time Management concept.

• Describe how the Just-In-Time Management method works.

3. List three ways of how the quality of chocolate could be determined during the manufacturing process.

4. Discuss how the Just-In-Time Management method would work in the manufacturing of chocolate. Submit a Word document in the Canvas assignment submit box with all of the requirements by the due date. Part #3 and Part #4 of this project is limited to two pages, typed, single spaced answer. The due date for Part #3 and Part #4 is: October 26 at 11:59 pm

Briefly summarize the nature of pending litigation facing the company you selected.

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Description

From the SEC’s website access any company’s 10-K from 2017 and review its footnote disclosures related to pending litigation.
Share the following:
Briefly summarize the nature of pending litigation facing the company you selected.
From the auditors’ perspective, what is the primary concern with respect to the disclosure of pending litigation?
From a shareholder’s perspective, what is the primary concern with respect to the disclosure of pending litigation?

Calculate the cost of equity capital using the capital asset pricing model; choose the beta (either company or industry) which you believe results in the most realistic cost of equity capital.

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Valuation

Part I – Kellogg Company

Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods. Kellogg is part of the packaged foods or food processing industry.  Use the information posted on Moodle/used in class and information found on Yahoo! Finance to answer all the questions in this part.  The average P/E (ttm) for the packaged foods industry is 42.

  1. Calculate the cost of equity capital using the capital asset pricing model; choose the beta (either company or industry) which you believe results in the most realistic cost of equity capital.
  2. Calculate the firm’s value per share using the discounted dividend model taking into account growth and using the cost of equity capital calculated in #1 above.
  3. Calculate the firm’s value per share using the simplified leveraged free cash flow and the cost of equity capital calculated in #1 above.
  4. Calculate Kellogg’s value using the industry average P/E ratio and trailing twelve months earnings per share.
  5. Calculate the P/E ratio for Kellogg using its most recent fiscal year end earnings.
  6. Based upon its P/E ratio, what can you conclude about how Kellogg’s value compares to its industry peers?

Part II – Amazon

Amazon currently trades at a P/E of 138.

  1. Why do you believe Amazon trades at a P/E so much higher than Kellogg?

 

What ethical dilemma does the accountant face?What business problem(s) does the company have?

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.•What ethical dilemma does the accountant face?What business problem(s) does the company have?

•Who are the potential stakeholders and how might they be affected by the decision of the accountant?

•What choices does the accountant have?Evaluate the choices, i.e. who benefits or who is hurt by the choice(s).

•What action would you recommend, i.e. how do you believe the business problem should be resolved? How should the ethical dilemma be resolved?

•Going forward, what should the company do regarding organizational ethics?

Draft the description of an Entity’ Cybersecurity Risk Management Program for a Manufacturing

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Draft the description of an Entity’ Cybersecurity Risk Management Program for a Manufacturing following Section 3 of the AICPA Description Criteria for Management Description of the Entity’s Cybersecurity Risk Management Program.