Compile financial ratios for performance, efficiency, liquidity and solvency for company and at least three competitors

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A report based on very detailed research into company accounts

Requires full mastery of all Excel techniques and formulae

Single company valuation study.

1) Analyse company’s business activities

  • Use your own explanation of how company’s business model works – DO NOT COPY COMPANY’S STATEMENTS

2) Identify key drivers of business model and competitiveness

  • Use independent data on company’s markets
  • Assess future prospects for these markets

3) Compile financial ratios for performance, efficiency, liquidity and solvency for company and at least three competitors

  • Ratio analysis over the past five years
  • Comparing these ratios – draw your own conclusions, NOT just descriptions

4) Detailed forecasts of income statement and balance sheet for next five years and in perpetuity

  • Justify your forecast and support with statistics

5) Apply valuation techniques, with full spreadsheet support (see tutorials)

  • Capital Asset Pricing Model (CAPM),
  • Discounted Dividend Model (DDM),
  • Discounted Cash Flow (DCF),
  • Relative price multiples of earnings and cash flow.

How is the statement of retained earnings prepared?

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How is the statement of retained earnings prepared? What is the purpose of closing entries? What accounts are not affected by closing entries? Explain and provide examples.

Why are adjusting entries necessary?

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Why are adjusting entries necessary? Why not treat every cash disbursement as an expense and every cash receipt as a revenue when the cash changes hands?

Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified.(

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ACCT3000 AUDITING_Case Study (part 1)_Semester 2, 2020Write answers to each of the five (5) situations described below addressing the required criteria (i.e. 1 & 2) in each independent case. You may use a tabulated format if helpful having “Threats”, “Safeguards” and “Objective Assessment” as column headings.Liam Neesonhas been appointed as a junior auditor ofBrilliant Accounting Limited (BAL). One of his first tasks is to review the firm’s audit clients to ensure that independence requirements of APES 110 (Code of Ethics for Professional Accountants) are being met. His review has revealed the following:(a)BAL has recently been approached by Western Development Limited (WDL) to conduct its audit to which BAL has agreed. Ric Flair, one of the partners at BAL, is being considered to lead the audit of WDL. Ric’swife Wendy Barlow has recently purchased significant amount of shares in Freo Minerals Limited (FML). WDL is also known to have a substantial investment in FML and influence FML’s key decisions.(b)BALhas recently been approached by Bluecorp Group Limited(BGL)to conduct its audit to which BAL has agreed. The accountant at BGL, Paul Levesque is the son in lawof Vincent McMahonCA, who is an audit partner at BAL. Vincentput in a request to lead the BGL audit. Vincentbelieves that he can get the BGL audit completed efficiently and effectively since he gets along really well with Paul. However, beingaware of Vincent’s relationship with Paul, BAL will not be assigning Vincentto the audit team of BGL.(c)Bluecrest Mining Limited (BML) has been a long standing audit client of BAL. BML waslisted on the Australian Securities Exchange (ASX)twenty years ago. Since the previous two years BML has accounted towards 30% of total fees received by BAL. Prior to this the total fees from BML only comprised of around 11% of BAL’s total fee revenue from all clients. The increase in fee from BML in the recent period is attributable to its expansion and diversification. BML has not paid BAL any of its fees for the previous period. BML audit for the current year is now due.(d)Rey Steel Limited (RSL) has been a long standing audit client of BALand is one of the oldest companies listed on the ASX. RSL audit has just been completed for the current year. The engagement partner on the audit, Shawn Michaels CPA, has been the key audit partner on the RSL audit engagement for previous four years. David Lont FCPA is one of the three managing partners at BAL. Directors at RSL have always admired David’s skill and expertise. David is planning to retire from BAL. On hearing this, the directors at RSL approach David with a very lucrative compensation package to join the RSL team as a financial controller.(e)BALhas performed the audit of Vegas Metals Pty Limited (VM), a large proprietary company (NOTpublic interest entity) for the last two years. BALhas also beenpreparing VM’s tax calculations andproviding services related to the preparation of accounting records and financial statements to VM.

Required:For each of the independent situations above, and using the conceptual frameworkin APES 110 (Code of Ethics for Professional Accountants), answer the following questions:

1.Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified.(5 marks)

2.Provide an objective assessment of whether audit independence can be achieved (5 marks)

List at least three accounts that increase with debits and at least three accounts that increase with credits.

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Numbered the answers as Question 1,2,3 & 4 Question 1. Explain debits and credits. List at least three accounts that increase with debits and at least three accounts that increase with credits.
Question 2. Companies must prepare financial statements. What are the required financial statements? Select one of the financial statements. What is reported on it? Why is it useful?
Question 3. (100 words)Read the following information about the water crisis in Flint Michigan: http://www.cnn.com/2016/03/04/us/flint-water-crisis-fast-facts/index.html (Links to an external site.)https://www.reuters.com/article/us-michigan-water/michigan-to-charge-states-top-medical-official-in-flint-water-deaths-idUSKBN1CE2AD (Links to an external site.)Who were the key stakeholders who played a role in this tragedy? What ethical breaches were evident? What is the relationship between sustainable practices, environmental protection, and social responsibility?
Question 4. (100 words) Review the following link on cultural competence. How are cultural competence and diversity similar? How are they different? If you were in charge of a global business what model would you employ any why? http://diversityofficermagazine.com/cultural-competence/what-is-cultural-competence-how-is-it-measured-2/(Links to an external site.)Make sure you discuss this topic with others – reply to at least 2 other students for full credit!**Remember, you are all adults, so please be respectful of others.

Evaluate the importance of the accounting cycle by illustrating the products of that cycle and identifying the potential for problems if it is not properly followed.

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: In this short paper, you will evaluate the importance of the accounting cycle by illustrating the products of that cycle and identifying the potential for
problems if it is not properly followed. There is only one short paper assignment in this course, and it has a unique purpose: You can think of this exercise as
establishing the conceptual framework for your remaining work in the problem sets and Final Project I. Essentially, in those activities, you will be engaging in the
specific tasks of the accounting cycle and applying detailed processes on a practical level. Therefore, it is important to grasp the larger picture in this short paper
so that you will be able to connect these smaller tasks and details and recognize their larger significance.
In a well-crafted short paper, respond to the following questions:
 What are the steps of the accounting cycle? Describe each in your own words using specific examples.
 What are the outputs of the accounting cycle? Why are they important? Identify and explain the purpose of each financial statement, including how
they are interrelated.
 Why is the accounting cycle important to a business? Evaluate the significance of the accounting cycle in terms of its practical relevance for businesses.
In your response, be sure to give specific examples of why certain steps are necessary. Address at least three different steps in your evaluation.
Rubric
Guidelines for Submission: Your paper should follow the formatting guidelines in the Module Two Short Paper Template. It should be a 2- to 3-page Microsoft
Word document with double spacing, 12-point Times New Roman font, one-inch margins, and references to the textbook content cited in APA format.

What is the Description and Dollar Value of the first line on the Income Statement (it may be net sales)?

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Answer all of the following questions and do not cut and paste from your company SEC report.

  1. What is the Description and Dollar Value of the first line on the Income Statement (it may be net sales)?
  2. Locate the Balance Sheet (it may have a different heading, such as the Statement of Financial Position).
  3. What are the names of the assets and their values (if more than five line items, report only the first five line items and dollar values)?
  4. Statement of Owner’s Equity: Post the line items and dollar values in the “Equity” section of the balance sheet. You will likely find line items including Common Stock, Retained Earnings (or Deficit), and Treasury Stock.
  5. What is the Net Income (or Net Loss) for your SEC 10-K company?


Discussion Requirements

  1. The comments/responses should include at least four sentences (if you create a separate answer for each of the items in the list you will meet this requirement).
  2. Locate the Income Statement (may have a different heading such as Statement of Consolidated Operations). Hint: First line should relate to Revenue.
  3. Take care with the concept of $ dollars. Many financial statements are expressed in millions of $. You would report $895 million for the value $895,000,000. Be a very careful reader.
  4. Include the name of your SEC 10-K company in the subject line and the link to your SEC 10-K financial statement when posting.

 

Prepare a flowchart depicting the sales to cash collection and reporting processes for Crazy Jay’s Restaurant Chain.

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To meet the requirements in Section 404 of the Sarbanes-Oxley Act of 2002, management must have documentation that describes the design of controls over relevant financial statement assertions.  In many cases, management is creating flowcharts of its financial reporting systems to provide that design documentation.

Requirements

  1. You have been asked to prepare a flowchart depicting the sales to cash collection and reporting processes for Crazy Jay’s Restaurant Chain. If your last name begins with M-S, you will prepare PART A. If your last name begins with T-Z, you will prepare PART B. Note: You will want to read both parts to gain a full understanding of the process.
  2. To produce a professional looking flowchart, you will prepare your flowchart using Microsoft Visio flowcharting software. This software is used by most of the accounting firms and you’ll want some first-hand experience with using it.  This software is loaded on all the MAC lab machines and Nelson Hall labs in the basement.  You can also use it at home via the NCSU VCL (virtual computing lab). You cannot use PowerPoint or Word to do this.  Please use Visio.
  3. As you prepare your flowchart, you want to make sure that the reader is able to follow your flowchart step-by-step (see “Overview of Business Processes and Visio” video posted on Moodle). You don’t want any “dead ends” that fail to describe where the reader must go to next.   Remember to depict each process clearly and in sufficient detail without overloading any symbols with text that exceeds the symbol size. Also include annotated risks and controls throughout the process where appropriate (see “KMPG Flowcharting Implementation Guide” posted on Moodle).
  4. The video from class contain the detailed instructions on how to use Visio. Once you are in Visio, you will find pull-down menu options to select the flowcharting stencils (the symbols that you can drag and drop). When you are finished, save your VISIO file and then ALSO export your file to create a PDF version. Submit your files to Moodle. Note you should have 2 files (.vsdx and .pdf)

Provide an example of a cost variance you may encounter as a manager of a seafood restaurant.

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Provide an example of a cost variance you may encounter as a manager of a seafood restaurant. What is the likely cause of the variance and would you take any corrective action? Why or why not?