What significant inflows and outflows of cash are indicated on the statement? In other words, are there any operating, investing, or financing activities that significantly contributed to the overall change?

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Return to the company website that you researched for the unit 1 and 2 discussions and search for the most recent annual report. This may also be listed as the “10-K,” which is the name of the required SEC annual filing.
From the annual report, (10-K), search for the statement of cash flows.
Once you have found this information, identify the company and discuss the following questions in your initial post:
What was the ending cash balance for the most recent year?
By how much did this change from the beginning of the reporting period?
What significant inflows and outflows of cash are indicated on the statement? In other words, are there any operating, investing, or financing activities that significantly contributed to the overall change?
If you were a lender, would you offer financing to this company? Why or why not?
Note, be sure to properly cite your resources using APA.

For this task, you will analyze the annual report, the 10-K, other company SEC filings, and industry data for a selected publicly-held company.

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For this task, you will analyze the annual report, the 10-K, other company SEC filings, and industry data for a selected publicly-held company.  You will prepare a broad audit plan for one of the following companies:

  •   Home Depot Inc.
  •   Gap Inc.
  •   Darden Restaurants Inc.

The broad-based audit plan should identify control risks and areas of focus for the audit. You will provide recommendations for which accounts should be audited using analytical procedures and which accounts should be tested using substantive tests of detail. Additionally, you will address going-concern considerations, the prior year’s audit opinion, and audit locations.

Use the SEC Edgar and Reuters websites to find the information you need.

Explain the key difference between the Taxes payable method and the Interperiod tax allocation method, and why NZ IAS 12 adopts the Interperiod tax allocation method.

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Explain what “temporary differences” are and why do they arise?

  • There are two methods to account for income tax expense: (i) the Taxes payable method, and (ii) the Interperiod tax allocation method.

Explain the key difference between the Taxes payable method and the Interperiod tax allocation method, and why NZ IAS 12 adopts the Interperiod tax allocation method.

  • Assume for the year ended 31 March 2020, Kindness Limited reports an accounting profit before tax of $1,000,000. This amount includes the following revenue and expense items in the Income Statement:
  • Accrued income
  • Insurance expense
  • Depreciation expense

You have also been provided the following information:

  • Accrued income: The amount of accrued income earned for the reporting period 31 March 2020 was $100,000. Accrued income is not taxable until cash is received.
  • Insurance expense: On 1 April 2019 the balance of prepaid insurance was $50,000. During the year, $150,000 was paid for insurance. As at 31 March 2020, the balance of prepaid insurance was $80,000. Insurance expense is tax deductible when it is paid.
  • Depreciation expense: Specialised machinery was acquired on 1 April 2017 at a cost of $400,000. The machinery has an economic life of 10 years with no residual value. For tax purposes, the machinery has an economic life of 5 years with no residual value. The straight-line method of depreciation is used to depreciate the machinery for both accounting and tax purposes.
  • Tax rate is 28%.

In accordance with NZ IAS 12, calculate the taxable profit and prepare journal entries to recognize the current tax payable for the year ended 31 March 2020. Show all workings.

  • Sunny Limited purchased equipment on 1 April 2018 for $500,000. For accounting purposes, the equipment is depreciated over 8 years on a straight line basis with no residual value. For tax purposes, the cost of the equipment is depreciated over 6 years using the straight line method. At the end of the financial year 31 March 2020, the equipment was revalued to $750,000. Sunny Limited intends to sell the equipment very soon. Any capital gain from sale is not subject to taxation in New Zealand. Assume the tax rate is 28 percent.

In accordance with NZ IAS 12, provide the journal entries for the deferred tax adjustment arising from the equipment for the 2020 financial year. Show all workings.

You are provided the information for the following asset/liability for the year ended 30 June 2019 for Decker Ltd. Assume the tax rate is 28 percent.

 

Government Bonds

On the balance sheet, there is an investment of $300,000 in Government bonds, which pays interest at 5% per annum. For tax purposes, the interest income from these Government bonds is never taxable.

 

Rent revenue received in advance

The opening balance of the rent revenue received in advance was $50,000. During the year, Decker Ltd has received $100,000 cash with respect to rent revenue during the year. In the Income Statement, an amount of $120,000 was recognized as rent revenue this year. For tax purposes, the Inland Revenue taxes all rent received on a cash basis.

  • In accordance with NZ IAS 12, calculate the temporary difference arising from each of the above asset/liability. Show all workings.

Explain whether there is a deferred tax asset or deferred tax liability arising from each of the above asset/liability. Also calculate the amount of deferred tax asset/liability.

Discuss when the government and nonprofit organizations would use each of the following funds: Capital projects fund and Debt service fund

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For your assignment, discuss when the government and nonprofit organizations would use each of the following funds:

Capital projects fund
Debt service fund
Special revenue fund
Go to the comprehensive annual financial report (CAFR) for your state or local government, and find specific examples for the most current year in which each of these funds were used.

Use APA style in the body of your posting as well as in the reference section.

Submit your assignment.

Grading Criteria
Explain and give an example of a capital projects fund.

28%
Explain and give an example of a debt service fund.

28%
Explain and give an example of a special revenue fund.

28%
Use proper formatting for the assignment and references. 16%
For assistance with your assignment,use your text, Web resources, and all course materials.

Define and briefly explain the concept of a ‘structural break’. Explain how you could test for the existence of a structural break in personal consumption expenditure after the financial crisis of 2008.

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  1. A researcher is trying to model the level of UK personal consumption expenditure i.e. the total amount spent by households on goods and services for consumption. Using quarterly data from quarter 1 1997 to quarter 4 2019, the following regression model is estimated (with t-ratios given below in parentheses):

where Ct is UK personal consumption expenditure in millions of £s, time is a linear trend variable, Q2t is a dummy variable that equals 1 in the second quarter of each year and zero otherwise, Q3t is a dummy variable that equals 1 in the third quarter of each year and zero otherwise and Q4t is a dummy variable that equals 1 in the fourth quarter of each year and zero otherwise.

  1. Interpret and discuss the estimated values of the regression coefficients on the dummy variables Q2, Q3 and Q4.
  2. Using the t-ratios given above, determine whether there is evidence of significant seasonality in UK personal consumption expenditure. Clearly explain how you reach your conclusion.
  • Using two separate equations, write the estimated regression model that applies in the second quarter of each year and the regression model that applies in the third quarter of each year.
  1. Define and briefly explain the concept of a ‘structural break’. Explain how you could test for the existence of a structural break in personal consumption expenditure after the financial crisis of 2008. When answering the question, clearly write out the regression model that you would use (you may ignore the seasonal effects discussed above to keep things simple) and clearly define the dummy variables that are used in the model.

Determine the depreciation on the canoes purchased on November 3 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0.

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Comprehensive Problem – Crater Canoe Company

Crater Canoe Company is a service-based company that rents canoes for use on local lakes and rivers. Amber Wilson graduated from college about 10 years ago with a BS in Business. Because she loves the outdoors, she has decided to begin a new business that will combine her love of outdoor activities with her business knowledge. Amber decides that she will create a new sole proprietorship, Crater Canoe Company or CCC for short. The business began operations on November 1, 2018.

The transactions for November have already been recorded and posted to the T-Accounts.

Requirements:

Part 1: Financial Statement Preparation:

Now we are at the end of December. The transactions for December are shown below. You will need to do the following:

  1. Record the transactions in a journal using correct journal entry format.
  2. Post the journal entries to the ledger (T-Accounts).
  3. Total the T-Accounts.
  4. Prepare the unadjusted Trial Balance.
  5. Record the adjusting journal entries based on the information below. (Post the adjusting entries to the T-Accounts. In the T-accounts, denote each adjusting amount as and an account balance as Bal.)
  6. Prepare an Adjusted Trial Balance.
  7. Prepare the income statement of Crater Canoe Company for the two months ended December 31, 2018.
  8. Prepare the statement of owner’s equity for the two months ended December 31, 2018.
  9. Prepare the balance sheet as of December 31, 2018.
  • Remember, the entries from November have already been recorded. The beginning balances in the T-Accounts as of December 1st represent the ending balances as of November 30th. Don’t forget to account for the beginning balances when you total your T-Accounts.

 

Part 2: Financial Statement Analysis:

As the accountant for the company, you will need to write a memo to the owner making an analysis of the financial position at December 31st. Make your analysis of the health of the company using the following calculations & ratios:

Working Capital

Current Ratio

Profit Margin

Debt to Equity

Calculate the ratios and explain what they tell us about the company – how can we use them to assess the health of the company. (Ratios can be found throughout the text and in Chapter 17.)

How does the company compare to others in the industry on the ratios? Assume that the industry average for the ratios is as follows:

Current Ratio 2.5

Profit Margin 38%

Debt to Equity 10%

Last, the owner is thinking about incorporating the business. Give her some advantages and disadvantages of doing so.

Use proper memo format for this portion of the assignment. Complete your memo in Word. Use your most professional business writing, correct grammar and spelling, and be thorough but brief. The memo should be approximately 1 – 1.5 pages. 

 

December Transactions:

 

Dec. 1 Amber Wilson, Owner contributed land on the river (worth $85,000) and a small building to use as a rental office (worth $35,000) in exchange for capital. (First transaction has been done for you – see Journal Entries and T-Accounts)
        1 Prepaid $3,000 for three months’ rent on the warehouse where the company stores the canoes.
        2 Purchased canoes signing a note payable for $7,200
        4 Purchased office supplies on account for $500.
        9 Received $4,700 cash for canoe rentals to customers.
      15 Rented canoes to customers for $3,500, but will be paid next month.
      16 Received a $850 deposit from a canoe rental group that will use the canoes next month.
      18 Paid the utilities ($150) and telephone bills ($175) from last month.
      19 Paid various accounts payable, $2,000.
      20 Received bills for the telephone ($275) and utilities ($295) which will be paid later.
      30 Paid wages of $1,900.
      31 Amber Wilson withdrew cash of $500 from the business.

 

 

Adjusting Entries (see Chapter 3 for examples of adjusting entries)

At December 31, the business gathers the following information for the adjusting entries:

  1. Office supplies on hand, $165
  2. Rent of one month has been used. (Hint: see Chapter 3 for adjusting for prepaids)
  3. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000. (Hint: The building was purchased on December 1.)
  4. $400 of unearned revenue has now been earned.
  5. The employee who has been working the rental booth has earned $1,250 in wages that will be paid January 15, 2019.
  6. Crater Canoes has earned $1,850 of canoe rental revenue that has not been recorded or received.
  7. Determine the depreciation on the canoes purchased on November 3 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0.
  8. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0.
  9. Interest expense accrued on the notes payable, $50.

Analyze the relationship between those transactions and the success of your current or future business.

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ACC 201 Final Project II Guidelines and Rubric

Overview One of the measures of success for any business is profitability. Managers and business owners must be able to assess the profitability of a company using information about its financial transactions: This is done through accounting. By working through the accounting cycle, you will understand how to organize transactions in a way that communicates the financial position of a company. This information is critical for external stakeholders who may be interested in working for or investing in the business. This process also helps you understand the level of attention to detail that is required in a successful business venture.

The final project for this course consists of two major parts: an accounting workbook (Final Project I) and a professional relevance essay (Final Project II). In the second part of the final project, you will create a well-crafted essay in which you draw connections between your accounting exercises and their practical applications for furthering your own professional practice.

The final product will be submitted in Module Eight.

In this assignment, you will demonstrate your mastery of the following course outcomes:

 Record financial data and adjusting entries in the preparation of a business’s financial statements Prompt In a professional relevance essay, draw connections between the accounting principles that you demonstrated in Final Project I and their specific, practical applications within your own professional practice. Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course outcome (shown in brackets).

I. Introduction: Briefly describe your current or aspiring professional identity, including the field in which you work or hope to work. To what extent does (or will) financial accounting play a role in your day-to-day professional life? [ACC-201-01]

II. Draw Connections A. In the first part of your final project, you recorded various transactions in the life of a business. Now, consider your current or future professional life:

What sort of transactions would you encounter in your field?

Describe at least three using specific details. [ACC-201-01]

B. Analyze the relationship between those transactions and the success of your current or future business. For example, how would each transaction impact the income statement and balance sheet of your company? Illustrate your claims using specific examples. [ACC-201-01]

III. Apply to a Scenario: Imagine that you are the new department manager of a corporation within your chosen field: You discover that your predecessor had been using the cash basis of accounting, which has resulted in many errors and misinformation. What measures would you take to remediate the issue? Propose a high-level plan to implement a proper accounting system for your department using specific principles discussed in the course. For example, which financial statements would you investigate first? What sort of internal controls would you implement? [ACC-201-01]

Final Project II Rubric Guidelines for Submission: Your professional relevance essay must be 2–4 pages in length (plus a cover page and references) and written in APA format: Use double spacing, 12-point Times New Roman font, and one-inch margins. It is recommended that you use the provided template to ensure correct formatting. Include at least two references cited in APA format.

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Introduction [ACC-201-01] Meets “Proficient” criteria and demonstrates nuanced appreciation for the role of financial accounting in business Describes current or aspiring professional identity, including the role of financial accounting in day-to-day life Describes current or aspiring professional identity, but fails to include the role of financial accounting in day-to-day life Does not describe current or aspiring professional identity 20 Draw Connections: Transactions [ACC-201-01] Meets “Proficient” criteria and demonstrates nuanced appreciation for the significance of financial accounting in chosen field Identifies and describes at least three transactions relevant to profession using specific details Identifies transactions relevant to profession, but fails to fully describe at least three using specific details Does not identify transactions relevance to profession 20 Draw Connections: Success of Your Business [ACC-201-01] Meets “Proficient” criteria and demonstrates keen insight into the relevance of financial accounting for business success Analyzes the relationship between accounting transactions and the success of current or future business using specific illustrating examples of impacts on financial statements Discusses the relationship between accounting transactions and the success of current or future business, but fails to fully or logically analyze using specific illustrating examples Does not discuss the relationship between accounting transactions and the success of current or future business 25

Apply to a Scenario [ACC-201-01]
Meets “Proficient” criteria and demonstrates keen insight into the relevance of financial accounting for business success
Proposes a sound high-level plan to implement a proper accounting system by citing specific course principles that would appropriately address issues in the scenario
Proposes a high-level plan to implement a proper accounting system, but not all proposals are sound, or fails to cite specific course principles that would appropriately address issues in the scenario
Does not propose a high-level plan to implement a proper accounting system
30
Articulation of Response
Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format
Submission has no major errors related to citations, grammar, spelling, syntax, or organization
Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas
Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas.

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

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• 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.

What is the influence of the engagement procedure of stakeholders on the quality of disclosures of Dutch pension funds?

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In analyzing the quality of discoveries by the Dutch pension funds by collecting data from annual reports of these pension funds, the following questions will be addressed to determine the quality of developments.

Research question;

How is engagement of stakeholders and the composition of the portfolio related to the the quality of disclosures of Dutch pension funds?

Subquestions;

1;What is the influence of the engagement procedure of stakeholders on the quality of disclosures of Dutch pension funds?

2;What difference does it make in what manner stakeholders supervise the pension funds?

3;What is the relation of the composition of the portfolio and the quality of disclosures of Dutch pension funds?

4;How is ESG incorporated to compose a portfolio and how does this effect the quality of disclosures of Dutch pension funds?

Hypotheses;

1; The engagement procedure of stakeholders has a positive effect on the quality of the disclosures, the stakeholders are checking the pension funds on a regular basis.

2; If the engagement procedure is modelled in such a way that the supervision is strong or severe, this would also have a positive effect.

3; If the composition of the portfolio is complex, this would have a negative effect on the quality of disclosure.

4; When ESG is incorporated to compose a portfolio of pension funds, this would have a positive effect on the quality of disclosures, because more effort is put into the portfolio and thus more effort in making the disclosures.

Engagement is one of the most important strategies of institutional investors pinned at socially responsible investments (SRI). In socially responsible investment (SRI), commitment forms one of the core strategies of institutional investors. In examining the situation of Dutch pension funds, this reading responds to the following queries: what systems shape appointment with investees, and what factors determine the effectiveness of engagement? Engagement as a principle was used in the new Dutch pension funds; it was implemented by assets managers and service providers across the country.  Nonetheless, these performers are secluded from actors’ external the financial segment. The legality of the stockholder impacts the efficiency of engagement, while the figure for shares is less important. The connection among the engager and investee and the acceptance of the investee in the direction of the meeting are also of importance. Engagement can be prepared more operative when pension funds prioritize on precise subjects; aim corporations open to encounter, and also seek partnership with social and strategy performers.

According to Dimson, Karakaş, and Li, (2015), the engagement practices of the US-based asset managers have many questionable acts like which companies are engaged and whether these engagements are useful and how they address the investee and markets responds to engagement. This is in regard to how the Dutch are holding the total amount of assets of Dutch pension funds while it is rising; however, with significant concerns regarding if the majority of them can pay pensions when due. This is as a result that the necessary payments increase relatively faster in a percentage of 85% in the years 2010-2015 than the assets which held 70% in the years 2010-2015 (Kerkhof, 2017).

Numerous scholars have studied the connection between allowance plans and financial assessments of companies and pension funds. In precise, the impact of allowance plans on monetary estimates such as asset distribution, investment expenses, capital structure, and the possibility of mergers and achievements have remained studied beforehand.

Conferring to shareholder salience theory, three qualities govern the equal of the salience/importance of a shareholder: supremacy, legality, and urgency. Supremacy is the capability to govern capitals. Legitimacy is associated with the social approval of subjects and the technique that matters are elevated. Urgency discusses how urgent privileges of shareholders stay. It is clear, according to different studies that two significant knowledge bases can be pointed out. The first is the importance of general education on the communication of engagers employing investees.

Nevertheless, engagement is formed and matched by a system of actors creating engagement strategies, provided that data and executing the definite engagement strategies (Renneboog, Ter Horst, and Zhang, 2008). Additionally, the second aspect describes the current studies which insure figures and standpoints of institutional investors and asset managers in specific when reviewing the efficiency of engagement but not the perception of the investees that are engaged. In other words, understandings of the investees are significant issues in influential factors that impact the efficiency of engagement.

Research Model;

This research will focus on the historical model of data from diverse pension schemes. Annual reports that are published by various pension schemes can help in comprehending the quality and disclosure of the performance of pension in the Netherlands (Harms, 2018). The key aspects of being considered will include a better understanding of public pension schemes for retirees, pensions from the supplementary scheme, and those financed individuals. Since quality and disclosure rely on the guidelines provided by the reporting standard RJ 610 (Cam and Awan  2018); then it can be necessary to apply both quantitative and qualitative approaches based on the historical data that are being reported by all Dutch pension schemes.

Relevance;

The ultimate goal for examining the quality of disclosures by Dutch pension funds is to determine the essence of offering high-quality services through adherence to the disclosure as required by the national and international standards of pension funds. Focusing on the questions that can help in evaluating the efficiency of pension scheme systems as well as understanding how the interest of the shareholders as well as the entire stakeholders. This research aims to analyze whether the existing pension schemes are efficient in serving investees or not. Further work has been executed regarding the efficiency of the capital market in connection to the pension accounting information. Therefore, this research will focus on how the three pillars have evolved over the decades and discuss the outcome that has been obtained as a way of understanding the historical reporting, hence develop a solution to the current and future issues relating to quality and disclosure (Atuhaire, 2018). The matters to be examined in this study are mostly concerning Dutch pension systems. The study will also examine how the national and private institutions to design and implement changes to the pension accounting standards to raise interesting opportunities for future research on the pension scheme and exposure.

Dimson, E., Karakaş, O., and Li, X., 2015. Active ownership. The Review of Financial Studies, 28(12), pp.3225-3268.

Kerkhof, J.A., 2017. Determinants of the investment policy of Dutch pension funds (Master’s thesis, University of Twente).

Renneboog, L., Ter Horst, J., and Zhang, C., 2008. Socially responsible investments: Institutional aspects, performance, and investor behavior. Journal of banking & finance, 32(9), pp.1723-1742.

Cam, M.A., and Awan, O., 2018. Superannuation Fund Disclosure Past, Present, and Future.

Harms, D.M., 2018. The effect of institutional owners on the voluntary disclosure of Dutch listed firms (Master’s thesis, University of Twente).

Atuhaire, P.B., 2018. Discount rates impact on the actuarial valuation of Dutch pension funds: determining discount rates and sensitivity analysis on pension plans in the Netherlands (Doctoral dissertation, Instituto Superior de Economia e Gestão).

Wagemans, F.A., Van Koppen, C.S.A. and Mol, A.P., 2018. Engagement on ESG issues by Dutch pension funds: is it reaching its full potential?. Journal of Sustainable Finance & Investment, 8(4), pp.301-322.

Explain the difference between the allowance method and the direct write off method for accounts receivable. Document the method used for each of the three companies.

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Write a five- to seven-page comparative financial statement analysis of the three companies listed below, formatted according to APA style as outlined in the Writing Center. In this analysis, you will discuss the financial health of these companies with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: Company Overview, Comparison of Accounting Methods, Ratio Analysis, Final Recommendation, Conclusions. You will also submit an appendix as a separate document. Additional research may be necessary to provide company background information, or to support your analysis and recommendations. Your paper needs to include a minimum of two scholarly, peer-reviewed, and/or credible resources in addition to the textbook as references.

Download the Form 10-K for each company.

Here is a breakdown of the sections within the body of the assignment (Use paragraph headings to indicate each section):

Company Overview
Provide a brief overview of the three companies (at least two pages). What industry is it in? What are its main products or services? Who are its competitors? Where is the company located?

Ratio Analysis

  • Calculate the current ratio, quick ratio, gross profit percentage, inventory turnover, accounts receivable turnover and asset turnover ratios for all three companies for the current year.
  • Note: Cash includes cash and cash equivalents and short term investments.
  • Explain how the ratio is calculated and discuss and interpret the ratios that you calculated.
  • Discuss potential liquidity issues based on your calculations of the current and quick ratios.
  • Are there any factors that could be erroneously influencing the results of the ratios?
  • Discuss liquidity issues of the three companies.

Comparison of Accounting Methods

In your paper, ascertain from the notes of the financial statements the following:

  • Explain the difference between the allowance method and the direct write off method for accounts receivable. Document the method used for each of the three companies.
  • Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document the method used for each of the three companies.
  • Explain the difference between LIFO and FIFO and document the method used for each of the three companies.
  • Explain the different categories of intangible assets and document the method used for each of the three companies.

Recommendation
Based on your analysis, would you recommend an individual invest in these companies? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company, as long as you provide support for your position.

Conclusions

Include an appendix in a separate document. The appendix must include screenshots of the financial statements and information obtained for the receivables, intangible assets, depreciation, and inventory. You can get help with creating an appendix in APA format by using the Writing Center’s guide,

The Financial Statement Analysis Final Paper

  • Must be five to seven double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Writing Center
  • Must include a separate title page with the following:
  • Title of paper
  • Student’s name
  • Course name and number
  • Instructor’s name
  • Date submitted