Category: Business and Management : Accounting

The process starts when customer sends purchase orders (PO)and/or checks (CK) and remittance advices (RA) to the mail room of Halloween Express. A clerk sorts the mail items and based on the order decides to either 1) reconcile the checks and the RAs and prepares a remittance list (RL), or 2) forward the PO to the Sales Department. RL is sent to the Cash Receipts Department along with the checks. When the checks and RL1 arrive in the Cash Receipts Department, a clerk records the payment in the Cash Receipts Journal and prepares a deposit slip. The deposit slip (DS1) and the checks are sent to the bank.
 
A clerk in the sales department creates a four-part sales order (SO) in the Sales Department and updates the Sales Order file. SO1 is sent to the customer; SO2 goes to Billing; SO3 goes to the Warehouse; SO4 is filed with the PO in the Sales Dept.
 
In the Warehouse, clerk used SO3 to prepare a packing slip (PS). PS is sent to the customer with the goods.
See narrative attached. Draw a Flowchart , NOT A DFD!
Flowchart related guidelines :
1. Draw using LUCID as discussed and practiced in class. 
2. Use swim lanes and be top – down style.
3. Use symbols as discussed and practiced in class.
4. Clean, well labeled and easy to follow. 
5. Incorrect styles, wrong symbols and DFD-like (left to right) flowcharts will not fetch any points. 
6. This is a strictly INDIVIDUAL assignment. You can use the book for help for this part of the exam! Reach out to me with any questions.
**If there is a slightest indication of students discussing the narrative, no points will be awarded and you will be referred to Student Affairs. 

Description
You will create this assignment following the Assignment Detail instructions below.
Review the tutorial How to Submit an Individual Project.
Assignment Details
A company’s operating cycle is the time frame from when a company buys materials until it obtains cash for the sale of an item.
Consider a business that you have worked for or you are familiar with, or utilize a fictitious company. The supervisor would like an analysis of the efficiency of the operations. Prepare a minimum 15-slide PowerPoint presentation and include the following:
Draw an operating cycle of the company (e.g., you could use SmartArt in PowerPoint).
Predict the length of the cash conversion cycle within that cycle.
Determine the working capital needs of the company.
Discuss the need for liquidity to conduct business.
Show how efficiency ratios can be used to determine the best way to conduct the operations of the company.
Provide recommendations to improve efficiency.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title slide: Remember the running head. The title should be in all capitals.
Length: 15 slides minimum
Body slides: This begins on the slide following the title slide and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your presentation for this assignment is 15 slides. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference slide: References that align with your in-body academic sources are listed on the final slide of your presentation. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference slide is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

Required:
The Week 3 Discussion consists of two topics.  
(1.) What are the differences between cash and accrual basis accounting? Provide an example of each.
(2.) Accrual accounting requires adjusting entries.  Provide an example of an adjusting entry.

It’s an assignment. You’ll have to login under my account and do the assignment. It’s 10 questions.

Analyze financial statements, the Income Statement and the Statement of Retained Earnings. Based on your analysis, you will evaluate the financial health of the company and recommend steps to improve it. You will submit a PowerPoint presentation.
create a PowerPoint presentation of 5 slides, plus a title and a reference slide, about the following:
Vertical Analysis. Perform at least 4 vertical analysis tests on the financial statements with no errors.
On the slide, name the vertical analysis tests you perform, and show the calculations and results. You must complete a minimum of 4 tests but doing more may help you better understand the condition of the company.
Profitability Ratio Analysis. Perform at least 4 ratio analysis tests on the company’s profitability with no errors.
On the slide, name the profitability ratios you perform, and show the calculations and results. You must complete a minimum of 4 tests but doing more helps you better understand the condition of the company.
Organization Health. Assess the financial health of the organization based on the appropriate interpretation of at least 6 of the vertical and ratio analysis tests you performed. Add speaker notes to this slide to provide an explanation of your assessment of the organization’s financial health.
Referring to at least 6 of the indicators you included on the Vertical Analysis and Profitability Ratio Analysis slides, assess the overall financial health of the organization. This slide shows what is going well for the company.
Organizational Risk. Identify at least 3 risks facing the organization based on the appropriate interpretation of the vertical and ratio analysis tests you performed. Add speaker notes to this slide to explain the organizational risks you identified.
Recommendations. Recommend at least 3 appropriate steps the company should take to improve its financial health. In the speaker notes, explain how the recommendations will help improve the company’s health.
References. Use 2 sources to support your writing.

 There are 3 discussion questions and various alternatives for each discussion. Please choose the most appropriate alternative for each discussion and support your choice by stating the applicable pronouncements and explaining why they are appropriate and applicable.
 
Discussion 1 — Accounting for year-end financial statements December 31, 2007
 
For the year-end December 31, 2007, financial statements, what amount should M International (“M”) record as a liability?
 
Accounting Alternatives
 
Alternative 1 — Recognize and disclose $20 million.
 
M should record $20 million as an accrued liability for the loss contingency and disclose the nature of this liability within notes to the financial statements. This is in accordance with guidance under ASC 450-20-25-2, which states, in part:
 
An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met:
 
a.      Information available before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. Date of the financial statements means the end of the most recent accounting period for which financial statements are being presented. It is implicit in this condition that it must be probable that one or more future events will occur confirming the fact of the loss.
 
b.     The amount of loss can be reasonably estimated.
c.      After considering the above guidance, given that the loss is probable of occurring and is estimable, it is prudent, reasonable, and conservative of M to record an accrual at the high end of the $15 million to $20 million range as a loss contingency. Disclosure of the nature and amount of the liability should follow disclosure requirements under ASC 450- 20-50.
 
Alternative 2 — Recognize $17 million and disclose $3 million.
 
Consistent with the guidance under ASC 450-20-25-2 quoted above, M should recognize an accrued liability for the loss contingency in its December 31, 2007 financial statements. An amount of $17 million, being the most likely amount in the range, should be accrued as the amount of the loss contingency and recorded in the financial statements, and disclosure should be made for the difference between the most likely amount of $17 million and maximum loss amount of $20 million.
 
Alternative 3 — Recognize $15 million and disclose $5 million.
 
Consistent with the guidance under ASC 450-20-25-2 quoted above, M should recognize
an accrued liability for the loss contingency in its December 31, 2007 financial statements. Given that the loss is probable of occurring and is estimable, it is prudent and reasonable for M to record an accrual at the low end of the $15 million to $20 million range as a loss contingency. Disclosure of the nature and amount of the liability should follow disclosure requirements under ASC 450-20-50.
 
Solution — Choose the Most Appropriate Alternative and Give Supporting Evidence for Your Choice Providing the Correct Pronouncement Guidance
 
Discussion 2 — Accounting for year-end financial statements December 31, 2009
 
For the year-end December 31, 2009, financial statements, should M adjust its liability? If so, what amount should be recorded? Should the amount of the adjustment, if any, be considered a 2009 event or a prior period adjustment?
 
Accounting Alternatives
 
Alternative 1 — Yes. Accrue an incremental liability of $1.5 million for the year ended December 31, 2009.
 
The jury reached a verdict against M in September 2009. This verdict required M to pay W Inc. (“W,” a competitor of M) $18.5 million. This contingency is now probable, and the amount of the contingency of $18.5 million is reasonably estimable (as the amount was determined by the jury as the outcome of the litigation). Thus, given that M had already accrued $17 million in a prior year, it should record an additional $1.5 million in the current period based on the change in circumstances determined by the verdict of the jury, which occurred during 2009.
Alternative 2 — Yes. Accrue an incremental liability of $1.5 million as a prior period adjustment.
 
This alternative is very similar to the above view; however, using this alternative, will have to restate its prior two years of financial statements. The 2007 financial statements would be restated to change the income statement charge and the amount of the accrued liability to $18.5 million. The 2008 financial statements would be restated to increase the amount of the accrued liability to $18.5 million.
 
Solution 2 – Choose the Most Appropriate Alternative and Give Supporting Evidence for Your Choice Providing the Correct Pronouncement Guidance
 
Discussion 3 — Accounting for events after verdict overturned on appeal
 
Should M record the reduction of the previously recorded loss contingency in 2010 (upon the Court of Appeals overturning the verdict of the jury) or 2011 (once the appellate judges declined W’s petition for a re-hearing)?
 
Accounting Alternatives
 
Alternative 1 — Reduce the amount of the loss contingency in 2011 upon the appellate judge’s decision to decline W’s petition for a re-hearing.
 
Since there is a possibility that the Court of Appeals verdict can be overturned through a subsequent re-hearing following the appellate judge’s decision to decline W’s petition, M should wait to reverse the previously accrued loss contingency liability following the re-hearing.
 
Alternative 2 — Reduce the amount of loss contingency in 2010 upon the Court of Appeals overturning the verdict of the jury.
 
The Company should reduce the amount of its loss contingency given the ruling reached by the Court of Appeals to overturn the verdict, since the loss contingency is no longer probable. Further, M should treat the reduction in the amount of the loss contingency as a change in estimate.
 
Solution 3 – Choose the Most Appropriate Alternative and Give Supporting Evidence for Your Choice Providing the Correct Pronouncement Guidance
 
 
 

The HVAC Company specializes in the installation of heating, ventilation, and air conditioning in large projects such as domed stadiums, military bases, airports, and multi-storied buildings. Its contracts usually take two to three years to complete and, at any fiscal year end, this percentage of work completed represents a sizable percentage of its assets. The company is privately held and has a senior management group whose compensation is based almost entirely on the earnings results for the year. As the CFO, you have been reviewing the year-end estimated percentage of completion figures, which have been provided to you by the project managers responsible for the completion of the various contracts. This year has not been as successful or as active as previous ones, and the two senior founders of the company have asked you to bring in a net income figure at least equal to the last couple of years. In your mind you know that the project managers’ estimates are somewhat fluid, and you have been contemplating making the requested adjustments.
Instructions
Answer the following question:
· How would you handle the request of the two senior partners?
· What additional analysis can you draw from the information. Please think about what possibly could be going on within the scenario other than the issues you analyze for answering the questions. Do some additional critical thinking

Part 1. Explain in 3-4 sentences
In what ways does the balance sheet reflect the health of a business, and in what ways does it not?
Part 2. In 2-3 sentences respond to this discussion
  A balance sheet can help reflect the health of a business because at any point it can show you your assets, liabilities, and stockholders’ equity. This can help you see where your company is in relation to the financial goals that are set forth for it. You can also see if there is a discrepancy between your company’s cash flow from operations as well as income. This can reduce the risk of any potential setbacks that the business may have.

Capital budgeting is utilized to determine if a project is worthwhile. The net present value (NPV), payback period, and internal rate of return (IRR) methods are used to rank and select which project to undertake. The following video outlines the NPV and IRR method of capital budgeting:
Net Present Value (NPV)
In this assignment, you are required to prepare a PowerPoint presentation reviewing 3 projects. You will calculate the NPV, IRR, and payback period for each project. Utilizing the capital budgeting calculations, you will need to select the best investment for the company. These calculations will be based on the following scenario:
AIU Industries has 3 potential projects to consider, all with an initial cost of $1,250,000. The company prefers to reject any project with a 4-year cut-off period for recapturing initial cash outflow. Given the cost of capital rates and the future cash flow for each project, determine which project the company should accept.
Cash Flow
Project A
Project I
Project U
Year 1250,000450,000250,000Year 2250,000450,000400,000Year 3250,000450,000600,000Year 4250,000450,000800,000Year 5400,000400,000200,000Year 6400,000400,000800,000Year 7400,000400,000600,000Year 8400,000400,000200,000Cost of Capital
4%
6%
8%
Please submit your assignment.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title slide: Remember the running head. The title should be in all capitals.
Length: 15 slides minimum
Body slides: This begins on the slide following the title slide and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your presentation for this assignment is 15 slides. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference slide: References that align with your in-body academic sources are listed on the final slide of your presentation. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference slide is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

To begin, reread the Course Learning Outcomes we have covered in class which are as follows:
Implement the proper accounting procedures for liabilities.
Describe the nature and purpose of corporations.
Record transactions and prepare financial statements for a corporation.
Analyze, evaluate, and interpret financial statements for management purposes.
Describe Job Order and Process Costing systems.
For your initial discussion post, reflect on your learning throughout the course and answer the following questions:
Of the above Course Learning Outcomes, which has had the most and which has had the least impact on your learning? Elaborate your response.
Generally speaking, are operational budgets and capital budgets significantly different? Compare and contrast these budgeting methods listing at least two benefits and two drawbacks to each.
How will you apply what you have learned in this class as a foundation for learning in other courses? Explain.
Are the concepts and skills learned in this class helpful to you in your career? Describe