ZOU Fencing

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Accounting, Essays

ZOU Fencing

ZOU Fencing

What are the key considerations when evaluating the design and testing of the operating effectiveness of internal controls in conjunction with a financial statement audit? Include considerations in determining what additional audit evidence to obtain about controls operating during the roll-forward period.

The designing of the test controls considers the interests of the financial statement audits and the eventual implication to the internal control. Implementing a test control would imply both models remain hinged to a simultaneous implementation prospect. On expectation, the Company’s interest would involve ensuring the developed test controls manifest an inclination to protect and mitigate potential errors and possible fraud attributes. ZOU Fencing places a significant interest in the accuracy of its fiscal attributes, such as sales, due to the embraced bookkeeping model. Arguably, introducing revenue or inventory misstatement would suggest a dire effect on the firm’s fiscal position.

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The operations of the auditor involve appreciating the potential blend of inputs needed to attain a reliable impression of the firm’s fiscal position. Ideal auditing involves making numerous inquiries from the employees while recording the registered findings. Also, auditors may opt to make observations regarding the Company’s operations and the subsequent consideration of the appropriateness of the adopted techniques (Ardelean, 2015). Other attributes include the verification of the appropriateness of the adopted accounting model, with aspects such as the measure of effectiveness in capturing the business position playing a key role in the quantification of the eventual decision by the auditor.

The interests in the element of efficiency in the description of the adopted controls involve evaluating the impression of the firm’s fiscal position. In the case of ZOU Fencing, the interest in efficient controls would allow the confrontation of the potential concerns regarding the registered performances (Brean & Kobrak, 2016). Integrating the interests of the auditors while ensuring the adopted models meet the expectations of efficiency allows the eventual appreciation of the desired position of financial obligation.

Roll forward

The impression of roll forward involves appreciating the input of the previous financial position in defining the current fiscal. Reflecting on the performance of the previous accounting period allows the introduction of a sense of continuity in bookkeeping; integration of the existing accounting data allows the reflection of the achieved performance and eventual growth in operations and revenue generation. However, roll forward needs to appreciate the implication of continuity in describing the expected outcomes. There is possible interest in describing the impact of the potential input of the roll forward in promoting effective, efficient controls.

The interest in controls reflects the business’s expectations and the suggested revenue generation projections. Encountering potential increases in revenue generation implies the future need to evaluate the role of the adopted control systems further (Tang et al., 2017). Other interests in defining the expectation of the auditor’s report involve the evidence gathered in support of the fiscal records. Ensuring effective implementation of the dynamic controls implies that the auditor’s report’s potential input remains essential in ensuring a reliable fiscal position for ZOU Fencing.

Was the engagement team’s assessment of the evaluation of the design of each control appropriate (i.e., does the control identified by the team address the specific risk of material misstatement and associated assertion)?

The assessment of the dynamic controls pointed to the potential improvement of the nature of gee-rated information while reflecting on the expectations of ZOU Fencing. Among the identified attributes include the automation of the sales and invoice reports and the introduction of automated error checks and controls. Both measures aim at ensuring the gathered outcome captures the ambitions of the business about promoting credibility and transparency in the maintenance of financial books.

Two control models manifested from the assessment process. They include the input at the transactional level and the integration of continuity through roll forwarding. Also, the lack of potential discrepancies when describing the expectations of financial records from previous years assists in designing the expectations of the venture (Morin, 2016). In either case, the decision’s impact on the adopted design controls assists in illustrating the eventual sense of appropriateness in the adopted solution.

Was the engagement team’s assessment of the risk associated with each control appropriate?

The ideal procedure to promote interim procedure would involve examining the validity of the inventory through observations and sampling of the impressions shared by the targeted clients. Clients would offer a better insight into the expectations shared regarding the validity of the inventory, leading to the development of a better insight into the expected performance outcomes. Other measures aiming at capturing the clients’ impression would involve examining the feedback from the customer service managers as considering the examination of the shipped products before their dispatch. Other concerns would involve re-examining the test controls focusing on operating systems to ensure a sense of reliability in their operations (Tang et al., 2017). There exists an additional interest in promoting a sense of continuity through roll forwarding, where the authenticity of the previous sales gets integrated into the performances of the current financial position. Besides, the prospect of sales having fictitious sales from previous records remains a hampering concern in the development of reliable records for the current fiscal season.

Was the team’s interim and roll-forward planned procedures to test the operating effectiveness of each control appropriate considering the risk associated with the control?

The evaluation of the roll forwarding process would involve an investigation from the technical department regarding the efficiency of the adopted technology and the reflection of the implication of the results on the operations of ZOU Fencing. However, such tests need to align the findings of the test controls engaged with the systems at ZOU Fencing. A further examination of the process would involve the appreciation of the potential interests that define the expectation of the shipping process in line with the inventory records. Ensuring the attainment of a sense of harmony in the shipped inventory would allow the subsequent address of the risks of possible discrepancies.

Other Related Post: Resilience Mastery Reflection

References

Ardelean, A. (2015). Perceptions on Audit Quality Based on the Ethical Behaviour of Auditors. Audit Financiar, 13(123).

Brean, D. J., & Kobrak, C. (2016). Corporate Governance in the Twenty-First Century. In Corporate, Public and Global Governance (pp. 83-104). Routledge.

Morin, D. (2016). Democratic accountability during performance audits under pressure: a recipe for institutional hypocrisy? Financial Accountability & Management, 32(1), 104-124.

Tang, F., Ruan, L., & Yang, L. (2017). Does regulator designation of auditors improve independence? The moderating effects of litigation risk. Managerial Auditing Journal, 32(1), 2-18.

Tanyi, P. N., & Roland, K. C. (2017). Market reaction to auditor ratification vote tally. Accounting Horizons, 31(1), 141-157.

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Question 

ZOU’s Fencing Controls

ZOU Fencing Inc. (“ZOU Fencing” or the “Company”) is a public company in the United States that files quarterly and annual reports with the SEC. ZOU Fencing has five manufacturing facilities in Missouri. It produces and provides chain-link fencing to customers throughout the Midwest (specifically, Wisconsin, Indiana, Michigan, Ohio, Illinois, and Iowa) via rail car.

ZOU Fencing sells chain-link fencing to customers under freight on board (FOB) shipping point terms. Therefore, revenue is recorded when goods are shipped from the respective warehouse. ZOU Fencing currently uses a sophisticated warehouse management system (the Warehouse K-Series System), which allows the Company to

  • record sales upon shipment of goods out of the warehouse, (2) automatically price fence sales based on standard pricing tables, and (3) generate multiple reports for the evaluation of ZOU Fencing’s

    ZOU Fencing

    ZOU Fencing

Engagement Team Note

Materiality was determined to be $5 million. In planning the current year’s audit, the engagement team obtained an understanding of the internal controls related to revenue. This understanding was done through the engagement team’s walkthrough of the revenue process. As part of their walkthrough procedures, the engagement team made inquiries of appropriate personnel, inspected relevant documentation, and, in certain cases, observed the control performers performing the control procedures.

As a result, the engagement team concluded that there had been no significant changes in the revenue process since the prior year. Furthermore, the engagement team has determined that they will not be using the work of others to test the operating effectiveness of controls related to revenue.

The engagement team identified three risks of material misstatement relating to the recording of sales. For each risk identified, the team documented in the excerpted worksheet (see the Handout) the control activity that addresses the risk of material misstatement, the evaluation of the design of that control activity, and the planned testing of operating effectiveness.

Required:

  1. What are the key considerations when evaluating the design and testing of the operating effectiveness of internal controls in conjunction with a financial statement audit? Include considerations in determining what additional audit evidence to obtain about controls operating during the roll-forward period.
  2. For each of the three revenue risks identified by the engagement team, address the following:
  • Was the engagement team’s assessment of the evaluation of the design of each control appropriate (i.e., does the control identified by the team address the specific risk of material misstatement and associated assertion)?
  • Was the engagement team’s assessment of the risk associated with each control appropriate?
  • Were the team’s interim and rolled Wereward procedures to test each control procedure to test each control’s operating effectiveness with the control?

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Performance Evaluation Flowchart

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Accounting, Coursework

Performance Evaluation Flowchart

Performance Evaluation Flowchart

Flowchart

Flowchart

Flowchart pdf

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Question 

Flowchart Assignment Fall 2019 Performance Evaluation

NOTE: This is a simplified version of a process for the purpose of illustrating flowcharting techniques.

Performance Evaluation Flowchart

Performance Evaluation Flowchart

NARRATIVE

The Chief Operating Officer prints two copies of the Years of Service Report using the Performance Evaluations Program which reads the Employee Master and Evaluations Transaction files. The first copy is sent to the Department Manager, and the second copy is sent to the Human Resources Manager. The Department Manager creates an Employee Evaluation Form using the Employee Perfomance Program which updates the Employee Master file and adds a record to the Evaluations Transaction file. The Department Manager retrieves the Prior Employee Evaluation from the Employee Evaluations file cabinet, which was filed by employee name then by date, and sends it to the Employee along with the Employee Evaluation Form.

The Employee reviews the Prior Employee Evaluation, and then completes the Employee Evaluation Form for the current year and sends both documents back to the Department Manager. The Department Manager enters the employee evaluation data into the Employee Performance Program which retrieves data from the Employee Master file and updates the Evaluations Transaction file. The Employee Evaluation Form and Prior Employee Evaluation are filed in the Employee Evaluations file cabinet by employee name then by date. The Years of Service Report is sent to the Chief Operating Officer.

The Human Resources Manager prepares four copies of the Evaluations Summary Report using the Employee Performance Program which reads data from the Employee Master and Evaluations Transaction files. The third copy is sent to the Chief Executive Officer, the second copy is sent to the Professional Employer Organization, the first copy is sent to the Chief Operating Officer, and the fourth copy is filed with the Years of Service Report in the Evaluations file cabinet by employee number. The Chief Operating Officer compares the Years of Service Report with the Evaluations Summary Report to confirm that all employee evaluations have been completed, and then files both documents in the Performance Evaluations file cabinet by date.

INSTRUCTIONS:

  • Review the Flowchart Assignment and Academic Integrity sections of the syllabus.
  • Create a deliverable for a client that flowcharts in a specific way as shown in the Flowchart Process slides.
  • Use the same black and white color scheme, arrow style, and overall style as shown in the Flowchart Example.
  • Be sure to meet the requirements from the Flowchart Process slides, Flowchart Example document, Flowchart Rubric Checklist document, and this Flowchart Assignment document.
  • Create the flowchart using Microsoft Excel.
  • Save the Excel file as a PDF file fitting on one page – use the Landscape page orientation on Letter size paper.
  • Name the file: Flowchart [First name] [Last name] – Example: Flowchart Renee Richardson
  • As mentioned in the Flowchart Process slides – Attention to detail is very important.

CAUTION:

When saving a file from Excel to PDF, some of the labels inside the symbols will usually be cut off. Be sure to read the labels inside each symbol in the PDF file very carefully before submitting. Also, saving a PDF file as multiple pages, instead of one page, usually results in a poor grade because multiple pages usually cut off symbols and affect the column flow. If the disruption of flow is severe, the flowchart will receive a grade of zero, just as a client would reject your submission. Remember that you are providing a document to a client that must match the style of their other flowcharts.

NOTE:

  • Flowcharts will be graded from the actual PDF file uploaded, not from the preview screen in Canvas. Do not be concerned if the preview screen does not look exactly like your actual file. Also, the labels inside symbols may be small and hard to read after saving the file as a PDF. The instructor will be zooming in on the file when grading to read the labels.

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Journal- Budgeting Process

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Accounting, Pages: 2

Journal- Budgeting Process

Journal- Budgeting Process

Introduction

A budget is a spending plan considering the estimated future, current expenses, and income for a specific period. Budgeting is vital for every organization because it enables the organization to understand the amount of money it has, how much has been spent, and how much will be needed in the future. A budget also guides organizations on the unwanted costs that should be eliminated to meet their financial goals. The manufacturing process consists of many expenses, including unexpected costs that could impact the success of the process and the overall organizational performance. This report will focus on the factors that need to be considered when estimating and budgeting for a car manufacturing firm’s upcoming year and the departments that would be involved in the budgeting process.

Factors That Would Be Considered When Estimating and Budgeting For the Upcoming Year

One of the factors that would be considered in the car manufacturing firm’s estimation and budgeting is the estimated revenue. According to Weygandt et al. (2016), revenue is the decrease or increase in liabilities resulting from the performance of services or the sale of goods in everyday business operations. The main components of estimated revenue are the estimated cost of goods or services offered and sales forecasts. The organization can look at past sales and cost of goods to determine whether the estimated revenue will be high or less based on the revenue the company has been generating in the past and the factors that could be impacting revenue, such as changes in sales trends and cost of raw materials. The organization may also review the revenue generated by other car manufacturing firms in the same region to estimate the revenue they can create and predict whether revenue will increase or decrease.

The second factor that would be considered is fixed and variable costs. Fixed costs remain constant despite the changes in production volume (Harris, 2014). The fixed costs the car manufacturing firm may incur include employee salaries, rent, insurance premiums, and internet services. The organization should consider these costs to set aside the money needed to cover them when creating a budget and use them as a reference point to determine whether there are issues in the organization’s finances when they exceed the budget. On the other hand, variable costs are costs that change or vary based on the production volume. Variable costs include the cost of shipping finished products to customers, electricity used in the manufacturing process, and the cost of raw materials and distribution channels. The organization can use variable costs to estimate the changes in operating costs and set aside enough money to cover all operating costs.

The third factor that would be considered is the organization’s expenses. According to Weygandt et al. (2016), expenses take different forms and are identified by different names based on the type of service used or asset consumed. The main types of expenses include selling expenses, cost of goods sold, administrative expenses, marketing expenses, income taxes, and interest expenses (Fox, 2013). One of the considerations that the organization should consider when estimating expected revenue is the costs that are directly related to revenue because the organization’s gross margin does not substantially fluctuate unless new products are being developed, changes in the inventory process, or inefficiencies in the manufacturing process. The second consideration is fixed expenses such as insurance and rent. The third consideration is employee compensation. The organization should plan whether employee compensation will be increased based on production when estimating and creating their budget. The fourth consideration is employee headcount estimates. The organization should consider whether it plans to hire new employees in the future to set aside the salaries for the new employees in their budget.

The fourth factor is cash flow. The organization should consider the money generated from its operations and the money spent to cover expenses. Previous financial records can be used to estimate future cash flows when developing a budget. Cash flow also includes the profit generated by the organization in the past. The organization can use the changes in profit in the past to determine whether the business is growing or not. An increase in profit indicates business growth and can be used to estimate future cash flows and profit. Estimating the profit that the organization will make in the future is vital in making investment decisions and determining the functional areas that need more funds to facilitate business growth. For example, the organization may decide to invest in manufacturing a specific type of car based on the profits generated from selling the car or recall the production of cars that do not generate any profit.

Departments That Would Be Involved In the Budgeting Process

One of the departments involved in the budgeting process is the management department. The department includes the organization’s top executives and managers involved in staffing, planning, leading, organizing, and controlling. The management department is vital in developing and overseeing the budgeting process based on the organization’s goals and financial capacity. The management department must also approve the budget requests and authorize the allocation of funds to avoid misappropriation, hence the need to involve them in the budgeting process. The management department would also analyze the budget to ensure the estimated spending is reasonable based on the organization’s performance and stakeholder expectations.

The second department that would be involved is the finance department. The finance department would be required to oversee the budget appropriations and recommend changes based on the organization’s financial performance. The financial department would also examine past financial statements to create accurate revenue and expense estimates. The finance department may also evaluate the economic trends that could impact the organization’s budget and identify future investments to help it meet its financial goals. The finance department would also provide information about financial forecasts, such as variable cost changes, and advise the organization on meeting variable costs without exceeding the budget.

The third department that would be involved is the operations management department. The department would ensure that the budget considers all operating expenses and sets aside enough money to cover operating costs. The operations management department would also create a budget that meets the organization’s production goals, plan for investments that can help the organization increase profit and revenue, and provide advice on budget allocation. The operations management department would also provide information about the expected production capacity to help estimate future operating costs and revenue. For example, the operations management department would forecast the organization’s future production needs, such as raw materials and resources, thus improving the accuracy in estimating revenue and operating costs.

Conclusion

Budgeting is essential for every organization because it ensures that an organization has enough funds to sustain operations. The main factors that should be considered in the budgeting process are revenue, fixed and variable costs, expenses, and cash flow. The budgeting process should also involve the departments directly linked to the organization’s daily operations, such as the management, finance, and operations management departments, to ensure that the organization’s financial performance, goals, and production capacity are considered.

References

Fox, R. (2013). The basics of expenses. Tax Strategies for the Small Business Owner, 47–52. https://doi.org/10.1007/978-1-4302-4843-9_4

Harris, C. (2014). Fixed and Variable Costs. https://doi.org/10.1057/9781137370891

Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2016). Financial Accounting: Tools for Business Decision making. Wiley.

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Question 

Assignment Content

Assume you work for a car manufacturing firm and are trying to estimate and budget for the upcoming year. What types of factors would need to be considered? What departments would be involved in this budgeting process? Explain.

Journal- Budgeting Process

Journal- Budgeting Process

Your assignment should consist of at least 2–3 pages, not counting a title page (if included) or references page. You must use at least 2 references, one of which can be your textbook. Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.

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Lisa Duncan Case

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Accounting, Term paper

Lisa Duncan Case

Lisa Duncan Case

Executive Summary

Lisa’s one-month job at the club allows her to earn $325 a week. She will also retain income that accrues from lessons. However, Lisa must choose between Waitress’s and Tennis Club’s jobs before signing a long-term contract. Regarding income, the Tennis club job is more rewarding than the waitress’s job. However, there are numerous factors that she has to consider before settling on one of the jobs on offer. The factors include hourly rates, job security, and experience and expertise.

Effect and Balances of Transaction

Opening an account and depositing $950 reduces cash at hand and increases bank balance. The cash account is credited $950, while the bank account is debited $950. The cash account was reduced by $950, while the bank account increased by $950.

Paying $300 for tennis supplies is a transaction that affects two accounts: cash account and Equipment account. The cash account will reduce by $300 while the company’s tennis equipment account or simply asset account will increase by $300 in the name of tennis supplies. The tennis supplies account is debited $300, while the cash account is credited $300. The account’s total balance will reduce by $300, i.e., $950-$300 = $650.

Paying $275 for a rental video is a transaction that reduces the balance by $275. Equally, the transaction affects two accounts –a rental video account and a cash account. The equipment account will be debited $275, while the cash account will be credited $275. The balance at the end of the transaction will be $650-$275 = $375.

Although Duncan arranged for ball machines during September for $250, the arrangement will not have an impact on the current account balance; rather, the $100 that was paid in advance is the amount that will have an effect on the balance. The $100 paid will reduce the current balance by $100; thus, the balance at the end of the transaction will be $275.

Receiving $1750 for the lessons she offered in September is an income that increases account balance; however, it will only affect her personal account balance and not the company’s balance since she can keep such earnings as part of her income/salary. Receiving $1750 will, therefore, increase her personal account balance to close at $2025.

Receiving $600 in fees from the use of the ball machines during September is an income to the company. The payment has the effect of increasing the company’s balance by $600. The balance at the end of the transaction will be $2625 (2025+600).

The $800 payment for salaries reduces the company’s balance by $800. The balance at the end of the transaction will be $1825 (2625-800)

Just like transaction 7, transaction 8 reduces the company’s current balance by $290. Thus, the balance at the end of the transaction will be $1535 (1825-290).

Receiving services is part of the company’s expenditure; thus, it reduces the company’s balance by $1300. The balance at the end of the transaction will be $235 (1535-1300)

The cost of supplies at hand has to be adjusted by adding $60 because it was found out that it totaled $180 and not $120. This transaction has no impact on the current balance; rather, it affects the company’s balance sheet.

Withdrawing $400 for personal use as of September has an impact of reducing the current balance by $400. The balance at the end of the transaction will be $-165 (235-400), which means that the company will close the month with an overdraft of $165.

N-Volley’s Income Statement as of September 30

Heading   Amount ($) Balance($)
Revenues
Lessons Income 1750
Ball Machine Fees 600
Management Income 1300
Total Revenues 3650
Expenses
Salaries 800
Rental Video 275
Tennis Supplies 300
Miscellaneous Expenses 290
Total Expenses (1665)
Net Income 1985

 

N-Volley’s Statement of Owner’s Equity as of September 30

Heading Amount ($) Balance ($)
Owner’s equity Balance as of August 30

 

 950
Additional Investment:
Supplies 300
Owner’s withdrawals (400)
Owner’s Equity as of September 30 850

N-Volley’s Balance Sheet as of September 30

Heading Amount ($)
Assets
Account Balance 950
Investment (Tennis Equipment) 300
Total Assets 1250
Liabilities
Owner’s Equity 850
Bank Overdraft 400
Total Equity and Liabilities 1250

5a. Evaluation of Lisa’s Alternatives

Based on the two alternatives Lisa has to choose from, the two jobs have both pros and cons, but there is a better alternative among them. To understand, it is good to look at the total income that accrues to the two jobs and determine the workload (Ryan, 2016). Regarding the N-Volley, Lisa will get a weekly income of $325, thus accruing to $1300 at the end of every month. In the waitress job, Lisa will get an hourly rate of $10 while working 30 hours a week. The total income that will accrue to Lisa weekly will be $300, which adds to $1200 per month.

In comparing the two jobs, N-Volley’s job rewards $25 more monthly income than the waitress’s job. On the same note, it is also worth looking at other benefits that accrue to the two jobs. The waitress job has no allowance attached to it; thus, if Lisa takes up the job, she will have to be contented with $1200 monthly and nothing more. However, if Lisa continues with the N-Volley job, she will benefit from the allowances that she earns from lessons. Basically, based on the analysis of the two jobs, it will be prudent for Lisa to continue working with N-Volley since it is more rewarding than the waitress’s job.

5b. Lisa’s Other Considerations

Before taking the job at the N-Volley, Lisa should consider other factors such as job security, experience, and expertise that she will acquire, job flexibility, and income sustainability. Job security will ensure that she has employment that guarantees her a future (Bhattacharya & Sengupta, 2009). On the same note, since she is still studying, the experience and expertise she will acquire in the N-Volley’s job should be in line with her profession.

References

Bhattacharya, M. S., & Sengupta, N. (2009). Compensation management. New Delhi: Excel Books.

Ryan, L. (2016). Reinvention roadmap: Break the rules to get the job you want and career you deserve. Dallas, Texas: BenBella Books.

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Question 

Lisa Duncan Case

How To Complete The Written Paper Requirement
The Written Paper is a requirement of the course.

The Written Paper must be submitted in Microsoft Word format.

If a paper is not turned in, a penalty deduction of 200 points (3 LETTER GRADES) will also be assessed for not completing a requirement of the class. (Meaning you will not pass the class). Late papers are not accepted.

Topic: Case CP 1-3 pages 48-49 of the text:

Transactions and financial statements
Lisa Duncan, a junior in college, has been seeking ways to earn extra spending money. As an active sports enthusiast, Lisa plays tennis regularly at the Phoenix Tennis Club, where her family has a membership. The president of the club recently approached Lisa with the proposal that she manage the club’s tennis courts. Lisa’s primary duty would be to supervise the operation of the club’s four indoor and 10 outdoor courts, including court reservations.

Lisa Duncan Case

Lisa Duncan Case

In return for her services, the club would pay Lisa $325 per week, plus Lisa could keep whatever she earned from lessons. The club and Lisa agreed to a one-month trial, after which both would consider an arrangement for the remaining two years of Lisa’s college career. On this basis, Lisa organized Serve-N-Volley. During September 2016, Lisa managed the tennis courts and entered into the following transactions:

Opened a business account by depositing $950.

Paid $300 for tennis supplies (practice tennis balls, etc.).

Paid $275 for the rental of video equipment to be used in offering lessons during September.

Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 due October 1.

Received $1,750 for lessons given during September.

Received $600 in fees from the use of the ball machines during September.

Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.

Paid $290 for miscellaneous expenses.

Received $1,300 from the club for managing the tennis courts during September.

Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.

Withdrew $400 for personal use on September 30.

As a friend and accounting student, you have been asked by Lisa to aid her in assessing the venture.

Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

Cases & Projects
Enlarge Image
Prepare an income statement for September.

Prepare a statement of owner’s equity for September. The statement of owner’s equity for a proprietorship is similar to the retained earnings statement for a corporation. The balance of the owner’s capital as of the beginning of the period is listed first. Any investments made by the owner during the period are then listed and the net income (net loss) is added (subtracted) to determine a subtotal. From this subtotal, the owner’s withdrawals are subtracted to determine the increase (decrease) in owner’s equity for the period. This increase (decrease) is then added to (subtracted from) the beginning owner’s equity to determine the owner’s equity as of the end of the period.

Prepare a balance sheet as of September 30.

Assume that Lisa Duncan could earn $10 per hour working 30 hours a week as a waitress. Evaluate which of the two alternatives, working as a waitress or operating Serve-N-Volley, would provide Lisa with the most income per month.

Cases & Projects Discuss any other factors that you believe Lisa should consider before discussing a long-term arrangement with the Phoenix Tennis Club.

Complete sections 1-5 of this case.

Present a paper detailed with facts, figures, and any necessary charts to support your arguments.

Reach a conclusion concerning the best business decision that should be made based on the facts.

All papers must include the following:

Cover page:

Provide the name of the course, the title of your paper, and your name.

Executive summary:

This will be where you set up the problem stating the situation and the details for the one-month deal at the tennis club. You will answer 5a and 5b here also: (5a) general statement of working as a waitress vs. tennis club income, and (5b) discussing any other factors that you believe Jan should consider before entering into a long-term arrangement with the tennis club. You should reach a conclusion and state it here. It summarizes main ideas, conclusions, or recommendations explicitly so that the reader can understand the issues by reading this one page.

Body or details section:

Uses for answering # 1, 2, 3, 4, 5a, 5b – prepare all the information and statements as shown in the text in chapter 1. Also, for 5a: do a detailed analysis of which alternative Jan should accept based on income per month. Show this analysis in the details section. The body is used for development and expansion of the executive summary. It Includes explanations, charts, examples, analysis, steps, reasons, arguments, and factual details, and financial statements. This part of the paper expands and supports your executive summary. You must have an effective conclusion and recommendation.

Bibliography page (separate page):

If you use any outside source for reference you must have a bibliography page.

Other requirements:

Total number of pages: not more than 5 or 6
Submit the paper to the professor using the Assignments link in Canvas by the due date.
The paper must be typed and double spaced.
You must have your paper proof read by one other person. You must put their name on the cover page stating that they have reviewed the paper for errors.
Your paper will be graded on the quality of the content of the paper, grammar, and following the rules outlined above.

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Capital Budgeting and Management Practices- Smoothing Out Rough Spots in Government Outlays

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Accounting

Capital Budgeting and Management Practices- Smoothing Out Rough Spots in Government Outlays

Management Practices- Smoothing Out Rough Spots in Government Outlays

Government Outlays

Article Link

https://www.researchgate.net/publication/318159752_Capital_Budgeting_and_Management_Practices_Smoothing_Out_Rough_Spots_in_Government_Outlays_Capital_Budgeting_and_Management_Practices

Summary

The article reviews the role of capital budgeting in capital management and planning. One of the article’s major points is that long-term financial management includes using strategic financing techniques and maintaining a favorable credit rating to reduce the costs incurred in public infrastructure and enhance the affordability of public debt. Another major point is that control variables such as total outstanding debt, intergovernmental revenue, business cycle, effective tax rate, the size of a state’s special revenue, and expenditure shock are vital in capital budgeting because political decisions and policies dictate state capital spending. Capital budgeting is also affected by capital spending (Srithongrung, 2017). The authors define capital volatility as the presence of barriers in the government’s definite capital outlays. According to Srithongrung (2017), capital spending volatility can be reduced by using a separate capital budget to review capital projects, using good financial management practices characterized by high-quality bonding, and dedicating revenue for financing total outlay. Another major point is that a government applying the revenue-availability spending technique may have poor financial conditions due to making abrupt spending decisions.

Reaction

The article provides detailed information on the capital budgeting process, the factors that influence the process, and how the government enhances the efficiency of the capital planning and management process for accurate capital budgeting. I can apply the knowledge from the article to improve budgeting in our organization by implementing the author’s recommendations on how to reduce capital spending volatility. I can also use the knowledge to determine the most important things to consider in capital planning and management. The knowledge is also applicable in determining the impacts of poor capital budgeting and the most effective capital planning and management practices that can be applied to counterbalance uncertainties arising from political decisions and economic stresses.

References

Srithongrung, A. (2017). Capital budgeting and management practices: Smoothing out rough spots in government outlays. Public Budgeting & Finance, 38(1), 47-71. https://doi.org/10.1111/pbaf.12167

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Question 

Assessment Description
Using the GCU Library, locate a journal article about capital budgeting. In the subject line of your post, include the name of the article that you read. Then, in your initial post, provide a link to the article and a summary followed by your reaction to the article.

Capital Budgeting and Management Practices- Smoothing Out Rough Spots in Government Outlays

Capital Budgeting and Management Practices- Smoothing Out Rough Spots in Government Outlays

The summary should be approximately 250 words, and the reaction should be approximately 150 words. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply that knowledge. Do not choose an article that one of your classmates has already posted. To participate in a follow-up discussion, choose one of the articles that a classmate has posted and provide your own reaction to it. Note: It will be challenging to find a relevant article if you do not use the library.

Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.

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Chapter 3 Questions

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Accounting, Coursework

Chapter 3 Questions

Chapter 3 Questions

Question 1

The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period
Year Price (dollars)
1989 1.20
1990 2.09
1991 4.64
1992 5.34
1993 5.05
1994 7.64
1995 10.97
1996 20.66
1997 32.31
1998 69.34
a. Estimate the average annual return you would have made on your investment.
b. Estimate the standard deviation and variance in annual returns.
c. If you were investing in Microsoft today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?

Question 1
Year Price Return %Return R-AR %(R-AR) %(R-AR) SQUARED
1989 1.2 0 0 0 0
1990 2.09 0.741666667 74.16666667 11.94058893 0.119405889 0.014257766
1991 4.64 1.220095694 122.0095694 59.78349164 0.597834916 0.357406587
1992 5.34 0.150862069 15.0862069 -47.13987084 -0.471398708 0.222216742
1993 5.05 -0.054307116 -5.43071161 -67.66 -0.6766 0.45778756
1994 7.64 0.512871287 51.28712871 -10.93894903 -0.10938949 0.011966061
1995 10.97 0.435863874 43.58638743 -18.6396903 -0.186396903 0.034743805
1996 20.66 0.88331814 88.33181404 26.1057363 0.261057363 0.068150947
1997 32.31 0.563891578 56.38915779 -5.836919947 -0.058369199 0.003406963
1998 69.34 1.146084803 114.6084803 52.38240261 0.523824026 0.27439161
159.24 1592.4 560.0346997 560.0346997 5.600346997 1.444328043
62.22607774
Variance 0.180541005
Standard Deviation 0.424901171

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Question 2

Unicom is a regulated utility serving Northern Illinois. The following table lists Unicom’s stock prices and dividends from 1989 to 1998.
Year      Price (dollars)    Dividends (dollars)
1989     36.10                  3.00
1990     33.60                   3.00
1991     37.80                   3.00
1992     30.90                   2.30
1993     26.80                   1.60
1994     24.80                   1.60
1995     31.60                   1.60
1996     28.50                   1.60
1997     24.25                   1.60
1998     35.60                   1.60
a. Estimate the average annual return you would have made on your investment.
b. Estimate the standard deviation and variance in annual returns.
c. If you were investing in Unicom today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?

Question 2 
Year Price Dividends Annual Returns Deviation= Annual Return -Average Annual Return Deviation Squared
1989 36.1 3 0.083102493 0.01629239 0.000265442
1990 33.6 3 0.089285714 0.089285714 0.007971939
1991 37.8 3 0.079365079 0.079365079 0.006298816
1992 30.9 2.3 0.074433657 0.074433657 0.005540369
1993 26.8 1.6 0.059701493 0.059701493 0.003564268
1994 24.8 1.6 0.064516129 0.064516129 0.004162331
1995 31.6 1.6 0.050632911 0.050632911 0.002563692
1996 28.5 1.6 0.056140351 0.056140351 0.003151739
1997 24.25 1.6 0.065979381 0.065979381 0.004353279
1998 35.6 1.6 0.04494382 0.04494382 0.002019947
0.066810103 0.601290926 0.003989182
STANDARD DEVIATION (Square root Variance) 0.063159973

Question 11

Every capital asset pricing model investor owns a combination of the market portfolio and a riskless asset. Assume that the standard deviation of the market portfolio is 30% and the expected return on the portfolio is 15%. What proportion of the following investor’s wealth would you suggest investing in the market portfolio, and what proportion in the riskless asset? (The riskless asset has an expected return of 5%)
a. An investor who desires a portfolio with no standard deviation.
b. An investor who desires a portfolio with a standard deviation of 15%.
c. An investor who desires a portfolio with a standard deviation of 30%.
d. An investor who desires a portfolio with a standard deviation of 45%.
e. An investor who desires a portfolio with an expected return of 12%.

Question 11
A Portfolio with no standard deviation in the market portfolio 0% 15% 0%
Proportion in the riskless asset 1 0% 100%
B Portfolio with a standard deviation of 15% in the market portfolio 15% 15% 100%
Proportion in the riskless asset 1 100% 0%
C Portfolio with a standard deviation of 30% in the market portfolio 30% 15% 200%
Proportion in the riskless asset 1 200% -100%
D Portfolio with a standard deviation of 45% proportion of the market portfolio 45% 15% 300%
Proportion in the riskless asset 1 300% -200%
E Portfolio with an expected return of 12% 12% 15% 80.0%

Other Related Post: Create a Budget and Financial Plan for a Vacation Trip

References

Damodaran, A. (2010). Applied corporate finance. John Wiley & Sons.

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Question 

Chapter 3 Questions

Select three formula-driven problems from Chapter 3 that you wish to showcase and prepare a Microsoft Excel document showing the formulas used to prepare the solution for those problems.

Chapter 3 Questions

Chapter 3 Questions

Question 1

The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period
Year Price (dollars)
1989 1.20
1990 2.09
1991 4.64
1992 5.34
1993 5.05
1994 7.64
1995 10.97
1996 20.66
1997 32.31
1998 69.34
a. Estimate the average annual return you would have made on your investment.
b. Estimate the standard deviation and variance in annual returns.
c. If you were investing in Microsoft today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?

Question 2

Unicom is a regulated utility serving Northern Illinois. The following table lists Unicom’s stock prices and dividends from 1989 to 1998.
Year      Price (dollars)    Dividends (dollars)
1989     36.10                  3.00
1990     33.60                   3.00
1991     37.80                   3.00
1992     30.90                   2.30
1993     26.80                   1.60
1994     24.80                   1.60
1995     31.60                   1.60
1996     28.50                   1.60
1997     24.25                   1.60
1998     35.60                   1.60
a. Estimate the average annual return you would have made on your investment.
b. Estimate the standard deviation and variance in annual returns.
c. If you were investing in Unicom today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?

Question 11

Every capital asset pricing model investor owns a combination of the market portfolio and a riskless asset. Assume that the standard deviation of the market portfolio is 30% and the expected return on the portfolio is 15%. What proportion of the following investor’s wealth would you suggest investing in the market portfolio, and what proportion in the riskless asset? (The riskless asset has an expected return of 5%)
a. An investor who desires a portfolio with no standard deviation.
b. An investor who desires a portfolio with a standard deviation of 15%.
c. An investor who desires a portfolio with a standard deviation of 30%.
d. An investor who desires a portfolio with a standard deviation of 45%.
e. An investor who desires a portfolio with an expected return of 12%.

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Analysis Memo

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Accounting

Analysis Memo

Analysis Memo

Financial Records That Indicate Commitment to TBL

People

This aspect of the triple bottom line emphasizes a company’s social influence. It is critical to distinguish among a company’s different stockholders. Organizations have always prioritized shareholder returns as a measure of success, which means they try to produce benefits for people who own stock in the firm (Miller, 2020). As businesses have adopted sustainable efforts, their attention has turned to producing value for all stakeholders affected by company actions, mainly clients, workers, and residents.

Simple business methods to assist society include establishing equitable employment processes and promoting employee involvement. They may also reach beyond the organization to affect change on a bigger scale. Many corporations, for example, have developed effective strategic alliances with nonprofit groups with the same purpose-driven aim (Hill et al., 2019). The sales and marketing department maintains crucial data in this regard, with member donations being one of the most critical data. The contributions have increased people’s confidence in the company.

Planet

Another component of the triple bottom line has focused on having a beneficial influence on the environment. While corporations have traditionally been the most significant cause of climate change, they do have the potential to accelerate meaningful change (Miller, 2020). Many company executives are increasingly aware of their need to do so. This endeavor does not fall simply on the hands of the world’s greatest corporations—virtually every organization has the potential to adopt adjustments to lower its carbon emissions. Modifications such as choosing ethically produced resources, reducing power use, and simplifying shipping methods are all positive moves. The global health and beauty company is seeking to reduce its carbon footprint by 3% by the end of the year.

Profit

A company’s effectiveness in the contemporary world is primarily determined by its financial results or the profits it makes for investors. Long-term planning activities and critical corporate choices are often meticulously crafted to increase earnings while minimizing expenses and dealing with risks (Miller, 2020). One of the goals toward increasing profits indicated for the global health and beauty company is to grow its market share by the end of year one.

Alignment of the Strategic Plan with KPIs

People

One of the items the company can leverage to improve performance is collecting consumer data. Collecting consumer data improves the business’s overall performance regardless of the industry, the demographics of consumers, or the products/services a company provides. The most crucial rationale why several businesses gather consumer data would be that it allows companies to gain a more profound knowledge of how their customers behave, identify their general characteristics, and uncover methods to enhance the consumer journey.

Data allows the organization to comprehend precisely what the consumers need from the business, the merchandise they seek, and how they like to engage with the brand. If the business learns more about its clients, it can tailor the whole company to meet their demands better. One may also increase the communication to the targeted audience, optimize the site for better usability, and even more.

Planet

The company can also purchase carbon offsets to improve the environment. Global warming continues to rank high in the broader public’s list of problems as a notable long-term problem for the economy, which will outlive the present economic downturn. People, companies, non-governmental institutions, and regulatory agencies, among others, are seeking solutions to reduce their environmental effects.

The entitlements to these cutbacks are offered to buyers as carbon offsets, which they may use against their pollution footprints to lower their net climate effect (Lovell et al., 2009). These carbon offsets are purchased for a number of reasons, including accepting accountability for pollution, which can be decreased, developing innovative solutions through funding clean-energy initiatives, and demonstrating responsibility for global warming remedies.

Greenhouse gas (GHG) emissions may be reduced by using carbon offset certificates, which are both accessible and affordable. Instead of lowering a company’s GHG emissions directly, offset credits are frequently utilized to make up for such emissions (Lovell et al., 2009). Most companies are unable to eradicate their carbon emissions via internal methods; thus, they must rely on carbon credits to achieve this goal. Carbon offsets should still be used cautiously, especially if the company also pursues carbon neutrality.

Profit

As the company seeks to enhance profits, design changes must be the starting point. The company is to lower the quantity of plastic it uses while also ensuring that it comes from sustainable scrap. They will have to make all of their plastic packaging reusable, and they will need to work at a faster rate and intensity to get there. Refillable, reusable forms are one option. However, the company must ensure that all its customers back this idea.

Engaging in refilling has a variety of commercial and ecological benefits. Suppose recyclable packaging is properly developed and used for suitable items. In that case, it has the potential to minimize solid waste as well as the quantity of natural resources required to package and distribute goods to the customer.

Relationship between TBL Data and KPIs

People

The marketing and sales department will collaborate with other departments to collect customer data. Such data will mainly come from new members. The members will be required to, among others, provide data relating to their demographics, date of birth, and ethnic backgrounds. The data will be collected voluntarily, so only those willing to provide it will do so. The goal is to establish how many new members who are joining the organization come from minority communities. The goal is in line with the KPI of enhancing people’s relationships. Notably, the financials that will be used to attain this goal will hardly be distinguishable from other normal company costs. The expenses to be incurred will be used to hire personnel and cater for increased salary and pension remittances, as indicated in the income statement.

Planet

Regarding planet issues, the company will measure the cost of carbon offsetting relative to sales. The goal is to ensure that the cost of carbon offsetting accounts for 1% of the total sales. Companies use carbon offset expenses to construct projects that minimize carbon emissions in the long run. The seller of the offsets uses the revenue generated to construct projects that will go a long way to ensure that new projects are designed in an environmentally friendly manner. As far as financial records are concerned, the cost of paying for carbon offsets will be recorded as inventory in the financial statement. On the other hand, the gross sales will be captured as revenue in the consolidated income statement.

Profit

The company incurred new costs when it was installing equipment that can be used to recycle plastic products. Further expenses went into ensuring that the already existing equipment is repaired to ensure that they recycle plastic products effectively. It is worth noting that the cost of undertaking these sustainable initiatives was high; hence, the company sought to benefit from government subsidies and tax exemptions. Most governments provide these incentives to encourage more companies to adopt sustainable production processes. The company tried to leverage government subsidies.

The Contribution of Individual Departments to Financial Performance

Administration Function

The administration function is one of the basic units of most companies. The unit performs many roles, such as filing documents and ensuring effective correspondence (Hill et al., 2019). However, their roles are not just limited to filing documents. They perform critical organizational tasks such as interviewing new staff and monitoring overall organizational budgets. Based on the SWOT analysis conducted earlier, one of the main weaknesses identified by the company is the industrial pressure to adopt products that have a limited impact on the environment. The administration has a significant role to play along this line. They must control the public image of the company to avoid consumer apathy. A good public image is good since it encourages more customers to patronize the company, translating into positive financial results.

The Customer Service Function

The customer service function is gradually gaining importance as far as organizational delivery of company goals is concerned. Its significance has been fuelled by the growing expectations on the consumers’ part. This calls for companies to have in place a professional customer service staff who can adequately address customer needs. Based on the company’s SWOT analysis, one identified opportunity is enhancing the consumer base through social media interactions. The company will use the customer service function to increase its online presence to address customer concerns on social media. A company that addresses customer complaints adequately is likely to make more income because it will receive more return clients.

The Distribution Function

The primary role of the distribution function is to ensure that goods reach the final consumer (Hill et al., 2019). However, its functions are not limited to arranging and delivering merchandise. They need to ensure that the delivery process is cost-effective and devoid of obstacles. One way to ensure effective distribution is to plan routes well, such that there are no chances of back-tracking. This method will keep fuel costs low and save time. Another essential strategy is ensuring delivery vehicles do not operate empty to save on fuel. It is helpful to make use of computer programs that will be used to ensure that effective routes are established. Based on SWOT analysis, the company lacks effective customer segmentation. Hence, ensuring effective distribution will go a long way to ensure losses are limited and the company’s financial performance improves.

The Finance Function

The finance function is considered one of the most critical functions as far as business is concerned. The financial department could mean the failure or success of the business. Some of the core functions performed by the department include chasing payments and making payments for any purchases made (Hill et al., 2019). Companies are now using computer packages to record any financial transactions made, and these packages require money. The efforts made by the finance department in pursuing money due to the organization and making internal savings influence an organization’s financial performance.

References

Hill, C. W. L., Jones, G. R., & Schilling, M. A. (2019). Strategic management: an integrated approach: theory et cases (13th ed.). Boston, Ma Cengage Learning.

Lovell, H., Bulkeley, H., & Liverman, D. (2009). Carbon Offsetting: Sustaining Consumption? Environment and Planning A: Economy and Space, 41(10), 2357–2379. https://doi.org/10.1068/a40345

Miller, K. (2020, December 8). The Triple Bottom Line: What It Is & Why It’s Important. Harvard Business School. https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line

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Question 

In this project, you will demonstrate your mastery of the following competency:

Assess the current performance of an organization through analysis of financial statements.
Scenario
In Project One: Applying Strategic and Operational Thinking, you prepared Key Performance Indicators (KPIs) for the marketing and sales departments of your product line.

Analysis Memo

Analysis Memo

Now, the CEO has provided you with a revised set of KPIs. You need to apply these KPIs toward the analysis of a proposed marketing and sales initiative to increase loyalty card memberships in neighborhoods with predominantly low-income populations, whether the populations are in rural, suburban, or city locations.

The CEO wants this analysis so that she can chart the sustainability and growth of the initiative while assuring it meets standards for Corporate Social Responsibility.

The CEO has provided you with several documents, available in the Supporting Materials section of this project. She wants you to use the provided Triple Bottom Line Balanced Scorecard to assess the strategic plan’s compliance with the KPIs and summarize your findings in a memo.

Directions
Complete the following to provide the analysis required by the CEO:

Identify the financial records that indicate commitment to TBL.
Outline which financial and other records marketing and sales maintains where TBL can provide data.
Using the TBL scorecard, evaluate the alignment of the strategic plan with KPIs. Remember, there may be multiple outcomes of this exercise. Your focus should be to apply your understanding of the scenario and evaluate the plan accordingly.
Which ideas in the plan support the KPI criteria? Cite specific ideas that meet the criteria.
Explain how they meet the criteria.
In your memo:
Describe how the TBL data relates to the KPIs.
Identify which additional TBL financial line items are needed to measure the cost for each criterion.
For example, should there be a line entry for hiring temporary workers?
Referring back to the SWOT analyses from Project One, explain how functional considerations of individual departments contribute to financial performance.
What to Submit
To complete this project, you must submit the following:

KPI and Triple Bottom Line Balanced Scorecard

Complete and submit the KPI and Triple Bottom Line Balanced Scorecard. In the scorecard spreadsheet, identify one additional KPI, a related SMART objective, and its measurement criterion. You need to do this for all three elements of TBL: people, planet, and profit. You have been provided with one example for each TBL element.
Analysis Memo

In a Word document, write a memo outlining your analysis. Ensure that the memo is organized by TBL element with a header for each segment of your analysis. The Word document should use double-spacing, 12-point Times New Roman font, and one-inch margins. This memo should be no more than 6 pages in length, and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.

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