Accounting

You are a senior manager for the highly successful regional CPA firm of Fine, Dee, Evah, Dense, LLP(Fine). Since its inception nearly 30 years ago, Fine’s audit practice has exclusively consisted of auditing private and not-for-profit organizations. Recently, the partners have been considering an opportunity to audit a publically-traded company for the company your team has selected. The primary reason Fine has not heretofore ventured into auditing publically-traded companies is because of the potential risk and legal liability associated with auditing public companies. However, Fine has been a bit stagnant, business-wise, for the past few years, and some of the older and more risk-averse partners are beginning to retire. Consequently, the lure of the often-lucrative and prestigious opportunity to audit a public company has become too hard to resist, so the partners have decided to pursue the chance to audit this company.  On a beautiful early-September morning you are called into the senior partner’s office and told you and your team has been selected to lead the first-ever effort to audit a publically-traded company for Fine. You are honored, but also know auditing a public company is a bit more tricky and complicated than auditing private and not-for-profit organizations. Fortunately, the senior partner had a considerable experience early in his career with another firm in auditing public companies and told you he would be with you all the way.  Relieved, you asked him what he wanted you to do. He tossed you the most recent Form 10-K of the company you selected and gave you the following assignments:   Review and discuss the Form 10-K for the company you have selected.  Create a report that will have 4 sections.  I only need section 4 completed. The company I choose is American Express Section 4, Audit Tests The reading in Chapter 13 (p. 402-407) describes five types of audit tests of financial statements:  (1)  Risk Assessment Procedures (2)  Test of Controls (3)  Substantive Tests of Transactions (4)  Analytical Procedures (5)  Tests of Details of Balances. In 350- to 700-words: Identify which tests are best suited for the company you selected and why.  Explain why some tests are not suitable.

Hugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance sheet as of April 30 and a combined cash budget for April. As Hugo Medical Supply’s controller, you have assembled the following information:  March 31 equipment balance, $52,600; accumulated depreciation, $41,300  April capital expenditures of $42,400 budgeted for cash purchase of equipment  April depreciation expense, $700  Cost of goods sold, 60% of sales  Other April operating expenses, including income tax, total $14,200, 35% of which will be paid in cash and the remainder accrued at April 30  March 31 owners’ equity, $92,600  March 31 cash balance, $40,300  April budgeted sales, $90,000, 70% of which is for cash. Of the remaining 30%, half will be collected in April and half in May.  April cash collections on March sales, $29,100  April cash payments of March 31 liabilities incurred for March purchases of inventory, $17,300  March 31 inventory balance, $29,200  April purchases of inventory, $10,700 for cash and $36,300 on credit. Half of the credit purchases will be paid in April and half in May.  Requirements  Prepare the budgeted balance sheet for Hugo Medical Supply at April 30. Show separate computations for cash, inventory, and owners’ equity balances.  Prepare the combined cash budget for April.  Suppose Hugo Medical Supply has become aware of more efficient (and more expensive) equipment than it budgeted for purchase in April. What is the total amount of cash available for equipment purchases in April, before financing, if the minimum desired ending cash balance is $14,000? (For this requirement, disregard the $42,400 initially budgeted for equipment purchases.)  Please use the library for your research. Do not use sites such as Wikipedia or Investopedia as your sources. If you use a website, make sure you review APA guidelines as to how to properly format websites as a source. Minimum word requirement: 400; include a cover page and a separate reference page listing your sources in proper APA style. Minimum 2 sources; your textbook can be one of your sources.

  Cost behavior and Cost-volume-profit analysis  In this discussion, please address the following statements;1.- Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet Gouda has a lower break-even point than Cheddar. Explain the reason. 2.- Assuming Gouda is above the break-even point, what will happen for each unit sale? What are the areas that the company should focus on to ensure that they exceed their break-even points on a consistent year-to-year basis? For more information on Cost-Volume-Profit read this: https://en.wikipedia.org/wiki/Cost%E2%80%93volume%E2%80%93profit_analysis

You are a Finance Manager for a major utility company. Respond to the following in a minimum of 175 words and citations: 3 different opinions Think about some of the capital budgeting techniques you might use for some upcoming projects. Discuss at least 2 capital budgeting techniques and how your company can benefit from the use of these tools. Compare your approaches to other students’ responses. How were they similar or different? Why might you use the different approaches shared by your classmates?

 Identify and describe two (2) incremental cash flows from a proposed project such as expanding a product line or to launching a new product or service. 

1. Briefly discuss Credit Card Refund and Cancellation Schemes and suggest how companies can prevent it from happening.2. Briefly discuss two types of Fraud Risk Assessment Methods 

Research and summarize the findings of a significant accounting scandal that has taken place in the past 5 years. For more information on Accounting Scandal  read this:https://en.wikipedia.org/wiki/Accounting_scandals

Reflect on the assigned readings for Week 3 and then type a two-page paper regarding what you thought was the most important concept(s), method(s), the term(s), and/or any other thing that you felt was worthy of your understanding.  Define and describe what you thought was worthy of your understanding in half a page, and then explain why you felt it was important, how you will use it, and/or how important it is in project planning.  Problem Set #3Software project decision point. You need to determine an interest rate to use—select an interest rate and explain why you think this number should be used. Use it in your calculations in item 1.2. Given the information below on options 1 and 2, carry out three forms of analysis: breakeven, ROI, and NPV. Make a recommendation on which way to proceed, based on the TCO for each option. Option 1: Purchase the FunSoft package: Cost $200,000 for software and $85,000 for hardware in year one; with $50,000 to customize it and a $40,000 annual licensing fee for the life of the contract. There will be an annual saving of $61,000 due to the layoff of a clerk. Option 2: Purchase the SoftComm package, which will operate on the vendor’s hardware: Cost $250,000 for a five-year license, payable half upfront and half during the first year of implementation. The maintenance contract, at $75,000 a year, includes all currently identified modifications to the software for the first three years. The clerk’s hours will be cut by half, for a saving of $25,000 a year. In both cases, sales are expected to increase from the current $1 million a year, by 10% per year each year (over each year’s previous year’s sales) after full implementation. Assume a five-year life for the software.

In your essay, this week, find an article that in some way deals with Porter’s Generic Strategies of low cost versus differentiation and how the scope affects them.  Hint – you’ll read about this in Chapter 5.5 of your primary text.https://open.lib.umn.edu/principlesmanagement/chapter/5-7-developing-strategy-through-external-analysis/Essay PromptIn each week of the course, except week 5, you will submit a written assignment on current management and/or organizational issues. This write-to-learn assignment will expect the student to relate course concepts to real-world examples and to examine the relevance of management concepts and theories in management practice. The instructions for the assignment are as follows:1. Find an article (published after January 1, 2010) from any popular press (Harvard Business Review, Wall Street Journal, Business Week, Fortune, Forbes, Economist, and others) that addresses or relates to a concept or theory pertinent to this course, preferably a topic within the current week.2. Provide the article’s APA reference citation at the top of the essay.3. In the body of the essay, answer the following prompts: (a) Describe the scenario, situation, or issue in your own words (e.g., How do you hire and retain good employees?). (b) Identify the concept or theory in the article (e.g., see “War on Talent” in Principles of Management, ch. 16.4). (c) Describe how the concept or theory is utilized in this particular case. Submission Instructions The essay must (a) range between 300 and 400 words in length, (b) exhibit college-level writing, and (c) include appropriate references to the article and your textbook. (Both references should follow proper APA citation rules.) Students will upload each essay into MyFIRE as a Word document, using 12-point Times New Roman font. Evaluation of the topical essays will be based on the rubric in the Course Information folder.

“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $2,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labour cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year:   Department     Fabricating Machining Assembly Total Plant Manufacturing overhead $350,000 $400,000 $90,000 $ 840,000 Direct labour $200,000 $ 100,000 $300,000 $600,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows:   Department     Fabricating Machining Assembly Total Plant Direct materials $ 3,000 $200 $1,400 $4,600 Direct labour $2,800 $500 $6,200 $9,500 Manufacturing overhead? Required: Using the company’s plantwide approach: Compute the plantwide predetermined rate for the current year. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labour cost. Under these conditions: Compute the predetermined overhead rate for each department for the current year. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Explain the difference between the manufacturing overhead that would have been applied to the Koopers job using the plantwide approach in question 1 (b) and using the departmental approach in question 2 (b). Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labour, and applied overhead). What was the company’s bid price on the Koopers job using a plantwide predetermined overhead rate? What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost?