Accounting

Question  According to Sievers et al. (2013, p 468), ‘Accounting information…captures an amount of economic information that is equivalent to that of non-financial information’. Journal article: Sievers, S., Mokwa, C.F. and Keienburg, G. (2013).The relevance of financial versus non-financial information for the valuation of venture capital-backed firms,European Accounting Review, 22(3), pp. 467-511. Required: • Critically evaluate the use of financial and non-financial information included in the annual report of a multinational corporation.What type of financial or non-financial information should multinational corporations disclose? How are such information used by different user groups (its relevance or importance to users of annual reports be they investors or any other stakeholders) • The quote provided should be your starting point but your answer should not be limited to this. • You should make use of a minimum of 10 academic papers.

1) Distinguish between managerial and financial accounting on one of  the items below: 1.    Users and decision makers. 2.    Purpose of information. 3.    Flexibility of practice. 4.    Time dimension. 5.    Focus of information. 6.    Nature of information 2) What information is recorded on a job cost sheet? How do management and employees use job cost sheets? 3) Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to use EUP in process costing? 4) What is an activity cost driver? 5) If Samsung is thinking of expanding sales of its most popular smartphone model by 65%, should we expect its variable and fixed costs for this model to stay within the relevant range? Explain. 6) Describe how the following items are computed: a. Gross margin, and b. Contribution margin. 7) How does budgeting help management coordinate and plan business activities? 8) What is the purpose of using standard costs? 9)  In responsibility accounting, why are reports to higher-level managers usually summarized? 10) What is a relevant cost? Identify the two types of relevant costs. 11) Explain how you will be able to use one of the Time Value of Money concepts in your personal life.  12) Why is an investment more attractive to management if it has a shorter payback period?

PURPOSE:  Analyze the financial condition and performance of a corporation using several financial analysis techniques. This project will enable you to make a judgement about the liquidity, profitability, solvency and investment worthiness of The Boeing Company.    TASKS:   STEP #1:    Print out the “Consolidated Statements of Financial Position”, the “Consolidated Statements of Operations” and the “Consolidated Statements of Cash Flows” of The Boeing Company for the years of 2018 and 2019. The annual reports that contain these financial statements can be found at this website. The financial statements for the years 2018 and 2019 can be found on pgs. 51-54 of the 2019 annual report.  STEP #2: (15 pts.)   Complete a “Horizontal Analysis” of The Boeing Company’s. Consolidated Statements of Financial Positon and Consolidated Statements of Operations. Use 2019 as the “Analysis Period” and 2018 as the “Base Period”. Use Word or Excel to complete this horizontal analysis.  Provide an analysis of what your horizontal analysis reveals about The Boeing Company’s financial position and profitability.       EXAMPLE  (See pg. 500 of your textbook)      “POOR/FAIR” ANALYSIS EXAMPLE   Cash decreased by $195 from 2018 to 2019. Total Assets were 16.7% higher in 2019 than 2018. Liabilities increased by 24.7% from 2018 to 2019. Net income increased by 5.8% from 2018 to 2019.       “GOOD/EXCELLENT” ANALYSIS EXAMPLE   Cash decreased by $195 from 2018 to 2019 due to the company’s increased investment in short-term marketable securities and their buildup of inventory. The buildup of inventory seemed necessary as Net Sales increased by 6.3%. Operating Income increased by only 2.2% as the company seemed to have trouble controlling its operating expenses which increased by 10.7%. Further expansion may not be advisable until the operating expenses can be controlled. Long-term Debt increased by 28.9% and Long-Term Marketable Securities increased by 14.2%. A favorable stock market and low interest rates on long-term debt may have the company adopting the strategy of borrowing capital and then investing that capital in stock.       STEP #3: (15 pts.)   Complete a “Vertical Analysis” of The Boeing Company’s Consolidated Statements of Financial Position and Consolidated Statements of Operations for both 2018 and 2019. Provide an analysis of what your vertical analysis reveals about The Boeing Company’s  financial position and profitability. EXAMPLE (See pgs. 503 – 504 in your textbook)     STEP #4: (10 pts.)   Calculate the following Liquidity and Efficiency ratios for The Boeing Company for both 2018 and 2019. Provide an analysis of what these ratios reveal about The Boeing Company’s liquidity and efficiency. (See pgs. 506 – 508 of your textbook)   Current Ratio Acid-Test Ratio Accounts Receivable Turnover Inventory Turnover Days’ Sales Uncollected Total Asset Turnover     “POOR/FAIR” ANALYSIS EXAMPLE   The current ratio was higher in 2019 than 2018. The Accounts Receivable Turnover was lower in 2019 than 2018. The company sold its inventory at a faster pace in 2019 than 2018.     “GOOD/EXCELLENT” ANALYSIS EXAMPLE   The current ratio was higher in 2019 than 2018 due to increases in cash and accounts receivable. These increases were directly related to the increased net income generated by the company. The “cash flow from operations” on the Statement of Cash Flows increased from 2018 to 2019 accounting for the increase in the cash account. The increase in accounts receivable is directly related to the increase in revenues on the Income Statement. Revenues increased by 10% with the Accounts Receivable account increasing by 8% from 2018 to 2019.  This increase in liquidity enabled the company to pay off a large portion of its long-term debt which is reflected in the Statement of Cash Flows in the Financing Section.   STEP #5: (10 pts.)   Calculate the following Solvency ratios for The Boeing Company for both 2018 and 2019. Provide an analysis of what these ratios reveal about The Boeing Company’s ability to meet its long-term obligations. (See pgs. 508 – 509 in your textbook).   Debt to Equity Ratio Times Interest Earned   STEP #6: (10 pts.)   Calculate the following Profitability ratios for The Boeing Company for both 2018 and 2019. Provide an analysis of what these ratios reveal about The Boeing Company’s ability to earn profit. (See pgs. 509 – 510 in your textbook)   Profit Margin Return on Total Assets Return on Common Stockholder’s Equity     Step #7: (10 pts.)   Calculate the following Market Prospect ratios for The Boeing Company for both 2018 and 2019. Provide an analysis of what these ratios reveal about The Boeing Company’s market performance. Comment on whether or not you would recommend that investors purchase Boeing stock. Why? Why not? (See pg. 510 of your textbook)   Price-Earnings Ratio     (You can find the current stock price here) Dividend Yield

compose a paper that is 5-7 ppages. Cover Page, Intoduction, body, conclusion, and a ref page. My topic is to write about 2 major scandals that occurred that has impacted the public perception of accounting. I am to have 5 references listed as well.· More specifically on the instructions given, I need 5-8 sentences, including a thesis statement in the introduction, 5 supporting APA references in the body, 5-8 sentences in the conclusion, and a reference page.

Discuss flexible budgets and provide an example. Be sure to explain what they are and when they are used. Share your personal and/or professional experience with flexible budgets.

After reading the “Ethical Issues” box on page 330 of the required text, devise a plan that will minimize or reduce the impact of these cash flow estimation biases on effective decision-making. The CFO of a firm you just started working for claims “we always have, and always will, use the weighted average cost of capital (WACC) as the rate to discount future expected cash flows from our proposed capital budgeting projects”. What do you think of this strategy? Read section 11-4, pages 399 – 404 in the required text carefully. Your initial post should be at least 200 words, formatted and cited in current APA style with support from at least 2 academic sources.  You should respond to at least two of your peers by extending, refuting/correcting, or adding additional nuance to their posts. Your reply posts are worth 2 points  student  After reading the “Ethical Issues” box on page 330 of the required text, devise a plan that will minimize or reduce the impact of these cash flow estimation biases on effective decision-making. It is human to exercise bias behavior based on our belief, and desires. When producing cash flow estimates as the case explains managers may exercise bias behavior because compensation may be tied to the span of the job responsibilities. Some of the decision bias include: Anchoring, Framing, Availability Heuristic, Confirmation Bias, Commitment Escalation, and Hindsight Bias. Several factors must be taken into consideration when preparing a cash flow estimation in order to minimize biases on effective decision-making. Robert Wolf in his article “How to Minimize your Biases when making Decision” suggest to consider the following: Search relentlessly for potentially relevant or new disconfirming evidence Accept the “Chief Contrarian” as part of the team Seek diverse outside opinion to counter our overconfidence Reward the process and refrain from penalizing errors when the intentions and efforts are sound Reframe or flip the problem on its head to see if we are viewing the situation in either a positive or negative framework Redefine the problem from here on out and ignore the old problem to avoid escalation of unnecessary commitment Develop systemic review processes that leave you a committed “out” possibility when trying to “cut the losses” Avoid the potential for escalation or further emotional investment in faulty decisions engendered by premature “public” commitment. Throughout the process, it’s crucial to recognize that most risk does not manifest itself from some exogenous contingent event, but rather is driven by the behaviors and decisions of people. It is only by exercising the intellectual rigor to challenge our current views of the future and long-lived underlying assumptions The CFO of a firm you just started working for claims “we always have, and always will, use the weighted average cost of capital (WACC) as the rate to discount future expected cash flows from our proposed capital budgeting projects”. What do you think of this strategy? Read section 11-4, pages 399 – 404 in the required text carefully. Most firms combine debt and equity financing, the WACC helps turn the cost of debt and cost of equity into one meaningful figure. It only makes sense for a company to proceed with a new project if its expected revenues are larger than its expected costs in other words, it needs to be profitable. The discount rate makes it possible to estimate how much the project’s future cash flows would be worth in the present. Christina Majaski explains in her article “Cost of Capital vs. Discount Rate: What’s the difference?” that “Setting the discount rate isn’t always straightforward. Even though many companies use WACC as a proxy for the discount rate, other methods are used as well. In situations where the new project is considerably more or less risky than the company’s normal operation, it may be best to add in a risk premium in case the cost of capital is undervalued or the project does not generate as much cash flow as expected.” Therefore we could conclude that not all the projects will have the same risk as WACC. There could be projects with less risk and there could be projects with higher risk which should have a higher discount rate. If a business uses the same WACC for all new projects it will wrongly accept the risky project and therefore result in too much losses and reduction in shareholder’s wealth. Reference: Majaski, Christina. (2020) Cost of Capital vs Discount Rate: What’s the Difference?. Retrieve from: https://www.investopedia.com/ask/answers/052715/what-difference-between-cost-capital-and-discount-rate.asp student 2 After reading the “Ethical Issues” box on page 330 of the required text, devise a plan that will minimize or reduce the impact of these cash flow estimation biases on effective decision-making. Behavioral economics suggests that decision making has some of the most prevalent biases that creep into all kinds of risk or reward whether personal as well as professional. Cash Flow decision making not only has to consider human biases, but also those of the customers, employees and competitors. Specifically, in this case, some biases and reality are to accurately estimate the discount rate and cash flows throughout the economic life of the project. The timing of discounted cash flows will become important the longer the economic life of a project lasts and the more uncertain the payback period will become. Also, the most of the forecast could be run using a simulation method based on past experience or market behavior through software, if the company did not have a financial analyst to oversee the cash flow estimation process. The CFO of a firm you just started working for claims “we always have, and always will, use the weighted average cost of capital (WACC) as the rate to discount future expected cash flows from our proposed capital budgeting projects”. What do you think of this strategy? Many companies estimate the rate of return required by investors in their securities and use the company WACC to discount the Free Cash Flows on all new projects. But the company WACC rule can also get the firm into trouble if the new projects are more or less risky than its existing business. WACC can be used as a hurdle rate against which to assess ROIC performance. It also plays a key role in economic value added (EVA) calculations.  Investors use WACC as a tool to decide whether to invest. The WACC represents the minimum rate of return at which a company produces value for its investors. I think is correct the CFO strategy of using WACC as a discount rate to discount the future expected future cash flows from the proposed capital budgeting projects.     Reference McClure, Ben. (May 21, 2019). Investors Need a Good WACC. Retrieved from: https://www.investopedia.com/articles/fundamental/03/061103.asp  (Links to an external site.) Moyer, R.C., McGuigan, J.R., & Rao, R. (2018). Contemporary financial management (14th  ed.) Mason, OH: Cengage-Southwestern. Section 11-4, pages 399 – 404

Ethics Writing Assignment Ethics play a vital role in business and in the accounting profession. Here is an opportunity to connect you current learning about inventory with the profession’s commitment to ethics.  EC5: Tiffany Lyons was just hired as the assistant treasurer of Key West Stores. The company is a specialty chain store with nine retail stores concentrated in one metropolitan area. Among other things, the payment of all invoices is centralized in one of the departments Tiffany will manage. Her primary responsibility is to maintain the company’s high credit rating by paying all bills when due and to take advantage of all cash discounts. Jay Barnes, the former assistant treasurer who has been promoted to treasurer, is training Tiffany in her new duties. He instructs Tiffany that she is to continue the practice of preparing all checks “net of discount” and dating the checks the last day of the discount period. “But,” Jay continues, “we always hold the checks at least 4 days beyond the discount period before mailing them. That way, we get another 4 days of interest on your money. Most of our creditors need our business and don’t complain. And, if they scream about our missing the discount period, we blame it on the mailroom or the post office. We’ve only lost one discount out of every hundred we take that way. I think everybody does it. By the way, welcome to our team!” Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Accounting principles (13th ed.). Hoboken, NJ: Wiley.  You are to write a 2-3 pages paper. Use the ethics resources for accounting. Make sure to cite at least on source from those provided and reference them (in your separate reference page) following APA guidelines. Respond thoroughly to the following questions in your reflective essay: 1.         What are the ethical considerations in this case? 2.         Who are the stakeholders that are harmed or benefited in this situation? 3.         Should Tiffany continue the practice started by Jay? Does she have any choice? 4.         Which Code of Conduct principle would you act on from the professional codes of conduct guiding ethical behavior in this field (Provide the name of the organization, and the code of conduct that pertains to why you act, and then provide the URL for your source)? 5.         Based on your chosen code of conduct principle(s), what would you do (step-by-step) in order to act in accordance with your chosen principle to address this situation?

The Securities and Exchange Commission (SEC) regulates public companies. The SEC has found that some of these companies have violated GAAP by using creative accounting practices to mislead investors and creditors regarding the health of their company. Use the Internet or Strayer Library to research a recent accounting scandal within the last five years where the SEC accused public companies of accounting irregularities. Write a 3–4 page paper in which you: Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response. Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit. Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden. Defend your position. Analyze the sanctions available under SOX and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Provide a rationale for your response. Use the Strayer Library to locate at least two (2) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources.

The CGMA Competency Framework incorporates technical, business, leadership, and people skills needed in the workplace today.  Consider the foundation in Financial Accounting you have received in this course (principals of accounting I) as an integral part of this skill set and as a building block for your future academic and professional journey. Additionally, take a look at the graphic explaining the concept of competency integration in accounting education. Notice how business and accounting have many points of intersection. CGMA Graphic:  https://www.cgma.org/resources/tools/cgma-competency-framework-2014.html Your supervisor has asked you to explain the value of the fact that you completed this accounting course.  Complete a two- to three-page report with your comments on the relationship of these concepts to accounting and to your organization to fulfill a request from your supervisor to explain the value of the accounting course supported with funding by your employer.    Use the following site for reference:  https://www.principlesofaccounting.com/

Write about the legal structures in the UK, tax and finance business plan.