Compute the equivalent cost per unit,assuming the ending inventory is considered to be 60 percent complete.

Percentage of Completion

Refer to the scenario located in the “Analyze, Think, Communicate” section 12-5 of Ch. 12, “Job-Order, Process, and Hybrid Costing Systems” of Fundamental Managerial Accounting Concepts. This scenario involves an altercation between Rene Alverez and Bill Sawyer and requires you to weigh in with calculations and comments on the matter.

Read the scenario in the textbook and complete the activity below.

Compute the equivalent cost per unit,assuming the ending inventory is considered to be 40 percent complete.

Compute the equivalent cost per unit,assuming the ending inventory is considered to be 60 percent complete.

Write a 350-word summary of your calculations and findings. Comment on Mr. Sawyer’s motives for establishing the percentage of completion at 60 percent rather than 40 percent.

What is the relationship between the desired rate of return and the internal rate of return?

Good discussion on the different analysis types. Companies may use a variety of analysis tools and financial information to make critical operating and investment decisions. One of those tools, as you discussed, is internal rate of return. The IRR measures how well a project, capital expenditure or investment performs over time and helps companies compare one investment to another or determine if a project is viable. When considering a viable project, what is the relationship between the desired rate of return and the internal rate of return? Provide examples!

What is Capital Analysis of Investment?

Analysis of capital investment is a budgeting process used by corporations and government agencies to analyze long-term investment’s prospective profitability. Analysis of capital investment evaluates long-term investments that may include fixed assets such as equipment, equipment or real estate. The aim of this procedure is to discover the alternative to generate the greatest return on capital invested. Companies may use different methodologies to carry out an analysis of capital investment involving the calculation of the projected value of future project cash flows, the funding costs and the project risk-return.

Capital investment is hazardous since it involves large, initial expenditure on long-term service assets, which will take time to pay for itself. An investment return higher than the hurdle rate or necessary rates of return of shareholders in a firm assessing a capital project is one of the basic conditions for the company.

The Net Present Value (NPV), which calculates the value of the anticipated revenues from a project, known as future cash flows, in current dollars, is one the popular methods for capital investments analysis. The net current value indicates that future cash flow or income are sufficient to pay the project’s initial investment and associated financial expenditures.

Discounted cash flow (DCF) is comparable, but slightly different, to the net present value. The current cash flow value for NPV calculates the original investment and subtracts it. The DCF analysis is essentially a part of the NPV calculation since it is the discount rate procedure or an alternate return rate that measures the value or not of future cash flows.

Investments are popular in the DCF that are projected to produce a fixed annual rate of return. It takes no account of any start-up expenses, but simply assesses the value of the return rate on future projected cash flows on the basis of the discount rate used in the formula.

Reference

Introduction to Capital Investment Analysis (investopedia.com)

Good points. Managers of companies often face difficult decision making with capital investment decisions among the most challenging. What makes this kind of decision so difficult is not the problem of projecting return on investment under any given set of assumptions. The difficulty is in the assumptions and in their impact. Each assumption involves its own degree of risk and uncertainty; and combined, these uncertainties can multiply into a total uncertainty of critical proportions. Managers must be able to evaluate the level of risk resulting from the investment analysis performed. How do capital investments affect overall company profitability? Provide specific examples.

Evaluate the pros and cons of listing the company and becoming public.

Financial Management

Write a 2000-word report based on the provided context scenario, financial information and ratios. Conduct a peer analysis of a competitor company of your choosing and the given case study company. Consider all relevant financial principles, concepts and theories. Conduct the necessary financial analysis using appropriate techniques, tools and frameworks. Make decisions and recommendations based on the analysis and consider ethical implications and limitations.

Important- Have included an example provided by the university as a guide! Do not use this to be re-created but rather as a guide as to what is being looked for.

Task

You are part of the management team of Amazing Lounge Pty Ltd (AL Pty Ltd). AL Pty Ltd is a private company specialising in the retailing of high-end home furniture. During the annual strategic review for 2021, a key focus is on analysing the financial performance of the company and mapping its growth pathway for the next 5 years. Financial information and ratios for the past 5 years have been calculated and provided to the management team.

The company has been investing substantially in capital projects and building its stock in the last few years. The Vice President (VP) of Operations is very keen to keep increasing the stock level as it provides a wide range of goods available for sale, and to continue spending on capital by opening new stores (the company has limited online presence to-date).

Write a report for the management team that addresses points 1 to 5 below:

Comment on the performance trends for current ratio and return on total assets of AL Pty Ltd using the ratios provided and noting 2020 was impacted by COVID-19 lock-downs. AL Pty Ltd operates in the furniture retail industry. Choose another company in the same industry, preferably a publicly listed company with easy access to the required relevant financial information. Using the DuPont Method, provide a critical analysis of AL Pty Ltd’s Return on Equity performance for the last 5 years relative to the competitor you have chosen. Complete the analysis using publicly available data for the competitor (e.g. IBISWorld and/or annual reports).

Comment on the view taken by the VP of Operations that the company should be increasing stock level and opening new stores. Take into account all key finance principles, concepts and theories which are relevant. Also, 2020 was not a good year for AL Pty Ltd and 2021 started quite slow with the business seeing a large number of returns of furniture (refunds). The VP of Operations has proposed that these refunds be posted in the 2022 results to give some breathing space for 2021. Discuss the ethical implications of this proposal from the VP of Operations.

One of the suggestions from the CEO is to consider floating the company to raise capital. Evaluate the pros and cons of listing the company and becoming public.

Identify and discuss the limitations of your analysis.

Based on your analysis and discussion, make recommendations as to whether AL Pty Ltd should continue on the same trajectory and whether listing the company would be beneficial. Suggest other alternative growth options for the company as well.

What advice would you give a classmate who needs assistance?

Business Applications Case

Managerial accounting can be a complex job. As you learned in this week’s practice assignment, many different calculations need to be completed to assist an organization with its financial statements.

Write a 250-word response reflecting on your experience making the calculations from the practice assignment. In your reflection, share your thoughts on the activities within this week’s readings. Consider how calculating financial statements will help drive effective business decisions.

Address the following questions within your response:

Which calculations were challenging for you? Why?

Which ratios were difficult to understand?

What will you do differently in the following weeks?

If you did not have any challenges, respond to the following questions:

What prepared you for these calculations?

What advice would you give a classmate who needs assistance?

Describe the three main categories of ratios and provide a specific example of a ratio that is used in each category.

Ratio Analysis

Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported.

Respond to the following in a minimum of 175 words:

Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category.

For each of the 3 ratios you selected, describe how it is used in managerial decision-making.

 

Identify and describe the generic or professional skills that employers require in the area of financial accounting.

FINANCIAL ACCOUNTING THEORY

You are required to:

1. Identify and describe the generic or professional skills that employers require in the area of financial accounting. You should consult:

At least five academic journal articles, although eight articles will ensure better coverage of the research

Professional sources and books can be used in support,but not instead of academic articles, so you still need your FIVE ACADEMIC JOURNAL ARTICLES (AT LEAST!)

Draw some conclusions about the kind of skills employers require.

Note that these skills do not include the technical skills concerning specialist knowledge of accounting rules and procedures and you should not consider skills of this kind in this coursework.

2. Select three of these skills and explain how the work you have done in modules taken in the area of financial accounting has helped you to acquire these skills.

You may include auditing modules in this area but not modules in management accounting, finance or taxation.

If you are a credit entry student you can refer to your previous studies in financial accounting and the learning outcomes that are relevant to achieving these skills.

You can include this module, Financial Accounting Theory.

3. Discuss whether you think that these generic skills should form a greater part of an Accounting degree than has been your experience.

Demonstrate effective approaches to the analysis of corporate finance structure and analysis of corporate financial statements.

Accounting and Finance: Final

On successful completion of this assignment you will be able to:

1. Summarise key principles, trends and tools in accounting and corporate finance.

2. Demonstrate effective approaches to the analysis of corporate finance structure and analysis of corporate financial statements.

3. Assess the value of practical value of models and theories on making decisions on corporate financing in context.

4. Critically evaluate the benefits of various types of financing for different kinds of organisations.

5. Utilize internal and external financial information to appraise business performance.

Analyse and evaluate the business and financial performance.

Analyse and evaluate the business and financial performance

It is be done over a 3 year period of an organisation operating in a sector that has faced strategic and operational challenges with an emphasis on how management have addressed these challenges. the strategic and operational challenges need to have become evident within the last 3 years.

A comparator organisation in the same sector to support the evaluation must be used

How would you explain the appropriate accounting treatment to a colleague,boss,or business partner who has a basic understanding of accounting?

Mini Case 1 (50 Points) BUS1 121A Intermediate Accounting 

Answer the following questions.Type using a word processing program and bring a printed copy to class. Write as much or as little as you feel necessary to answer each question to the best of your ability. You may use all available resources to complete this case e.g., lecture slides, notes, your book, and the Accounting Standards Codification. Collaboration with others in your group is allowed to the extent that it is helpful. How you work together is up to you however,encourage everyone in the group to take at least some part for every question.Turn in only one finished assignment for each group.

Provide a header that includes all members of your group name and student ID. Use appropriate citations where relevant and according to your professional judgment. For questions requiring use of the codification, please use the following style:

I) Cite the ASC down to the Paragraph. For example, (ASC 330-10-05-01)

2) Copy-paste the paragraph you cite from the codification into the word document.

3) Interpret the codification paragraph into ‘plain English’ as best you can. In other words, how would you explain the appropriate accounting treatment to a colleague,boss,or business partner who has a basic understanding of accounting? You may (and KiV encourager] to) use riebits crerlits t=accounts to illustrate the accounting if appropriate.

Question 1 (Theory 15 points): Technology has had a huge impact on all aspects of our lives and accounting profession is no exemption. One of the biggest technological changes in our time is blockchain. Many people believe that blockchain may be the most important invention since the Internet. Briefly discuss what blockchain is and holi, do you think it will affect accounting profession? How will this technology affect your career prospects, as an accountant-to-be?

Question 2 (Conceptual Framework 15 points): How would you improve the qualitative characteristics and/or the enhancing characteristics of high-quality accounting information? Do not simply repeat what they are, provide a suggestion as to how this part of the qualitative characteristics could be improved.