Unit VII Case Study

To read the case study below, you must first log into the myCSU Student Portal and access the Business Source Complete database found in the CSU Online Library.

Read the case study indicated below, and answer the following questions:

Marianne, J. L. (2010). Accounting for business combinations and the convergence of International Financial Reporting Standards with U.S. Generally Accepted Accounting Principles: A case study. Journal of the International Academy for Case Studies, 16(1), 95-108.

1. What key financial ratios will be affected by the adoption of FAS 141R and FAS 160? What will be the likely effect?

2. Could any of the recent and forthcoming changes affect the company’s acquisition strategies and potentially its growth?

3. What were FASB’s primary reasons for issuing FAS 141R and FAS 160?

4. What are qualifying SPEs? Do they exist under IFRS? What is the effect of FAS 166 eliminating the concept of

qualifying SPEs on the convergence of accounting standards?

5. If the company adopts IFRS, what changes should management be aware of?

6. What are the principle differences between IFRS and U.S. GAAP?

Your submission should be a minimum of three pages in length in APA style; however, a title page, a running head, and an abstract are not required. Be sure to cite and reference all quoted or paraphrased material appropriately in APA style.

The Role of Financial Statements 

The Role of Financial Statements

1700 words

As a health care manager, daily management tasks include financial management. Financial management includes items such as labor cost, equipment cost, and a budget that controls the operations. Operations requires management planning and control. The budget is created using the basic financial information and accounting principles information that an organization reports in its monthly, quarterly, and annual financial reports.

After learning the basics of financial statements, it is very important for a health care manager to understand the basic five areas of performance that set the financial plan for the organization. Define and provide an example of what the following mean:

  • Short-term solvency
  • Activity
  • Financial leverage
  • Profitability
  • Value

Define the following terms, and explain why they are important in a health care organization:

  • Current ratio
  • Total asset turnover
  • Debt ratio
  • Profit margins

Include a minimum of 2 references.

Accounting Discussion

This assignment has 3 parts:

Ethical behavior is important to the accounting profession as well as the general business environment.  Most companies have code of conduct policies and ethical training to ensure all employees understand the company’s behavior expectations and responsibilities.

  1. What are the advantages and disadvantages of a company having a formal code of conduct that employees are obligated to follow?
  2. What are your thoughts about whether employees should have to participate in mandatory ethical trainings each year?
  3. How might having a code of conduct help an employee make decisions when faced with an ethical situation?

cash flow concept

write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. The time value of money concept is one of the 3 major principles of the study and practice of financial management. It is used to evaluate potential investments, determine a rate of return on a project, calculate the required payments on a loan or annuity, and estimate a future value of funds currently invested and the present value of funds to be received at some future date. It is imperative that managers at all levels of business have a working knowledge of this topic. In your first task, you have been asked to engage your colleagues in a detailed and documented discussion about the time value of money concept: what it is, why it is important, how it is used, and generally, how the applications to single and periodic payments are computed using various calculation methods and formulas. In your initial post, identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of market indexes such as the Dow Industrial Averages, and address at least 3 of the following:

• What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept?

• What are the methods associated with evaluating single or periodic payments, and what is at least 1 application of each?

 

• Discuss the different methods that can be used to calculate these amounts, and explain how at least 1 of these models can be used.

• How can the time value of money models or formulas be used to determine the rate of return for an investment or the time it will take for a current sum to grow to a desired future amount?

• Discuss the “Rule of 72” and how it can be used to estimate how long it takes for money to double at various rates of return.

 

Identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of market indexes such as the Dow Industrial Averages.

Assignment Objectives 

Apply the time value of money in making financial decisions.

Use effective communication, team and problem-solving skills to collaborate on a project.

Transportation Logistics Management

MINIMUM OF 250 words each

Please Follow the directions.

313

Each student will reflect on the BP oil spill as it relates to the global supply chain – Examine the use of current transportation economic situations such as the 2010 BP oil spill in the Gulf of Mexico in the internet exercise discussion board.

Instructions:  Your initial post should be at least 250 words.

341

Please answer the following questions after reviewing the reading and lessons for Week 4.

Discuss the advantages and disadvantages of a push system and a pull system. Give specific product examples as part of your discussion that are not included in the readings for this week.

Instructions:  Your initial post should be at least 250 words

Cost, Volume, Profit Analysis spreadsheet

Question:
you received your instructor’s approval of your company and actual planned investment. begin working on the Cost, Volume, Profit Analysis spreadsheet provided for the project to outline the revenues, costs, expenses, and resulting cash flows. If you selected a manufacturing company and the project deals with a product or change in project, you will need to consider direct and indirect costs. Detail out your costs and cash flows. Make sure these are reasonable for the project you have selected.
 you should have all of your revenues, expenses, investments, profit, and resulting cash flows on an Excel worksheet complete with all calculations performed using Excel functions.
  • Name of Public company approved for project. JC Penney. Symbol JCP.
  • Reason chosen; to restore flagging sales back to strong financial footing.
  • Nature of investment for this company; explanation as follows….

Plan is to introduce two or three lines of product previously not carried by JC PENNEY. These products will surely bring in more clients who then will be exposed to more of the products that JC PENNEY has to offer. In addition I plan to revamp the online shopping experience, statistics show that consumers are more comfortable and adept at online shopping, Currently shoppers have to meet a certain amount of purchase before they qualify for free shipping. My plan will be to eliminate that and make shipping free of any amount spent to draw in more shoppers, introduce hassle free returns and exchanges while making sure that the profit line improves over a period of few years.

Instructions for the project excel template;

you will calculate the break-even point for the project and the expected financial returns.

  • Open the Cost-Volume-Profit spreadsheet that you have been working in and calculate the break-even point. Of your proposed project. (Access the CVP template if you have not yet begun this work)
  • The project must use a 6.5% cost of capital and a tax rate of 25%.
  • Complete IRR (Internal Rate of Return) and NPV (Net Present Value) for the project.
  • Make sure you show your Excel formulas or provide calculations so your instructor can review your work.
  • You should have also considered key points of any intangible benefits or costs associated with the project and begun supplementing your pro forma statement with sufficient background information to enable a prospective investor to decide if your company is worth investing in.

case study

From the case study below, prepare a report for the Board that either recommends the proposed changes or does not recommend the changes.  Support the decision with details from the case and outside sources.  (300-500 words)

Explain the following

  • Cost of Quality
  • Total Quality management (TQM)
  • Statistical Process Control (SPC)
  • Six Sigma
  • Relevant Costs
  • Sunk Costs
  • Cost Volume Profit (CVP)

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Case study question: Swift Airlines Swift Airlines has a daily return flight from London to Nice. The aircraft for the flight has a capacity of 120 passengers. Swift sells its tickets at a range of prices. Its business plan works on the basis of the following mix of ticket prices for each day’s flight:

 

Business 30 @ £300 £9,000
Economy regular 40 @ £200 £8,000
Advance purchase 20 @ £120 £2,400
7-day-purchase 20 @ £65 £1,300
Stand-by 10 @ £30 £300
Revenue 120 £21,000

 

Swift’s head office accounting department has calculated its costs as follows:

 

Cost per passenger (to cover additional fuel, insurance, baggage handling etc.) assuming full load £25 per passenger

Flight costs (to cover aircraft lease, flight and cabin crew costs, airport and landing charges etc.) £3,000 (120 @ £25) £7,500 per flight

Route costs (to cover the support needed for each destination) £2,000 (based on ½ of the daily cost of £4,000 (balance charged to return flight)) Business overhead £3,000 (allocation of head office overhead)

 

Total £15,500

 

This results in a budgeted profit of £5,500 per flight, assuming that all seats are sold at the budgeted price. The head office accountant for European routes has advised the route manager for Nice that while the Nice–London inbound leg is breaking even, losses are being made on the London–Nice outbound leg. If profits cannot be generated, the route may need to be closed, with the aircraft and crew being assigned to another route. The route manager for Nice has extracted recent sales figures, a typical flight having the following sales mix:

 

% of tickets sold Business 60 18 @ £300 £5,400
Economy regular 70 28 @ £200 £5,600
Advance purchase 80 16 @ £120 £1,920
7-day purchase 75 15 @ £65 £975
Stand-by 100 10 @ £30 £300
Revenue 87 £14,195

 

The route manager has calculated a loss on each outbound flight of £1,305. She believes that there is a market for 48-hour ticket purchases if a new fare of £40 was introduced, as this would be £5 less than the price charged by a competitor for the same ticket. She estimates that she could sell 15 seats per flight on this basis. This would not affect either the 7-day purchase, which is used by business travelers, or stand-by fares, which are usually oversubscribed. The additional revenue of £600 (15 @ £40) would cover almost half the loss. The route manager has prepared a report for her manager asking that the new fare be approved and allowing her three months to prove that the new tickets could be sold. Comment on the route manager’s proposal. Case studies provide the reader with the opportunity to interpret and analyze financial information produced by an accountant for use by non-accounting managers in decision-making. There is a suggested answer for the case in Part IV, although the nature of case studies is that there is rarely a single correct answer, as different approaches to the problem can highlight different aspects of the case and a range of possible approaches are possible.