Essays on Weygandt

One question always arises when it comes to accounting and the question is whether is it alright to keep paid-in capital and separate it from earned capital. Accountants today must be exceptionally watchful particularly with such a large number of accounting laws changing in the US. More than likely there will dependably be a financial specialist needing to know whether earned capital is more vital than paid in capital, or basic EPS are more imperative than the diluted EPS. The aim of this paper is to answer these inquiries and explain which one is more imperative and give a ...

Modern Yoga Manufacturers

Company summary and design of the value chain As a student in the field of business, starting up a Sensory Yoga Mat Manufacturing Company has been my major plan. Fundamentally, the Yoga mats refer to specially designed or fabricated mats that are utilised as an aid during the yoga practice, thus preventing the hands and feet from slipping. The company will be named Modern Yoga Manufacturers Company. In this way, the Modern Yoga Manufacturers will involve itself in the design of the modern sensory yoga mats, which have sensors to measure the performance, power and strength of the user. ...

Introduction

Capital budgeting assists sports organisation in assessing the viability of their proposed long-term investments (Chandra, 2014). Sports organisations also need to invest in capital projects for expansion as well as to improve the efficiency of their operations. Extreme Sports Company operates a sports training complex with a fitness centre, motorsport cars for hire, among other services. The company has some money to invest in the expansion of either the fitness centre or the motorsport unit. This paper highlights how the company can use capital budgeting techniques to evaluate the two investment options.

Details of the two projects

The motorsport car will cost $200,000 ...

Introduction

Capital budget analysis refers to the process through which the way a firm invests capital in projects that result in cash flows over a period of more than one year. The analysis is built on the assumption that the firm depends on the specific project or projects under analysis in order to operate and consequently, it becomes important to test whether or not the projects being considered would be viable. Notably, capital budget analysis comes with several assumptions including the estimations of cash flows from the specific project as well as the assumption on the state of the economy ...

Abstract

The narrative report is prepared to provide a clear understanding of the prudence concept and historical information attributed to this concept. The prudence concept was applied in 1989 that was not included in the external references of 2010. The IASB observed that the concept was missing or ignored, so they provided an amended definition of the prudence in accounting. The significance of the inclusion of this concept is necessary to provide a clear and complete view of the financial position of users. The prudence concept is related to neutrality and conservatism, so it is badly affected by the adverse ...

SUMMERY

INTRODUCTION The manufacturing sector, production means making a product either by using a machine or hand or both. It’s a component of goods producing industry. Unlike trading or service businesses that buy products and sell at a higher price to make the profit, manufacturing instead make products that they finally sell. Manufacturing companies that produce and sell goods needs an accounting system that does not solely look at the accounting aspect only but also sale and purchase of the goods. By this, the accounting system for the manufacturing industry is more complex than the service sector does not ...

Delta Airlines Inc. is a household brand not only the United States but also in 64 other countries around the world. The company was founded on May 30, 1924, marking a 91 years reign since it first opened doors as a crop dusting operation, Huff Daland Dusters, in Macon, Georgia. Delta started providing passenger services on June 17, 1929, making it one of the oldest airlines in the world. In 2013, Delta Airlines Inc. was reported to be the world's largest airline based on the number of scheduled passengers. The company was the second largest concerning the revenue passenger ...

John Sunna

IFRS and GAAP are two most commonly used accounting standards. The differences between them complicate the comparability of financial statements of different companies. The accounting bodies understand the necessity of convergence of the two standards. Thus, the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) work on several joint projects to facilitate this process. This paper addresses the differences and similarities between IFRS and GAAP as regards accounting for financial instruments, long-term assets, and liabilities. IFRS 8-1: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial ...

In the current century, the accounting and finance field have witnessed increased efforts to converge accounting standards to globally accepted universal standards. The fact owes to the dire need of increasing comparability of the financial statements of different firms in the various countries. Undoubtedly, there exist key areas of departure in different accounting standards applied in different countries. Of more interest, is the difference that exists between the two dominant accounting systems used by various corporations around the globe. That is the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). It is, however, worth ...

Financial Accounting

[Student ID] [Section No.] [Submission Date]

Computations of the 2014 liquidity ratios for Coca-Cola and PepsiCo

The computations of the 2014 liquidity ratios for Coca-Cola and PepsiCo, including the current ratio, accounts receivable turnover, average collection period, inventory turnover, days in inventory and current cash debt coverage, are provided below.

The 2014 liquidity ratios for Coca-Cola and PepsiCo

According to the above-performed analysis, PepsiCo had better liquidity ratios in 2014 comparing to Coca-Cola’s financial performance in this regard. Thus, PepsiCo’s liquidity ratios, such as the current ratio, inventory turnover and current cash debt coverage, are significantly larger than Coca-Cola’s similar financial figures. As a result, PepsiCo’s average collection period, as well as the ...

Introduction

The pricing strategy should be an integral part of decisions in the marketing position, and it should depend on the overall development strategy of the business and marketing plans. Therefore, companies should not set one price but a pricing structure that should reflect on the variations in geographical demand, costs, the timing of purchase, requirement of market segments, order levels, the frequency of delivery, and service of contracts.

Why different pricing strategies are appropriate in some circumstances

Pricing is an important managerial decision, and most firms do not encounter pricing decisions in major ways on daily operations (Weygandt, Kimmel and Kieso, 2009, pp.59). However, there is a need ...

Q1. Accounting standards play a significant role in the financial statements preparation process. The main international standard-setting organization is the International Accounting Standards Board (IASB) headquartered in London. It issues International Financial Reporting Standards (IFRS) which are used in more than 115 countries and is gaining acceptance in other states as well. These standards are also used on most foreign exchanges. Moreover, the IASB also issues framework for financial reporting and international financial reporting interpretations. Besides, the International Organization of Securities Commissions (IOSCO) also plays a significant role in the international standard-setting process. It doesn’t develop accounting standards, ...

When we speak of the Irish Renaissance, we can also be referring to a Celtic Renaissance. We call it the Irish Renaissance because it was championed principally by Irish writers, one of which, at least, used the Celtic tradition to invigorate the Renaissance. Ireland at the turn of the 20th century was mired in passions. Rebellion was always on the horizon, economic collapse was always imminent, the catastrophe of the Potato Famine was still a racial memory, and the rule of the English was still unbearable. From this potentially destructive social structure came some of the finest writing of ...

Fixed asset expenditure is usually categorized into two classes namely: capital expenditure, and revenue expenditure. This classification is crucial because only capital expenditure is encompassed within the cost of fixed asset. Besides, classifying expenses is necessary in order to observe the matching principle, to enhance the true and fair reflection of financial statements, and to display accurate financial results (Lerner & Cashin, 2009). Capital expenditure is described as the amount of money that is used on either purchasing or improving long-term assets such as buildings, machineries, or equipment. It can also refer to an expenditure that is intended to ...

The cost which the organization incurs the production and acquisition of products and services which it intends to sell is very important. The pricing strategy of the organization is significantly affected by costs. Therefore, costs designed to tackle the challenges of the economic and the noneconomic factors very efficiently. The objective of the costing models is to categorize the factors of the marketing objectives of the company and the mission of the company (Gitman, 2003).

Accurately determination of cost is important in organization to remain profitable. Costing does not only require including direct and indirect cost associated with business ...

Managerial and financial accounting.

Management and financial accounting are both crucial tools for business growth but serve different purposes. The accounts produced by management and financial accountants have different audiences, represent different business durations, and have different uses in application. Financial accounting represents the financial status or health of an organization to create an appealing image to the external holders. Contrary management accounting is done to make decisions concerning daily business operations (Stolowy and Lebas, 2007).

Managerial accounting provides physical, economic and financial data used internally by business executives, operators and managers. Contrary, financial accounts provide financial data only used by outsiders such ...

Introduction

Recently, the role of a managerial accountant is widely discussed in the scholars. Johnson and Kaplan (1991) argue that management accounting is “too late, too aggregated, and too distorted to be relevant for managers’ planning and control decisions” (1). Haedr (2012) considered the mediation effect of management accounting information on motivation using contingency theory stating that “MAI usefulness accounts for a full (i.e. complete) mediation effect only on the relationship between centralization and MCS effectiveness.” (n.p.). As the number of views cannot present a unified opinion on the matter, the purpose of the current paper to reveal whether the functions of the ...

Abstract

The paper is all about analyzing and interpreting the financial condition of ABC Company, a manufacturing company that has specialization in making of cedar roofs and siding shingles. They are expecting sales revenue of $ 3 million in the next year by introducing new projects. Different project evaluation tools have been taken into account to the computing the necessities for the project like Net Present Value (NPV), Contribution Margin, Depreciation and Break Even points.

Introduction

Having a perfect financial position is a like a dream for every organization in the world, and it is the same aspect due to which many organizations of the world ...

Analysis: Next Plc

Assignment 1: Executive Summary: The report makes a recommendation about the balanced scorecard of Next Plc. It makes this recommendation on the basis of mission, vision and strategic objectives of the company. The strategy map links the perspectives of the balanced scorecard with the strategic objectives of the company. It is by adopting the perspectives mentioned in the balanced scorecard, the company can achieve its strategic objectives. The limitations of the balanced scorecard as a strategic management tool have also been identified and are largely dependent on an effective accounting system. Balance scorecard tends to put the interest ...

1. Suggest a methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls in the emerging markets to reduce risk providing a rationale of how risk will be reduced. The nature of the specific risk and projects usually determine the methodology to be implemented for the evaluation of capital investments. There are several traditional methodologies that management uses to measure the effectiveness of a specific investment. The three most popular methods for the evaluation of capital investments include; payback period, internal rate of return (IRR), and net present value (NPV). For further specificity, NPV and IRR are ...

[Your full name: first name, middle initial(s), and last name. Do not use titles (Dr.) or degrees (PhD). There is no doubt that balance sheet analysis is an important thing to be done in finance and this is helpful for the financial institutions, investors, share brokers, investment bankers, and other stake holders as well. This analysis will assist stakeholders to verify that company is doing well and make investment decision. This review will reflect the financial health of the company and comparative analysis of balance delivers an over-all hint of performance of the company. - The ...

Introduction

Budgeting is one of the most important parts of financial management. Budgeting allows the management to identify the areas where the company will be making expenses along with identifying cash inflows. Thus it helps the management to analyze the difference between the expenses and revenues and therefore by comparing these two, budget can provide estimated profits that the firm would make. Budgeting therefore helps the management of the firm to make decisions, to analyze the future cash inflows and outflows and thus make decisions accordingly (Besley, & Brigham, 2007). This report has been divided into three parts. The first ...

This Business plan is designed to setup fashion garments manufacturing and retail business in the city of Milan, Italy. The target market would be people within the age bracket of 13-49 and fashion conscious customers. The unique selling point will be attractive designs, quality, embroidery, fabric and sizes. The company will open two retail outlets in the city and arrange agreements with three leading departmental stores for the purpose of sale (Businessoffashions, 2007). The designs, fabric and quality will clearly differentiate our product from its competitors. To adequately cater to the needs of the customers, the market is ...

Guillermo owns the Guillermo Furniture store, which is specialized in making high and mid-end grade furniture. The company faces foreign competition from a company that makes use of advanced technology to produce quality products at low process. This has necessitated Guillermo to study various approaches of making his enterprise profitable and have a competitive advantage, as well as maintain his market share. The store will either be managed through high-tech or become a broker, to achieve the aforementioned goal. The paper analyzes the various alternatives, which are available to Guillermo that includes sensitivity analysis. The case presented is demonstrative of a typical ...

Part # 1:

The net operating income is calculated by deducting the operating expenses from the operating revenue. This is calculated before deducting the income tax and interest payments. The formula used for the calculation of the new operating income is as follow (Besley & Brigham, 2007): Net Operating Income = Net operating revenue – net operating income In reference to the case of the hospital under discussion, amount which will be paid by the hospital for different type of cases are given in the table below:

Next the total revenue which will be generated from the cases is given in the table below:

In order to find the total revenue generated from the cases by the hospital it ...

Accounting is one widest business related disciplines that we have in most college curriculums nowadays. I have personally majored in accounting and this being my final semester in college; it is only fair that I give a brief reflection of the various things that I have learnt in my four years in college. When I first decided to major in accounting, I was not entirely sure of the course content but I have to state that so far, I have not been disappointed. I have a variety of things beyond my initial imagination and it is therefore quite clear that ...

Introduction

This report analyses how Down East Pharmaceuticals is managing its receivables. Different companies in the industry are facing issues regarding management of their receivables and therefore it has become important for the firms to manage their receivables appropriately. This report analyzes the average collection period (ACP) in days for the firm along with average daily sales of the firm. Moreover, the report also uses the given data in order to forecast the uncollected balance schedule of the company.

Average collection period

Average collection period shows the time the company takes in order to receive the cash for the accounts receivables (Weygandt, Kieso, & ...

The current paper examines the issues of strategic management accounting including stages of strategic management process, the roles of management accounting, concept of opportunity costs, concept of relevant and irrelevant costs, cost classification and practical application of breakeven analysis. Besides, it contains examples illustrating some of the above listed concepts. The claims are supported with relevant arguments; the examples reflect the issues associated with running business in contemporary market environment. Each task is divided into sections related to different parts of each question. Each part of the question contains appropriate conclusions.

Main Stages of Strategic Management Process

According to ...

Want Beverages strengths

Want Beverages is a beverage company based in Burlington, Ontario owned by Bill and Angela Moffat. Even though the company owners could clearly picture where they want their company to be in the next few years, they are not sure of the means of making it get there. Strengths are those attributes that will enable the firm to increase its sales to a level that will ensure success in achieving its long-term goals. The firm operates in a dynamic industry, which requires it to position itself to achieve a competitive edge over other competitors (Fredrick and Gary, 2011).

The Moffats have represented various ...

The business organization under analysis in this case is Mueller-Lemhmkuhl that is involved in production and sale of apparel fasteners and it is located in Germany, Europe. The company has operations on the international front though it is faced with multiple challenges that inhibit is profitability and market dominance. The cost accounting model used has flaws and impinges on pricing of fasteners leading to reduced earnings due to intense competition from rivals. The President of the company, Dr. Richard Welkers attested that HI, a Japanese firm poses a great challenge to Mueller- Lemhmkuhl due to their price wars, as they price ...

Introduction: Accrual and Cash basis of accounting are the two methods of making a record of the business transactions in the organization’s records. According to Rich, Jones, Mowen & Hansen (2012) “Under Cash basis accounting, revenues and expenses are recorded when cash is received or paid regardless of when the revenues are earned or the expenses are incurred. Accrual basis accounting; links income measurement, to the selling activities of a company by recognizing revenues and expenses when they occur” (p. 135). The accrual basis of accounting adheres to the revenue recognition and expense recognition principle as laid down by the ...

The Sarbanes - Oxley Act of 2002 was passed after the corporate scandals of certain companies such as Enron and WorldCom. The responsibility of the senior management was increased to a higher level. First of all the management are supposed to establish and oversee the implementation of the internal controls of the firm (Strawser, 3). They must accept this responsibility. The acceptance of this responsibility must be disclosed in the financial statements. The management is also expected to disclose whether the internal controls have been effective in the financial reporting process. The Act expects the management to disclose the framework ...

Introduction

Management accounting can assist managers in an organization make timely and purposeful management decisions about the organization. Different organizations have different managerial accounting needs depending on their most essential area of business. Generally, management accounting deals with providing accounts and management reports to managers within the organization (Khan & Jain 2007). The information provided is crucial in assisting managers make informed decisions for control and management purposes. In contrast to financial accounting, which provides annual reports to external parties such as investors, creditors, shareholders and others, management accounting provides periodical reports (Coombs, Hobbs, and Jenkins 2005). These reports are important ...

Interest

Interest represent the payment for using money. It can be described as the difference between the amount of money repaid and the money originally borrowed. The interest is usually represented as a rate over a certain period of time (Nikolai, Bazley & Jones, 2010). Simple interest is the kind of interest on the original amount paid/received (principal), which does not take into consideration the interest accrued and paid before, as well as the time passed. Interest rate for simple interest is usually expressed as an annual rate, which is further adjusted for other periods. Therefore, Simple interest can be expressed as ...

ANALYSIS TOOLS

Owners of businesses are always looking for the best ways to make their business decisions. Accounting information is one of the tools that can be of great help to business managers in making decisions concerning the operations of the business (Bragg, 2011). In accounting, analysis refers to the assessment of the profitability, viability and stability of a business. These assessments are carried out by professionals in the accounting arm of the business; they prepare reports using ratios that make use of the information acquired from the financial statements and other reports of the company. These are then presented to the ...