Assignment for Clarification of a Few Accounting Concepts
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Assignment for Clarification of a Few Accounting Concepts
Instructions
In addition to recording and reporting information, accountants often need to explain information to internal and external stakeholders. Dan’s Dependable Delivery needs your help in understanding some accounting concepts.
Dan’s Dependable Delivery is considering making an investment in another company. The two companies under consideration are AAA Inc. and ZZZ Inc. You are given a set of financial information for each company on the Excel spreadsheet linked here. Year one is the current year and year 2 is the previous year.
When considering AAA Inc. and ZZZ Inc., the Board of Directors at Dan’s Dependable Delivery needs clarification on several accounting concepts. Each of the areas in question relate to the six modules covered in this class.
When answering the Board of Director’s questions, you will want to give complete, concise, and accurate information. The Board needs to make a good decision in a short amount of time, and they do not have time to read long reports.
Each written response should be in complete sentences, single spaced, and well organized.
Simple tables may be used when appropriate. Be sure to explain the information in your table. Each response will be about half a page; if it is more than three-fourths of a page, please revise your explanation.
When calculations are needed, an Excel spreadsheet may be used. Make the information concise and easy to understand.
Accounting Concept #1 Fixed Assets:
The Board of Directors at Dan’s Dependable Delivery would like clarification on each company’s assets. Please address the Board of Directors’ concerns.
The Board is questioning how ZZZ Inc., which has more Property Plant and Equipment, can take less depreciation expense than AAA Inc. However, AAA Inc. has less Property Plant and Equipment, but the depreciation expense is more. Explain.
Which depreciation method does each company use and how do they decide on a method?
How does depreciation expense affect the financial statements?
Is either company investing in new PPE? How do you know?
What types of intangible assets does each company have? Has either company acquired intangible assets this year? If so, what is it?
Accounting Concept #2 Liabilities:
The Board of Directors at Dan’s Dependable Delivery is concerned about each company’s current and long-term debt. These are their questions:AAA Inc. and ZZZ Inc. have liabilities with a known amount, estimated liabilities, and contingent liabilities. What are these liabilities for each company, and how are they accounted for on the financial statements? Give Examples of each.
Did AAA Inc. or ZZZ Inc. issue any bonds in the current year? Give the specifics of each bond issued (number of years, interest amount, was it issued at a discount, premium, or at par). Did either company have bonds from previous years? Explain.
If AAA Inc. was considering a short-term note to purchase inventory for a special project, how much interest would they pay? On October 1, AAA Inc. records a short-term, six-month, 7% note in the amount of $5,000.
What is accrued interest on December 31? What is the maturity value of the note? How much is the total interest paid?
Accounting Concept #3 Equity:
The Board of Directors at Dan’s Dependable Delivery would like clarification on each company’s ownership or equity. Use the stockholders’ equity section of the balance sheet to explain what happened to stock ownership in company AAA Inc. and ZZZ Inc.
For each company answer these questions for the Board of Directors:
What kind of stock does each company issue?
Explain the difference between authorized, issued, and outstanding shares.
How many shares are authorized, issued, and outstanding for both companies in year one and year two.
How many shares did each company issue in the current year?
Did either company pay dividends in the current year? If so, how many shares received dividends? If they paid dividends, what was the total amount of dividends paid? What are the dividends per share and how often are dividends paid?
Prepare a Statement of Retained Earnings for the current year for each company.
Accounting Concept #4 Cash Flow:
The Board of Directors at Dan’s Dependable Delivery would like clarification on each company’s cash flows statement. Use the financial statements, specifically the statement of cash flows to explain the cash flows of company AAA Inc. and ZZZ Inc.
For each company answer these questions for the Board of Directors:
What is the purpose of a statement of cash flows, and what important information can be gleaned from it?
What method of presenting cash flows from operations does each company use? How do you know?
Does the cash flow from operations provide enough cash to cover investing and financing activities for both companies in all years presented? Why is this important?
What does the cash flow statement disclose about the cash management for each company? With respect to cash, which company is stronger?
Accounting Concept #5 Analysis:
The Board of Directors at Dan’s Dependable Delivery would like clarification on each company’s financial health and stability. Use tab 2 (Ratios) of the Excel Spreadsheet to calculate the following ratios for company AAA Inc. and ZZZ Inc.
For each company answer these questions for the Board of Directors:
What conclusions do you come to about the profitability of each company?
What conclusions do you come to about the liquidity of each company?
What conclusions do you come to about the return on assets for each company?
What does the debt ratio tell you about each company?
What conclusions do you come to about the return on equity for each company?
Considering the full ratio analysis which company is a better investment and why?
Accounting Concept #6 Budget:
The Board of Directors at Dan’s Dependable Delivery wants a glimpse into the future. Use tab 3 (Income Statement) of the Excel spreadsheet to prepare an income statement for the coming year for both companies. Base your income statements on the following assumptions:
Sales are expected to increase 5% for AAA Inc. and 2% for ZZZ Inc.
COGS will increase 1% for AAA Inc. and decrease 1% for ZZZ Inc.
Selling and Marketing Expense will increase for AAA Inc. by 2% and remain constant as a percent of sales for ZZZ Inc.
Administrative Expense will remain constant as a percent of sales for each company.
Depreciation will increase 5% for each company.
Interest expense will increase 10% for each company.
Income taxes will remain constant as a percent for each company.
No new shares will be issued or purchased in the coming year.
After preparing the budget for each company, which do you feel is the better investment with respect to the coming year?
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!