Topic: Management Accounting Q& A paper

Question 1
Risk management is not in a silo any more but is a, ‘holistic, co-ordinated and
integrated process which manages risk throughout the organisation’ (CIMA, 2008)
Required:
Discuss the requirements for an effective risk management framework and critically
evaluate the use of Enterprise Risk Management within organisations.
[50 marks]
[Maximum 1000 words]
Question 2
Pick Ltd is a medium sized dairy farmer specialising in providing local organic produce
in the East Midlands. It is proud of its premium quality dairy food, produced organically
at its farms and processed and packaged on site, delivered as fresh as possible to its
local customers.
The Senior Management Accountant has introduced Activity Based
Costing/Management (ABC/M) within the company and is now using this to evaluate
customer profitability. Information for its two largest customers are detailed below.
Customer X
Customer X has recently developed links with local farmers so that stores can offer
locally produced goods; it has found that demand for locally produced dairy foods
such as milk and yoghurts is significant and growing.
Last year, the annual revenue from the Customer X account was £625,000, with an
operating profit contribution of £250,000.
Customer X took 30 deliveries last year with average mileage being 25 miles per
delivery. The company placed 7 orders in the year, within this figure there was 1 priority
order. A sales person visits Customer X’s HQ three times per year to manage the
relationship and introduce new product developments. Customer X requires an invoice
every quarter.
Customer Y
Customer Y stores are smaller than Customer X stores and are usually located within
local shopping areas. Customer Y markets itself as a supplier of local goods and this
account has been long established with Pick’s. Last year, the annual revenue was
£750,000, with an operating profit contribution of £350,000.
Last year 85 deliveries were made with an average mileage of 90 miles per delivery. A
sales person visits Customer Y‘s HQ every month to finalise the order for that month.
In addition to the monthly orders Customer Y averages 1 priority order per month.
Customer Y requires an invoice per month.
The ABC/M database includes the following customer related cost drivers and rates.
Activity Cost
Order taking £50 per order
Order processing £95 per order
Delivery £250 per trip and £2.50 per mile
Additional cost of priority orders
(Order taking, processing and delivery)
£800 per order
Visit to customer £700 per visit
Invoicing £45 per invoice
Required:
Critically evaluate the benefits and potential challenges of customer profitability
analysis, and prepare a customer profitability analysis for customers X and Y before
drawing on your calculations to provide a commentary for Pick’s management
including any specific recommendations for action.
[50 marks]
[Maximum 650 words. Calculations are not part of the word count]

Type of service-Academic paper writing
Type of assignment-Term Paper
Subject-Accounting
Pages / words-6 / 1650
Academic level-Undergraduate
Paper format-Harvard
Line spacing-Double
Language style-UK English

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Topic: financial statement McCrea plc UK

SECTION A – ACCOUNTING

McCrea plc is a UK manufacturer of garden furniture. The company has provided the following financial statements:

Statement of Financial Position as at 31 December 2019:

        £’000
Assets 
Non-current assets 
Property1,050
Plant and equipment850
Current assets 
Inventory640
Trade receivables1,230
Cash80
  
Current liabilities 
Trade payables850
Taxation40
Bank overdraft125
Interest payable30
  
Non-current liabilities and equity 
Long term loans700
£1 ordinary shares750
Reserves1,355

Income Statement for the year ended 31 December 2019:

 £’000
Sales revenue12,100
Cost of goods sold(9,590)
Gross profit2,510
Operating expenses(1,935)
Operating profit575
Interest expense(50)
Net profit before tax525
Taxation(115)
Net profit for the year410

Required:

(a)Calculate the following ratios for McCrea plc in 2019.

  • Return on Capital Employed (ROCE)
  • Operating profit margin
  • Inventories’ turnover period
  • Settlement period for trade receivables
  • Current ratio
  • Acid test ratio
  • Gearing ratio
  • Interest cover ratio
  • Earnings Per Share (EPS)

All calculations (including the ratio formulas) must be clearly shown.

   (9 marks)

(b)The ratios set out in the table below are those calculated for McCrea plc based on its published financial statements for the previous year (2018)

Return on Capital Employed (ROCE)15.01%
Operating profit margin4.9%
Inventories turnover period19 days
Settlement period for trade receivables41 days
Current ratio1.63
Acid test ratio1.35
Gearing ratio37.44%
Interest cover ratio8.7 times
Earnings Per Share (EPS)22.8p

Using the ratios you calculated (in part a) for McCrea plc in 2019 and the above ratios for 2018, comment on the company’s performance and financial position for the two years.

(24 marks)

(Total: 33 marks)

(maximum 200 words in total.  Tables, calculations, annotations for worked answers do not count in the word limit)

Type of service-Academic paper writing
Type of assignment-Coursework
Subject-Accounting
Pages / words-2 / 550
Academic level-Undergraduate
Paper format-Harvard
Line spacing-Double
Language style-UK English

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Topic: Auditing and Assurance report assignment

Report

Background

CurtainsMaster is a large proprietary company established in North Queensland in the 1990s, selling a wide range of high-quality fabric curtains for household decoration. The company purchases products from manufactures in Vietnam, Bangladesh, and China, and then sells its products to wholesales customers in Australia, Germany, and the United States. The company also places its products on consignment in various small retail stores in Queensland. Sales mainly peak from the second half of the financial year, generating an average of 60% of revenue for the whole year. In past years the company has performed well, with its profit rate at around 12% and an average increase in annual revenues of 5%.

In the last two years, the company has extended its marketing from Germany to other countries in Europe. As a result of this, in the budget for the year 2019-2020, the company while aiming to maintain its profit rate, plans to increase its revenues by 8%. The company uses USD to pay its suppliers and EUR or USD in its dealings with customers.  

While the business is expanding in Europe, sales in Australia and US are struggling to reach their targets. These markets are quite competitive, providing more affordable products with a large range of designs and choices. Further, in recent years, countries like Vietnam and China have become more eco-conscious, attempting to reduce their industrial impact on the environment. As such, textile manufacturing has been discouraged with strict regulations. Some of CurtainsMaster’s suppliers have reduced their production capacity and have experienced an increase in production costs. 

Managing inventory on consignment has been an issue for CurtainsMaster in the past 12 months. On several occasions, the company lost track of their inventory movements and status at the various retail premises. To support the business expansion and strengthen internal controls for inventory, in January 2020 the company installed a new inventory management system on the cloud, which allows inventory movements to be followed up, from production to end-users. The system will also help to follow up and calculate inventory ageing from the day the inventory was entered into the system. In the past five years, old and work-in-progress inventory has piled up due to new designs, orders cancelled by customers, or specification problems. When the new system was implemented these stock items, together with others, were entered into the system as the beginning balance for the inventory. 

Since January 2020, CurtainsMaster has also experienced significant impact due to the COVID-19 pandemic. Approximately 50% of customer orders due to be delivered in May, June and July have been cancelled. Payments from customers have been delayed as they have also been impacted by the situation. Since the middle of February the company’s sales at small retail stores have decreased dramatically, by approximately 70%. From the middle of March, 60% of staff (both casual and full-time) were made redundant. For the last three months of the current financial year, the company is expecting to have no sales but still pay another 10% of the current total expenses. To minimise the impact of a tight cashflow, in February, when the financial market was peak, the company sold all its financial investments and generated some extra cash for the business before the market dived in March. However, things can get worse; there is much uncertainty and no clear indication of when the pandemic will end.

Financial Information:

Requirements

Assume you are one of the audit team members who will conduct the financial report audit – year ending 30 June 2020 – for CurtainsMaster. Using the company’s information given above, prepare a report dated June 10, 2020 for the audit manager outlining the audit plan. As it is the beginning of the audit do not prepare a final audit report/opinion. The report should cover the following areas under the suggested headings:

  1. Risk Assessment

From the background and financial information given above:

  • list six (6) potential significant risks, including both inherent risk and control risk,
  • for each risk listed, identify the type of risk (inherent risk or control risk) and its level (‘high’, ‘medium’, or ‘low’ in relation to the likelihood and materiality of the risk occurring), the associated financial accounts, and key assertions that would be affected. (A risk should be classified as ‘high’, ‘medium’, or ‘low’ if it is ‘highly likely’, ‘maybe’, or ‘unlikely’ respectively to be present and material.)

Please use the following table to present your answers:

Potential risk – type of risk, descriptionAccountsAssertionsLevel of risk
    
    
  • Planning Materiality

The audit firm dictates that one planning materiality amount is to be used for the financial statement as a whole. The planning materiality bases are as follows:

BaseThreshold (%)
Profit before tax5-10
Turnover0.5-1
Gross profit2.0-5
Total assets0.5-1

Based on the information given and your risk assessment,

  • select the base for planning materiality that you believe is most appropriate, and provide three reasons justifying the base you have chosen,
  • calculate the planning materiality.

 (You can refer to Cloud 9 case and textbook pages 123-125 and other resources for further understanding.)

  1. Analytical Procedures

As part of the risk assessment phase, you conducted analytical procedures and the results are as below:

 InterimBudgetActualActual
Account30-Jun2019-202030-Jun30-Jun
202020192018
Total revenue100%100%100%100%
COS55%54%56%58%
Salaries expenses28%15%14%13%
Administration expenses14%8%7%6%
Selling expenses8%5%4%4%
Borrowing Costs5%2%2%2%
RatiosInterimBudgetActualActual
30-Jun2019-202030-Jun30-Jun
202020192018
Liquidity ratios    
Current ratio                  1.4                   –                    2.0                  2.3
Quick ratio                  0.3                   –                    0.9                  1.0
Inventory turnover                  1.3                   –                    4.3                  4.9
Accounts receivable                  2.6                   6.5                  6.8
Solvency ratios    
Debt to equity                  1.4                   –                    0.9                  0.8
Times interest earned-1.0                 7.0                  6.1                  6.2
Profitability ratios    
Gross profit ratio0.3620.460.440.42
Net profit ratio-0.102               0.12                0.12                0.13
ROA-0.054                 0.12                0.13
Return on Sh funds-0.116                 0.23                0.23

Using the above analysis and financial information given, discuss the results of the analytical procedures outlining six (6) potential problem areas (that is, where possible material misstatements in the financial reports exist) and any other special concerns (for example, going concern). Specify the account balances and related assertions that would require particular attention in the audit.

  1. Conclusion

Based on the risk assessment processes and analytical procedures undertaken in the previous sections, conclude the overall level of risk, materiality of the firm and recommend the areas of audit focus.

Type of service-Academic paper writing
Type of assignment-Case study
Subject-Accounting
Pages / words-2 / 1000
Academic level-Junior (College 3rd year)
Paper format-APA
Line spacing-Single
Language style-AU English

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Topic: Budget Report researchpaper

Assessment 3: Budget Report Requirements
Part A – Budget Report Spreadsheet (36 + 36 = 72 marks):
Your manager would like you to examine and assess the financial viability of one of the proposed
projects. Specifically, your manager would like you and your team to complete the ‘Budgeted Income
Statement’ and the ‘Cash Budget’ for the project your team has selected and for the period between
January 2021 to December 2021 inclusive.
For this part of the assessment, you need to complete the Cash Budget and Budgeted Income
Statement. All the ‘other’ budgets will not be marked and have only been included to help you carry
out any calculations you might need to fill out the Cash Budget and Budgeted Income Statement.
Your manager would like you to use the ‘usual’ Excel spreadsheet budgeting template, which can be
found online via Cloud Deakin. Simply navigate to Resources -> Assessments -> Assessment 3 – Budget
Report -> “MAA103 Budgeting Assignment.xlsx”.
Page 6 of 8
Part B – Written Letter of Advice (18 marks):
In addition to the budget report spreadsheet, your manager would like your team to provide a letter
of advice to the client (max. 1000 words).
In the letter, your manager has asked you to clearly outline which project you chose to analyse,
highlight the key results from your analysis surrounding the budgeted income statement and cash
budget. In your discussion, your manager would like you to make a suggestion on how the clients
could improve the financial success of the project.
Additionally, your manager would like your team to identify and discuss TWO non-financial issues
that the clients should consider when deciding about the project. In your discussion, clearly explain
to the clients how these issues might impact positively/negatively on the ultimate decision.
Lastly, your letter should clearly indicate your recommendation as to whether the client should
proceed with the chosen project

Type of service-Academic paper writing
Type of assignment-Research Paper
Subject-Accounting
Pages / words-5 / 1375
Academic level-Freshman (College 1st year)
Paper format-Harvard
Line spacing-Double
Language style-AU English

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Topic: Competitive strategies critical essay

Description

Question :
In assessing drivers of a firm profitability, it is important to understand its core competitive strategies. Two basic competitive strategies are (i) cost leadership; and (ii) product/service differentiation. Using examples, critically explain five characteristics of cost leadership strategies.

References:
S.H. Penman, Financial Statement Analysis and Security Valuation (McGraw Hill) Fifth Edition
K.G. Palepu, V.L. Bernard, P.M. Healy and E. Peek. Business Analysis and Valuation: IFRS edition (Thomson Learning)
R.H. Parker, Understanding Company Financial Statements (Penguin).

Type of service-Academic paper writing
Type of assignment-Critical essay
Subject-Accounting
Pages / words-4 / 1000
Number of sources-8
Academic level-Master’s
Paper format-Harvard
Line spacing-Double
Language style-UK English

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Topic: Budget Calender and Size of Budget

hDescription

Use the internet to access the latest annual budget and Comprehensive Annual Financial Report (CAFR) for Houston, Texas.
Write a 275-word overview of the government.
Include the following information in your overview:
• Size of budget and its interrelationship with the CAFR
• Budget calendar

Type of service-Academic paper writing
Type of assignment-Essay
Subject-Accounting
Pages / words-1 / 275
Academic level-Junior (College 3rd year)
Paper format-APA
Line spacing-Double
Language style-US English

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Estimating risk Return

Estimating risk Return
overview
respond to two questions and solve five computational problems related to estimating risk and return
by successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and criteria
identify challenges for practitioners in using expected return.
explain how different allocations between risk-free security and the market portfolio can achieve any level risk
calculate expected return, considering the possibility of differing economic states.
calculate required return, considering the risk-free rate and risk premium
define finance terminology and its application with the business environment

Type of service-Academic paper writing
Type of assignment-Essay
Subject-Not defined
Pages / words-4 / 1100
Academic level-Sophomore (College 2nd year)
Paper format-MLA
Line spacing-Double
Language style-US English

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Topic: Globalization MLA essay

Description

This paper needs to be in MLA format
The topic is globalization. Below are the questions needed to be answered.

What are the changes

(e.g. -Individualism,

-Democracy,

-Climate change,

-Sexual Freedom,

-Polarization of Wealth,

-Multi-National Trade,

-Migration,

-Culinary Cultural Fusion,

Pandemics, etc.) that have occurred across the planet as a result of intensification of globalization (1950 – Present)?

Do you think the intensification of globalization has a had a constructive (e.g.serving a useful purpose tending to build up) or a non-constructive effect on people world wide?

If neither, what do you think the result will be in the near future?

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Topic: GAME: Competing in Africa’s Playing Field

Description

Please answer that questions, with simple words by using international business management terminology’ and link the answers with the chapter ‘session’.

Thinking Globally

13-10. Explain why Game chose the countries it entered and why in that order.

13-11. How does the African retail market differ from the more developod world. and what are the implications for doing business there?

13-12. In September 2010, Wal-Mart announced that it was making a $4 billion bid for Massmart, the holding company of Game. Why was Wal-Mart entering the African market for the first time, and why was it choosing this entry mode?

13-13. Analyse the case according to the concepts you studied in the chapter.

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Topic: Financial Accounting research paper

  1. Revenue Recognition: Revenue is the largest item on the income statement, and we must assess it on a quantitative and qualitative basis. • Use horizontal analysis to identify any time trends.

Identify the trend of Revenues reported in the last three years, (compare 2019 to 2018, and 2019 to 2017, )

https://www.macrotrends.net/stocks/charts/M/macys/financial-statements

You can find all the information from the above website

Horizontal and Vertical Analysis - dummies

Example:

  • Accounts Receivable: You need to perform analysis for Macy’s. The following provides some guidance for analyzing a company’s accounts receivable.
    • Are sales primarily on credit, or is a typical sale transacted in cash? Consider the industry and the company’s business model.
    • What is the relative size of accounts receivable? How has this changed over the recent three years (2019, 2018, 2017).
    • Determine the accounts receivable balance relative to gross accounts receivable.
    • What did the company record for bad debt expense? Compute the common size amount.
    • Compute accounts receivable turnover and days sales outstanding for all three years reported on the income statement. One will obtain additional balance sheet information to be able to compute average balances for the denominator. Consider the current economic environment and the company’s competitive landscape. Would one expect collection to have slowed down or sped up during the year?
    • Does the company have any large customers that increase its credit risk?
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