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
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:
Plant and equipment
Non-current liabilities and equity
Long term loans
£1 ordinary shares
Income Statement for the year ended 31 December 2019:
Cost of goods sold
Net profit before tax
Net profit for the year
(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
Acid test ratio
Interest cover ratio
Earnings Per Share (EPS)
All calculations (including the ratio formulas) must be clearly shown.
(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)
Operating profit margin
Inventories turnover period
Settlement period for trade receivables
Acid test ratio
Interest cover ratio
Earnings Per Share (EPS)
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.
(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
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.
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:
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, description
Level of risk
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:
Profit before tax
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.)
As part of the risk assessment phase, you conducted analytical procedures and the results are as below:
Debt to equity
Times interest earned
Gross profit ratio
Net profit ratio
Return on Sh funds
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.
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
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
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
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
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
Please answer that questions, with simple words by using international business management terminology’ and link the answers with the chapter ‘session’.
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.
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, )
You can find all the information from the
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
What is the relative size of accounts
receivable? How has this changed over the recent three years (2019, 2018,
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?