MGAB03H3 Lecture Notes - Lecture 12: Cash Flow, Retool, Snowplow

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peachturtle345

20 Jan 2016

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Amaro clinic, a not-for-profit institution not subject to income taxes, is considering the purchase of new equipment costing ,000 to achieve cash savings of ,000 per year in operating costs. The estimated useful life is 10 years, with no salvage value. Moosehead community centre, a not-for- profit organization not subject to income taxes, is considering the purchase of a new snowplow costing ,000. The estimated useful life is eight years, with no salvage value. Moosehead"s minimum expected return is 12%, and it has a four-year cut-off guideline when evaluating an investment project. The manager estimates the following savings in cash operating costs: Tubefab inc. is considering replacing its metal tubing machine acquired. 2 years ago at a cost of ,000. This machine is still in good condition but management wants more flexibility and lower manufacturing costs. The actual current market value of the machine is ,500, with a salvage value of ,000 in 10 years.

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Explain how you think price changes and inflation affect thefinancial position and achievement of a corporation and whatoperational problems management faces due to inflation.

Chapter 11

International accounting and multinationalenterprises

6th Edition

scarletmuskrat214

1) Chapter 6: Questions and Exercises: 6.1, 6.2, and 6.3 (p.471):

6.1 Concept of Earnings Quality. The concept of accountingquality has two principal characteristics: the accounting datashould be a fair representation of performance for the reportingperiod, and the information should be pertinent to forecastexpected future earnings. Provide a specific example of pooraccounting quality that would hinder the forecasting of expectedfuture earnings.

6.2 Balance Sheet Quality and Earnings Quality. You will providea specific example of a management judgment, estimate, or choicethat could decrease both balance sheet and earnings quality. Bespecific as to how the judgment decreased quality in each of thetwo financial statements. Give a different example of how amanagement judgment, estimate, or choice could increase balancesheet quality, but potentially impair earnings quality.

6.3 Concept of Earnings Management. Define earnings management.Discuss why it is difficult to discern whether a firm does in factpractice earnings management.

2) Chapter 10: Questions and Exercises: 10.7 (p. 830):

10.7 Dividends as a Flexible Financial Account. Schwartz usesdividends as a flexible financial account. Compute the amount ofdividends you can assume that Schwartz will pay. Present theprojected balance sheet.

mauvelocust453

You work as a Management Accounting officer in a smalland medium organization operating in either a Manufacturing,Retail, Hospitality or Construction sector with not more than fifty(50) employees and an annual net turnover not exceedingÂ£500,000.
Management accounting plays a key role in organizations today andtherefore decision makers in the organization must understand howto create and use good management accounting information. Intodayâs business environment, business wants to track performanceinformation that goes beyond just the cost-based information ofhistoric general ledger systems provided by traditional financialaccounting information. Good management accounting involves aresponsibility to manage a wide variety of critical managementaccounting information using management accounting system andmanagement accounting techniques such as cost-volume- profitanalysis, marginal costing and absorption costing to producerelevant management report for informed decision making.
This was the summary of the speech delivered by a conferencespeaker about the role of management accounting and managementaccounting system in an organization. The General Manager of yourorganization sees management accounting function as very crucial inproviding management information well informed decision makingwithin the organization. Knowing that you are studying managementaccounting at the HND level, the organization sponsored you toattend this conference. After this conference the Generalmanagement has asked you (Management Accounting Officer) to write areport to him covering management accounting and managementaccounting system together with different costing techniques andreporting to enable the organization implement them.
Explain management accounting and give the essential requirementsof different types of management accounting systems to the chosenscenario giving examples. Explain different methods used formanagement accounting reporting that can also be used for the cscenario. (1000 words). NO PLAGIARISM PLEASE

MGAB03H3 Lecture Notes - Lecture 12: Cash Flow, Retool, Snowplow

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