Marilyn Edwards is the CEO of a mid-sized proprietary limited company. This company operates its business both online and at physical outlets. The business has been enjoying consecutive growth both in sales and profit for the last seven years. However, compared to the growth of sales net, operating profit growth seems lower. Marilyn appointed an analyst to explore the reasons for this inconsistency. The analyst came up with many interesting findings including:

• the business has been suffering from chronic physical inventory theft which has not been properly recorded and reported in a timely manner,
• preparation of management reports is taking a longer time,
• response time to customers’ queries is too high,
• information systems have been facing tremendous security threat, etc.

In addition, the present accounting systems are both inefficient and expensive. Due to these reasons, operating costs of the business are too high. This has contributed to making the difference between the growth of sales and net operating profit. The analyst has suggested redesigning the whole accounting process with a contemporary integrated accounting solution for the business.

Marilyn Edwards has taken the issue to the board and has decided to appoint you to implement an efficient automated accounting information systems. As you have technical knowledge, you need to give a detailed plan about the new efficient information system including its possible cost and benefits. In addition, if the project plan is approved you need to implement this information system as project in-charge for the business.

Assessment Tasks:

Answer all questions below:

1. Discuss the potential advantages, both tangible and intangible, the business can enjoy from implementing this system. Also give an analysis on the potential costs to implement the systems. How will you measure those relevant costs and benefits?

2. In doing a preliminary survey for the proposed automation of a new system you reached the tentative conclusion that some of the popular accounts and finance people with more than ten years of company service, will be displaced and perhaps asked to consider early retirement. Discuss how this scenario relates to the concept of “operational feasibility”. Discuss the potential impact on the success of the new system.                                                                                                                              

3. In implementing the automation systems, you are thinking to establish an in-house data centre. You need to submit a proposal comparing and contrasting the efficiency and effectiveness of an in-house data centre with an arrangement with an outsourcing vendor to own and operate a data centre for you, a service bureau, an applications service provider (ASP), Business Process Outsourcing (BPO), and software as a service (SaaS).                                                                                                                              

4. Upon completion of the system, how might you be involved in system testing? In answering this part, you assume that you are the manager of an accounts receivable department. Discuss in detail.
                                                                                                                                             

5. What mechanism do you want from the system developer so that efficient internal control is ensured? Also give your suggestions to ensure the cyber security of the business transaction.                                                                                                   

6. What implementation strategy should the company adopt to bring new information systems in practice? Explain with potential risk and benefits.                           

Surat Limited paid cash to acquire on aircraft on January 1, 2017, at a cost of 33,160,000 rupees. The aircraft has an estimated useful life of 50 years and no salvage value. The company has determined that the aircraft is composed of three significant components with the following original costs (in rupees) and estimated useful lives:

The U.S. parent of Surat does not depreciate assets on a component basis, but instead depreciates assets over their estimated useful life as a whole.

Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.

Required:

a. Prepare journal entries for this aircraft for the years ending December 31,2017, and December 31, 2018, under (1) IFRS and (2) U.S.

(1) Record the entry for the cost of aircraft on its purchase as per IFRS

(2) Record the entry for the depreciation of aircraft as per IFRS

(3) Record the entry for the cost of aircraft on its purchase as per U.S. GAAP

(4) Record the entry for the depreciation of aircraft as per U.S. GAAP

(5) Record the entry for the depreciation of aircraft as per IFRS

(6) Record the entry for the depreciation of aircraft as per U.S. GAAP

b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert IFRS balances to U.S. GAAP.

(1) Record the conversion entry needed for 12/31/17

(2) Record the conversion entry needed for 12/31/18

For the publicly traded U.S. company Apple (AAPL), analyze the current economic environment of the company and industry.

X Company has 200 units of Product K on December 31, 2020, which originally cost $15. The replacement cost of Product X is $7.5. Product X sells for $12.5 has associated selling costs of $1.5, and a normal profit margin would be $2.5. X Company treats any write-downs as losses.

Suppose X Company uses a perpetual LIFO inventory system. What would the journal entry be in dec 31, 2020 to record the measurement of inventory?

Suppose X Company uses a perpetual FIFO inventory system. What would the journal entry be in dec 31, 2020 to record the measurement of inventory?

Congratulations! You have decided to leave your career as a personal tax accountant to pursue a startup idea you have been thinking about for a long time. You are going to launch a new app that tracks all of your personal tax information throughout the year, so that you don’t have to load anything come tax time. You want this app to fully integrate with users payroll, investment accounts, and any other system that creates tax liability. You have validated this as a pain and see tremendous potential. You are an expert on personal taxation with over 10 years in the industry, but you are ready for a new challenge. About You: You do not have skills as a software developer, but you are excellent at tax law and procedures. You have never raised money before, but you have friends that are entrepreneurs that might know some investors. You have some experience in customer relations, but you have never run a full marketing campaign, especially for an online company. You know you cannot launch this company alone and have decided that you want to add at least one partner to the help you build this product. Through extensive networking and interviewing you have narrowed your search down to three individuals. All have expressed interest in joining your team for the right deal. Here are the three individuals:

1) Your former co-worker Jane. Jane has never worked in a startup environment, but she started her career as a very junior software engineer at Turbo Tax, a popular and large online tax program. Jane moved to your accounting firm where she was a software engineer for your firm’s internal accounting software. She has 15 years of experience as a software engineer and is well regarded as a strong engineer. You like Jane but only know her professionally. Jane is open to different roles with the new venture.

2) Your Aunt Jessica has expressed an interest in joining your team. Jessica has 25 years of experience starting and running a successful lifestyle business. Last year, out of nowhere, her company was acquired for $10 million. She wants a new opportunity and is willing to invest her time and some money, but wants an active role in management of the company, meaning you might take more of a product development role.

3) Through a networking event you met a serial entrepreneur named Maya. Maya started her career as a software developer, and has developed several different apps that she has tried to turn into startups. One of her apps, a grocery-tracking program, raised $2.5 million from angel investors and venture capitalists. After 3 years she had to close the company when they were unable to raise additional capital. You have been given positive recommendations from a friend who worked with Maya in the past, but you worry about her focus and if she will be motivated. Maya is looking to be a true co-founder in any venture she undertakes. Question

1A?: Evaluate the following candidates and make a decision on which candidate to hire. Be sure to evaluate the pros and cons of ?each person? in your answer: (20pts) Question

1B:? Based on who you decided to bring on the team, tell me what ?role/title? they should have and ?propose an equity package? that you think would convince them to join the team. ?Be sure to justify why you divided equity this way, it is not enough to just give me numbers?. (20pts)

Which of the following is not considered a permanent difference?

a. Interest received on municipal bonds.

b. Stock-based compensation expense.

c. Fines resulting from violating the law.

d. Premiums paid for life insurance on a company's CEO when the company is the beneficiary.

discuss the following about Petco Company:

• The organizational culture and the unique characteristics of the firm's work environment.
• Leadership and how the various concepts and leadership models discussed in the text are utilized in your firm's CEO and management team.
• The organizational design and structure of the firm.

Ben Bates graduated from college six years ago with a finance undergraduate degree.

Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its student to work while enrolled in its MBA program.

Ben currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $70,000 per year, and his salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 37 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 28 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program.

The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2,000 per year. Ben expected that after graduation from Wilton, he will receive a job offer for about $100,000 per year, with a $10,000 signing bonus. The salary at this job will increase at 4% per year. Because of the higher salary, his average income tax rate will increase to 32 percent.

The Bradley School of Business at Mount Perry College began its MBA 16 years ago. The Bradley School is smaller and less well known than the Ritter College. Bradley offers an accelerated, one-year program, with a tuition cost of $75,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $3,000. Ben thinks that he will receive an offer of $85,000 per year upon graduation, with a $10,000 signing bonus. The salary at this job will increase at 3.5 percent. His average tax rate at this level of income will be 30 percent.

Both schools offer a health insurance plan that will cost $2,500 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $15,000 per year at either school. The appropriate discount rate is 6 percent.

Assuming all salaries are paid at the end of each year, what is the best option for Ben

– from a strictly financial standpoint?

Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an inves\tment banker. He feels that an MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its student to work while enrolled in its MBA program. Ben currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $70,000 per year, and his salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 37 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 28 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2,000 per year. Ben expected that after graduation from Wilton, he will receive a job offer for about $100,000 per year, with a $10,000 signing bonus. The salary at this job will increase at 4% per year. Because of the higher salary, his average income tax rate will increase to 32 percent. The Bradley School of Business at Mount Perry College began its MBA 16 years ago. The Bradley School is smaller and less well known than the Ritter College. Bradley offers an accelerated, oneyear program, with a tuition cost of $75,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $3,000. Ben thinks that he will receive an offer of $85,000 per year upon graduation, with a $10,000 signing bonus. The salary at this job will increase at 3.5 percent. His average tax rate at this level of income will be 30 percent. Both schools offer a health insurance plan that will cost $2,500 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $15,000 per year at either school. The appropriate discount rate is 6 percent.

What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current position?

Gill Bates graduated from university six years ago with an undergraduate degree in finance. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either Canada University or America University. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program. Gill currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $65,000 per year, expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 percent. Gill has a savings account with enough money to cover the entire cost of his MBA program. The Faculty of Management at Canada University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $70,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $3,000 per year. Gill expects that after graduation from Canada, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4 percent per year. Because of the higher salary, his average income tax rate will increase to 31 percent. The School of Business at America University began its MBA program 16 years ago and is less well known than Canada University's Faculty of Management. America University offers an accelerated, one-year program, with a tuition cost of $85,000 to be paid upon graduation. Books and other supplies for the program are expected to cost $4,500. Gill thinks that he will receive an offer of $92,000 per year upon graduation, with an $18,000 signing bonus. The salary at this job will increase at 3.5 percent per year. His average tax rate at this level of income will be 29 percent. Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. Gill also estimates that room and board expenses will cost $2,000 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.5 percent. 1. Assuming all salaries are paid at the end of each year, which is the best option for Gill—from a strictly financial standpoint.