...| Finance 390 | Memo To: | Bob Saunders and Maria Gonzalez | From: | Kelly Moeller | cc: | Antar Salim | Date: | April 13, 2015 | Re: | Capital Budgeting | | | After reviewing your case, it appears that you are trying to determine whether Project A or Project B would be more feasible. Project A has an investment of about $2,000,000 on plant, equipment and supplies. During the first year of operations, the sales and cash flows will be low because you plan to sell the product at a cheap price. However, once you have established your product, you plan to raise the price of the chips. Project B is different because you are planning to sell your innovated chips to an established chip maker. The investment for this project is estimated at $2,000,000, but taking into account the sale of the patent for $200,000, the net investment will be $1,800,000. You are planning on a sizable profit the first year, but thereafter, the advancing technology will decrease the demand and decrease the profits. With the help of capital budgeting techniques, I am confident that we can help you decide which project would be the most beneficial over the five years. It appears that you plan to use a required rate of return of 15% for both projects and would ideally like to see a payback period of less than 3.5 years and a discounted payback period of less than 4 years. Capital budgeting deals with the investments in fixed assets, estimate expenditure, outflows and long term gains...
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...As many of you heard that, the Chief Financial Officer (CFO) for XYZ Construction Inc. has been promoted to the newly created position of Vice President of Overseas Operation. The CFO’s absence leaves a void in the knowledge base of the owners group regarding several key financial and accounting principles. There will be all hands training meeting on May 25 @ 1100 local time, expected to last until 1300 and will be held at the Denver Embassy Suites conference room. The hotel will provide the video conference need for the offsite employees who will not be able to attend in person. This training meeting will provide the employees the necessary knowledge and understanding of these key financial and accounting principles. That is associated with the financial management, accounting internal control cash management and Sarbanes-Oxley Regulations. During this training meeting agenda, the following financial and accounting principles will discuss: • Balance of the Account • Sarbanes-Oxley Act of 2002 • Cash Equivalents • Petty Cash • Voucher Background XYZ Construction Inc. performs horizontal construction work including roads, airfields, and bridges. The company’s headquarters is in Denver, Colorado and has 16 field offices located in 11 states. The workforce includes heavy and light equipment operators, civil engineers, and project managers along with an administrative staff in the headquarters facility with support staff in each of the 16 field offices. The company has...
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...Memo addressing core issues on topic of Ethics in Finance Winter 2011 Hsiu Chang Ethic is useful because it makes business stable and predicable. In a game, a cheater who is not caught will continue to reap huge rewards. However, if the trend continue, it will encourage other players to cheat or leave the game because they are being driven out of business. If a business operator always has to wonder if the other side is playing by the same rule, if a customer constantly wonder if the vendor is overcharging for the invoice, then business slow down, becomes inefficient. However, many cheaters are not caught or punished. "Business Ethics" is the third episode of the fifth season of the television series The Office. One of the female purchasing officer has been sleeping with a vendor in order to get discount for the entire purchasing department, and Outback Steakhouse coupons. When this is discovered, the head of the company turned a blind eye because it is good for the balance sheet (Wikipedia, 2011). Having good ethic provides a clear conscience, and if there was an ethical problem, shared the advantage gained by cheating with the entire team will once again clear the conscience. Ethic in finance is important because it will provide a clear picture of the company. The leader of the company cannot see where the company can go if they do not know where the company is. However, accountant in a non-public company works for the leader and this agents’ fiduciary duty...
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...Memo and Business Letter Student’s Name: Institution: Memo TO: CSU Funding campaign team members FROM: Yuqing and William DATE: February 5, 2014 SUBJECT: Funding for CSU This memo is a reminder of the meeting we have today. The agenda of the meeting is to talk about what we discussed and to get opinions on the matter. As the campaign group for the CSU funding, it is proper that we use all means and to gather all that is in our disposal for the task. We discussed on how we can acquire funding, and we agreed that we should not limit our campaign to only seeking finances. The essence of this program is to help increase CSU’s finances so that it can services its activities. This can be achieved through the provision finances and by enforcing measures to cut down costs. CSU has tried such measures, in the past, to cut down on its spending. It has done so by increasing its technology use to replace costly manual systems and by sharing services between departments and campuses. In our discussion, we suggested on the same idea that campaigning for funding does not exclusively mean seeking funds. We, therefore, discussed that if we can get people to volunteer, tutor or pursue internship programs, it would be a good measure of cutting down costs. Salary expenses are a significant part of the overall expenses and reducing these costs saves a lot of money for CSU. We also proposed that the target audience, for this plan of the campaign, is the graduates. Students do not have...
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...Evaluating Business Communication BCOM/230 January 30, 2012 Evaluating Business Communication The learning team assignment for the previous week has a formal memo sent to William, the CEO; a regular memo sent to Mark, the sales manager, and Dana, the marketing manager; and an email to the accounting department. These communiqués were to inform the individuals about the accounting team’s findings on JJJ Company’s files. Upon reviewing each communiqué from the previous week’s learning team assignment I have made the following evaluations. Each communication seemed to clearly convey the message of not moving forward with the acquisition of JJJ Company. The risk of acquiring JJJ is too great of a risk to take for Riordan at this time. The memos and email covered the unstable finances of JJJ Company and discussed the possibility of finding other channels to advance the growth Riordan Manufacturing. Other forms of communication may not have been better, but attaching JJJ’s financial reports to the memos may have benefitted the managers. The managers may not understand the financial reports, but the accounting team could have highlighted the information used to determine if JJJ was financially stable or not. Attaching these reports may have allowed for a better understanding of how the accounting team made the decision. The forms of communication were appropriate for the intended audiences and were kept professional. The individuals had all worked together before...
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...In this course we have learned about different types of business communiques that are used formally with communicated with other business partners. The communiques that we learned about are email, memo, powerpoint presentation and report. First let’s talk about emails and how effective they are within the business. When it comes to how well it conveyed the message well the status of how the due diligence is was not clearly the focal point of the message and the recommendation overshadows the message that is trying to be conveyed. It was the right type communication to be used. Emails are best for when talking between peers because is not a formal message. The ethical implications are the sharing of information over an email can be seen by others if the email is hacked or if your peer decides to show someone that they shouldn’t have. The information could be that shouldn’t be seen by any other person other than your peer. Then we have a formal written memo to the Chief Executive Officer. The message was very forward about not moving on with the investment. A formal memo is the best way to talk to such a high authority within your company. It shows the professionalism within yourself to your higher making it look like you know exactly what you are talking about and believing in what you are saying to them. Next there is the powerpoint presentation. With the powerpoint presentation it is very easy to read and understand with the slides and animations. It flows very well making...
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...Burlington Northern Railroad Company: Equipment Leasing To: Rob McKenney Vice President & Treasurer BNRR From: Paul Weyandt Director of Equipment Finance BNRR Date: July 15, 1990 Subject: Lease Vs Buy Option for Auto Racks Equipment This memo is in regard to the recent proposal of leasing or buying the bi-level and tri-level Auto Rack equipment for Burlington Northern Railroad Company. As indicated before, this equipment is a great investment for our company as it exceeds our company’s 20% hurdle rate and therefore investing in them would be a great decision for the company. Hence this memo will seek to explain the optimal way to finance this investment; in other words, this memo will try and demonstrate the most beneficial way to value the auto racks in terms of whether to lease them or own them. In terms of financing the deal, the company has 3 options. 1) Owning. 2) Leasing. 3) Seasoned Equity Offering. For the Owning option, BNRR would need to raise 22 million dollars to buy the equipment, which will put immense pressure on company’s books. The loan amount will be spread across 15 years and the estimated age of the equipment is 22 years old. Some of the disadvantages that I see with this plan are: • The company is already highly levered with long term debt representing 76% of its total capital structure. We’ve maxed out our debt capacity availability and therefore adding more debt to our books is not recommendable. • Railroad...
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...BTEC Level 3 Diploma in Business [pic] |UNIT |Unit 2: Business Resources | |UNIT CREDIT |10 Credits | |ASSIGNMENT |Assignment 1- The Role of Financial Resources – Costs & Budgets | |TUTOR NAME | | |STUDENT NAME | | |DATE ISSUED |Please refer to your scheme of work. Dates are recorded when handed out (as assignment is issued at different times | | |for different programmes). | |DEADLINE |Please refer to your scheme of work. Dates are recorded when assignment needs to be submitted (as assignment are to be| | |handed in at different times for different programmes). ...
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...Running head: FINANCE ACCOUNTING HUMAN RESOURCE Software Application Tametha Hughes University of Phoenix Software Application and Information Systems Software applications are used by and large in every company worldwide. Software application and information systems have proven to be virtually concise engines for steam lining every day business duties as we know it. The days for using type writers and dictation memo pads are just about out dated. Software is only as good as it is programmed to be. Computers have replaced the humans that have programmed them. While it is much easier in most cases to click a ‘mouse’ than it is to write long or short hand dictation when the computer inevitably breaks down the business world, home businesses etc are at a stand still. This paper will give an overview of software application for Accounting, Human Resource and Finance Management as it relates to the working world today. Finance Management Application System Net suite is the financial system that is most innovative to me and very easy to use. Net suite encompasses all financial management areas. The financial need of the company is more than met with the many functions of this information system. The system supports your inventory/supply chain needs, inventory, shipping, order and billing . There is a recurring revenue management, financial analytics and reporting that makes month end and year end closing just a few clicks to completion...
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...Andra S. Prillerman 6699 NW Omega Rd Port St. Lucie, FL 34983 (678) 708-7341 prillerman1908@yahoo.com EDUCATION M.A.F.M., Master of Accounting & Financial Management, June 2009 Keller Graduate School of Management of DeVry University B.B.A., Business Administration, May 1999 Tennessee State University OBJECTIVE Results-oriented Accounting Professional with excellent experience and strong managerial skills to attain a challenging position offering major responsibility and long-term asset. PROFESSIONAL EXPERIENCE January 2007 to May 2014 Prillerman & Associates Duluth, GA Accountant Prepares income tax return forms for individuals and small businesses: Reviews financial records, such as prior tax return forms, income statements, and documentation of expenditures to determine forms needed to prepare return. Interviews client to obtain additional information on taxable income and deductible expenses and allowances. Computes taxes owed, using adding machine, and completes entries on forms, following tax form instructions and tax tables. Consults tax law handbooks or bulletins to determine procedure for preparation of atypical returns. Occasionally verifies totals on forms prepared by others to detect errors of arithmetic or procedure. Calculates form preparation fee according to complexity of return and amount of time required to prepare forms. January 2007 to January 2010 ...
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...Bank Accountability Review Christy Harris Kaplan University CM107 Professor Amanda McClure April 28, 2015 Memo: TO: Leslie Fowler, President, BB&T Banking Institution FROM: Christy Harris, Chief Financial Officer SUBJECT: Bank Accountability Review DATE: April 28, 2015 Every year millions of people have their identities stolen. Consumer fraud is one of the most lucrative scams around the world. According to the article titled, “Holding Financial Institutions Accountable for Fraud,” posted Courtesy of the Civil Divisions Consumer Protection Branch, fraudsters have devised a new way to part hard working people from their money. By using a middleman, considered a third party processer, fraudsters are able to drain someone’s account without arousing suspicion. Often times banking institutions have turned a blind eye to fraudulent activity even after activity has been reported. Banks have implemented policies and procedures that prevent some types of illegal activity but more has to be done to combat this growing problem. The Department of Justice’s Civil Divisions Consumer Protection Branch is implementing a kind of approach in the battle for consumer safety. “Operation Chokepoint” cuts off bank account access thus protecting the sensitive information from being used. Several well-known banks, such as Wells Fargo and Bank of America, have been caught off guard with these schemes. No institution is safe from being hacked using old methods...
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...Scott Equipment Organization Memo To: Scott Equipment Organization Management Team From: Date: RE: Financing Options Scott Equipment Organization anticipates current assets to be around $66 million. The income tax rate for Scott Equipment is 40%, which would make the projected tax amount for next year around $26.4 million. The organization has three options available to when implementing their financial policies. The aggressive financial policy has a large amount of short-term debt, moderate policy utilizes a moderate amount of short-term debt, and the conservative option uses a small amount of short-term debt. Each financial policy has their own benefits, but it the best decision is based on the current and expected position of the company’s financials is. The expected rate of return on the stockholder’s equity is .99%. Based on the level of an aggressive financial policy the net working capital position would be at $42.50 million and the current ratio would be at 2.81. According to the moderate financial policy the net working capital position would be at $49 million and the current ratio would be at 3.88. The conservative financial policy has the net working capital position would be at $55 million and the current ratio would be at 6.00. Based on the aggressive financial policy the net working capital is at its lowest as is the current ratio. The moderate financial policy is a bit higher in both the net working capital and the current ratio. The conservative financial...
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...PA2 EXAMINATION BLUEPRINT 2011/2012 Effective Date: December 2011 This document is the property of: CGA-Canada 100-4200 North Fraser Way Burnaby, British Columbia Canada V5J 5K7 Phone: 604 669-3555 Fax: 604 689-5845 www.cga.org/canada Updated: April 18, 2011 CGA-Canada PA2 Examination Blueprint 2011/2012 Table of Contents About the Examination Blueprint ......................................................................................................................... 2 PA2 Examination ................................................................................................................................................... 2 PA2 Course ........................................................................................................................................................ 2 Prerequisite Courses for the PA2 Examination .................................................................................................. 3 Competency Weightings ....................................................................................................................................... 3 Structure of the Examination ................................................................................................................................ 5 Examination Competency Coverage ..................................................................................................................... 6 Scoring Model and Evaluation of Candidate Performance .......
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...UC Berkeley - Haas School of Business Corporate Finance, EWMBA 231 Spring 2016 Prof. Thomas M. Mertens Assignment 1 Saturday, January 30 Case: Wilson Lumber Company (available on study.net) Readings: Berk and DeMarzo ch. 26-27, Higgins ch. 2-4 Questions: Your job is to evaluate Mr. Wilson’s loan application for the Northup Bank, and ultimately, to decide whether or not to grant a loan. To start with, Mr. Dodge needs a memo from you describing Wilson’s business, the likely reason(s) for his funding need, and the possible ways in which it can be financed. First, focus on Wilson’s business, leaving finance issues aside. 1) Describe briefly the lumber business and what you think are the key factors to be successful in it. 2) How well is the Wilson Lumber Company doing from an operational (as opposed to financial) standpoint? Now turn to some financial issues. 3) Describe briefly Wilson’s financial policy over the past few years. 4) Why does Mr. Wilson have to borrow money to support his business? a) A useful beginning to the analysis is the preparation of a Sources and Uses (or Fund Flow) Statement for the period 1982 through 1985’s first quarter. The “Sources and Uses Statement” helps you get a quick (but rough) picture of where cash is coming from (Sources) and where it is going (Uses). To construct the statement: - Compare Wilson Lumber’s Balance Sheet in 1982 and 1985 (Q1) - Classify each Asset that has increased (decreased) as a Use (Source) - Classify...
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...and channeling resources In the present day socio-economic scenario, the leasing companies have been continuously playing an increased role in financing industry, trade and commerce and housing, thereby contributing significantly to the economic development of the country. The leasing sector has contributed significantly over the years, despite several constraints. With the challenges of time, the overall growth of the leasing business achieved through diversification of products and services and aggressive marketing with special focus on the SME sector, is indicative of the industry’s contribution to our national economy. It is worth mentioning that, within two decades; the leasing companies have emerged as an alternative source of finance and well sought after arm for credit for SMEs. In order to catch up with the demands of time, most leasing companies have diversified their products and services into other areas like small loans, housing loans, start-up working capital and domestic factoring of accounts receivable. Further to reducing dependence on traditional borrowings from banks for meeting their working capital requirements, some of them have already introduced new financial instruments like Bonds, Securitization of Assets, Syndication Services, Merchant Banking, Stock Brokerage Services, etc which have set new trends for others to follow. 1.2 Objective of the Report There had been some objectives set forward in doing this report so that it can be determined...
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