...818-867-5309 dean.scott.5@my.csun.edu Assistant: Tri Duong 18111 Nordhoff Street, Northridge, CA-91330 Office: 818-324-5282 Fax: 818-233-2284 tri.duong.497@my.csun.edu Executive Summary Purpose: To explore and analyze Craig's Crocodiles’ different accounting options for how and when they should treat their revenue. In addition, this report will also analyze the potential legal liability Craig’s Crocodiles is accountable for after breaking their lease agreement with Pauly Property Management Services. Background: Craig’s Crocodiles was established on January 1st, 2008 as a company that catches crocodiles and sells them as pets. After their first year of business, Craig’s Crocodiles is looking to expand. This means that the company will need to prepare income statements to show their past and projected profits in order to qualify for loans. In addition, Craig’s Crocodiles will also need to break their office and warehouse lease early in order to have more room for the expanded business. Accounting Analysis: Selling crocodiles as pets is a unique business model that has never been done before and therefore there is no established standard to follow for when...
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...is to conduct a comprehensive business performance analysis using financial historical information/analysis of Costco. While Costco may not seem to have the revenue, assets and market share like similar and larger companies such as Wal-Mart and Target they are without a doubt a very profitable and successful company. What Costco lacks in high margins, they make up for in being a highly efficient company boasting high asset and equity turnover while maintaining optimum liabilities and debt to equity ratios. Costco is a great company that is seeing profitable success due to their business model that prioritizes quality for both its customers and employees. However, emerging with the 21st century are new ways of doing business. Online companies like Amazon.com are quickly taking market share not just from Costco but also their biggest competitors: Wal-Mart and Target. In order to stay relevant, Costco will need to maintain their business growth in the coming years and also find ways to compete against online retail giants like Amazon.com. 1. Company Background Costco is a multi-billion dollar warehouse company that operates on a global scale. Consumers can frequent Costco to find merchandise including but not limited to groceries, electronics, furniture and home goods, pharmaceuticals and gasoline. Costco specializes in purchasing its merchandise wholesale and re-selling to consumers. Consumers who frequent the warehouse club are required to pay annual membership fees; a membership...
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...AMS ACCOUNTING LLP Project Report on Audit of Matty Kitchens vikas 8/1/2014 Table of Contents Analytical Review 3 • Comparison 3 Changes in Income statement 3 Changes in Balancesheet 5 • Ratio Analysis 7 Liquidity position 7 Profitability 8 Leverage 8 Asset Management 8 Audit Risk assessment and Audit Approach 9 • Going concern risk 9 • Revenue 10 • Expenses 11 • Inventory 11 • Account Receivables – valuation and existence 13 • Goodwill 13 • Account payables 14 • Capital Assets 15 Materiality 16 Evaluation of Internal Auditor work 17 Additional procedures performed at future inventory count 18 • Procedures performed during inventory count 19 • Procedures followed after inventory count 20 Audit program for Property Plant and Equipment 22 ROMM 22 Approaches to testing 22 Audit Test 23 Audit Documentation and Audit File 25 • Importance of audit documentation 25 • Parts of Audit file require Documentation 26 Auditor Report 28 Analytical Review Analytical review of Matty Kitchens is done using comparison and Ratio analysis. This analysis is based on extract of financial statement provided by Matty Kitchens. Matty Kitchens, a distributor of packaged meals and these meals are prepared by the matty kitchens itself. Company sell these products to grocery stores nationwide. Matty kitchens operates in a competitive environment. Because increased competition could affect the...
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...CASE EXAMINATION CELEBRATIONS AND MEMORIES LTD. (CML) MAY 2008 Copyright © 2008 The Society of Management Accountants of Canada All rights reserved. No part of this manual may be reproduced in any form without the permission of the copyright holder. TABLE OF CONTENTS MAY 2008 Case Examination Page Case Question: Backgrounder .................................................................................. 1 Additional Information .................................................................... 16 General Comments on Performance ...................................................... 24 Steps for Approaching Business Strategy............................................... 32 Assessment and Solution Notes for Markers .......................................... 35 Marker Assessment Guide ...................................................................... 66 Sample Response – Successful Attempt #1 ........................................... 78 Marker’s Comments – Successful Attempt #1 ........................................ 98 Sample Response – Successful Attempt #2 ......................................... 103 Marker’s Comments – Successful Attempt #2 ...................................... 124 Sample Response – Unsuccessful Attempt .......................................... 129 Marker’s Comments – Unsuccessful Attempt ....................................... 144 Supplement of Formulae * .................................................................... 149 *This...
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...MODULE 4, ASSIGNMENT 3 August 2014 ALL STAR Foods Canada Ltd. Overview ALL STAR Foods International (ALL STAR) is a large international manufacturer of snack foods, including potato chips, nacho chips, and pretzels, that are sold under the Tasty Crunch brand name. ALL STAR has operations throughout North America and Europe, and its international head office is located in Chicago. Consolidated net sales are in excess of US$1 billion, and ALL STAR’s shares are traded publicly on the New York Stock Exchange. In Canada, ALL STAR operates through its wholly owned subsidiary, ALL STAR Foods Canada Ltd. (ASFC or the Company). ASFC has facilities located across Canada and sales in excess of CDN$150 million. Its head office is located in Toronto, Ontario. Over the past several years, ASFC’s sales have grown slowly and its financial results have been relatively weak. Consequently, ALL STAR initiated a major restructuring of ASFC at the beginning of 2010. This resulted in the replacement of almost all the senior management staff. Bruce Tate, a senior manager in ALL STAR’s operations in the United States, was appointed President of ASFC. His mandate was to double the size of the Canadian operations and to generate a pre-tax profit margin in excess of 10% within a period of five years. Management Team and Responsibilities By December 2010, Bruce and all six vice-presidents of ASFC were relatively new to the Company. An organizational chart for ASFC is presented as Appendix A. Background...
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...Coffee Distribution Business Plan Executive Summary The Coffee Warehouse is a new business providing high-quality, full service distribution of coffee, specialty beverages and beverage-related supplies to coffee houses and espresso stands throughout the Spokane and Northern Idaho market. The principal owners are Steve and Jennifer Smith, whose combined experience brings office management, high levels of customer service, and over 20 years in distribution and sales management. At this time we are seeking additional equity capital to compliment our own investment and are seeking to arrange a bank line for inventory and receivables financing. We have firm commitments to distribute several high-quality new age beverage products, and have verbal commitments from independent retailers throughout the Spokane and Northern Idaho market to carry our product. We plan to distribute our first products within 30-60 days of finalizing financial arrangements. Sales projections for The Coffee Warehouse are estimated to begin at approximately $2,229,000 the first year, increasing to approximately $2,558,000 in Year 2 and approximately $2,936,000 in Year 3. Our net profit is projected at approximately $283,000 the first year, increasing to $406,000 by the end of the third year of operation. Distinguishing characteristics of our business will be the combination of management experience, sales and distribution experience, high-quality, innovative products and exceptional customer service...
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...Warehouse 21 (W21) is located in the Railyard District near the downtown plaza area in Santa Fe, New Mexico. Founded by Ana Gallegos y Reinhardt in 1997 with the vision to protect the original Center for Contemporary Arts (CCA) Teen Project’s community that lost critical funding by the end of 1996 due to unintentional financial mismanagement under the leadership of Bob Gaylord. Chrissie Orr was the Executive Director and Ramon Sena was the Program Director during the successful period for the CCA Teen Project. Both Ms. Orr and Mr. Sena are professional community artists locally. W21 was quickly established to protect the youth-based market and community related to arts disciplines and education involved at the CCA Teen Project Program. Since then, W21 has gone from paying one dollar a year for a lease in a 2000 square feet commercial building to raising over five million dollars to build its current 7,000 square feet industrial building with an 80 year lease with the City of Santa Fe in the heart of the Railyard District, a globally recognized arts and cultural district. This paper will examine Porter’s Five Forces Model related to the primary functions of the current management of W21’s building related to long-term financial stability. The 5 competitive forces that are taken into consideration are Competition in the Industry, Potential of New Entrant into Industry, Power of Suppliers, Power of Customers, and Threat to Substitute Products. The four basic functions...
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...The following events occurred during July. For each of the following transactions, indicate on the spreadsheet provided to you whether there was an increase or decrease in the appropriate balance sheet account, using “+”s and “–”s respectively. Additionally, for each transaction indicate whether there was an effect on Net Income (NI) and on Net Cash Flows (NCF); specifically, indicate whether there was an increase, decrease or no effect on NI and NCF by “+”, “-” or “0” respectively. The first entry is filled in for you as an example. All relevant book-keeping entries are made at the end of each month. 1. Shareholders contributed $150,000 in exchange for 150 shares of common stock. 2. New Form signed a one-year lease for its warehouse and offices, paying $72,000 in advance for occupancy of twelve months. 3. New Form acquired equipment and fixtures for $96,000. A down payment of $40,000 was made and a three-year note payable signed for the balance. 4. Assorted merchandise inventory was acquired on account for $190,000. 5. Sales of $200,000 were made on account. The merchandise had originally cost $160,000. 6. Collections of $60,000 were made from customers. 7. Payments of $80,000 were made to suppliers. 8. Employees earned $5,000 in wages for the month of July. The...
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...Core 1 – Week 1 Immersive Case Exhibit – Modern Design Co. To: Asha From: CPA Date: January 10, 2015 Subject: Modern Design Co. (MD) The following are explanations of the accounting issues as well as the analysis and recommendation to resolve the issue. Also included are the adjustments to the financial statements (Appendix A). Barbor sofa order Issue On December 11, MD received an order for a total price of $22,100. Barbor Furniture Ltd. (Barbor) provided a deposit of $9,000 which was recorded as revenue when it was received on December 13. Barbor was not billed until January 2. The order was not shipped until after the year end on January 2. The remaining balance owing was recorded in accounts receivable and sales. The inventory was excluded from the ending inventory count as well. The issue is whether this is the appropriate time to record the revenue or if another time is more appropriate. The other issue is that the balance owing is not a receivable until the product has left the warehouse. The cost of the sofas should also be included in inventory. Analysis According to ASPE 3400, revenue cannot be recognized until: 1. The seller of the goods has transferred to the buyer the significant risks and rewards of ownership, in that all significant acts have been completed and the seller retains no continuing managerial involvement in, or effective control of, the goods transferred to a degree usually associated with ownership. Not met:...
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...1983 in Seattle, Washington. In October 1993, Costco merged with The Price Company, which had pioneered the membership warehouse concept, to form Price/Costco, Inc., a Delaware corporation. In January 1997, after the spin-off of most of its non-warehouse assets to Price Enterprises, Inc., the Company changed its name to Costco Companies, Inc. On August 30, 1999, the Company reincorporated from Delaware to Washington and changed its name to Costco Wholesale Corporation, which trades on the NASDAQ Global Select Market under the symbol “COST”. As of December 2012, the Company operated a chain of 622 warehouses in 41 states and Puerto Rico (448 locations), nine Canadian provinces (85 locations), Mexico (32 locations), the United Kingdom (23 locations), Japan (13 locations), Korea (nine locations), Taiwan (nine locations, through a 55%-owned subsidiary) and Australia (three locations). The Company also operates Costco Online, electronic commerce web sites, at www.costco.com (U.S.), www.costco.ca (Canada), and www.costco.co.uk (United Kingdom). CONTENTS Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Map of Warehouse Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
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...Working Capital Management: Analysis Project #1 Fall, 2012 Dr. Echevarria Cameron School of Business Working Capital Management Project The WCM project is an exercise using an enhanced cash budget to make changes to operating parameters in order to observe the impact on the pro forma income and balance sheet statements. The exercise uses an MS Excel spreadsheet. There are several management strategy options that will be simulated in order to gauge the results on operating cash flows and profitability. You task will be to analyze each option and determine which options will improve profitability. Your analyses will be written using a MS-Word document. Copy and paste from the spread sheet only the 6 [green] cells containing the Changes in Operating Income, Net Profit Margin, and Net Income. Label the word document as follows: LASTNAME_WCM.doc and email assignment to davidpe@charter.net. The assignment is due by midnight (Sunday), September 30, 2012. Background The Reliant Electrical Systems, Inc (RES) was started in 1967 to produce standby home power generators in the 12 to 15 Kilo-Watt peak output range (100 - 125 Amps at 120 volts AC). RES sells the generators to electrical equipment retailers and to home improvement outlets such as Home Depot and Lowes. In addition, a number of units are sold to small construction companies as well as state and federal agencies. The main facility is a 150,000 square foot building located in Richardson, Texas. This building...
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...Capstone Research Project Cassandra Quinn ACC499 – Accounting Undergraduate Capstone June 16, 2013 Professor Wendy Achilles Capstone Research Project Auditing is the cornerstone of financial reporting because it provides attestations to the fairness and accuracy of a company’s financial records. Accountants and Auditors prepare and assess financial records to declare the fairness and accuracy of a company’s financial records. Auditors perform what is known as an audit which is a close inspection of a company’s financial records to ensure they are correct; during a financial audit all financial records of a company including ledgers, internal financial reports, official published reports, accounts payable, and accounts receivable will be examined. This type of inspection keeps a company honest and also reassures investors as to the financial status of the organization. Accountants must follow a common set of accounting principles, standards and procedures that companies use to compile their financial statements known as Generally Accepted Accounting Principles (GAAP) are a combination of authoritative standards and simply the commonly accepted ways of recording and reporting accounting information. GAAP rules attempt to cover such a broad field that it is filled with loopholes and allow for multiple ways of presenting the same data; these loopholes can be used by management to manipulate the earnings of an entity. During an audit the auditor may encounter “red flags”...
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...managers coordinate all of the employee’s efforts to help facilitate an enjoyable experience for the customers. Company 2 is a tire store called Discount Tires®. The employees operate in a retail service type of environment. There are several types of employees that work at Discount Tires®. The desk clerk takes the customer’s order, and coordinates the schedule for the tire technicians to work from. The tire technicians remove old tires from the customer’s vehicles, and replace them with new tires that the customer has purchased. The shop manager coordinates the efforts of the desk clerk and the tire technicians. Company 3 is a wholesale plumbing parts and accessories warehouse called Midwest Plumbing Supply®. The employee’s of Midwest Plumbing Supply® work in a wholesale warehouse environment. There are several types of employees at Midwest Plumbing Supply®....
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...from other customers and surplus equipment from manufacturers over the Internet. Sanjay received enough capital from venture capitalists and could offer a wide variety of products. As the demand began to grow rapidly, Sanjay had to come up with new strategies for warehousing. Initially starting with one warehouse in St. Louis, he had to lease more space within the same warehouse to meet the demand. Demand has been growing rapidly since 1999 and Sanjay needed a new plan. He has a few options including leasing more warehouse space in St. Louis or finding other potential locations across the United States. The next 3 years were predicted to have a growth rate of about 80% per year. A serious supply chain redesign was needed soon; otherwise costs would far exceed the growing demand and revenues. Leasing a warehouse involves fixed and variable costs. Fixed costs are based on the size of the warehouse itself. Variable costs depend on the actual quantity that was shipped through the warehouse. Additionally, he can rent small and large warehouses in various locations, which have different costs. Costs for inbound shipment from suppliers were considered to be the same for any warehouse configuration. The four potential locations selected were Seattle, Denver, Atlanta and Philadelphia (in addition to St. Louis). In this case study, a cost-capacities-demand model of these locations is studied to determine the...
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...STANFORD GRADUATE SCHOOL OF BUSINESS CASE: A-186A DATE: 06/19/03 CosTco WHOLESALE CORPORATION FINANCIAL STATEMENT ANALYSIS (A) INTRODUCTION Margarita Torres first purchased shares in Costco Wholesale Corporation in 1997 as part of her personal investment portfolio. Between 1997 and 2002, she added slightly to her holdings from time to time when the company sold stock for what she felt was a reasonable valuation, and up to that time she did not sell any of her shares. Having watched Costco grow from 265 warehouses to 365 worldwide, and from sales revenue of $21.8 billion to $34.1 billion, she wondered what factors led to such successful growth. She also wanted to determine whether those factors would hold consistent going forward. At this point, Costco was one of a special breed of retailers called wholesale clubs. Unlike other retailers, wholesale clubs required that customers purchase annual memberships in order to shop at their stores. Costco operated a chain of warehouses that sold food and general merchandise at large discounts to member customers. The company was able to maintain low margins by selling items in bulk, keeping operating expenses to a minimum, and turning inventory over rapidly. Costco’s closest competitors were SAM’S Club (a division of Wal-Mart) and BJ’s Wholesale, which both operated as wholesale clubs. Other competitors included general discounters (such as Wal-Mart), general retailers (such as Sears), grocery...
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