...Finance and Accounting Industry By Cheryl Yeager June 15, 2012 Saint Leo University MBA 525 Dr. Craig Winstead The Finance and Accounting Industry is a very broad and integrated program that prepares individuals to function as accountants and financial managers and various types of analysts. This industry encompasses banking, financial advisors, A few major players: http://www.fins.com/Finance/Articles/SB128448692525537761/Finance-Firms-Top-100-Best-Companies-List “Statistics from official reporting agencies, such as the U.S. Bureau of Labor Statistics and the Institute for Certified Practicing Accountants (ICPA), continue to reveal a robust future for job seekers in finance and accounting and the companies willing to hire them, despite an unemployment rate that's still hovering around 9 percent (White, 2011, para. 1).” There are typically a vast amount of finance and accounting jobs available, but hiring officials find it difficult to match skills with job requirements. The typical educational requirements for finance and accounting vary according to the type of job the applicant is seeking. Ever job does not require continuing educations, but the more specialized the job becomes means having additional education. A great example of this would be the Government sector. The requirements to be hired and promoted within the finance arena did not require a degree for accountants, budget analyst, or financial managers. As jobs have become increasingly...
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...Unit 7 Assignment 1) What is Pillbriar's WACC? Here is the formula for WACC. WACC = wd*kd(1 - T) + wps * kps + wce * kcs wd = weight of debt, kd = cost of debt, T = tax rate, wps = weight preferred stock. kps = cost preferred stock, wce = weight common stock, kcs = cost common stock. Retained earnings and the sale of new common stock are both used in regard to common equity. 2) What are three methods for estimating common stock cost from retained earnings? Capital-asset-pricing-model (CAPM) approach Bond-yield-plus-premium approach Discounted cash flow (DCF) approach 3) Which of these methods provides the most accurate and reliable estimate? CAPM is the most widely used method for estimating the cost of equity. However, other methods are also used because CAPM estimates may be subject to error, and people like to use different methods as checks on one another. If all of the methods produce similar results, this increases the decision maker's confidence in the estimated cost of equity. DCF tends to be the most reliable way to calculate the cost of equity when a company pays dividends. Source(s): http://www.investopedia.com/exam-guide/c… Unit 5 Assignment 1. A 30-year, $1,000 par value bond has a 9.5% annual payment coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 9 years from now? 2. Knapp Bros, LLC is planning to issue new 20-year bonds. The current plan is to make the bonds non-callable...
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...ASSIGNMENT’ TITLE: CLOSING CASE CHAPTER 15 STUDENT’S NAME: RAFAEL NOVA COURSE’S TITLE: BUS 650, MANAGERIAL FINANCE INSTRUCTOR’S NAME: WENDY ACHILLES SUBMITION’S DATE: FEB 06’ 2012 1) What is the expected value of the company in one year, with and without expansion? Would the company’s stockholders be better off with or without expansion? Why? = 0.3 x 11,000,000 + 0.5 x 17,500,000 + 0.2 x 22,500,000 = $ 3,300,000 + $ 8,750,000 + $ 4,500,000 = $ 16,550,000 b) expected value with expansion: = 0.3 x 13,000,000 + 0.5 x 24,000,000 + 0.2 x 28,500,000 = $ 3,900,000 + $ 12,000,000 + $ 5,700,000 = $ 21,600,000. So, $ 21,600,000 - $ 4,500,000 = $ 17,100,000. They would be better off with the expansion because they would be making $ 550,000 more with it, so, $ 17,100,000 - $ 16,550,000 = $ 550,000. 2) What is the expected value of the company’s debt in one year, with and without the expansion? The expected value of debt will be the same amount because the expansion would be financed with equity. 3) One year from now, how much value creation is expected from the expansion? How much value is expected for stockholders? bondholders? A) Expected value without expansion: = 0.3 x $ 11,000,000 + $ 0.5 x $ 17,500,000 + 0.2 x $ 22,500,000 = $ 16,550,000. B) Expected value with expansion: = 0.3 x 13,000,000 + 0.5 x 24,000,000 + 0.2 x 28,500,000 = $ 21,600,000 So, cost of financing will be $ 21,600,000 - $ 4,500,000 = $ 17,100,000. Net value created by expansion: =...
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...Financing Versus Accounting People frequently confuse the two terms of accounting and financing. The reason is that finance and accounting both deal with the financial aspect of an organization or business. The difference is how the managers in these departments deal with the finances. Accounting mainly handles examining and preparing financial records and making sure that they are accurate (Kajanová, 2011). They also have to ensure that the organization is running efficiently and that the taxes are properly paid and on time. Where as finances handles mainly strategies and plans for long term financial goals on an organization. Financial mangers base their decisions on the financial information that was gathered by the accounting department (Kajanová, 2011). That way they can make the best decision for their organization. Accounting and Finance mangers have to work together to operate an efficient and effective organization. The purpose of this paper is to compare and contrast the differences between accounting and financing. Even though both accounting and finance both handle the financial parts of different health organizations, they both handle their finances in very different ways. In accounting, the main areas of concern are keeping financial records, producing production reports, analyses and different statements, reporting all of the information to heads of departments, and occasionally watching investors and the markets (Financial Managers, 2012). In addition,...
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...CHAPTER ONE 1.0 INTRODUCTION Accounting software packages have become common place for many organizations in recording business transactions, preparing financial statements and analyzing operations. Accounting software has freed accountants from the manual recording and presentation of financial data. By using accounting software, financial transactions would be recorded more quickly and accurately at a relatively low cost. Moreover, accounting software packages increased overall operational effectiveness by improving both the quantity and quality of management information available (Collins, 1999; Fisher and Fisher, 2001; and Abu-Musa, 2004). Years ago, when personal computers were just coming into their own, accounting software was relatively simple. Its single function was to automate the task of double-entry accounting and produce a straightforward balance sheet. As computers became more robust and integrated databases standardized, accounting software developers added more functions-including cost accounting, manufacturing resource planning, customer resource management, human resources, and payroll (Jones, 2002). Mattingly (2001) stated that choosing the right accounting software is becoming more difficult as the software market becomes increasingly fragmented. In many cases, more product information makes decision-making more difficult rather than less. The risks of leaping into an expensive purchase decision are hard to assess. Collins (1999) also confirmed...
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...generates from its Finance and Accounting departments. All of the plant locations have different kinds of Finance and accounting systems, which may be the main reason Riordan Manufacturing has a hard time maintaining the data received. The company’s three operating locations each have their own Finance and Accounting systems. The plant in Pontiac, Michigan and the plant in Albany, Georgia feed data to the corporate headquarters in San Jose, California. Riordan Manufacturing also has a joint venture in Hangzhou, China. Although there is no mention of China’s data output on the company’s Intranet site, the company has facilities there that manufactures plastic fan parts. There should be data coming from that headquarters must there but the status of the Finance and Accounting system used in China is currently unknown. Corporate headquarters currently has a license for an Enterprise Resource Planning (ERP) system that is fully integrated and Windows based. It is designed specifically for plastics processing and assembly manufacturers. The ERP software has a financial management application included, along with manufacturing and distribution applications. The license the San Jose location has is from proprietary software, so it does not include the source code. Because the software does not come with a source code there is no way to modify the software for customization purposes. When Riordan Manufacturing acquired the plant Michigan, the facility’s Financial and Accounting system was...
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...Question 1 Listing on a stock exchange might be highly desirable for a company, but there are a number of requirements, conditions and costs associated with becoming a publicly listed corporation. a) Discuss the ASX profit test and asset test requirements. b) Analyse the advantages and costs that are incurred when a company becomes a publicly listed corporation. a) To meet the profit test requirements of admission, an entity must satisfy each of the following conditions: * The entity must be a going concern, or the successor of a going concern. * The entity must have been engaged in the same principal business activity for the last three full financial years. * The entity must provide audited financial statements for the last three full financial years. The statements must be accompanied by audit reports, which must not be qualified with regard to the entity’s capacity to continue as a going concern, or satisfy the profit levels required. * The entity’s aggregated profit from continuing operations for the last three full financial years must have been at least $1 million. * The entity’s consolidated profit from continuing operations for the twelve months to a date no more than two months before the date the entity applied for admission must exceed $400 000. * The entity must give the ASX a statement from all directors (in the case of a trust, all directors of the responsible entity) confirming that they have made inquiries and nothing has come...
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...performance management being a support for its evolution to incentive even more current and potential investors. Table of content Introduction 4 Cost of Equity 5 Market Beta 7 Cost of Debt 14 Weighted Average Cost of Capital (WACC) 17 Conclusion 18 References 19 Appendix 21 Introduction Due to the current economic status quo of business markets worldwide, many companies have lost their “feet”, in other worlds, the so assured stability they thought having, consequently, suffered a significantly decrease of demand and also a certain pressure from their shareholders regarding to the measures to be taken from the company to restore its reliability towards the market. However, there are financial and accounting procedures taken by current and...
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...compare financials from global markets, it will also benefit accounting and finance professionals in the same way. I believe the convergence will prove to be a valuable asset for professionals, as it increases transparency and comparability, it will also allow CPAs and analysts to provide more insightful information to their clients or companies. The convergence will also enable professionals to market their IFRS knowledge and generate more leads or employment opportunities than ever before. Post convergence issues and challenges will leave business in both the U.S. and foreign companies needing well-equipped CPAs and analysts to assist in facilitating the great change. U.S. professionals will not only be able to generate more native business, but will also be able to access cross-border opportunities. George, Ferguson, & Spear (2013) predict that audit fees alone will increase approximately 23% in the first year of IFRS adoption. While this is a significant boost in fees for U.S. companies, it will also boost employment opportunities and revenue in the accounting and finance sector. It is extremely important for professionals to begin familiarizing their selves with IFRS, not only to enable themselves to meet the needs of their clients after the convergence, but also to consult companies on the most efficient and effective strategies to facilitate the change. It is an optimal time for accounting and finance professionals to cash in on their skills and prepare themselves...
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...Although finance and accounting are both involved with the financial aspect of a business or organization, the managers and employees in these departments deal with finances in completely different ways. Accounting deals mainly with preparing and examining financial records and ensuring their accuracy, making sure taxes are paid on time and properly, and assessing financial operations to help ensure that organizations run efficiently. On the other hand, finance deals primarily with making important financial decisions for an organization and helping “develop strategies and plans for the long-term financial goals of an organization” (Financial Managers 2012). It is also important to note that financial managers use the financial information prepared by the accounting department in order to make the best decision possible for their organization. Nevertheless, both accountants and financial managers together must operate effectively and efficiently to ensure the continued short-term and long-term financial viability of any health care organization. In this short essay I will explain the relationship between finance and accounting and how they both help ensure the financial viability of a health care organization. First, despite the fact that finance and accounting both oversee the financial aspect of a health care organization, the way in which they handle finances are very different from one another. “Accounting is concerned with financial record keeping, the production of periodic...
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...Relationship Between Finance and Accounting Although finance and accounting are both involved with the financial aspect of a business or organization, the managers and employees in these departments deal with finances in completely different ways. Accounting deals mainly with preparing and examining financial records and ensuring their accuracy, making sure taxes are paid on time and properly, and assessing financial operations to help ensure that organizations run efficiently. On the other hand, finance deals primarily with making important financial decisions for an organization and helping “develop strategies and plans for the long-term financial goals of an organization” (Financial Managers 2012). It is also important to note that financial managers use the financial information prepared by the accounting department in order to make the best decision possible for their organization. Nevertheless, both accountants and financial managers together must operate effectively and efficiently to ensure the continued short-term and long-term financial viability of any health care organization. In this short essay I will explain the relationship between finance and accounting and how they both help ensure the financial viability of a health care organization. First, despite the fact that finance and accounting both oversee the financial aspect of a health care organization, the way in which they handle finances are very different from one another. “Accounting is concerned with financial...
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...INTRODUCTION TO ACCOUNTING SEMINAR (1) TRUE/FALSE (NOTE: Show any required calculations in your answers) 1. A corporation is a business that is legally separate and distinct from its owners. 2. Primary users of accounting information are accountants. 3. Accounting is thought to be the "language of business" because business information is communicated to users. 4. The role of accounting is to provide many different users with financial information to make economic decisions. 5. Accounting information users need reports about the economic activities and condition of businesses. 6. The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities. 7. Stakeholders use only accounting reports as the source of information to base all of their business decisions. 8. Managerial accounting information is used by external and internal users equally. 9. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management. 10. A business is an organization that provides goods or services to their customers in exchange for money or other items of value. 11. Managerial accounting is primarily concerned with the recording and reporting of economic data and activities of an entity for use by stockholders, creditors, governmental agencies, and the public. 12. The cost concept is the basis for entering the exchange...
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...SFM400 Strategic Financial Management M.G.W. Kachanje Senior Lecturer in Finance and Accounting Definition of 'Strategic Financial Management ' Managing an organization's financial resources so as to achieve its business objectives and maximize its value. Strategic financial management involves a defined sequence of steps that encompasses the full range of a company's finances, from setting out objectives and identifying resources, analyzing data and making financial decisions, to tracking the variance between actual and budgeted results and identifying the reasons for this variance. The term "strategic" means that this approach to financial management has a long-term horizon At the most fundamental level, financial management is concerned with managing an organization's assets, liabilities, revenues, profitability and cash flow. Strategic financial management goes a step further in ensuring that the organization remains on track to attain its short-term and long-term goals, while maximizing value for its shareholders. Strategic financial management also means that short-term goals may occasionally need to be sacrificed to meet longer-term objectives. A typical example is when a loss-making company trims its asset base through factory closures or headcount reduction in order to reduce operating expenses. While such actions have a detrimental effect on near-term results because of restructuring costs and other one-time items, it positions the company to achieve...
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...Accounting and Finance: Managerial Use February 19, 2011 Class Project: Ratio Analysis The gross profit percentage is one of several key measurements a company uses in evaluating its financial performance. It helps a company to see what percentage of its earning after costs (for products and/or services) is profit. A higher gross profit percentage is generally preferred as it provides the company with financial resources to pay for research, product development, and other costs associated with running and growing a business. A company that has little gross profit has limited resources. Tootsie Roll and The Hershey Company both operate above the food processing industry average. Tootsie Roll operated at 36%, 5.6% higher than the industry average in 2009. The Hershey Company operated at 38.7%, 8.3% higher than the industry average and 2.7% higher the Tootsie Roll in 2009. Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Tootsie Roll has Net Sales of $499,331 and a Net Income of $53,475 giving them a 10.7% Profit Margin Ratio resulting in 11 cents of every dollar of sales resulted in Net Income for 2009. The Hershey Company has Net Sales of $5,298,668 and a Net Income of $435,994 giving them a 8.2% Profit Margin Ratio resulting in 8 cents of every dollar of sales resulted in Net Income for 2009...
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...CHAPTER 3 The Accounting Information System ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. 4. Transaction identification. Nominal accounts. Trial balance. Adjusting entries. Questions 1, 2, 3, 5, 6, 7, 8 4, 7 6, 10 8, 11, 13, 14 3, 4, 5, 6, 7, 8, 9, 10 2, 3, 4 5, 6, 7, 8, 9, 10, 20 11, 12, 15, 22, 23 12 9 11 13, 14, 16 14, 15 1, 2, 6, 12 15, 16, 17 18 19 12 13 18, 19 20 21, 22, 23 12 11 1, 2, 7, 8 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12 1, 2, 4, 6 1, 4, 9, 10, 12 Brief Exercises 1, 2 Exercises 1, 2, 3, 4, 17 Problems 1 5. 6. 7. 8. *9. *10. *11. Financial statements. Closing. Inventory and cost of goods sold. Comprehensive accounting cycle. Cash vs. Accrual Basis. Reversing entries. Worksheet. *These topics are dealt with in an Appendix to the Chapter. Copyright © 2011 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 14/e, Solutions Manual (For Instructor Use Only) 3-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. 4. 5. Understand basic accounting terminology. Explain double-entry rules. Identify steps in accounting cycle. Record transactions in journals, post to ledger accounts, and prepare a trial balance. Explain the reasons for preparing adjusting entries. Prepare financial statements from the adjusted trail balance. Prepare closing entries. Differentiate the cash basis of accounting from the accrual basis of accounting. Identify adjusting entries that may be reversed. Prepare a 10-column worksheet...
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