Expert Guidance for Excelling in Accounting Assignments

Published: 11 months ago

Expert Guidance for Excelling in Accounting Assignments

38. Netflix’s Balanced Scorecard Question ..............

Netflix’s Balanced Scorecard Assignment

Essay should meet the following requirements:

• Clear Introduction & Conclusion.


• 8-10 pages.


• Minimum of 8 credible sources that are cited.


• Proper citation of any graphs or figures that you do not create yourself.


• 6th edition APA form and style

Assume you have been hired as a consultant to prepare a balanced scorecard that will be presented to top management. You will choose a company to research - TV and movie streaming company Netflix. Provide a professional report that will include the following:

Part A--Firm strategy and financial analysis:

 

• Mission statement.


• Business model.


• Strategy description: what is the customer value proposition?


• Differentiation of products or services


• Operations


• Financial statement analysis:
  
  
  
  • Focus on key areas--profitability, efficiency, ROI, and financial leverage.
  
  
  • Three to five key ratios may be sufficient for your presentation.
  
  
  • You may use all available sources for ratios and are not required to calculate the ratios.
  
  
  • It is recommended that the annual reports for at least two years or more be reviewed. This will provide a basis for you to gain an understanding of the firm's strategy in a prior year so that the outcome of the strategy can be evaluated.
  
  
  
  

Part B--Firm strategy implementation and balanced scorecard:

 

• Competitive and business factors:
  
  
  
  • Describe the industry and trends and major competitors (include global business issues)
  
  
  
  


• Critical success factors (CSF):
  
  
  
  • What the firm must do to implement strategy, such as product quality, customer service, technology and increasing market share.
  
  
  
  


• What are the firm's strengths and weaknesses?


• What are the competitive threats?


• What are the opportunities for competitive advantage?


• What are the major ethical and social responsibility issues?


• What are the major business risks?


• Customer analysis (include global business issues):


• What is the customer value proposition (related to CSF)?


• Who are the customers?


• What are the firm's important market strategies and segments?


• What is the size of the market and your firm's approximate market share?


• Describe recent new product/service introductions and the firm's new product/service plans.


• Key Value drivers (related to CSF):
  
  
  
  • What are they?
  
  
  
  


• Explain how they affect sales growth and profits.
  
  
  
  • You should answer the question what drives value for the firm?
  
  
  • Your answer might be a list of several factors such as the firm's ability to introduce a stream of innovative new products, quality products, superior service, and so forth.
  
  
  • These will be related to the CSF. The firm's balanced scorecard would have leading and lagging measures relating to the value drivers.
  
  
  • There would be linkages between the value drivers and financial measures evident on the strategy map.
  
  
  
  

Part C – Balanced Scorecard:

 

• Balanced scorecard and strategy map (firm strategy level).

• Create a balanced scorecard for the organization based on the information that you have researched and analyzed for the organization.

39. At December 31, 2009, the records of Nortech Corporation provide

At December 31, 2009, the records of Nortech Corporation provided the following selected and incomplete data:

Common stock (par $10; no changes during the year)

Shares authorized, 200,000.

Shares issued, __________? __________; issue price $17 per share; cash collected in full, $2,125,000.

Shares held as treasury stock, 3,000 shares, cost $20 per share.

Net income, $118,000.

Dividends declared and paid, $73,200.

Retained earnings balance, January 1, 2009, $555,000.

The treasury stock was acquired after a stock split was issued.



Required:

1. Complete the following tabulation:

Shares authorized __________.

Shares issued __________.

Shares outstanding __________.

2. The balance in the Capital in excess of Par account appears to be $ __________.

3. Earnings Per Share is $__________.

4. Dividend paid per share of common stock is $__________.

5. Treasury stock should be reported on the balance sheet under the major caption __________ in the amount of $ __________.

6. Assume that the board of directors voted a 2 for 1 stock split (the number of shares will double). After the stock split, the par value per share will be $__________, and the number of outstanding shares will be__________.

7. Assuming the stock split mentioned above, give any journal entry that should be made. If none, explain why.

8. Disregard the stock split (assumed above). Assume instead that a 10 percent stock dividend was declared and issued when the market price of the common stock was $21. Give any journal entry that should be made.

40. Gibson’s Bodywork does automotive collision work. An insurance agency has determined that the...

Gibson’s Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 2.5 hours (i.e., “standard output”= 0.4 fenders per hour) and is willing to pay Gibson $50 per hour for labor (parts and supplies are billed separately). Gibson pays its workers $35 per hour.

a. () Suppose Gibson’s workers take four hours to replace a fender. What is Gibson’s labor hour efficiency? Given Gibson’s labor costs, will the company make money on the job?

b. (*) What does Gibson’s labor hour efficiency have to be for Gibson to break even on the job? Show your work.

41. Why is it important for managers to pay attention to demographic trends and shifts?

Why is it important for managers to pay attention to demographic trends and shifts?

42. Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.

Catlet Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were sold.

Instructions

Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.

Prove the amount allocated to cost of goods sold under each method.

43. Based on the data given above, what is the labour hour overhead absorption rate?

The following data are to be used for sub-questions (i) and (ii) below:

(i) Based on the data given above, what is the labour hour overhead absorption rate?

A £17.50 per hour

B £17.20 per hour

C £18.44 per hour

D £18.76 per hour Based on the data given above, what is the amount of overhead under/over-absorbed?

A £2550 under-absorbed

B £2529 over-absorbed

C £2550 over-absorbed

D £7460 under-absorbed

44. Calculate material cost, price, and usage and mix variances.

1.Calculate Material Variances from the following details. Standard quantity of materials for producing 1 unit of finished product ‘P’ is 5 kg. The standard price is Rs.6 per kg. During a particular period, 500 units of ‘P’ were produced. Actual material consumed was 2700 kg at a cost of Rs.16, 200.

2.The standard material cost to produce a ton of chemical X is given below:

300 kg of material A @ Rs.10 per kg

400 kg of material B @ Rs.5 per kg

500 kg of material C @ Rs.6 per kg

During a particular period, 100 tons of mixture X was produced from the usage of

35 tons of material A @ Rs.9, 000 per ton

42 tons of material B @ Rs.6, 000 per ton

53 tons of material C @ Rs.7, 000 per ton

Calculate material cost, price, and usage and mix variances.

45. The management of Springer Plc is considering next year’s production and purchases budgets. One...

The management of Springer Plc is considering next year’s production and purchases budgets.

One of the components produced by the company, which is incorporated into another product before being sold has a budgeted manufacturing cost as follows: $

Direct materials 14

Direct labour (4hours at $3 per hour) 12

Variable overhead (4hours at $2 per hour) 8

Fixed overhead (4 hours at $5 per hour) 20

Total Cost 54

Trigger Plc has offered to supply the above component at a guaranteed price of $50 per unit.

Required:

a. Considering the above criteria only, advise management whether the above component should be purchased from Trigger plc or not.

b. Explain how your above advice would be affected by:

1. As a result of recent government legislation, if Springer Plc continues to manufacture this component the company will incur additional inspection and testing expenses of $56,000 per annum which is not included in the above budgeted manufacturing costs.

2. If the above component is not manufactured by Springer plc the direct labour released will be employed in increasing the production of an existing product which is sold for $90 and which has a budgeted manufacturing costs as follows: $

Direct material 10

Direct labour (8hours at $3 per hour) 24

Variable overhead (8hours at $5 per hour) 16

Fixed overhead (8hours at $5 per hour) 40

90

46. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes....

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout 2016, and is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be calculated before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.You’ve been able to retrieve the following information so far:

Cash DividendsThe accounting manager for the company prepared the schedule of cash dividends paid over the period 2011-2016 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.’s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you’ve collected regarding its outstanding stock.Fill in the answers below.

47. E 3-19 (Cash and Accrual Basis) Latta Corp. maintains its financial records on the cash basis of...

E 3-19 (Cash and Accrual Basis)Latta Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Latta Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2011, 2012, and 2013. 2011 2012 2013 Cash receipts from sales: On 2011 sales $290,000 $160,000 $ 30,000 On 2012 sales –0– 355,000 90,000 On 2013 sales 408,000 Cash payments for expenses: On 2011 expenses 185,000 67,000 25,000 On 2012 expenses 40,000a 170,000 55,000 On 2013 expenses 45,000b 218,000 aPrepayments of 2012 expenses. bPrepayments of 2013 expenses. Instructions

(a)Using the data above, prepare abbreviated income statements for the years 2011 and 2012 on the cash basis. (b)Using the data above, prepare abbreviated income statements for the years 2011 and 2012 on the accrual basis.

48. Maria Chavez owns a catering company that serves food and beverages at parties and business...

Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavez’s business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other time. One of the major events, Chavez’s c customers request is a cocktail party. She offers a standard cocktail party Prand has estimated the cost per guests follows: Food and beverages DH 15 Labor (0.5 hrs @ Dh 10 per hr) 5.00 Overheads (0.5 hrs @ Dh 13.98 per hr) 6.99 Total cost per guest beverages and la DH 26.99 The standard cocktail party last three hours and Chavez hires one worker for every six guests, so that workers out to half hour of labor per guest. These workers are hired only as needed and are paid only for the hours they actually worked. When bidding on cocktail parties, Chavez adds 15% markup to yield a price of about DH31 per guest. She is confident about her estimates of the cost of the food and beverages but is not as comfortable with the estimates of overhead costs. The DH 13.96 overhead costs per labor hours was determined by dividing total overhead expenses to the las 12 months by total labor hours for the same period. Monthly data concerning overhead costs and labor hours follows: Month Labor Hours Overhead Expense January 2,500 DH 55,000 February 2,800 59,000 March 3,000 60,000 April 4,200 64,000 May 4,500 67,000 June 5,500 71,000 July 6,500 74,000 August 7,500 77,000 September 7,000 75,000 October 4,500 68,000 November 3,100 62,000 Dr. Sawsan Halbouni 3 December 6,500 73,000 Total 57,600 DH 805,000 Chavez has received a request to bid on a 180-guest fund raising cocktail party to be given next month by an important local charity. The party would last the usual tree hours. She would like to win this contract because her guest list for this charity event includes many prominent individuals that she would like to land as future clients. Maria is confident lent event. Required: 1. Prepare a Chavez Scatter graph plot that puts the labor-hours on the x-axis and the overhead expenditure on the Y-axis. What insights are reveals by your scatter graph? 2. Use the least squares regression method to estimate the fixed and variable components of the overhead expenses. Express theses estimates in the form Y = a + bX. 3. Estimate the contribution to profit of a standard 180 guest cocktail party of Chavez charges her usual price of DH 31 per guest. (In other words, by how much would her overall profit increase?) 4. How low could Chavez bill for the charity event in terms of price per guest and still not lose money on the event itself? 5. The individual who is organizing the client’s fund-raising event has indicated that he has already received a bid under DH30 from another catering company. Do you think Chavez should bid below her normal DH 31 per guest price for the charity event? Why

49. Walden Company has a process costing system and uses the FIFO method. All materials are introduced...

Walden Company has a process costing system and uses the FIFO method. All materials are introduced at the beginning of the process in Department One. The following information is available for the month of January for Department One:

What are the equivalent units for the month of January?

50. Burbank Company owns the building occupied by its administrative

Burbank Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows:

Cost when acquired …………………………………….…… $330,000

Accumulated depreciation (based on straight-line depreciation, an

estimated life of 50 years, and a $30,000 residual value) ………. 78,000

During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $22,500 (from $30,000). The depreciation method will not change.

Required:

1. Compute the annual depreciation expense prior to the change in estimates.

2. Compute the annual depreciation expense after the change in estimates.

3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?