The HVAC Company specializes in the installation of heating, ventilation, and air conditioning in large projects such as domed stadiums, military bases, airports, and multi-storied buildings. Its contracts usually take two to three years to complete and, at any fiscal year end, this percentage of work completed represents a sizable percentage of its assets. The company is privately held and has a senior management group whose compensation is based almost entirely on the earnings results for the year. As the CFO, you have been reviewing the year-end estimated percentage of completion figures, which have been provided to you by the project managers responsible for the completion of the various contracts. This year has not been as successful or as active as previous ones, and the two senior founders of the company have asked you to bring in a net income figure at least equal to the last couple of years. In your mind you know that the project managers’ estimates are somewhat fluid, and you have been contemplating making the requested adjustments.
Instructions
Answer the following question:
· How would you handle the request of the two senior partners?
· What additional analysis can you draw from the information. Please think about what possibly could be going on within the scenario other than the issues you analyze for answering the questions. Do some additional critical thinking
Category: Business and Management : Accounting
Part 1. Explain in 3-4 sentences In what ways does the balance sheet reflect the health of a business, and in what ways does it not?
Part 2. In 2-3 sentences respond to this discussion A balance sheet can help reflect the health of a business because at any point it can show you your assets, liabilities, and stockholders’ equity. This can help you see where your company is in relation to the financial goals that are set forth for it. You can also see if there is a discrepancy between your company’s cash flow from operations as well as income. This can reduce the risk of any potential setbacks that the business may have.
Capital budgeting is utilized to determine if a project is worthwhile. The net present value (NPV), payback period, and internal rate of return (IRR) methods are used to rank and select which project to undertake. The following video outlines the NPV and IRR method of capital budgeting:
Net Present Value (NPV)
In this assignment, you are required to prepare a PowerPoint presentation reviewing 3 projects. You will calculate the NPV, IRR, and payback period for each project. Utilizing the capital budgeting calculations, you will need to select the best investment for the company. These calculations will be based on the following scenario:
AIU Industries has 3 potential projects to consider, all with an initial cost of $1,250,000. The company prefers to reject any project with a 4-year cut-off period for recapturing initial cash outflow. Given the cost of capital rates and the future cash flow for each project, determine which project the company should accept.
Cash Flow
Project A
Project I
Project U
Year 1250,000450,000250,000Year 2250,000450,000400,000Year 3250,000450,000600,000Year 4250,000450,000800,000Year 5400,000400,000200,000Year 6400,000400,000800,000Year 7400,000400,000600,000Year 8400,000400,000200,000Cost of Capital
4%
6%
8%
Please submit your assignment.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title slide: Remember the running head. The title should be in all capitals.
Length: 15 slides minimum
Body slides: This begins on the slide following the title slide and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your presentation for this assignment is 15 slides. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference slide: References that align with your in-body academic sources are listed on the final slide of your presentation. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference slide is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
Scenario: (REQUIREMENTS ATTACHED)
A U.S. fishing boat manufacturer is known throughout the United States for its innovative approach to product design, lean manufacturing, and responsive customer service since its start three years ago. The mission statement of the company is “We will provide the most innovative customer-driven design and growth in the industry.” The founders’ ideals for the company are described in the vision statement: “We will be the most sustainable company in the industry.” The company’s ethical statement that guides all conduct and decision-making is “We will make decisions that are sustainable for customers and the environment.”
The company’s founders have created an organizational culture of innovation. They have provided incentives for employees’ creative ideas and created testing laboratories where customers use the products and provide design feedback. The founders have also invited innovators in other industries, such as gaming and information technology, to improve on the designs. The founders have cultivated a company culture in which employees and founders are considered equal partners. The company structure is decentralized, and all employees can access the founders at any time for collaboration, shared decision-making, or relationship building. All company decisions are evaluated by all employees to ensure that everyone is committed to the decisions.
The company has identified an emerging global market opportunity in India for its products. Successful sales in India could represent a critical moment for the company if the company establishes strategic partnerships that will increase the likelihood of product success. The founders hope to capture profits and market share and expand into other parts of Asia within the first year of selling products in India.
Research indicates market potential for the company’s sales in India because of the importance of the fishing industry in the country. Fishing and aquaculture are primary industries in the coastal regions of India. Economic zones have been established to support the over 14 million people who are an important part of the fishing industry. This industry makes up 1% of the nation’s gross domestic product and 6.56% of global fish exports (Department of Fisheries, 2019).
The company’s goal of the market expansion into India is to be the first foldable fishing boat manufacturer reaching the country. An origami-inspired foldable fishing boat is the company’s most popular product. This boat comes designed as a plastic carrying case that unfolds into the water like an origami paper boat. This boat is suitable for uses in calm water, and the boat can be recycled. The product retails for U.S.$200.
Traditional fishers use nonmechanized boats, which would be ideal for the foldable boat’s entry into the market. Laws and regulations surrounding the use of nonmechanized boats favor importing foldable boats, which would be easy for fishers to carry from home to the water. The business climate in India is open to new partnerships to improve the fishing experience for those who preserve the natural ecosystem with nonmotorized boats. The National Fisheries Development Board (NFDB) promotes the use of natural fishing equipment to reduce disruption to the fishing ecosystem in India (National Fisheries Development Board, n.d.).
The U.S. boat manufacturer’s founders met with the NFDB to request an endorsement for their foldable boats because of the product’s sustainable design and net-zero environmental impact. The founders discovered that the NFDB would only endorse the boat if it was made of plastics used in India in order to reduce the waste products in the nation’s landfills.
This endeavor would require the U.S. company to make a significant investment in India. The company would need to purchase or build a manufacturing facility, or it would need to contract with a facility owner to secure a manufacturing location. It would need to employ Indian workers. Lastly, the company would have to manufacture a new foldable boat made from used plastics in India with an environmentally friendly, waterproof coating.
The new foldable boat could be designed in several ways, and the company would need to test a series of paper products and waterproof coatings to determine which would be suitable for fishers in India. The fishers range in age from 13 to 70, so the design would need to be comfortable and portable enough for all fishers in this target group.
The company decides to hire Indian fishers to help design the product to reach this market. These fishers will provide qualitative, open-ended conversations and data that will be valuable in communicating the product’s features and benefits to other fishers. The product will be tested by a variety of fishers that represent different sectors of the fishing industry, different regions, and different cultural segments. Testing will provide generalizable, qualitative data about the product use and effectiveness.
Good cash management is impossible without an analysis of the cash collections and cash disbursements of a company. Cash budgets provide a gauge for determining credit, disbursement, and discount policies. Cash budgets are effective control devices for monitoring cash and determining financing requirements.
Cash budgets are essential to all small businesses. In this assignment, you are required to do the following:
Develop a spreadsheet with a cash budget with lagging collections
Determine the net cash flows for the year
Forecast the cumulative dollar amount of the external financing required for the year
You are also required to prepare a 3-page analysis of the results of your cash budget.
Middletown Construction, Inc. has estimated the following sales forecast over the next 12 months (they close in the winter):
January$0February$0March$275,000April$275,000May$312,000June$417,000July$714,000August$611,000September$827,000October$500,000November$116,000December$0
The company also gathered the following collection estimates regarding the forecast sales:
Payment collection within the month of sale = 20%
Payment collection the month following sales = 60%
Payment collection the second month following sales = 20%
Payments for raw materials and labor costs are paid the month after the purchase and are estimated as follows:
March$220,000April$240,000May$225,000June$287,000July$350,000August$415,000September$242,000October$214,000November$222,000
Additional financial information is as follows:
Administrative salaries will approximately amount to $30,000 a month.
Lease payments are around $10,000 a month.
A one-time new plant investment for $23,000 is expected to incur and be paid in June.
Income tax payments estimated to be around $50,000 will be due in both June and September.
Miscellaneous costs are estimated to be around $5,000 a month.
Cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times.
To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values.
Prepare a monthly cash budget for Middletown Construction, Inc. for the 12-month period of January through December.
Use Excel to prepare the monthly cash budget with the use of this template.
Based on your cash budget findings, answer the following questions in a 3-page analysis:
Will the company need any outside financing?
When is the line of credit the highest for MCI will need?
If you were a bank manager, would you want MCI as your client? Why or why not?
Please submit your assignment.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title page: Remember the running head. The title should be in all capitals.
Length: 3 pages minimum
Body: This begins on the page following the title page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
To begin, reread the Course Learning Outcomes we have covered in class which are as follows:
Implement the proper accounting procedures for liabilities.
Describe the nature and purpose of corporations.
Record transactions and prepare financial statements for a corporation.
Analyze, evaluate, and interpret financial statements for management purposes.
Describe Job Order and Process Costing systems.
For your initial discussion post, reflect on your learning throughout the course and answer the following questions:
Of the above Course Learning Outcomes, which has had the most and which has had the least impact on your learning? Elaborate your response.
Generally speaking, are operational budgets and capital budgets significantly different? Compare and contrast these budgeting methods listing at least two benefits and two drawbacks to each.
How will you apply what you have learned in this class as a foundation for learning in other courses? Explain.
Are the concepts and skills learned in this class helpful to you in your career? Describe
Imagine that you have been given a unique opportunity to draft your own tax system. I am sure we all have felt at some point that our current or past tax system is biased or unfair. Well, here is your chance.
Research tax systems of 5 other countries (not US). Compare those tax systems. Then, using the results from your research, create your own mythical economy using AI (see handout attached for details).
You will need to create your own rate for the following:
1. Income tax
2. Property tax
3. Wealth tax
4. Payroll tax
5. Corporate income tax
6. Sales tax
7. Excise tax
Please keep in mind that your utopia needs to generate sufficient revenue to afford its infrastructure. Set your own revenue target.
Please remember to address all of the following in your papers:
Step 1. Do your research and compare 5 different countries and their tax systems
Step 2. Develop your own tax system using AI. Summarize the tax rates used.
Step 3. Draft 10-15 page paper – 12 font, double spaced. Explain the link between your tax system and income distribution.
Step 4. Justify your chosen tax system in your paper.