Description
ASSESSMENT 1 – TRAINING – ACCOUNTING TOOLS AND PRACTICES
Instructions
Develop either a training deck (12-15 slides) or training manual (3-4 pages) to ensure new hires have a solid understanding of income statements, balance sheets, and the elements that go into them.
Introduction
This portfolio work project will help you to not only better understand commonly used accounting tools, but it will also give you the opportunity to use your skills and experience by preparing training materials to train someone else.
Scenerio
You work for an organization that is seeking growth and recently has hired new district managers to assist in this growth. In talking to other regional managers, you have heard that some district managers do not have a thorough understanding of commonly used accounting tools including an income statement and balance sheet. You have a new district manager hire, John, and see the need to do some training with him so he has a solid understanding of income statements, balance sheets, and the elements that go into them, including advertising costs, Web development costs, and store opening costs.
In preparing to train your new hire, you have determined that the use of examples (a picture is worth a thousand words) can be a great approach to use. So you have decided to gather some examples from the company’s summary of significant accounting policies from its latest financial statements.
You may apply this scenario to either Option 1 or Option 2, described in Requirementsbelow.
Your Role
You are a regional manager for Urban Outfitters or your selected organization and oversee a number of districts. You have recently brought a new district manager on board and want to ensure he has the knowledge and tools needed to effectively do his job.
Requirements
Option 1:
The organization you work for is Urban Outfitters. Use the U.S. Securities and Exchange Commission website to find the Urban Outfitter’s 2016–2017 financial statement’s summary of significant accounting policies. Look at the data for 2015, 2016, and 2017 for the following examples of essential elements you need to cover with John and ensure his understanding.
Advertising. Examine the criteria used to expense and capitalize advertising costs and where these costs appear in the financial statement.
Store opening costs. Examine how store opening and organization costs were handled and where these costs appear in the financial statement.
Website development costs. Examine the approaches taken during the application and infrastructure development stage and the planning and operating stage.
Option 2:
Use a firm or scenario of your choosing.
Before choosing a company, read the assessment thoroughly to ensure:
The company fits the assessment requirements.
You have access to the financial statement’s summary of significant accounting policies and the Note disclosures from which you are drawing your materials. Include this information in the appendix for reference.
You can distribute the data without disclosing confidential company information.
Training Materials
As you prepare your training materials for John, use the examples you collected from the company’s Notes to financial documents to illustrate how you address the following items:
Explain how one or more of the following costs are captured:
Advertising.
Store opening. If store opening costs were capitalized, over what time period would you amortize them? Explain why you selected this time period.
Website development.
Analyze the importance of Notes to financial statements in interpreting financial statements.
Explain how the accounting method the company uses affects the financial statements.
Explain how the financial statements would differ if another method were used to capture the costs.
If you have a preference for capitalizing or expensing these costs, explain why it is your preference.
Deliverable Format
Leadership has asked that you develop either a training deck or a training manual that you will use with John and that can be deployed with other new hires as well. Regardless of the format selected, the information should address the points identified above and with detailed explanations within the notes areas of slides or within the training manual text. It will also be helpful to include information in regard to why each item is important to the organization as well as the success of the new district manager.
To use your time and John’s time wisely, be conscientious about providing thorough yet concise information. These materials are expected to be used by others for future training needs, so make sure they are well organized and clear.
Training materials requirements:
12–15 slides for a training deck. Include additional details as slide notes.
3–4 pages for a training manual.
Related company standards for either format:
The training manual is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.
To learn more about creating presentations, click “MBA Program Resources” and then “Presentation Skills.”
In addition to the training deck or manual materials, include:
Title (slide or page).
References (slide or page).
Appendix with supporting materials. If you are using a firm or scenario of your choosing, ensure faculty has sufficient information to understand how you reached your recommendation.
At least two APA-formatted references.
ASSESSMENT 2 – PRODUCT PRICING RECOMMENDATION
Instructions
Create a 9-slide presentation in which you analyze cost accounting practices to make a recommendation about whether or not to accept a purchase offer at a lower price than normal. You may either record the presentation or write a 2-3 page supporting report.
Introduction
This portfolio work project will help you to assess a request, complete an analysis to understand the impact on an organization, provide a recommendation, and communicate that recommendation.
Scenerio
The Acme Pickle Company has distributed pickles under the “Florida’s Best” brand for eight years from its production facility in Jacksonville, Florida. It sells the pickles to stores in the southeastern United States. Acme normally produces between 8,000 and 10,000 cases of pickles a month but has the capacity to produce 12,000 cases without adding equipment or personnel.
The owner of a twenty-store supermarket chain in Wisconsin, called Super Deals, visits friends in Florida and is impressed with the quality of “Florida’s Best” pickles. He approaches you, an Acme Pickle account manager, with an offer to buy 2,000 cases of pickles to use in a special promotion at his stores. He is thinking of something such as:
“Free jar of Florida’s Best pickles with every purchase of forty dollars or more—this month only!”
He offers Acme a price of $9.50 per case, knowing that it is a very substantial discount from the normal selling price of $20 a case. Acme’s management is inclined to turn the offer down, because their cost is calculated at $10.00 a case. They believe they would lose money if they sold at $9.50 a case. You, on the other hand, believe that some errors have been made in the cost accounting.
Your Role
You are the accYour analysis for the Controller and Sales Manager is needed to suggest a different way of calculating the pricing of the pickles that may be lower. As part of your analysis, address the following items:
Explain why some production costs are variable and some are fixed.
Analyze the benefit of recalculating the cost of pickle production.
How would you recalculate it?
What would the result be?
What is the benefit to the company of recalculating the cost?
Analyze how financial accounting of production cost differs from managerial accounting of production cost.
Explain the difference between the two accounting methods.
Identify the benefits and drawbacks of each method.
Recommend a plan of action to management regarding Super Deals’ offer.
Below is the cost report for a recent month. In this month, Acme produced 9,000 cases and sold them at $20 per case, which is Acme’s normal selling price. Nine thousand cases are well beyond Acme’s break-even point, enabling Acme to record a substantial profit at the nine-thousand-case level.
Acme Pickle Company Cost Report
Item Cost
Cucumbers $15,000
Spices and vinegar 11,000
Jars and lids 10,000
Direct labor, paid by the case 30,000
Line supervisors, on salary 10,000
Depreciation on factory 10,000
Property taxes on factory 3,000
Insurance on factory 1,000
Total Costs: $90,000
Cost per case (9,000 cases produced) $10.00
Deliverable Format
Your team lead wants to share this analysis across remote locations of the organization and is hoping you will set the standard for how analyses and decisions of this type should be presented and supported. Your team has requested either a recorded presentation (including slides and notes) or a presentation and supporting reporting that can be distributed as a model. Prepare a presentation of at least 9 slides using PowerPoint or software of your choice detailing your recommendation and the information you used to make your recommendation. You can either record the presentation or prepare a separate report supporting the presentation.
If you choose to record your presentation, you may use Capella-supported Kaltura Media or another technology of your choice that produces a shareable URL. Kaltura is recording software that can be used to create webcam, screen, and audio recordings. Refer to the MBA Program Resources for the Using Kaltura tutorial to prepare for this option. If you choose to use something other than Kaltura Media, ensure that it creates a shareable URL and can be embedded in the courseroom to ensure faculty can access your recording.
Note: If you require the use of assistive technology or alternative communication methods to participate in these activities, please contact [email protected] to request accommodations.
Recommendation requirements:
Presentation slides:
Create at least 9 slides detailing your recommendation and the information you used to make your recommendation.
Include additional details as slide notes.
Supporting information. Choose one of the following options:
Record your presentation.
Create a 2–3 page report to support your slides.
Related company standards:
The recommendation report is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.
In addition to the presentation or report materials, include:
Title (slide or page).
References (slide or page).
Appendix with supporting materials.
At least two APA-formatted references
ASSESSMENT 3 – PERFORMANCE EVALUATION
Instruction – Write a 1-2 page executive summary, along with an appendix of supporting information, in which you analyze an organization’s financial performance as well as their level of risk for lending and make and present a recommendation to help leadership make a loan decision.
Introduction
This portfolio work project will help you complete a thorough review of an organization’s financial performance as well as their level of risk for lending. Your recommendation will help leadership create a loan portfolio, and your executive summary will clearly and concisely communicate your review to others in the organization.
Scenerio
You work for an organization that provides loans to businesses. You are working with a client who is requesting a loan that will require a review of financial and related performance documents. You have been asked to review the documents and summarize your findings in a loan recommendation for your management team.
You may apply this scenario to either Option 1 or Option 2, described in Requirementsbelow.
Your Role
You are a loan manager for a lending organization, and your responsibilities include reviewing loan requests and providing recommendations in regard to whether the loan requests should be funded.
Requirements
Option 1:
Your client works for Ace Company. Assume Ace Company requested a $3 million 10-year loan to purchase production equipment and develop accompanying software. Use the Ace Company Data Download Ace Company Datadocument for this option.
Option 2:
Use a firm or scenario of your choosing.
Before choosing a company, read the assessment thoroughly to ensure:
The company fits the assessment requirements.
You have access to the financial statements and related performance documents needed to assess risk and make a loan recommendation. You will need information for this year and last year.
You can distribute the financial statements and related performance documents without disclosing confidential company information.
Loan Recommendation
To arrive at your recommendation, analyze the financial performance of the requesting company and present it to your organization’s upper-management team. The management team will take your recommendation into consideration as they finalize loan requests.
Analyze the company’s performance and performance trends. Include the following in your analysis:
Analyze the trend for accounts receivable collections.
Identify the trend.
Explain the relevance of the trend.
Determine if the trend is improving or getting worse.
Compare the company’s average inventory turnover to the industry average inventory turnover rate. Note that the average industry turnover rate for Ace Company is 10 times per year.
Consider whether the company’s average inventory turnover is higher or lower than the industry average.
Explain whether a higher or lower average is better.
Determine whether the trend is improving or getting worse.
Evaluate the company’s short-term and long-term credit worthiness based on financial performance and trend (comparing this year to last year). Include in your evaluation:
Information about performance and trends.
Information about other relevant financial information you consider important to the decision.
Your recommendation regarding whether the bank should grant the loan based on the financial data.
Deliverable Formats
The management team of your organization requests this information in the form of a 1–2 page executive summary along with a title page, references page, and appendix of supporting information. The executive summary must highlight the key findings from your review and will provide your recommendation and rationale. The appendix must include data used in your analysis for others to review. Assume that this document is the only communication in regard to your analysis and recommendation and that you will not be with the team to explain anything as it deliberates. In other words, the documentation you provide must be well organized and include information for the management team to clearly see your recommendation and rationale.
Related company report standards:
The executive summary is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.
In addition to the executive summary, include:
A title page.
A references page.
Appendix with supporting materials. If you are using a firm or scenario of your choosing, ensure faculty has sufficient information to understand how you reached your recommendation.
At least two APA-formatted references.
ASSESSMENT 4 – EXPANSION RECOMMENDATIONS
Instructions
Prepare either a 3-4 page report or a 12-slide presentation in which you analyze financial information and risks associated with an investment to expand an organization and make a recommendation on whether or not to invest in expansion.
Introduction
This portfolio work project will allow you to review information and risks associated with an investment to expand an organization. As this information will be shared broadly across the organization, you will have a choice in your final deliverable audience and will organize your deliverable to meet the needs of that audience.
Scenerio
ZXY Company is a food product company. ZXY is considering expanding to two new products and a second production facility. The food products are staples with steady demands. The proposed expansion will require an investment of $7,000,000 for equipment with an assumed ten-year life, after which all equipment and other assets can be sold for an estimated $1,000,000. They will be renting the facility. ZXY requires a 12 percent return on investments. You have been asked to recommend whether or not to make the investment.
Your Role
You are an accounting manager. Your boss has asked you to review and provide a recommendation on the expansion based on information that has been provided.
Requirements
In preparing and supporting your recommendation to either make the investment or not, include the following items as part of your analysis:
Analysis of financial information.
Identification of risks associated with the investment. Consider:
How risky the project appears.
How far off your estimates of revenues and expenses can be before your decision would change.
The difference if the company were to use a straight line versus a MACRS depreciation.
Recommendation for a course of action.
Explanation of criteria supporting your recommendation.
Financial Information
As part of your analysis you might find that additional information from marketing, accounting, or finance would be useful in making an informed and well-supported recommendation. In a real workplace setting you would have the ability to ask for that information. However, for the purposes of this assessment, you can make assumptions about the values of that data or ratios in support of your recommendation.
Accounting worked with the marketing group to create the ZXY Company Financial Statements Download ZXY Company Financial Statementsspreadsheet for the new products business and the new facility.
Notes about the financial information:
The expense line labeled SQF FDA Mandates refers to the costs of complying with Food and Drug Administration requirements.
Depreciation expense is calculated using 7-year life modified accelerated cost recovery system (MACRS).
Deliverable Format
Depending on the audience you choose to address, use one of the following options:
Report for a mid-management audience. Prepare a 3–4 page report detailing your recommendation and the information you used to make your recommendation.
Presentation for top leadership. Prepare a presentation of at least 12 slides detailing your recommendation and the information you used to make your recommendation. You may use your choice of presentation software. Include notes with additional details.
Keep in mind that your recommendation may be shared with others, so your materials should be designed for clarity and readability.
Related company standards for either format:
The recommendation report is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.
In addition to the report or presentation, include:
Title (slide or page).
References (slide or page).
Appendix with supporting materials.
At least two APA-formatted references.
