Financial Self-Interest Threa
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Self-Review Threat
Advocacy Threat
Adverse Interest Threat
Familiarity Threat
Undue Influence Threat
Financial Self-Interest Threat
Management Participation Threat
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- You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "We owe these consultants $1.9 million for this report, and I am not sure their analysis makes sense. Before we spend the $18 million on new equipment needed for this project, look it over and give me your opinion." You open the report and find the following estimates (in millions of dollars): (Click on the following icon in order to copy its contents into a spreadsheet.) Sales revenue - Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income - Income tax 1 34.000 20.400 13.600 1.440 1.800 10.360 2.072 Project Year 2 34.000 20.400 13.600 1.440 1.800 10.360 2.072 9 34.000 20.400 13.600 1.440 1.800 10.360 2.072 10 34.000 20.400 13.600 1.440 1.800 10.360 2.072 a. Given the available information, what are the free cash…You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "We owe these consultants $1.2 million for this report, and I am not sure their analysis makes sense. Before we spend the $29 million on new equipment needed for this project, look it over and give me your opinion." You open the report and find the following estimates (in millions of dollars): (Click on the following icon in order to copy its contents into a spreadsheet.) Project Year Sales revenue Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income - Income tax 1 25.000 15.000 10.000 2.320 2.900 4.780 1.434 2 25.000 15.000 10.000 2.320 2.900 4.780 1.434 9 25.000 15.000 10.000 2.320 2.900 4.780 1.434 10 25.000 15.000 10.000 2.320 2.900 4.780 1.434 a. Given the available information, what are the free cash flows in…The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated? A manager at a "Check Into Cash" business (see Focus on Ethics box on page 192) defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business? Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond…
- You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "We owe these consultants $1.4 million for this report, and I am not sure their analysis makes sense. Before we spend the $28 million on new equipment needed for this project, look it over and give me your opinion." You open the report and find the following estimates (in millions of dollars): (Click on the following icon in order to copy its contents into a spreadsheet.) Project Year Sales revenue - Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income - Income tax 1 31.000 18.600 12.400 2.240 2.800 7.360 1.472 2 31.000 18.600 12.400 2.240 2.800 7.360 1.472 9 31.000 18.600 12.400 2.240 2.800 7.360 1.472 10 31.000 18.600 12.400 2.240 2.800 7.360 1.472 a. Given the available information, what are the free cash flows…Write an essay about the emerging roles of management accountants in today's and tomorrow's corporate environments, based on the digital economy and beyond. The essay should describe, explain, and evaluate the business environment to which management accountants must adapt, as well as how they (management accountants) will position themselves in the future. Please keep in mind that your essay should be between 500 and 750 words long.You're applying for a job as a website designer at a digital marketing agency. In a previous job at another agency, you excelled at website design, but you were also asked to pitch the agency's services to potential clients. Unfortunately, you did not excel at this aspect of the job, and you were let go when the agency had to lay off 10% of its staff. The new opportunity will not require you to pitch new clients. How should you approach your former boss for a recommendation that focuses on your web design skills?
- 3. If you are an IT auditor, then the management told you that one of their former employee was hired in a competitor company. Allegedly, the former employee is bringing notable growth to that competitor company. The manager is worried as their company slowly declining in terms of profitability. He ask your advice on the matter. What advise should you give?Artistic group is one of the largest exporters of Pakistan. From last 6 years their revenue & profit goes down & good will has also damaged. They have appointed you as a new Management accountant to resolve the issue. How you will apply TOTAL QUALITY MANAGEMENT (TQM) to enhance the performance of the organization, Explain in detail with examples.Zynex Co manufactures a range of electronic devices, which it sells to online stores and retail outlets. It has a risk-seeking attitude and its objective is to maximise profit. Six months ago it released a new version of its smartphone, the ZV. Zynex Co's main smartphone competitor has announced that it will launch a new version of its smartphone in one month's time and Zynex Co is concerned about the effect of the launch of this rival product on future demand for the ZV. For each of the previous ten smartphones launched by its competitors, Zynex Co's marketing team has analysed the impact on Zynex Co's sales performance. This data was retained specifically for the purpose of forecasting future demand of Zynex Co's smartphones and is stored in the company's financial database. Based on this analysis, the marketing team has identified three possible outcomes for the impact on the demand of the ZV: a small decrease, a medium decrease and a large decrease. Production volumes for the ZV…
- You are the technology auditor for a medium size online retailer. With the growth, it has been very difficult for the Information Technology (IT) group to keep up with the hardware requirements and new software for all the various smartphone applications. Much of the in-house technology is outdated from a web application and regulatory standpoint. Many organizations have lowered costs by going to cloud computing solutions, including your competitors allowing them to lower costs and gain market share. One of the key benefits of cloud computing is the opportunity to replace up-front capital infrastructure expenses with low variable costs that scale as the business grows. The CIO has done a complete analysis of moving to a cloud computing solution with Microsoft’s Azure Cloud Platform. The reduction in ongoing costs would be almost fifty percent along with major capital expenditures for upgrades if they were to keep processing in-house. There would be reduction of 70% in the IT staff.…Net Promoter Score (NPS) Upon graduation, you and a friend established a computerconsultancy business. Your business has generally been successful, but you and your colleaguewish to expand the business significantly over the next 3 years. You have always assumed that theservice your firm rendered to clients was of sterling quality. However, up to this point you havenot attempted to measure customer satisfaction. Recently, you prepared and sent to your clients acustomer-satisfaction survey that, among other items, asked the following question: “How likely isit that you would recommend our services to a friend or business associate?” Customers respondedto this question using a 10-point scale, with 10 = “Extremely Likely,” 5 = “Neutral/Uncertain,” and1 = “Extremely Unlikely.” You received 290 responses to this question, which were as follows:[LO 17-5][LO 17-6]Score No. of Responses1 62 83 94 215 236 307 168 729 7010 35Final PDF to printerblo17029_ch17_713-774.indd 769 02/19/18 09:10…ClamShell Security (CSS) is a division of a large, listed company, X3Cate Limited (X3L). The CSS Division produces software products to protect customer’s computers from infection from computer viruses and other malware. The sales of its products have been growing over the last few years as its products become more accepted in the market. The Board of X3L want to introduce a new product line that would specifically protect against Ransomware, a new security threat, particularly business customers. Each Divisional Manager can earn large bonuses on top of their base salaries if they maintain Return on Investment greater than 25% otherwise the bonus payments are halved. The following information is for the year that has just ended related to the CSS Division performance: Profit percentage (Return on Sales): 30% Sales revenue: $15 000 000 Average capital invested $18 000 000 Required:Using the same information provided for the past year, if X3l has a company-wide…