HI5020 Corporate Accounting | Accounting Theory and Current Issues

HI5020 Corporate Accounting | Accounting Theory and Current Issues

$20 Bonus + 25% OFF

Securing Higher Grades Costing Your Pocket?
Book Your Assignment at The Lowest Price
Now!

Students Who Viewed This Also Studied

HI5020 Corporate Accounting

Question:

This assignment aims at developing an understanding of students on different aspects of a cash flows statement as well as what information can be derived from the cash flows statement. Students will learn how to prepare the statement of cash flows using direct and indirect method, understand why a company may have reported profit but negative cash flows, and form the ability to look into the profit figure in conjunction with the cash flows information so as to get a complete picture. Hence this assignment helps students to learn how to prepare, present, analyse and synthesise cash flow related data and information for a company or for a corporate group.

  • All work must be submitted on Blackboard by the due date, along with a completed Assignment Cover Page.
  • The assignment must be in MS Word format, with no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.
  • Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Harvard referencing style. The following guidelines apply:

Reference sources in assignments are limited to sources that provide full text access to the source’s content for lecturers and markers.

  1. The Reference list should be located on a separate page at the end of the essay and titled: References.
  2. It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text reference source.

Assessment tasks:

Question 1

Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to increase the company’s borrowings with the bank from $100,000 to $150,000. Matt has an uneasy feeling as he examines the loan application from Aggressive Corporation, which just completed its first year of operations. The application included the following financial statements.

The income statement submitted with the application shows a net income of $30,000 in the first year of operations. Referring to the balance sheet, this net income represents a more-than-acceptable 15% rate of return on assets of $200,000.

Matt’s concern stems from his recollection that the $100,000 note payable reported on the balance sheet is a three-year loan from his bank, approved earlier this year. He recalls another promising new company that, just recently, defaulted on its loan due to its inability to generate sufficient cash flows to meet its loan obligations.

Seeing Matt’s hesitation, Larry Bling, the CEO of Aggressive Corporation, closes the door to the conference room and shares with Matt that he owns several other businesses. He says he will be looking for a new CFO in another year to run Aggressive Corporation along with his other businesses, and Matt is just the kind of guy he is looking for. Larry mentions that as CFO, Matt would receive a significant salary. Matt is flattered and says he will look over the loan application and get back toLarry concerning the $50,000 loan increase by the end of the week.

Required:

(a) Prepare a statement of cash flows for Aggressive Corporation.

(b) Explain how Aggressive Corporation can have positive net income but negative operatingcash flows.

(c) How does the finding of negative operating cash flows affect your confidence in the reliability of the net income amount?

(d) Why do you think Larry mentioned the potential employment position? Should the potential employment position with Aggressive Corporation have any influence on the loan decision?

Question 2

“Why can’t we pay our shareholders a dividend?” shouts your new boss at Polar Opposites. “This income statement you prepared for me says we earned $5 million in our first year!” You recently prepared the financial statements below.

Question 3

Bryan Eubank began his accounting career as an auditor for a Big 4 CPA firm. He focused on clients in the high-technology sector, becoming an expert on topics such as inventory write-downs, stock options, and business acquisitions. Impressed with his technical skills and experience, General Electronics, a large consumer electronics chain, hired Bryan as the company controller responsible for all of the accounting functions within the corporation. Bryan was excited about his new position— for about a week until he took the first careful look at General Electronics’ financial statements. The cause of Bryan’s change in attitude is the set of financial statements he’s been staring at for thepast few hours. For some time prior to his recruitment, he had been aware that his new employer had experienced a long trend of moderate profitability. The reports on his desk confirm the slight but steady improvements in net income in recent years. The disturbing trend Bryan is now noticing, though, is a decline in cash flows from operations. Bryan has sketched out the following comparison ($ in millions):

Profits? Yes. Increasing profits? Yes. So what is the cause of his distress? The trend in cash flows from operations, which is going to the opposite direction of net income. Upon closer review, Bryan noticed a couple events that, unfortunately, seem related:

(i) The company’s credit policy has been loosened, credit terms relaxed, and payment periods extended. This has resulted in a large increase in accounts receivable.

(ii) The salaries of the CEO and CFO, are calculated based on reported net income.

Required:

(a) What is likely causing the increase in accounts receivable? How does an increase in accounts receivable affect net income differently than operating cash flows?

(b). Explain why executive compensations for officers, such as the CEO and CFO, might increase the risk of earnings management.

(c) Why is the trend of cash flows from operations, combined with the additional events, such a concern for Bryan?

(d) What course of action, if any, should Bryan take?

Question 5: (11 Marks)

(a) Prepare a statement of cash flows for Aggressive Corporation. 5

(b) Explain how Aggressive Corporation can have positive net income but negative operating cash flows.

(c) How does the finding of negative operating cash flows affect your confidence in the reliability of the net income amount?

(d) Why do you think Larry mentioned the potential employment position? Should the potential employment position with Aggressive Corporation have any influence on the loan decision?

Question 6: (10 marks)

Prepare a memo explaining how net income could be positive and operating cash flows negative. Include in your report a determination of operating cash flows of negative $5 million using the indirect method.

Question 7: (10 marks)

(a) What is likely causing the increase in accounts receivable? How does an increase in accounts receivable affect net income differently than operating cash flows?

(b) Explain why executive compensations for senior officers, such as the CEO and CFO, might increase the risk of earnings management.

(c) Why is the trend of cash flows from operations, combined with the additional events, such a concern for Bryan?

(d) What course of action, if any, should Bryan take?

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please  consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

HI5020 Corporate Accounting

Answer in Detail


Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

38 More Pages to Come in This Document. Get access to the complete answer.

For all students who search the internet with phrases like ‘do my thesis paper’ or ‘write my thesis paper,’ MyAssignmenthelp.com is the best place to be at. We are the most popular thesis help online agency in Australia as we provide top-notch thesis papers at heavily discounted prices. Students can safely buy thesis papers from us without worrying about the quality.

More HI5020 HI5020 Corporate Accounting: Questions & Answers

Management

The word count doesnot apply as it is mostly numerical in nature These are just two questions for Consolidated Financial statements. Please include detail notes to the financial statements The solution should be prepared as per the AASB standards, meeting all requirements. …

View Answer

Business Management

Purpose: This assessment is designed to reinforce the subject content and developstudents’ skills and application of knowledge of the subject content tobusiness situations. This assessment relates to learning outcomes a, b and c.Value: 20%Due Date: Students are to upload their submission to th …

View Answer

FIN575 Budget and Profit and Loss Statement

Task:
The purpose of this assignment is to allow students to gain the necessary knowledge to manage cost and determine project viability through capital budgeting techniques, so they can effectively minimize the cumulative error between the projected values and actual values over the relevant time …

View Answer

Business Management

Task – 100 Marks  a) Prepare a statement of cash flow for Plato Ltd for the year ending 31 March 2015 using the indirect method in IAS 7 Statement of Cash Flow. (40 marks)  b) Discuss the current business strategy used by Plato Ltd, considering the statement of cash flow that you hav …

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the
content removal request.

Choose Our Best Expert to Help You





Allan Anthony

I pursued my Degree in Engineering and Applied Science from Aston University

500 – Completed Orders

Hire Me

Still in Two Minds? The Proof is in Numbers!

33845 Genuine Reviews With a Rating of 4.9/5.

Maths

Home Work: 1 Page, Deadline:
3 days

The assignment was done with complete details showing all the essential steps. I am very happy with the work.

User ID: 4***77 United States

Management

Assignment: 0 Pages, Deadline:
5 days

Great work on this assignment and I will definitely be returning for additional help

User ID: 6***02 Sumter, United States

Psychology

Essay: 1 Page, Deadline:
15 hours

Perfect job and a quick job done by the writer. Thanks for the help. Grammar and sentences was great

User ID: 7***54 Sumter, Spain

Assignment

Essay: 8 Pages, Deadline:
13 days

Good work but cloud be better, hope next work is better sadasdasdasdasdasasdsadsadsadas

User ID: 5***28 United Kingdom, Great Britain

HRM

Assignment: 6 Pages, Deadline:
22 days

I am really happy with the result, even though I had to make adjustments, and I got a good grade for it.

User ID: 5***20 United Kingdom, France

Marketing

Home Work: 1 Page, Deadline:
3 days

Thank you so much! taking a time to do Thank you so much! taking a time to do my assignment my assignment

User ID: 6***98 United Kingdom, United States

Assignment

Essay: 4.8 Pages, Deadline:
10 days

A very well presented assignment, all the ideas were very well explained, easy to understand. Definitely will recommend .

User ID: 8***07 United Kingdom, Denmark

Business Law

Home Work: 0.9 Pages, Deadline:
1 day

Thank you, very much ????????????! I’m looking forward to working with you guys again.

User ID: 8***94 United Kingdom, Canada

Medical

Essay: 1.6 Pages, Deadline:
3 days

This assignment was good I got a really good grade on this assignment so who complete this one great job.

User ID: 8***56 United Kingdom, United States

Pharmacy

Assignment: 1 Page, Deadline:
3 days

This assignment was okay but I felt that it could have gotten a better grade but assignment was good.

User ID: 8***56 United Kingdom, United States

Marketing

Home Work: 1 Page, Deadline:
11 days

Very reliable work. I liked the quality of assignment. They delivered two days before the day of commitment.

User ID: 8***50 United Kingdom, Australia

Management

Assignment: 6 Pages, Deadline:
5 days

Good work and very fast turn around. Happy with the quality of assignment. Definitely would recommend.

User ID: 8***50 United Kingdom, Australia

Assignment

Essay: 2 Pages, Deadline:
3 days

Very quick done and professional job. Helped me to gain good marks. Easy to read as answers given very clear.

User ID: 5***21 Blanchardstown, Ireland

Statistics

Home Work: 3 Pages, Deadline:
11 hours

Thank you very much… YOU ARE A GREAT WRITER ! You provide this answer and saved my life !

User ID: 8***32 Blanchardstown, Sri Lanka

Civil Law

Home Work: 3.6 Pages, Deadline:
4 hours

Thanks for the time response and helped me in successfully submitting the assignment. Thanks for this time

User ID: 8***31 United Kingdom, Great Britain

Economics

Home Work: 1.2 Pages, Deadline:
2 hours

Thanks for helping at short notice. Great quality, in the short time provided. All the best

User ID: 8***61 United Kingdom, Great Britain

Management

Assignment: 5 Pages, Deadline:
5 days

This report addresses the assignment brief very well, with much detail on Unilever online presence. The recommendation are good, and more detail/ less …

User ID: 8***01 England, Great Britain

Maths

Home Work: 1 Page, Deadline:
54 minutes

Super quick response time, great detail and construction of the solution. Many thanks for your help in this assignment. All the best

User ID: 8***61 United Kingdom, Great Britain

Maths

Home Work: 1 Page, Deadline:
1 hour

The new answer seems correct and is well explained in detail. Thank you for reviewing the work and for your help on this assignment. All the best.

User ID: 8***61 United Kingdom, Great Britain

Maths

Home Work: 1 Page, Deadline:
1 hour

Very good solution, well explained in detail. Thank you very much for your help on this assignment. All the best.

User ID: 8***61 United Kingdom, Great Britain

Maths

Home Work: 1 Page, Deadline:
3 days

The assignment was done with complete details showing all the essential steps. I am very happy with the work.

User ID: 4***77 United States

Management

Assignment: 0 Pages, Deadline:
5 days

Great work on this assignment and I will definitely be returning for additional help

User ID: 6***02 Sumter, United States

Psychology

Essay: 1 Page, Deadline:
15 hours

Perfect job and a quick job done by the writer. Thanks for the help. Grammar and sentences was great

User ID: 7***54 Sumter, Spain

Assignment

Essay: 8 Pages, Deadline:
13 days

Good work but cloud be better, hope next work is better sadasdasdasdasdasasdsadsadsadas

User ID: 5***28 United Kingdom, Great Britain

HRM

Assignment: 6 Pages, Deadline:
22 days

I am really happy with the result, even though I had to make adjustments, and I got a good grade for it.

User ID: 5***20 United Kingdom, France

Marketing

Home Work: 1 Page, Deadline:
3 days

Thank you so much! taking a time to do Thank you so much! taking a time to do my assignment my assignment

User ID: 6***98 United Kingdom, United States

Assignment

Essay: 4.8 Pages, Deadline:
10 days

A very well presented assignment, all the ideas were very well explained, easy to understand. Definitely will recommend .

User ID: 8***07 United Kingdom, Denmark

Business Law

Home Work: 0.9 Pages, Deadline:
1 day

Thank you, very much ????????????! I’m looking forward to working with you guys again.

User ID: 8***94 United Kingdom, Canada

Medical

Essay: 1.6 Pages, Deadline:
3 days

This assignment was good I got a really good grade on this assignment so who complete this one great job.

User ID: 8***56 United Kingdom, United States

Pharmacy

Assignment: 1 Page, Deadline:
3 days

This assignment was okay but I felt that it could have gotten a better grade but assignment was good.

User ID: 8***56 United Kingdom, United States

Marketing

Home Work: 1 Page, Deadline:
11 days

Very reliable work. I liked the quality of assignment. They delivered two days before the day of commitment.

User ID: 8***50 United Kingdom, Australia

Management

Assignment: 6 Pages, Deadline:
5 days

Good work and very fast turn around. Happy with the quality of assignment. Definitely would recommend.

User ID: 8***50 United Kingdom, Australia

Assignment

Essay: 2 Pages, Deadline:
3 days

Very quick done and professional job. Helped me to gain good marks. Easy to read as answers given very clear.

User ID: 5***21 Blanchardstown, Ireland

Statistics

Home Work: 3 Pages, Deadline:
11 hours

Thank you very much… YOU ARE A GREAT WRITER ! You provide this answer and saved my life !

User ID: 8***32 Blanchardstown, Sri Lanka

Civil Law

Home Work: 3.6 Pages, Deadline:
4 hours

Thanks for the time response and helped me in successfully submitting the assignment. Thanks for this time

User ID: 8***31 United Kingdom, Great Britain

Economics

Home Work: 1.2 Pages, Deadline:
2 hours

Thanks for helping at short notice. Great quality, in the short time provided. All the best

User ID: 8***61 United Kingdom, Great Britain

Management

Assignment: 5 Pages, Deadline:
5 days

This report addresses the assignment brief very well, with much detail on Unilever online presence. The recommendation are good, and more detail/ less …

User ID: 8***01 England, Great Britain

Maths

Home Work: 1 Page, Deadline:
54 minutes

Super quick response time, great detail and construction of the solution. Many thanks for your help in this assignment. All the best

User ID: 8***61 United Kingdom, Great Britain

Maths

Home Work: 1 Page, Deadline:
1 hour

The new answer seems correct and is well explained in detail. Thank you for reviewing the work and for your help on this assignment. All the best.

User ID: 8***61 United Kingdom, Great Britain

Maths

Home Work: 1 Page, Deadline:
1 hour

Very good solution, well explained in detail. Thank you very much for your help on this assignment. All the best.

User ID: 8***61 United Kingdom, Great Britain

Have any Query?

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER