International accounting

Instructions:

1. All citations must follow APA format guidelines.
2. Font size should be 12pt, and font should be Times New Roman.
3. Spacing should be no larger than double spacing.
4. Students should follow the specific instructions on the assignment for page length and paper requirements.
5. If you have an original final grade of FAIL in the course prior to resubmission, and you resubmit and receive a FAIL on the resubmission, you will be withdrawn from Hult.

Resubmission Assignment: International Accounting

Module A 2016-2017
Professor Tom Porter
Professor Jane Mooney

Description

This assignment requires you to thoroughly analyze a particular company’s accounting profile. It will also require you to prepare pro forma financial statements by altering the assumptions originally used by the company. You must submit a written report that is well formatted, contains detailed calculations and is properly referenced.

The specific steps are as follows:

1. Choose a public company (not a financial institution or utility). The company must have issued bonds and have operating leases. Confirm your choice with your professor. Obtain a copy of the most recent annual report or SEC filing that contains a complete set of financial statements and notes.
2. Prepare an analysis of the company’s accounting choices as described in the accounting policies note. (Do not copy and paste from the financial statements into your report, you should only submit original work.) Highlight the areas in which the company had a choice of accounting method and comment upon whether you think the choice is appropriate, given your company’s industry. Explain how each choice affects the three primary financial statements (the balance sheet, income statement and statement of cash flows). For example, is the choice one that would cause assets to be greater than if the company made an alternative choice? This summary should be about five pages long.
3. For each of the following prepare a table showing your calculations and provide a written explanation of your analysis and methodology. Using the accounting equation framework, show the calculations for how each change affects the primary financial statements. Then prepare a revised balance sheet and income statement in good form.
a. Identify Bad Debt Expense. If your company disclosed bad debt expense, use that amount. If your company does not disclose bad debt expense, assume that it is 5% of gross accounts receivables. In either case, determine the effect on the financial statements of a 50% increase in bad debt expense.
b. If your company used the LIFO method of accounting for inventory, use the required disclosures to compute what would happen if the company had used FIFO instead. If the company used FIFO, make the assumption that the numbers are actually LIFO numbers and that the LIFO reserves at the beginning and end of the year were 30% of the reported inventory numbers.
c. Compute the average useful life of your company’s long-lived assets. Determine the effect if the average useful lives were 40% longer than what the company actually used.
d. Prepare a profile of the company’s debt. How many bonds have been issued? What are the coupon rates and effective (i.e., yield or market) rates? Obtain a current market quote of the company’s two most recently issued bonds as of year-end and calculate the effect if the company repurchased those bonds at those prices on that date. If you cannot determine the carrying value of these bonds, assume that they were issued at par. Assume that to repurchase these bonds, the company issued bonds with a par value equal to the repurchase cost and that the new bonds carry a coupon rate of 4% with semiannual coupon payments and a 10-year maturity. Assume the market rate at issuance is 4.5%.
e. Capitalize all operating leases using the market rate of interest from part d.
f. Assume that 60 days prior to the year-end, the company repurchased 500,000 shares of its common shares at the market price on that date. Assume that 30 days prior to the year end, the company declared a 10% stock dividend.
g. Assume the company declares and pays a cash dividend equal to 10% of their net income.
h. Recalculate income tax expense using revised net income and the tax rate reflected on the original income statement and make any necessary accrual.
i. If the revisions that are made put the company in a negative cash position, assume that the company borrows enough cash to produce an ending cash balance of $1,000,000. Assume that the borrowing took place at year end at a 6% interest rate and is to be paid back in six months.
4. Using your new balance sheet and income statement, prepare a revised statement of cash flows.

Grading rubric for this assignment:

Parts a through i are worth 5 points each, 10 each points for the revised balance sheet, income statement and statement of cash flows, 10 points for part 2, and 10 points for the overall paper.

HP: Writing is clear and professional. Calculations are done accurately, explanation is clear, and tables are well done. Paper is correctly referenced and professionally presented. P: Calculations are done accurately, but explanation and tables are difficult to follow or unclear. Paper contains some grammatical and spelling errors but is correctly referenced and professionally presented.
NI: Calculations contain minor errors but based on methodology which is generally though not completely accurate. Paper contains some grammatical errors and references are not correctly done. Presentation is acceptable but not client ready. F: Calculations and methodology are incorrect. Paper contains grammatical errors and references are not correctly done. Paper fails to meet professional standards for presentation.

Duepapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.