FIN 370 Cash Flow Problem Sets (4-5,4-7,4-

8,4-11,4-13)
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4-5 Multiyear Future Value How much would be in
your savings account in 11 years after depositing
$150 today if the bank pays 8 percent per year?

Financial Statements

Today, I will be describing a balance sheet,

income statement, retained earnings statement,
and statement of cash flows and how a company
uses these financial statements as a tool to make
future decisions for the company.
Balance Sheet
A balance sheet a statement sheet that reports
the companys financial balances of the
business. This sheet includes the companys total
of assets and liabilities. It is used for all three
types of business sole proprietorship, business
partnership and corporate business companys.
Creditors rely on this financial sheet to determine
if the company will be able to repay.
Income Statement
An Income Statement is a financial statement
that shows the companys profit and losses. It
basically shows all the companys gains and
losses that were made during a period of time.
After the company deducts the expenses from
the revenue then you will get a total net income.
This is a great statement to use especially
because this will show investors how much net
income is the company bringing in, or how
financially stable the company truly is.
Retained Earnings Statements
Retained Earnings Statements reports the
changes to the retained earnings (net income in
a corporation) during a certain time period. This
financial statement shows dividends, profits and
loses. Investors and Lenders monitor the
retained Earning Statements especially when it
comes to monitoring dividends. Some invest use
this tool to see if the company is paying high/low
dividends. Retained Earnings Statement is part of
the balance sheet under Stockholders equity.

Statement of Cash Flow

Statement of Cash Flows provides information
regarding the companys cash receipts. This
statement gives a detailed account of the
operating, investing and financial activities of the
company. It also allows investors a chance to
observe how financially stable the company is so
that they can make a choice if they want to take
a risk on investing into the company. Also the
accounting department needs this statement in
order to see if the company has enough money
for payroll uses.

All four of these financial statements are all

extremely important tools to use in the business.
Another statement that was not listed but is
often used is called comparative statements.
Comparative statement gives a side by side
comparison of the financial statements above.

Reference

http:yourdictionary.com
/accounting_statements.org Retrieved 1/28/10
Thomas, Y. 2005-08-27 Accounting 101 pg. 52
Statements
-----------------------------------------------------
 FIN 370 Final Exam Guide (New 2017)

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Which one of the following statements is correct
concerning the cash cycle? Accepting a suppliers
discount for early payment decreases the cash
cycle. Increasing the accounts payable period
increases the cash cycle Compare and contrast
sole proprietorships, partnerships, and
corporations.
Sole proprietorships means that a business that
owned by one person. That includes and not
limited to all profits and losses, debts and
unlimited liability, all will come from the solely
one owner and not a group or in this case a
partner or co-owner etc. Partnerships are seen
much differently than sole proprietorships.
Partnerships is a business that owned by more
that one person/s. This is the number one
difference from being a sole proprietorship or
sole owner. Basically, two or more people come
together and split the cost, debts, and liability.
Corporations is an business that has separate
entity owned by stockholders. The huge
difference between corporations and the other
two is that they are owned by stockholders.
Stockholders make decisions that is first best for
their company, secondly the company that they
have together.
Why would a entrepreneur want to choose one
over the other?
An Entrepreneur is a person that wants to start a
business with their vision and have more power
of the decision making. The best choice for an
entrepreneur is to choose sole proprietorship out
of all the three choices. The first and most
important reason is because it is much easier to
start a business as sole proprietorships. Sole
proprietorship takes all the profit that and
doesn't have to split it between any other owners
or corporations.
If I was to start a new business which one would I
choose?
In this case it depends on the type of business.
My case I will be opening a hair salon and I would
prefer sole partnerships. i choose that because I
want to be in control and I don't want to split the
profit.
-----------------------------------------------------
FIN 370 Final Exam Guide (New)

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Which financial statement reports the amounts of
cash that the firm generated and distributed
during a particular time period? Current assets
When it comes to a company's classified balance
sheets you will find current assets sheet. Current
assets is cash or cash equilivants that the
company will use. What you will find on a current
asset sheet is Cash and equilvants, Short term
investments, Accounts receivables, and other
assets.
Long-term investments
Long-term investments when it comes to balance
sheet are investments that the company intends
to hold onto. The investments that are listed are
as follows, bonds, stocks and cash. You will also
find short-term investments in the company. The
difference between short-term and long-term
investments is that the short-term investments
will be sold and the long-term investments
normally the company will choose to keep it.
Property, plant, and equipment
Property, plant, and equipment are what the
company calls "fixed assets". Property, plant and
equipment are assets that can not be easily
converted into cash. These are basically items
such as company car (used to deliver products),
computers and copier machine, and freezer used
for restaurants.
Intangible assets
Intangible assets are non-monetary items that
can not be seen or touched. For example,
trademarks, copywriters, patents and goodwill.
Intangible assets are normally listed in the
separate assets.

references
http://www.investopedia.com/terms/i/intangibleas
set.asp
-----------------------------------------------------
FIN 370 Week 1 Calculating Ratios
Worksheet (2 Set)

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This Tutorial contains 2 Set of Answers FIN 370
Week 1 Calculating Ratios Worksheet For
Discussion Question 1: Post your response to
the following:
When reviewing a financial report, why
should information be reliable, relevant,
consistent, and comparable?
In other words, why are these accounting
characteristics important?
What kinds of problems could be created
if a financial report is not reliable, relevant,
consistent, or comparable?
It is extremely vital that the company has
accurate financial reporting. This information
determines whether or not to invest in your
company's stock. This information will help them
decide if it is profitable to invest or not to invest
in your company based what is in your financial
history. The information must be relevant
because it will help the company, investors and
lenders make decisions. It helps answer
questions like, "how stable is your company", or
"what future does this company have". The
information should be reliable. In other words the
information that is reported must be able to be
verified, backed up with truthful information.
Comparable occurs when different companies
use the same accounting principles. This makes
it much easier to compare results between
company's. Consistency happens when the
company uses the same accounting method
every year. When the financial statements are
reported each year, it paints a financial picture of
where the company is headed now and in the
future.

What kinds of problems will occur if the

information does not include these things?

Falsified or manipulated statements doesn't only

effect the company but it also to name a few
effects the lenders, creditors, investor's, etc. This
will result in the company not having a faithful
representation.

Another response
The main objective of generating financial
information is providing useful information that
can be used in decision-making... only if this
information is relevant, reliable, comparable, and
consistent, can it be useful for decision
makers. (Kieso, 2003).
Relevance gives a basis for making decisions
that will impact the future of a business, and it
confirms and corrects expectations from the
past. If the information makes a difference in
making decisions, it is relevant.
Reliability means that the information can be
depended on and it can be proven to be free of
error, and the information is factual. The
information cannot favor one set of users over
another. CPAs audit financial statements to
ensure reliability.
Comparability is also an important characteristic
of financial reporting... this happens when
different businesses use similar accounting
principles, making it much easier for one to
compare companies, and the method used in a
business must be disclosed to the users of the
information to enable the users to convert the
information as accurately as possible.
Consistency simply means that the business uses
the same accounting principles on a yearly
basis... consistently. This helps decision makers
analyze a company's trends. A company can
change the methods used if they can justify the
change, showing that the new method is more
useful for analysis. If the method is changed, it
must be disclosed in the notes that go with the
statements to show users a lack of consistency.
These characteristics are very important to a
business... decisions cannot be made based on
incorrect information, and everyone involved in a
business venture of any kind, whether they be
management, owners, or investors and creditors,
as well as consumers, etc. must be able to rely
on the financial information provided in order to
make any type of decision. Without this
information, it is difficult to imagine any business
succeeding, even for a short time.
Examples of problems that could occur without
reliable, relevant, consistent, or comparable
information includes not being able to get loans
or investments; management could make
decisions that cause irreparable damage to
entire operations, consumers could easily lose
faith and cut their ties... the possibilities are
endless for companies that lack these qualities in
their financial reporting.

DQ2
For Discussion Question 2: Post your
response to the following:
 How does information from financial
reports influence business decisions?
Why is it important for business
managers to understand the information found
on financial reports?

How does information from financial reports

influence business decisions?

Once the information from the financial reports

have been posted then a team will review the
company's financial history to see what decision
were profitable or not. The decisions that were
made previous to the financial reports being
posted will show which way the company needs
to go to continue to remain #1.

Why is it important for business managers to

understand the information found on financial
reports?

IT is extremely important for he business

managers to understand the information found
on the financial reports. The business managers
are going to be the people that are going to
make decisions for the company. They need to
know how to interpret the financial reports and
come up with different strategies that will
continue to make the company money.
Another response
The information from financial reports influences
business decisions because it shows where the
company stands. The managers use the
information from the financial report compared
to the current year from the previous year,
whether the company growths or losses. It is
very important for business managers to
understand the information found on financial
reports because the information from the
financial reports enables business managers to
see how to improve and keep the business
afloat. It also gives business managers an insight
what came in and went out and the total
operating cost of the company as well as cutting
cost in a certain areas. The information from the
financial reports helps the manager manages the
business accurately.
-----------------------------------------------------
FIN 370 Week 1 Calculating RatiosLake of
Egypt Marina (3-29, 3-30)

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FIN 370 Week 1 Calculating Ratios Review the
financial statements for Lake of Egypt Marina,
Inc. Complete the following problem sets from
Chapter 3 in Microsoft Excel:
Internal Cash Control
By
Kamilah Crooms
Accounting 220
Jess Stern

Internal Cash Control

The accounting department receives from

sales invoices once a month. Most of the
information is missing on the invoices.

The accounting department relies on each

department within the company and all the
information has to be submitted completely and
in a timely matter. In this scenario most of the
information that has been turned in has
information that is missing on the invoices. I
would say that the internal controls that are not
being followed are Documentation procedures.
Company documentation is very important and
must be turned in complete. These documents
show proof of delivery or proof of services to the
customer. Any incomplete documents can be
very costly and can cause a delay in the
company being paid for any services rendered.
For example, one of the requirements in a
transportation department is to make sure that
the drivers verify the load and sign for the load
prior to leaving the yard, these documents says
that the load left in good condition. Well, it so
happened that we allowed a driver to leave
without signing the paperwork. This caused a
delay in accounting because we had to get
signatures from the driver and the customer
which took a month later to complete.

Rob, Sue, and Bob use the same cash

register at the donut shop.

Rob, Sue, and Bob all use one register has often
turned into not the best decision ideally for the
company. It can increase the risk for the drawer
being short and it will be hard for the company to
find out which employee or employees had
shorted the register. The internal controls that
are not being followed are Establishment of
responsibility. Happens when the company
assigns one person to be in control of a specific
job or have authority to make decisions (pg 161
Internal Control and Cash). When the company
signs one person to be responsible over the
register it will allow the company to hold that one
person responsible for any shortages.
Sam does the ordering of materials at the
beginning of every month and pays the bill.
In this case Sam is ordering materials and paying
all the bills. This process is actually known as
related activities (pg 162 Internal Control and
Cash). This occurs when one person is doing two
different responsibilities just like Sam. The
internal Control that is not being applied is
Segregation of Duties. It is better for the two to
be a separate responsibility because it will
minimize the billing errors.

Bank reconciliations are done by the person

who is responsible for all cash
responsibilities.

The problem with this scenario is that the same

person is responsible for all cash responsibilities,
why is this person doing the only one that does
this job? Having one person take on such a major
responsibility increases the chances of
embezzlement and thief. The internal control
that is not being applied is rotating employees
duties and requiring employees to take
vacations. One person should not be completely
in control of one job, the company should
encourage vacations or switching positions to
prevent incorrect handling of the companys
valuable information.

New checks came in and are left on the

shelf with other supplies.

This is a tough scenario because there are all

sorts of internal controls that are not being used
in this case. I would say in my opinion that the
first internal control that comes to my mind that
is not being applied is bonding of employees who
handle cash.
Every employee that works near or with
expensive equipment should be held reliable or
responsible for the companys assets. Bonding of
employees who handle cash protects the
company by insuring that the employee is or isnt
a risky applicant (background checks) or
reassuring that the employee that they will be
prosecuted to the fullest extinct if they are found
guilty of thief. For example, I had worked at Mc
Donalds and
there were my shift managers and one employee
that were caught with stealing money from the
company. This situation had happen very
differently. The armor truck dropped off a deposit
that belonged to another company (armors
mistake) but they signed it. Those employees
thought that nothing was going to be traced back
to them but the little did they know, all evidence
traced back to them. They each received jail
time, and felony records.
Everyone has access to the computer
system and the last audit was seven years
ago by the former accountant

This scenario has two things that are going on at

the same time. I will first start off with the
computer system and how everyone has access
to the computer. The internal control that is not
being applied is Physical, Mechanical, and
Electronic Controls. This allows the company to
control assets through physical or electronic
based systems or programs. It is extremely
important for a company to invest in computer or
informational protection for the company and for
their employees. Todays technology age most
companies are investing in a computerized
program. This will help protect from internal
errors and external protection. For example, all
companies invest in a virus protection this will
ensure that the companys information is
protected and not in the wrong hands.

Invest idle cash

Invest idle cash occurs when any excess funds or
cash needs to be invested. The money should be
highly invest and risk free. For example, a major
company should make investments with their
assets into profitably investments and risk free.
Plan the timing of major expenditures
This is when a company sets aside money for
major cash needs. We live in a world that things
happen daily. A good company would set aside
emergency funds. For example, during a terrible
thunderstorm, the winds practically ripped off
the roofing shingles off a commercial business.
The company will be able to use the money for
emergency.
Delay payment of liabilities
Delay payment of liabilities is when a company
pays bills not too soon and not late. This allows
the company to have money available for bills
that that really need to be paid allowing excess
funds to be free for other uses.
Keep inventory levels low
This occurs when the company keeps the
inventory low so that it will bring in more profits.
For example, if the managers at a fast-food over
plan and fix too many hamburgers and the
customers dont buy it, then the food will go bad
and the company will lose profit.

Increase the speed of collection on

receivables
This occurs when money is owed to the company,
the company cannot claim these until the funds
have been received. Some companies offer
incentives to encourage customers to pay early
or on time. For example, my job encourages their
customers by letting them know that there will
be a price increase on or after a certain date and
this really works because the customers want to
pay at a lower price.
References:

http:yourdictionary.com
/accounting_statements.org Retrieved 2/13/2010
Thomas, Y. 2005-08-27 Accounting 101 pg. 52
Statements
-----------------------------------------------------
FIN 370 Week 1 Question and Problem Sets
(Ch 1: Q 3,11 Ch 2: Q4,9, CH 3: Q4,7, Ch 4:
Q 1,6)

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Purpose of Assignment Complete the following
Questions and Problems (Concepts and Critical
Thinking Questions for Ch. 1 Only) from each
chapter as indicated. Show all work and analysis.
Prepare in Microsoft Excel or Word. Axia
College Material
Appendix B

Cash Management Matrix

Directions: Using the matrix, list how each of

the principles of internal control works, and give
an example for each. Next, list how each of the
principles of cash management works, and give
an example for each.

Principles of Internal How it Works Example

Control
Establishment of Happens when the My job, O
responsibility company assigns departm
 one person to be in only one
control of a specific waive a
job or have fee. It al
authority to make Sales te
decisions. control o
custome
Segregation of This is when the A church
duties company has more people w
than one person to the offer
control a task or then you
job someone
writes d
logs in w
received
Documentation Evidence or proof My job w
procedures of all company ship shin
transactions custome
make th
sign prio
leaving a
make th
sign a P
Delivery
Physical, Allows the Our job
mechanical, and company to control system c
electronic controls assets through and this
physical or employe
electronic based and lunc
systems or monitors
programs. the CSR
 ready or
Physical
would be
security
they req
identific
to entry.
Independent Any information that My job h
internal verification can be reviewed , tracking
compare, and inventor
reconciliation by a someone
employee they wer
on their
can go b
track the
and com
numbers
system a
physical
determin
numbers
incorrec
Other controls Bonding of Our com
employees, a girl jus
company protects because
against abuse of used the
assets. card bus
for perso
was not
 related.

Principles of How it Works Example

Cash
Management
Invest idle Occurs when My fathers
cash any excess company
funds or makes wise
cash needs investments
to be and it turns
invested, around in his
favor
Plan the A company During the
timing of wants to recession
major make sure profits
expenditures that there is dropped
money set lower than
aside for expected so
major cash some
needs companies
pulled from
these funds
Delay When a Ok, when
payment of company times are
liabilities pays the bills tough at
at an home and
appropriate bills are due
time not late I organize
and not too the bills by
 soon. which bills
needs to be
paid the
soonest,
because if I
pay the bills
too early I
will cut off
my excess
funds that
could be
used for
something
else
Keep Happens Sees
inventory when a Chocolate
levels low company factory has
keeps the to make sure
inventory that they are
low so that it not over
will continue producing or
to bring making too
profit much or else
the sit and
the company
will lose
money
Increase the Money that When a
speed of is owe to the customer
collection on company by places a
receivables other people order for a
or customers product and
is money has not paid
that can not yet, the
be counted company can
towards the not count
companies the money
funds as theirs
until it is
received.
-----------------------------------------------------
FIN 370 Week 2 Cash Flow Problem Sets (5-
1,5-3,5-5,5-7,5-12,5-15,5-39)

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FIN 370 Week 2 Cash Flow Problem Sets
Complete the following problem sets from
Chapter 5 in Microsoft Excel: 5-1 5-3 5-
5 5-7 5-12 5-15 5-39 (Calculate monthly
payment only) 5-1FutureValue Compute the
future value in year 9 of a $2,000 deposit in year
1 and another $1,500 deposit at the end of year
3 using a 10 percent interest rate. Income
statement is a financial statement that shows
how much money is coming from product sales
and services prior to any expenses being taken
out. Both internal and external users such as
managers and investors are able to access this.
For example, if a investor wanted to see if the
company made money or lost money they would
use this financial statement report.
Balance sheet shows what condition the
company is currently in. whereas the other
financial statements only came monthly or
annually. For example, what if the management
planning team wanted to see the company's
current assets, ownership equity and liabilities?
All they have to do is run the balance sheet
report.
CVP income statement or Cost Volume statement
reports or monitors the effects of the changes in
cost and volume when it comes to the company
profits. For example, I work at a manufacturing
plant for roofing shingles. The CVP analyst
studies the cost which includes but not limited
too, manufacturing, material, labor cost. This
financial statement report would help the
management team budget the cost of
manufacturing goods.
Statement of cash flow tracks the movement of
cash coming in or out of the business. This
financial statement will show if the company
made cash or not, or if the net income increased
or decreased. For example, the owner or the
management department will use this to
determine if the company has earned enough
money to be able to for any expenses.
Retained earnings statements is a percentage
that is kept by the company to be reinvested or
to be used to pay debts. For example, if a
company was looking to expand their business
by purchasing top of the line equipment they can
use this statement to see how much money the
company has put away.

References:

http://www.investopedia.com/terms/r/retainedearnings.asphtt
p://financial- Retrieved 2/18/2010

statements.suite101.com/article.cfm/financial_st
atements_the_p_l. Retrieved 2/18/2010
-----------------------------------------------------

FIN 370 Week 2 Financial Markets and

Institutions Report (2 Papers)

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This Tutorial contains 2 Papers FIN 370 Week 2
Financial Markets and Institutions Report Create
a 1,050-word report, and include the following:
Discussion Question 1: Post your response to
the following:
How would you describe the difference
between financial and managerial accounting?
What are the distinguishing features of
managerial accounting?
There are many differences between financial
and managerial accounting. The financial
accounting statements are available to external
users such as employees, stockholders, creditors,
investors, etc. This is available to them so that
they can monitor the company's performances
quarterly or annually. Managerial accounting
provides financial information for managers and
other internal people or department. Managerial
accounting is confidential so it is only observed
by internal users such as management, owner,
and will provided to external users such as the
public. Management uses this for budgeting
purposes or to monitor profit loss/gain within the
company. Managerial accounting can be
available to them as often as needed. Managerial
accounting statements is a great way for
management to make decisions based on what
has been reported.
Another response
The differences between managerial accounting
and financial accounting are distinct. Managerial
accounting reports are for those in managerial
and decision making positions. The managers
use the financial report to answer questions,
which would advance the company and its
employees. The manager would want to know if
certain investments should be made and should
the company advance an employee's salary. The
manager needs the report to decide if a factory
is built or if a certain stock is brought. The
financial accountant has the job of showing the
external users such as creditors and stockholders
a picture of the company's stability.

The manager's purpose is to manage by making

stable plans, delegate duties, motivate the
workers, and control the atmosphere.
Distinguishing features of managerial accounting
are the fact no cpa will audit the report, and
there is no specific frequency of the report. The
reports are done in a need to know basis and for
a specific reason, which is for business purposes.
The reports are detailed and pertain to specific
business decisions. The financial accountant
need only be concerned with the company's
finances.

DQ2
Discussion Question 2: Post your response to
the following:
Select a management function (planning,
directing and motivating, or controlling) and
explain how that function relates to business as a
whole. Next, select a different function listed by
a classmate. Discuss with your classmate how
the functions you each selected complement
each other.
The management functions that I choose was
controlling. Controlling job is to make sure that
the each department/person is keeping the
company's activities or plans on track and in
order to achieve that they must work closely with
Management planning function. Controlling
continually compares the company's
performance to make sure that the planned
standards are being met. In my opinion this is
known as the "dirty work". Controlling operations
have to know what to look for and how to keep
track of all the company's activities. They have
to take actions and quickly correct any errors
and make sure that the company goals are being
achieved in a timely matter or the time that it
was planned. If there are errors it is job of the
controlling operations to take quick action. The
controlling operations not only correct errors
after it happens but they also are in charge of
foreseeing any potential errors and act quickly to
get that resolved.

Another response
I chose Controlling as part of the management
function. The controlling function relates to
business as a whole because it helps monitoring
the firms performance to make sure the planned
goals are being met. Managers need to pay
attention to costs versus performance of the
organization. let say, if the company has a goal
of increasing sales by 10% over the next two
months, the manager may check the progress
toward the goal at the end of month one. If they
are not reaching the goal the manager must
decide what changes are needed to get back on
track.
-----------------------------------------------------
FIN 370 Week 2 Question and Problem Sets
(Ch 5: Q3,Q4 Ch 6: Q2, Q20, Ch 7 : Q3,Q11
Ch 8: Q1,Q6)

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Prepare in Microsoft Excel or Word. Ch. 5:
Questions 3 & 4 (Question and Problems
section): Microsoft Excel templates provided
for Problems 3 and 4 Cost, Volume, and
Profit Formulas

By

Kamilah Crooms
Due February 28, 2010

Explain the components of cost-volume-

profit analysis.

The components of cost volume-profit analysis

consist of Level or volume of activity, Unit Selling
Price, Variable Cost per unit, total fixed costs,
and Sales mix.

What does each of the components mean?

Level or volume of activity is the activity that

causes change or behavior when it comes to the
cost. Unit selling Price is the cost for the product
basically how much each unit is selling for. The
Variable Cost per unit is something that can
change depending on the activity. The total fixed
cost does stay the same as activities change but
differ per unit. The Sales mix is basically what
the name says. Its a mixture of sale items when
more than one product sold the sales will remain
the consistent.
Based on the formulas you have reviewed,
what happens to contribution margin per
unit when unit selling prices increase?
Contribution margin is the amount of revenue
left over after subtracting the variable cost. So
basically Unit sales price subtracting or minus
variable cost.

Illustrate your explanation with an

example from a fictitious company of how
an increase in unit selling prices might
affect contribution margin.

Kellys Sweetheart Flowers

The owner of Kellys Sweetheart Flowers is

selling their bouquet of flowers for $10 per
unit. The Variable Cost per unit is $4.00.
The contribution margin will be ($10-$4) =
$6. If the sells price increases to say $15,
then the contribution margin will be ($15-
$6) = $9 per unit.

When fixed costs decrease, what does this

do for sales? Illustrate your explanation
with an example from a fictitious company.
Kellys Sweetheart Flowers

When the fixed cost decreases, the contribution

margin ratio the net income and sales will
increase.

For example,
The flowers are $10 per unit. The variable
cost per unit is $4.00. The contribution
margin will be ($10-$4) = $6. The fixed cost
is $3. We subtract Contribution margin
Fixed Cost= Net income. The net income is
$3.00.
Define contribution ratios
The contribution margin ratio is the contribution
margin per unit margin divided by the unit selling
price.

What happens to contribution ratios as one

of the components changes?
Shown in the example above, if one or more of
the components changes is will cause the net
income to increase or decrease.
Reference

statements.suite101.com/article.cfm/cost_volum
e_profits*the_p_l. Retrieved 2/28/2010
//http:yourdictionary.com /CVP.org Retrieved
2/26/2010
Thomas, Y. 2005-08-27 Accounting 101 pg. 52
Statements
-----------------------------------------------------
FIN 370 Week 3 Assignment Financial Ratio
analysis

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Purpose of Assignment Students should
understand how to use the financial information
and tools learned in the class on a public
company, obtain public company SEC reports,
and use that data to calculate a company's
financial ratios and their comparison to industry
or competitor standards. 7 How should mixed
costs be classified in CVP analysis? What
approach is used to effect the appropriate
classification?
According to our class materials all mixed cost
must be classified into their fixed and variable
and variable elements. The method that can be
used to determine is called the high/low method.
To determine the variable cost the analysis takes
the total cost and divide it with the low activity
level. To get the fixed cost then the company
would have to subtract the total variable with
either the high or low activity level.
9. Cost volume profit CVP analysis is based
entirely on unit costs. Do you agree? Explain.
In my opinion when it comes to making financial
decisions for the company, often times more
than one method is used. Cost volume profit is
also based on Volume or level activities, unit
selling prices, variable cost per unit, total fixed
and sales mix.
14. You can find the break point in dollars by
drawing a horizontal line to the vertical axis. I
you want to find the break even point in units it
will be a vertical line from the break even point
to the horizontal axis.
-----------------------------------------------------
FIN 370 Week 3 Individual AssingmentRisk
and Return Analysis Report (2 Papers)
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This tutorial contains 2 Papers FIN 370 Week 3
Risk and Return Analysis Create a 1,050-word
report, and include the following: Explain the
relationship between risk and return Identify an
example of risk and return. Axia College
Material
Appendix C

Budgets Matrix

Directions: Using the matrix, define each of the

budgets listed and briefly describe its uses.

Budget Definition Describe

Sales budget Estimate of the The sales
expected sales for shows do
the period. All of units. Th
the other budgets managem
depend on the how man
sales budget. This be produ
is where all the period
other budgets will
start from
Production budget A production of Shows m
units needed to be how man
 produced in order be produ
to meet the each bud
projected sales and wha
needed t
inventor
Direct materials Is the estimated Shows m
budget quantity or cost of how muc
the raw materials materials
that is needed in already o
order to produce and or th
the units required be order
to fulfill inventory inventor
Direct labor budget A estimate of cost Shows ho
and quantity of hours, ho
direct labor needed laborers
in order to meet produce
production for that b
period.
Managem
decide w
the right
laborers
and if th
will be ab
the budg
Manufacturing An estimated This list
overhead budget expected amount of overhead
manufacturing cost involving
for the budget disburse
period quarter
Selling and Anticipated selling Shows ar
administrative and administrative budget e
expense budget expenses in the that are
budget period other tha
manufac
Expenses
marketin
promotio
for the b
period
Budgeted income Estimate of Is a very
statement expected tool beca
profitability of shows th
operations in a estimate
budget period the budg
Cash budget A projection of Cash bud
expected cash managem
flows in and out of tally or t
the business. cash bala

-----------------------------------------------------
 FIN 370 Week 3 Risk and Return Problem
Sets (7-21,7-27,8-19,8-21,9-33)

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FIN 370 Week 3 Risk and Return Problem Sets
Complete the following problem sets from
Chapter 7 in Microsoft Excel: 7-21 7-27
Complete the following problem sets from
Chapter 8 in Microsoft Excel: 8-19 8-21
Complete the following problem sets from
Chapter 9 in Microsoft Excel Discussion
Question 1: Post your response to the
following:
You know how important it is to create
budgets for your household. How does budgeting
help management make good business
decisions?
Budgeting is a very important skill that can be
applied to everyday life and also when it comes
to making good business decisions. I really like
the way our class resources says about
Budgeting. Budgeting is used as a planning tool
used by management to make good decision for
the company. If a company is successful than
more than likely that means that the
management team is very good at managing the
company finances. Budgeting helps management
plan ahead, defines what is most important,
shows warning signs, reach a company target
without over or under budgeting and etc.

Another response
In a business, a budget helps a business make
good decisions because they are used by the
company to plan for future events and
coordinate the events and duties in the
company. They also gives objectives used to
evaluate the performance of the company on
each level which can help to make future
decisions that will not hurt the company based
on the projected objectives. It can also be used
to alert the company of possible problems or
negative trends in the company that need to be
addressed so that there is a clear picture of the
overall health of the company before decisions
are made. The budget helps the company to be
able to make an informed decision when making
one. It is there in order to make sure that
making a decision like taking on another
company will not hurt the company and is
something that the compnay can sustain based
on the budget.

DQ2
Discussion Question 2: Post your response to
the following:
What are some of the different types of
budgets?
Describe in detail one type of budget
covered in the text.
Describe what the budget is used for and
what information it provides a business.
Then, as you respond to your classmates,
discuss how the budget you described relates to
the budgets they described.
Discuss how a business benefits from
each of the budgets.

There are many different types of budgetting.

For example, there sales budget which allows
management to see how many units that need to
be produced, production budget which will allows
everyone to see how many units are going to be
produced in or needed to be produced in order to
meet the inventory for that budget period. One
budget that I can describe in detail is called the
direct labor budget and this budget shows how
many people, hours is needed in order to meet
the required budget for that period. This will give
management an idea of how much money is
needed such as paying the cost of labor. The
company benefits by each of these budgets
because it will help manage just how much
money it will cost the company during this
period. Management can also see if there are
different ways to cost the company out of pocket
cost down during this period.

Another response
I chose to write about the Production Budget. The
Production Budget shows the cost of each unit
needed to produce an item or manufacture a
product. The formula used by the Production
Budget :

Budget sales units + Desired ending finished

goods units - Beginning finished goods units =
Required production units.

An example would be, every Easter the bakeries

in the Bronx loads up on Hot Cross Buns. My
mother and grandmother would buy these tasty
sweet breads,and eat them for breakfast. I
personally would like to eat them every week
but, they are only sold during the Easter season.
Maybe, it has something to do with the glazed
cross on the top.

Every Easter Holiday, there appears these Hot

Cross Buns and the bakeries production
department allows for the purchases for items
needed to make the buns. After Easter has gone,
Hot Cross Buns are not included in the budget.

-----------------------------------------------------
FIN 370 Week 3 Team Assignment Precision
Machines Part 1 (annotated bibliography
and excel calculation)

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This Tutorial contains both annonated
bibliography and excel file FIN 370 Week 3 Team
Assignment Precision Machines Part 1 Precision
Machines is preparing a financial plan for the
next six months to determine the financial needs
of the company. What is a Flexible budget?
A Flexible budget is a budget that change
or is flexible during different levels or activity.
Unlike the static budget which is a budget based
on one activity level, the flexible budget is based
off of more than one activity level.

The steps to development a flexible

budget is :
a) Identify the activity index, and the range of
activity
b) Find out what the variable cost, and
determine the variable cost per unit
c) Find out what the fixed cost and determine
the budgeted amount for each unit
d) Organize the budget for selected additional
activity within the appropriate range

The information found on a flexible

budget cannot begin with the master budget.
The flexible budget uses the same guidelines the
original budget. The budget consists of Sales,
Cost of Goods Sold, Selling Expenses, General
and Administrative Expenses, Income Taxes, and
finally the Net Income.
The information on the budget is a great
tool to be used for evaluation performances. The
flexible budget can be used for monthly
comparison purposes. Also during the process
that management is identifying the activity index
and the range of activity it will allow them to see
the cost of direct labor hours for that budget
period.
-----------------------------------------------------
FIN 370 Week 4 Cash Flow AnalysisFrank
Smith Plumbing (calculation and 2 Papers)

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This tutorial includes both calculation and 2
Papers FIN 370 Week 4 Cash Flow Analysis
Analyze the case study, Frank Smith Plumbing.
Analyze the Frank Smith Plumbings Financial
Statement spreadsheet Capstone Discussion
Question: Post your response to the following:
Think back over what you have studied
and learned in this course. Do you have a new
perception of or appreciation for the field of
accounting and how it contributes to business?
Explain.
To be perfectly honest with you I truly had no
clue what accounting did for a company and how
important it was. I always thought that
accounting only dealt with payroll. In fact
accounting does much more that just payroll and
monitor company supplies (coffee, paper, pens &
pencils). The accounting sets budgets for the
entire company, monitors outflow and inflow of
profits, plans budgets for each department, and
much more. When I first begun this class I was
really nervous, I truly thought that I was going to
have a hard time understanding the accounting
but I happy to say that I was wrong. I understood
every part of this course.

On a personal note I would like to thank you Jess.

If it wasn't for your pep talk I probably would had
gave up. You are truly a great instructor. I wish
you all the best! God Bless
Another response
Accounting has taken a whole new meaning to
me in my vocabulary. Prior to this course, I just
took accounting as a calculator and crunching
numbers. I now have a new respect for
accounting and all the aspects that are involved.
I never once took into consideration profit, sales,
revenue, and balance sheets also being included
with accounting. There is so much more involved
with accounting, and had I not taken this course
I would have never known. Accounting is a very
important part of running a business. I feel that it
is imperative to all people thinking of opening a
business should take some type of accounting
class to become more aware of how to run the
accounting part of a business.
-----------------------------------------------------

FIN 370 Week 5 Team Assignment Precision

Machines Part 2 (Cash Budget and Strategic
Analysis)

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FIN 370 Week 5 Precision Machines Part 2 Note:
There are two parts to this learning team
assignment; Part 1 was completed in Week 3.
Review the Precision Machines document and
spreadsheet. Prepare a cash budget for Precision
Machines in Microsoft Excel.

Business Plan

By

Kamilah T. Crooms
 DestinyWear

The name of my business is called

DestinyWear. DestinyWear is a urban fashion
clothing company for woman, men and youth.
DestinyWear specializes in making clothing for
every occasion. My name is Kamilah Crooms and
I am the owner and CEO of DestinyWear.My goal
is to ensure that my company will be succesfull
in all areas and in each department. In order for
me to make sure that the company was going to
begin in the right direction I had to priortize what
was most important in establishing my business
plan. The main priority is that I had to first
choose the appropriate business structure, a high
demanding product, and most of all an
outstanding accounting team.
Business Structure
Upon establishing DestinyWear I had to decide
which business struture that I felt was best for
me to pursue. I decided that as a Entreprenuer
the best choice for me abd the direction of the
company would be for me to be sole
proprietorship. Sole proprietorship allowed me to
be the sole owner of DestinyWear. The first and
most important reason that I wanted sole
proprietorship is because it is much easier to
start a business as sole proprietorships. Sole
proprietorship takes all the profit that and
doesn't have to split it between any other owners
or corporations. I also want the power to make
and change decisions along the way without
having to first consult anyone else.

DestinyWear Products
DestinyWear products will range from jeans,
shirts, accessories and shoes. The company will
first start off with its most profitable product and
that will be the DestinyWear designer jeans line.
The jeans line has over twenty different jeans
designs

from straight leg, baggy, cargo, overalls, shorts

and much more. The jeans line will provide
services within the United States and Canada
and will eventually service International
customers. The DestinyWear jeans line will have
its own building. In this building the bottom floor
will consist of the factory and the top floor will
have the different departments such as
management, marketing and most importantly
the accounting department.

DestinyWear Accounting Department

The accounting plays a major role in establishing
my company DestinyWear. The accounting
department does more than managing and
reporting the companys financial documents it is
the greatest tool in establishing my business.
The key to a powerful accounting department
here at DestinyWear is applying the principles of
internal control. These principles consist of
establishment of responsibilities, segregation of
responsibilities, documentation procedures,
Physical, mechanical, and electronic controls,
Independent internal verification and other
controls such as Bonding of employees. In order
to ensure that this business plan works
DestinyWear has to hire nothing but the best
qualified employees.

DestinyWear Accounting Staff

DestinyWear accounting team of fine
employees will all be hired through the company.
There are several requirements that have to be
met in order for myself as the owner and Human
Resource department to even consider the
applicant for accounting. We looked for
characteristics, education and work history
experience. The first and far most important
qualifying requirements are education. The
applicant has to have a Bachelor BA/BS in
accounting degree a plus if he or she has a
masters.
The second requirement is experience. The
applicant must have the minimum of five years
of experience working in accounting. He or She
must have knowledge and employment
experience of working with financial statements,
cash management and internal control.
Employees must be experienced in Invest idle
cash, planning the timing of major expenditures,
delay payment of liabilities keeping inventory
levels low, and increasing the speed of collection
on receivables. In the category of experience we
had to hire applicants according to the position
that had to be filled in accounting. For example,
if a position in accounting such as management
or supervisory needed to be filled, then we would
look for years of experience in management or
supervisory positions. I personally prefer that
every employee have some type of management
experience.
Last but not least, the employees characteristics.
It is a must that every accounting staff member
has and applies professionalism, great ethic and
moral skills, accuracy, and most importantly
punctuality, and reaching company deadlines.
These characteristics are very important to have
at DestinyWear.
DestinyWear Accounting Management Team
The DestinyWear accounting management
team will be reporting to me and to the other
head staff each week to report updates and any
new changes. The management team is
responsible to have all the different types of
budgeting reports that includes Sales, Labor, etc.
Management must follow the responsibility
reporting system for each department. The
managers will use the companys financial
information to predict outcomes of the business.
I require a report from each responsibility center,
cost center, profit center and investment center
to be reported each month. Management is
responsible to ensure that the company does not
over or under budget and if any changes it must
be reported immediately.
Conclusion

DestinyWear will be a very successful team

not only because of the products that we
produce but because of having a great
accounting team. With the help of accounting
team I DestinyWear products will be in every
wardrobe in America.

REFERENCES
//http:yourdictionary.com /CVP.org
Retrieved 3/20/2010
Thomas, Y. 2005-08-27 Accounting 101
pg. 52 Statements. March 19, 2010
Drucker, P. Managing in the next society
2002. retrieved march 19,2010