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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$150today 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 flowsand 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 company’s financial
balances of the business. This sheet includes the company’s total of
assets and liabilities. It is used for all three types of business sole
proprietorship,business partnership and corporate business company’s.
Creditors rely on thisfinancial sheet to determine if the company will
be able to repay.
Income Statement
An Income Statement is a financial statement that shows the
company’s profitand losses. It basically showsall the company’sgains
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 showsdividends,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 Stockholdersequity.
Statement of CashFlow
Statement of Cash Flows providesinformation regarding the
company’s cash receipts. This statement gives a detailed account of the
operating, investing and financial activities of the company. It also
allowsinvestors 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 investinginto 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.orgRetrieved
1/28/10
Thomas, Y. 2005-08-27 “Accounting101pg. 52 Statements
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FIN 370 Final Exam Guide (New 2017)
Which one of the followingstatementsis correct concerning the cash
cycle? Accepting a supplier’sdiscount 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 proprietorshipsmeans that a business that owned by one person.
That includes and not limitedto all profitsand losses, debts and
unlimited liability, all willcome from the solely one owner and not a
group or in this case a partner or co-owner etc. Partnerships are seen
much differentlythan sole proprietorships.Partnerships is a business
that owned by more that one person/s. This is the number one
difference from being a sole proprietorshipor 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.Stockholdersmake
decisions that is first best for their company, secondly the company that
they have together.
Why woulda entrepreneur want to choose one over the other?
An Entrepreneur is a person that wants to start a business withtheir
vision and have more power of the decision making. The best choice for
an entrepreneur is to choose sole proprietorshipout 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 proprietorshiptakesall
the profitthat and doesn't have to splitit between any other owners or
corporations.
If I was to start a new business whichone 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.
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FIN 370 Final Exam Guide (New)
Which financial statement reports the amounts of cash that the firm
generated and distributedduring a particular time period? Current
assets
When it comes to a company'sclassified 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-termand
long-term investments is that the short-term investmentswill be sold
and the long-term investmentsnormally 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/intangibleasset.asp
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FIN 370 Week 1 Calculating Ratios Worksheet (2 Set)

This Tutorial contains 2 Set of Answers FIN 370 Week 1 Calculating
Ratios Worksheet For Discussion Question 1: Post yourresponse to
the following:
When reviewing a financial report, why should informationbe
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 questionslike, "how stable is your company", or "what future
does this company have". The informationshould be reliable. In other
words the information that is reported must be able to be verified,
backed up withtruthful 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'tonly effect the company

but it also to name a few effects the lenders, creditors, investor's, etc.
This will result in the company not havinga faithfulrepresentation.
Another response
The main objective of generating financial informationis providing
useful informationthat 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 decisionsthat will impact the
future of a business, and it confirms and corrects expectations from the
past. If the informationmakes 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 informationis 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 disclosedto 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, showingthat the new method is more
useful for analysis. If the methodis changed, it must be disclosedin
the notes that go withthe statements to show users a lack of
consistency.

These characteristics are very importantto 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 investorsand creditors, as well as consumers, etc. must be
able to rely on the financial information providedin 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 withoutreliable, 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 possibilitiesare endless for companies that
lack these qualities in their financial reporting.
DQ2
For Discussion Question 2: Post yourresponse 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 informationfrom the financial reports have been posted then
a team will review the company's financial historyto see what decision

were profitable or not. The decisions that were made previous to the
financial reports being postedwill show whichway 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 showswhere the company stands. The managers use the
information from the financial report compared to the current year
from the previous year, whether the company growthsor 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 whatcame
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.
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FIN 370Week 1 CalculatingRatiosLake of Egypt Marina (3-29, 3-
30)

FIN 370 Week 1 Calculating Ratios Review the financial statements
for Lake of Egypt Marina, Inc. Complete the followingproblem sets
from Chapter 3 in Microsoft®Excel®:
Internal CashControl
By
KamilahCrooms
Accounting 220
Jess Stern
Internal Cash Control
The accountingdepartment receives from salesinvoices 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 informationhas to be submitted completelyand in
a timely matter. In this scenario most of the information that has been
turned in has informationthat is missing on the invoices. I would say
that the internal controls that are not being followedare
Documentation procedures. Company documentationis 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
transportationdepartment 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 withoutsigning 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 followedare Establishmentof
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 responsiblefor any shortages.
Sam does the ordering of materials at the beginningof 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 twodifferent
responsibilitiesjust like Sam. The internal Control that is not being

applied is Segregation of Duties. It is better for the two to be a
separate responsibilitybecause it will minimize the billing errors.
Bank reconciliations are done by the person who is responsible for all
cash responsibilities.
The problem withthis scenario is that the same person is responsible for
all cash responsibilities,whyis 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 appliedis rotating employees’duties and requiring
employees to take vacations. One person shouldnot be completely in
control of one job, the company should encourage vacations or
switchingpositionsto prevent incorrect handling of the company’s
valuable information.
New checkscame in and are lefton the shelfwith 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 employeeswho handle cash.
Every employee that works near or withexpensive equipment shouldbe
held reliable or responsible for the company’s assets. Bonding of

employees who handle cash protects the company by insuring that the
employee is or isn’t 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
Donald’s and
there were my shift managers and one employee that were caught with
stealing money from the company. This situationhad happen very
differently. The armor truck dropped off a depositthat belonged to
another company (armors mistake) but they signed it. Those employees
thoughtthat 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 accessto the computer system and the last audit was
seven years agoby the former accountant
This scenario has two thingsthat 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 throughphysical or electronic based systems or programs.
It is extremely important for a company to invest in computer or
informationalprotection for the company and for their employees.
Today’s technologyage most companies are investingin 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 company’s information is protected and not in the
wrong hands.

Investidle cash
Invest idle cash occurs when any excess funds or cash needs to be
invested. The money should be highlyinvest and risk free. For example,
a major company shouldmake investments with their assets into
profitablyinvestments 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 goodcompany wouldset aside
emergency funds. For example, during a terrible thunderstorm, the
winds practically ripped off the roofingshingles off a commercial
business. The company will be able to use the money for emergency.
Delaypayment of liabilities
Delay payment of liabilitiesis 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 allowingexcess funds to be free for
other uses.
Keep inventory levelslow
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-foodover
plan and fix too many hamburgers and the customers don’t buy it, then
the foodwill 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.orgRetrieved
2/13/2010
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FIN 370Week 1 Question and Problem Sets (Ch 1: Q 3,11 Ch 2:
Q4,9, CH 3: Q4,7, Ch 4: Q 1,6)
Purpose of Assignment Complete the followingQuestions 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
Control
How it Works Example
Establishment of
responsibility
Happens when the
company assigns one
person to be in
control of a specific
job or have authority
to make decisions.
My job, Our Sales
department is the
only one that can
waive a restocking
fee. It allows the
Sales team to be in
control of the
customers returns
Segregation of duties This is when the
company has more
than one person to
control a task or job
A church- You have
people who count the
offering and then you
have someone who
writes down and logs
in what was received
Documentation
procedures
Evidence or proofof
all company
transactions
My job we deliver
ship shingles to our
customers, and we
make the driver sign
prior to leavingand
we make the
customer sign a
“ProofOf Delivery”
form

Physical, mechanical,
and electronic controls
Allows the company
to control assets
throughphysical or
electronic based
systemsor programs.
Our job has a system
called Cisco and this
tracksthe employees
breaks and lunches.
Also, monitors how
long the CSRhave
been readyor
working.
Physical control
wouldbe the security
guard, they require
identification prior
to entry.
Independent internal
verification
Any information
that can be reviewed
, compare, and
reconciliation by a
employee
My job has a wayof
trackingour
inventory and when
someone says that
they were shorted on
their order we can go
back and track the
inventory and
compare the numbers
in the system and a
physical count to
determine if the
numbers were
incorrect
Other controls Bonding of
employees, company
Our company fired a
girl justrecently
because she had used

protects against
abuse of assets.
the company card
businesscard for
personal us that was
not workrelated.
Principles of Cash
Management
How it Works Example
Investidle cash Occurs when any
excess fundsor cash
needs to be invested,
My father’s company
makeswise
investmentsand it
turns around in his
favor
Plan the timing of
major expenditures
A companywantsto
make sure that there
is money set aside for
major cash needs
During the recession
profitsdropped lower
than expectedso
some companies
pulled from these
funds
Delaypayment of
liabilities
When a company
pays the bills at an
appropriate time not
late and nottoo
soon.
Ok, when times are
tough at home and
bills are due I
organize the billsby
whichbills needs to
be paid the soonest,
because if I pay the
bills tooearlyI will
cut offmy excess
funds thatcould be

used for something
else
Keep inventory levels
low
Happens when a
company keeps the
inventory low so that
it willcontinue to
bring profit
See’s Chocolate
factory has to make
sure thatthey are not
over producing or
making toomuch or
else the sit and the
company will lose
money
Increase the speed of
collection on
receivables
Money that is owe to
the company by other
people or customersis
moneythat can not
be counted towards
the companies funds
When a customer
placesa order for a
product and has not
paid yet, the
company can not
count the money as
their’s until it is
received.
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FIN 370Week 2 Cash Flow Problem Sets (5-1,5-3,5-5,5-7,5-12,5-
15,5-39)
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 monthlypayment only) 5-
1FutureValue Compute the future value in year 9 of a $2,000deposit

in year 1 and another $1,500depositat the end of year 3 using a 10
percent interest rate. Income statement is a financial statement that
showshow 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 conditionthe 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, ownershipequity 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 whichincludes but
not limitedtoo, 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 willuse 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 lookingto 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.asphttp://fina
ncial- Retrieved 2/18/2010
statements.suite101.com/article.cfm/financial_statements_the_p_l.
Retrieved 2/18/2010
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FIN 370 Week 2 Financial Markets and Institutions Report (2
Papers)
This Tutorial contains 2 Papers FIN 370 Week 2 Financial Markets
and InstitutionsReport Create a 1,050-wordreport, and include the
following:• Discussion Question 1: Post yourresponse to the
following:
How would you describe the difference between financial and
managerial accounting? What are the distinguishingfeatures 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 informationfor 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

providedto external users such as the public. Management uses this for
budgeting purposes or to monitor profit loss/gain withinthe 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 shouldbe made and shouldthe 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 showingthe external users such as creditors
and stockholdersa 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.
Distinguishingfeatures 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'sfinances.
DQ2
Discussion Question 2: Post yourresponse 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 withyour 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 continuallycompares the company's
performance to make sure that the planned standards are being met. In
my opinionthis is known as the "dirty work". Controllingoperations
have to know what to lookfor 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
controllingfunction relates to business as a whole because it helps
monitoringthe firm’s 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.
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FIN 370 Week 2 Question and Problem Sets (Ch 5: Q3,Q4 Ch 6: Q2,
Q20, Ch 7 : Q3,Q11 Ch 8: Q1,Q6)
Prepare in Microsoft®Excel® or Word. • Ch. 5: Questions 3 & 4
(Question and Problems section): Microsoft® Excel® templates
providedfor 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-profitanalysisconsist of Level or
volume of activity, Unit Selling Price, Variable Cost per unit, total
fixed costs, and Sales mix.

What does each of the componentsmean?
Level or volume of activityis the activitythat 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 somethingthat can change dependingon 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. It’s 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 sellingprices 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 withan example froma fictitious company
of how an increase in unit sellingprices might affect contribution
margin.
Kelly’s Sweetheart Flowers
The owner of Kelly’s SweetheartFlowersis sellingtheir bouquet of
flowersfor $10per unit. The Variable Costper unit is $4.00. The

contribution margin will be ($10-$4) = $6. If the sellsprice 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 fictitiouscompany.
Kelly’s Sweetheart Flowers
When the fixed cost decreases, the contribution margin ratio the net
income and sales will increase.
For example,
The flowers are $10per unit. The variable costper unitis $4.00. The
contribution margin will be ($10-$4) = $6. The fixed costis $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 dividedby 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_volume_profits*the_p_l.
Retrieved 2/28/2010
//http:yourdictionary.com/CVP.org Retrieved 2/26/2010
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FIN 370 Week 3 Assignment Financial Ratio analysis
Purpose of Assignment Students shouldunderstand how to use the
financial informationand tools learned in the class on a public
company, obtain public company SEC reports, and use that data to
calculate a company'sfinancial 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 divideit 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
horizontalaxis.
-----------------------------------------------------
FIN 370Week 3 Individual AssingmentRisk and Return Analysis
Report (2 Papers)
This tutorial contains 2 Papers FIN 370 Week 3 Risk and Return
Analysis Create a 1,050-wordreport, and include the following:•
Explain the relationshipbetween risk and return • Identify an
example of risk and return. • Axia College Material
Appendix C
BudgetsMatrix

Directions:Using the matrix, define each of the budgets listed and
briefly describe its uses.
Budget Definition Describe its uses
Sales budget Estimate of the
expected sales for the
period. All of the
other budgetsdepend
on the sales budget.
This is where allthe
other budgetswill
start from
The salesbudget
shows dollars and
units. This will allow
management to see
how manyunits will
be produced for the
period
Production budget A production of units
needed to be
produced in order to
meet the projected
sales
Showsmanagement
how manyunits will
be produced during
each budget period
and what amountis
needed to fulfill
inventory demands
Direct materials
budget
Is the estimated
quantity or cost of
the raw materials
that is needed in
order to produce the
unitsrequiredto
fulfill inventory
Showsmanagement
how much raw
materialsthat is
already on hand and
or that needs to be
ordered to meet
inventory demands.
Direct labor budget A estimate of cost
and quantity of
Showshow many
hours, how many

direct labor needed in
order to meet
production
laborers needed to
produce the units for
that budget period.
Management will
decide whatwillbe
the right amountof
laborers needed and if
the company will be
able to meet the
budget
Manufacturing
overhead budget
An estimated
expected amountof
manufacturingcost
for the budget period
This listall overhead
cost involvingcash
disbursement in a
quarter
Sellingand
administrative
expense budget
Anticipatedselling
and administrative
expenses in the
budget period
Showsarea of budget
expenses that are not
listed other than
manufacturing.
Expenses such as
marketing, promotion
cost etc for the budget
period
Budgeted income
statement
Estimate of expected
profitabilityof
operationsin a
budget period
Is a very important
tool because it shows
the company
estimated profit for
the budget period.
Cash budget A projection of
expected cashflows
Cash budget helps
management keep a

in and outof the
business.
tally or total of all
cash balances.
-----------------------------------------------------
FIN 370Week 3 Riskand Return Problem Sets (7-21,7-27,8-19,8-
21,9-33)
FIN 370 Week 3 Risk and Return Problem Sets Complete the
followingproblem sets from Chapter 7 in Microsoft® Excel®: • 7-21
• 7-27Complete the followingproblem sets from Chapter 8 in
Microsoft® Excel®: • 8-19• 8-21 Complete the followingproblem
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 toolused by management to make gooddecision for the
company. If a company is successful than more than likelythat means
that the management team is very good at managing the company
finances. Budgeting helps management plan ahead, defines what is
most important, showswarning signs, reach a company target without
over or under budgeting and etc.

Another response
In a business, a budget helps a business make good decisionsbecause
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 somethingthat the compnay
can sustain based on the budget.
DQ2
Discussion Question 2: Post yourresponse 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
providesa 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, productionbudget whichwill 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
showshow 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
showsthe 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 finishedgoods units - Beginning
finishedgoods units = Required production units.
An example would be, every Easter the bakeries in the Bronx loadsup
on Hot Cross Buns. My mother and grandmother wouldbuy these tasty
sweet breads,and eat them for breakfast. I personally wouldlike to eat
them every week but, they are only sold during the Easter season.
Maybe, it has somethingto do with the glazed cross on the top.
Every Easter Holiday, there appears these Hot Cross Buns and the
bakeries productiondepartment allowsfor 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)
This Tutorial contains both annonated bibliographyand excel file FIN
370 Week 3 Team AssignmentPrecision 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 activitylevel, the flexible budget is based off of more than
one activity level.
The steps to development a flexible budget is :
a) Identify the activityindex, and the range of activity
b) Find out what the variable cost, and determine the variable cost
per unit
c) Find out whatthe fixed cost and determine the budgeted amount
for each unit
d) Organize the budget for selected additionalactivity withinthe
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 AdministrativeExpenses, 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
identifyingthe activityindex and the range of activityit 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)
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 Plumbing’sFinancial Statement”
spreadsheet Capstone Discussion Question: Post yourresponse 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 withyou I truly had no clue whataccounting
did for a company and how important it was. I always thoughtthat
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
thoughtthat I was going to have a hard time understanding
the accounting but I happyto say that I was wrong. I understood
every part of this course.
On a personal note I wouldlike to thank you Jess. If it wasn't for your
pep talk I probably wouldhad 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 tookaccounting as a calculator and
crunching numbers. I now have a new respect for accounting and all
the aspects that are involved. I never once tookinto consideration
profit, sales, revenue, and balance sheets also being included with
accounting. There is so much more involved withaccounting, 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 thinkingof 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 370Week 5 Team Assignment Precision Machines Part 2 (Cash
Budget and Strategic Analysis)

FIN 370 Week 5 Precision Machines Part 2 Note: There are two parts
to this learning team assignment;Part 1 was completedin 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

The name of my business is called DestinyWear. DestinyWear is
a urban fashion clothingcompany for woman, men and youth.
DestinyWear specializes in making clothingfor 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 establishingmy 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 outstandingaccounting
team.

Business Structure
Upon establishingDestinyWear 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 proprietorshipallowed
me to be the sole owner of DestinyWear. The first and most important
reason that I wanted sole proprietorshipis because it is much easier to
start a business as sole proprietorships.Sole proprietorshiptakes 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 withouthaving to first consult anyone else.
DestinyWear Products
DestinyWear productswill range from jeans, shirts, accessories and
shoes. The company will first start off with its most profitableproduct
and that will be the DestinyWear designer jeans line. The jeans line has
over twenty different jeans designs
from straightleg, baggy, cargo, overalls, shorts and much more. The
jeans line willprovide services withinthe United States and Canada

and will eventually service International customers. The DestinyWear
jeans line willhave 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 importantlythe
accounting department.
DestinyWear Accounting Department
The accounting plays a major role in establishingmy company
DestinyWear. The accounting department does more than managing
and reporting the company’sfinancial documents it is the greatest tool
in establishingmy business. The key to a powerful accounting
department here at DestinyWear is applyingthe principles of internal
control. These principles consist of establishmentof 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 nothingbut the
best qualified employees.
DestinyWear Accounting Staff
DestinyWear accounting team of fine employeeswill 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 historyexperience. The first and
far most important qualifyingrequirements are education. The

applicant has to have a Bachelor BA/BS in accounting degree a plus if
he or she has a master’s.
The second requirement is experience. The applicant must have the
minimum of five years of experience workingin accounting. He or She
must have knowledgeand 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 liabilitieskeeping inventory
levels low, and increasing the speed of collection on receivables. In the
category of experience we had to hire applicants according to the
positionthat 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
supervisorypositions.I personallyprefer 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 importantlypunctuality, 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 responsibilityreporting system for each
department. The managers will use the company’sfinancial
information to predict outcomes of the business. I require a report from
each responsibilitycenter, 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 willbe a very successful team not only because of
the productsthat 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 Retrieved3/20/2010
 Thomas, Y. 2005-08-27 “Accounting 101pg. 52 Statements.
March 19, 2010
 Drucker, P. Managing in the next society 2002. retrieved march
19,2010

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