Question 1
The Statement of Stockholders Equity is viewed as the most important by many companies. The company you work for is no different. However, many outside the financial team do not understand what is contained in the statement. You are presented with a unique opportunity to deliver presentations to company employees concerning this fact. What key points would be addressed to the employees and why?
Respond to this... I will let them know that instead of including a detailed section of stockholders' equity in the balance sheet and retained earnings statement a stockholders' equity statement is created (Shareholders' (Stockholders") Equity Basics, n.d.).
I will tell them the "statement shows the changes in each type of stockholders' equity account and the total stockholders' equity during the accounting period" (Shareholders' (Stockholders") Equity Basics, n.d.).
It usually includes (Shareholders' (Stockholders") Equity Basics, n.d.):
• Preferred stock
• Common stock
• Issue of par value stock
• Additional paid-in capital
• Treasury stock repurchase
• Cumulative translation allowance
• Retained earnings
I would explain the basic format of the statement (Kieso, Weygandt, & Warfield, 2013, p. 848).
• Balance at the beginning of the period
• Additions
• Deductions
• Balance at the end of the period
Kieso, D. E., Weygandt, J. j., & Warfield, T. D. (2013).Intermediate Accounting 2014 FASB Update (15th ed.). (M. McDonald, B. Kamins, T. A. Tatro, M. Thompson, Y. Mermel, V. Vargas, & M. A. Price, Eds.) Hoboken, NJ, United States: John Wiley & Sons Inc. Retrieved from https://bookshelf.vitalsource.com/#/books/9781118722671/cfi/0
Shareholders' (Stockholders") Equity Basics.(n.d.). Retrieved from Investopedia: https://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/equity-basics.asp
Respond to this... The Statement of stock holders equity is a very important part of the financial. It can show an investor is a very quick snap shot how that company has performed of a period of time. If a company is losing money the equity can go down and making money the equity can go up. But there are also other pieces like adding investors or injecting more capital into the company. I always feel that having enough capital is important as it can show the stability and strength of a company. So people borrow more and more to get assets and grow but if there is a problem they sometimes dont have the equity to fall back on and get through the hard times.
I think this is especially true in Real Estate, so people keep on refinancing as the value of the property goes up over time to get cash out. The equity goes down as the borrow more, then if they have vacancies or the economy goes down they are in trouble. But if you just keep on paying down your mortgage and distributing left over cash you build a stronger and stronger position.
Question 2
There are many advantages to using a budget for planning and operation within a business. Businesses must know how much they expect an activity to cost as well as what they expect to yield from their effort throughout the year. This is the core of the business' survival. Budgets record the expectations for both costs as well as revenues from key activities over the business year. They are meant to maintain some planning element in the chaotic events that typically ensue during normal operations.
Share what you believe are the three main advantages for using a budget. Select one of these advantages and present an example, as well as how you feel that advantage would allow a business to be successful.
Respond to this... The three main advantages of creating a budget are: providing coordination and communication between departments, providing a benchmark to evaluate performance, and provides a way to motivate and encourage employees.
As an example, budgets can be a beneficial way to motivate managers and employees to achieve a certain goal. If the budget anticipates sales will increase 10%, employees a part of the revenue center will work hard to achieve a 10% increase in sales to avoid failure or assure bonus compensation associated with this achievement. Several strategies can be implemented to motivate employees such as stretch budgeting or Kaizen budgeting. Budgets are a useful tool companies implement to encourage positive growth needed to stay successful. Engagement of employees is essential to overall success.
Question 3
A growing frozen food manufacturer is having difficulty obtaining the raw materials needed to make their product. Their retail distributors (grocery stores) are threatening to go to another supplier. Is there any supply chain management software for a small business that would be appropriate for a business like this?
Use the Internet to locate two supply chain management software providers that could aid a company like this. Briefly describe the capabilities of the two software applications. Which supply chain management software product would be more appropriate for this company? Why?
Respond to this... Cin7 software does so much, such as retail point of sale, running POS from an iPad.It connects with your website, integrates POS with inventory, tracks inventory for manufacturing, based on orders, the application can create manufacturing jobs and make sure supplies are on hand, among many other functions. This is a product ideal for light manufacturing situations. We are not given lots of detail on what this product is or how big things need to be, but from what I am seeing, if this were a small to medium manufacturing situation, this may be the ideal application. It basically integrates everything, including integration with retailers.
Reference https://www.cin7.com/?gclid=CjwKEAjwrcC9BRC2v5rjyvSbhWASJACKkjDzJcjT9TgXwFpewhE6xNuqvWxuYiHqGzlVcyPf-anQKxoC91Pw_wcB
Glovia by Fujitsu does a number of planning functions, such as factory planning, order management, forecasting, and, of course, supply chain planning, each with a different module. The supply chain module can reduce inventory to ckeep a lean goods on hand warehouse. It can optimize supply to meet demand to just have onhandwhatn you need for orders. It also allows for forcasting to be able to plan ahead.From what I read, while this application is good too, but I feel that the Cin7 application will give a much better bang for the buck.
Reference: https://www.glovia.com/on-premise-manufacturing-erp-software/on-premise-manufacturing-erp-modules/supply-chain-management-erp-solution/supply-chain-planning-erp-module/