30 Jul Module Overview:While driving, you always follow traffic rules. W

Module Overview:While driving, you always follow traffic rules. Without adherence to traffic rules, there would be chaos on the roads. Similarly, if organizations do not follow rules or standard accounting practices to record data, users might incorrectly interpret financial results. In addition, it will be difficult for external users, such as shareholders and investors, to compare and evaluate financial statements of different companies. Without standardization, they will be unable to make correct decisions about their investments. Therefore, accounting information requires a logical set of practices to provide a general frame of reference by which it can be evaluated.This module explains accounting practices. It also explains why uniformity in accounting practices is important and how it can be obtained.Accounting and Recording Principles  One of the basic objectives of accounting is to convey information. This is achieved by different financial statements prepared for business—the most important statements being the balance sheet, the income statement, the statement of cash flow, and the statement of owner’s equity. Different companies may call these statements by different names, but they represent the same basic documents. For instance, the balance sheet may be referred to as the statement of financial position or assets in excess of liabilities. Similarly, the income statement may be referred to as the statement of operations or the statement of revenues over expenses.The Balance SheetThe balance sheet includes a summary of assets (both current and long-term assets), current and long-term liabilities, and owner’s equity. Current assets are defined as assets that are either cash, or can be converted into cash in a short period (usually within one year). Current assets are more liquid assets. This list also includes the debt of the company called current liabilities.These debts are expected to be paid off within one year or less. If assets or liabilities are not current, they are considered long-term. Both assets and liabilities are presented on the financial statement in order of liquidity. One other very important matter is that the balance sheet is the only permanent financial statement of the company. The balance sheet contains the balances of all assets, liabilities, and equity AT the date of the statement. The balance sheet is therefore a balance-forward statement, and the balance presented could be from any time on or before the presentation date of the statement. This is different from every other financial statement.Module Readings:Complete the following readings early in the module:•Read the online lectures for the Module •From the textbook, Accounting for Managers: Interpreting Accounting Information for Decision Making, 5th, read the following chapters: ◦Chapter 6: Constructing Financial Statements: IFRS and the Framework of Accounting ◾Chapter 6 textbook Microsoft PowerPoint slides◦Chapter 7: Interpreting Financial Statements ◾Chapter 7 textbook Microsoft PowerPoint slides◦Chapter 8: Accounting for Inventory ◾Chapter 8 textbook Microsoft PowerPoint slidesAssignment:Ratio analysis is a method used to analyze the financial reports of a company and interpret trends in the company’s performance. As a nonaccounting manager, you use numerous ratios to analyze your company’s performance year-by-year and benchmark the performance to industry averages, to an individual competitor’s performance, or against a predetermined target.For this assignment, read ‘Case study question 7.2: General Machinery Ltd’ on page 168 in chapter 7 of our textbook, Accounting for Managers: Interpreting Accounting Information for Decision Making, 5th. Using the data from the case study, repond to the tasks below. (Information Supplied Below)General Machinery’s Statement of Cash Flows is also shown for the last few years (Table 7.20).  Table 7.20 Statement of Cash Flows.    2014 2013 2012 2011 Cash flow from operating activities        Cash receipts 772,000 700,000 635,000 595,000 Cash payments −628,000 −601,000 −537,200 −503,000 Interest paid −72,000 −60,000 −40,000 −25,000 Income tax paid −17,700 −11,100 −12,240 −20,700 Net cash from operating activities 54,300 27,900 45,560 46,300 Cash flow from investing activities        Payments for property, plant & equipment −200,000 −50,000 −50,000 − Net cash used in investing activities −200,000 −50,000 −50,000 − Cash flow from financing activities        Proceeds from borrowings 50,000 50,000 50,000 − Dividends paid −20,000 −15,000 −14,000 −20,000 Net cash from/used in financing activities 30,000 35,000 36,000 −20,000 Net increase/(decrease) in cash −115,700 12,900 31,560 26,300 Cash at beginning of year 135,700 122,800 91,240 64,940 Cash at end of year 20,000 135,700 122,800 91,240      Discuss the major issues facing the company.     Recommend what actions the company should take to improve its overall performance, addressing each of profitability, liquidity, gearing, activity, and shareholder return measures.     In what way does the Statement of Cash Flows help you to interpret the ratios and financial performance of the company?Task:Consider the following scenario for this assignment: You are an external investor who is considering General Machinery as one of the potential companies for investment. Respond to the following in your initial discussion post:1.Discuss the major issues facing the company. 2.Recommend what actions the company should take to improve its overall performance, addressing each of profitability, liquidity, gearing, activity, and shareholder return measures. 3.In what way does the Statement of Cash Flows help you to interpret the ratios and financial performance of the company? 4.What information does ratio analysis provide for meeting the requirements of the case questions? 5.Which ratios are the most important, and which ones are of limited value? Justify your choices for the scenario. 6.Why do you need to compare: ◦The current year ratios with the prior year ratios? ◦The ratios of competitors in the same industry or some other benchmark?7.Other than the computations used in ratio analysis, what else is necessary to properly analyze a company for investment?Submission Details:By Friday June 1, 2018 post your response to the Discussion Area.Write your initial response in 300–500 words. Turned-in on time, Plagiarism Free, All assignment qualifications addressed correctly, Grading Criteria followed, Include Question followed by the answer  Reference Page Included Cover page Included, Paragraphs  Indented,  Running-head included, main heading should be centered; all  new  paragraphs should be indented;  paper should be right ragged,   not right justified; references,  should always go on a standalone  page. abstracts are not usually indented; acronyms should be spelled out when using them  for  the first time, for example HR. references as listed are APA  standard.   When you  submit your papers through turnitin.com, your overall  similarity  index  score should not be exceedingly high, with   ten to  fifteen percent  being  the maximum,  Please make sure your APA  formatting of citations. I have provided the  APA resource cite for you. https://owl.english.purdue.edu/owl/resource/560/01, Please work on using literature within the span of the last 5 years,  keep in mind there should not be any one, two, or three sentence   paragraphs.  Your response should be  thorough and address all components of the discussion question in  detail, include citations of all sources, where needed, according to the  APA Style, and demonstrate accurate spelling, grammar, and punctuation.Grading Criteria:   Initial response was: •Insightful, original, accurate, and timely. •Substantive and demonstrated advanced understanding of concepts. •Addressed each of the seven (7) Tasks prompts. •Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusionsWriting: •Wrote in a clear, concise, formal, and organized manner. •Responses were error free. •Information from sources, where applicable, was paraphrased appropriately and accurately cited.Apply the following when responding:•Read your answers. ◦building on the remarks or questions; or ◦sharing practical examples of key concepts from your professional or personal experiences ◦assist the class in providing excellent answers to each of the posted questions. •Respond to feedback on your posting and provide feedback to ideas. •Make sure your writing ◦is clear, concise, and organized; ◦demonstrates ethical scholarship in accurate representation and attribution of sources; and ◦displays accurate spelling, grammar, and punctuation.