{"id":429624,"date":"2018-03-05T16:50:09","date_gmt":"2018-03-05T16:50:09","guid":{"rendered":"https:\/\/essaypaper.org\/assignment-3-essay\/"},"modified":"2018-10-24T08:52:51","modified_gmt":"2018-10-24T08:52:51","slug":"assignment-3-essay","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/assignment-3-essay\/","title":{"rendered":"Assignment #3 | ESSAY"},"content":{"rendered":"\n
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Assignment #3<\/strong><\/p>\n

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Project Parameters:<\/strong>
You have been selected as the consultant to develop a business plan for Durango Manufacturing Company, which is a start-up, medium-sized public manufacturing company. The CEO has a background in manufacturing and is well versed in supply chain management. However, the CEO has limited experience in financial management and creating value for the various stakeholder groups. Your business plan must include a five (5) year strategy to increase revenues by 10% and a recommendation for creating an organizational structure to comply with SOX mandates for strong corporate governance over the internal controls. Your business plan must also include prescriptions for creating an ethical environment. Your recommendation must be approved by the Board of Directors before the company can begin its operations.
Based on your knowledge of accounting and financial, prepare a ten to twelve (10-12) page report in which you:<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As the consultant, create an argument that you will present to the CEO that suggests accounting and financial management knowledge and skills will be essential to the company\u2019s success and stability over the next five (5) years. Provide support for your argument.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Suggest to the CEO how the company\u2019s stakeholders (investors, lenders, and employees) will use financial statement information and ratio calculations to make key determinations related to the financial condition and operational efficiency of the company. Provide support for your rationale.<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Given the strategy to increase revenue during the five (5) year plan period, which will need to be achieved through expansion and capital expenditures, determine which capital budgeting ratio is appropriate for Durango to evaluate its proposals for capital expenditures, such as NPV, IRR, etc. Defend your position.<\/p>\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In order for the company to improve its operational efficiency, recommend which production departments should use process, job order, and activity-based costing\u2014all three (3) of which must be implemented within Durango. Defend your choice for each department.<\/p>\n

5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The CEO would like to consider outsourcing his manufacturing operations if labor can be supplied cheaper overseas than in the U.S. Create an argument either for or against outsourcing the manufacturing operation to a foreign country. Your argument should include key points that support your position. The key points should address economic and business management aspects related to outsourcing.<\/p>\n

6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Predict the economic and business environment over the next five (5) years, indicating at least two (2) ways it may impact Durango Manufacturing Company\u2019s ability to achieve the desired 10% growth in revenue. Provide support for your prediction.<\/p>\n

7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Formulate a strategy to improve the opportunities for Durango to reach its revenue goals (i.e., increase revenue by 10% within five [5] years).\u00a0<\/p>\n

8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assess the potential for fraud within Durango based on the lack of IT controls, and determine at least two (2) ways Durango will structure its internal IT controls to ensure that such controls are effective in detecting fraudulent transactions.\u00a0<\/p>\n

9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Use at least six (6) quality academic resources in this assignment.\u00a0Note: <\/strong>Wikipedia and other Websites do not qualify as academic resources.<\/p>\n

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Your assignment must follow these formatting requirements:<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.<\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Include a cover page containing the title of the assignment, the student\u2019s name, the professor\u2019s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length<\/p>\n

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ADDITIONAL INSTUCTIONS:\u00a0 <\/strong><\/p>\n

Remember the goal is to maximize net earnings rather than revenues.<\/p>\n

Most companies employ the IRR, NPV, ARR and some version\u00a0of the payback methods to determine\u00a0if a long<\/p>\n

term project should be accepted\u00a0or rejected. \u00a0What concerns should tax rates have? \u00a0If Durango<\/p>\n

is considering capital projects in multiple tax jurisdictions, how would this influence\u00a0the decision?<\/p>\n

What if unforeseen problems or opportunities arise, what options may Durango\u00a0have? \u00a0When should<\/p>\n

they consider abandoning\u00a0the project? \u00a0Under what conditions could Durango\u00a0scale back the investment,<\/p>\n

or to expand the project?<\/p>\n

Regarding the question on outsourcing, what costs should\u00a0be considered in this decision? i.e. total costs.<\/p>\n

Should opportunity costs be even considered\u00a0in this decision?\u00a0What if Durango\u00a0is operating at full<\/p>\n

capacity, should this fact be a factor in this decision? \u00a0What if Durango\u00a0is operating\u00a0at less than full<\/p>\n

capacity?<\/p>\n

Question #2<\/strong>: for any ratio selected, how would a stakeholder analyze this ratio and or<\/p>\n

other ratios to evaluate the financial condition of Durango? \u00a0I would not want to read any formulas<\/p>\n

as part of this answer. \u00a0Should the stakeholders be wary of the results of ratio analysis?<\/p>\n

Perhaps I have not read our text very carefully. \u00a0Would SOX and a Code of Ethics influence<\/p>\n

the organizational\u00a0structure of Durango?\u00a0 Do not include any ratio formulas nor discuss any specific ratio in this answer. \u00a0Discuss how ratios might be used in the decision process by both direct stakeholders (investors, lenders and employees) and indirect stakeholder (suppliers).<\/p>\n

Question #3<\/strong>: \u00a0Do not define the calculations of IRR and NPV. \u00a0Durango\u00a0will only use two\u00a0methods\u00a0to<\/p>\n

evaluate the acceptability\u00a0or rejection of\u00a0capital\u00a0projects. \u00a0Some possible projects do not rely on<\/p>\n

whether another project is accepted or rejected. These project decisions\u00a0are considered independent<\/p>\n

of one another. \u00a0Other capital projects are considered mutually exclusive. \u00a0This means that if one project<\/p>\n

is accepted, another project being considered\u00a0must be rejected.<\/p>\n

Will the use of both the IRR and NPV methods lead to the same accept or reject decisions?<\/p>\n

Question #8<\/strong>: \u00a0In addition, briefly discuss how Durango\u00a0could create\u00a0an organization\u00a0structure<\/p>\n

to increase oversight over internal controls by complying with SOX.<\/p>\n

Remember, number each answer. \u00a0Do not write an essay. \u00a0The 12 page limit is probably not<\/p>\n

sufficient. \u00a0I will accept a 14-15 page paper. \u00a0The initial requirements of a 10-12 page paper<\/p>\n

are completely acceptable. \u00a0<\/p>\n

Before submitting this last assignment, be certain that the SafeAssign\u00a0percentage is less<\/p>\n

that 20%.\u00a0\u00a0Do not prepare a Business Plan, just answer the questions.<\/strong><\/p>\n

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\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Assignment #3 \u00a0 Project Parameters:You have been selected as the consultant to develop a business plan for Durango Manufacturing Company, which is a start-up, medium-sized public manufacturing company. The CEO has a background in manufacturing and is well versed Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-429624","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/429624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=429624"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/429624\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=429624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=429624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=429624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}