We are going to be looking at the Balance Sheet (BS), the Profit and Loss Statement (P&L), and the Cash Flow Statement (CF). Obviously, all three are important but the P&L and Balance Sheet can reveal much about the current and dynamic state of the financial of the organization. This knowledge, while mundane for Accountants and Financial Managers, is sometimes not well understood even by high level managers of other departments. Marketing, Operations, Human Resources, Purchasing, Quality Assurance, and Sales departments need to deal with basic financial statements on a routine basis.

To some non-financial managers, the terminology and statements of the Finance Department can be as perplexing as a foreign language or a coded message. As a young manager, I attended an American Marketing Association course called “Finance for the Non-Financial Manager”. I thought it might be a waste of my time, but it really helped me advance in the organization. After the course, when I attended management meetings and the financial group presented their data using accounting jargon, I knew just what they were saying and felt comfortable interacting with them. I also gained respect from them for knowing how they presented information.

Just as important to your future is this: if you are going to rise up through the management hierarchy and eventually become a Vice President or President/CEO, you will certainly need to be able to understand and comment on the monthly financials. And when you present information to your Board of Directors, you will need to explain and answer questions on financial information. These financial statements are important.  

1. For this assignment, you will examine the financial statements found on pages 549 and 550. We will use the only P&L and the Balance Sheet for this exercise. Looking at the statements from a managerial point of view, I want you to decide the five (5) most important numbers, areas, etc. that you would initially look at for each statement.  While doing so, comment on each one you have chosen and explain why you have singled them out as key indicators to you. Here are a few considerations to help you make your decision:
   • Which statement would you go to first? Why this one? Would you do this if you were the manager of a different department within the organization?
   • If you identify areas on the statement(s) that are of concern, where might you go next to dig deeper and verify your thoughts or allay your concerns?
   • Think about receiving an annual report for a stock you own. You will notice that it is thick but the statements we are looking at are but a few pages. Why is this? What is important about the rest of the report? (You can find annual reports online at the company website).
   • How are these statements interrelated? Do you see any common elements on both? How would you relate the two statements to come to a conclusion on the financial health of the organization

The Evolution of Information Systems

As an IT manager, create a 10 – 15 slide professional PowerPoint presentation (using speaker notes) for the CEO by Tuesday, February 11, 2014.  The presentation topic is the evolution of information systems as seen in the organization you selected in module 1.

You will conduct research and analyze information to make recommendations for an updated system that can meet the business requirements of your chosen organization.

1. Summarize the organization’s current and past use of information systems and its impact on operations, decision making, efficiency, and profitability.
2. Explain the usage and purpose of the IS system, the improvements that can be made to it, and analyze the need for an information system. Elaborate on how decisions are made using the IT system.
3. Identify three key business requirements or needs that the system must meet of your selected organization (e.g., the system must track all customer sales by product, region, and sales representative).

1. Then, assuming that a system upgrade would be possible, discuss your responsibility as an IS professional and the roles of others in the organization to define new or other business information systems that might be needed and to select an appropriate platform.  Consider various types of decision-making support systems (DSS).
2. Include a title slide, reference slide and incorporate at least three resources in your presentation.

Present your research, analysis, and recommendations in a format that could be shared with stakeholders without technical knowledge. Provide diagrams or other visual aids to explain your analysis, if needed.

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the company’s management team.  The company would like for you to keep your presentation to approximately 10 slides and use the notes section in PowerPoint to clarify your point. Your presentation should address the following questions and offer a final recommendation to Coogly. Make sure you support your answers and clearly explain the advantages and disadvantages of utilizing the weighted average cost of capital methodology. Include at least one graph or chart in your presentation.

Company Information

The capital structure for the firm will be maintained and is now 10% preferred stock, 30% debt, and 60% new common stock.  No retained earnings are available.   The marginal tax rate for the firm is 40%.

1. Coogly has outstanding preferred stock That pays a dividend of $4 per share and sells for $82 per share, with a floatation cost of $6 per share. What is the component cost for Coogly’s preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?
2. If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. The last dividend paid was $3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm? What are the advantages and disadvantages of issuing new equity in the capital structure?
3. The company will use new bonds for any capital project, according to the capital structure. These bonds will have a market and par value of $1000, with a coupon rate of 6% and a floatation cost of 7%. The bonds will mature in 20 years and no other debt will be used for any new investments. What is the cost of new debt? What are the advantages and disadvantages of issuing new debt in the capital structure?
4. Given the component costs identified above and the capital structure for the firm, what is the weighted average cost of capital for Coogly? What are the advantages and disadvantages of using this method in the capital budgeting process?

Complete one of the following options:

Option 1:

Complete the Supply and Demand Simulation.

Write a 1,050- to 1,400-word paper summarizing the content of the simulation and address the following: 

• Identify two microeconomics and two macroeconomics principles or concepts from the simulation/video.

• Explain why you have categorized these selected principles or concepts as microeconomics or macroeconomics.

• Identify at least one shift of the supply curve and one shift of the demand curve in the simulation/video.

• Explain what causes the shifts, and how each shift affects the price, quantity, and decision making.

  Include responses to the following: 

• How might you apply what you learned about supply and demand from the simulation/video to your workplace or your understanding of a real-world product with which you are familiar?

• How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on equilibrium price and quantity?

• How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

• How does the price elasticity of demand affect a consumer’s purchasing and the firm’s pricing strategy as it relates to the simulation/video?

  Cite a minimum of 3 peer reviewed sources.

  Click the Assignment Files tab to submit your assignment.

   

  Option 2:

  Watch the Khan Academy Video “Changes in Market Equilibrium” located in the Week 1 Khan Academy Videos.

  Write a 1,050- to 1,400-word paper summarizing the content of the simulation and address the following: 

• Identify two microeconomics and two macroeconomics principles or concepts from the simulation/video.

• Explain why you have categorized these selected principles or concepts as microeconomics or macroeconomics.

• Identify at least one shift of the supply curve and one shift of the demand curve in the simulation/video.

• Explain what causes the shifts, and how each shift affects the price, quantity, and decision making.

  Include responses to the following: 

• How might you apply what you learned about supply and demand from the simulation/video to your workplace or your understanding of a real-world product with which you are familiar?

• How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on equilibrium price and quantity?

• How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

• How does the price elasticity of demand affect a consumer’s purchasing and the firm’s pricing strategy as it relates to the simulation/video?

  Cite a minimum of 3 peer reviewed sources.

  Click the Assignment Files tab to submit your assignment.

“Role of Businesses in the Bigger Picture” Please respond to the following:

• Discuss the most important lessons you have learned from the economic issues portrayed by the scenario interactions.
• From the scenario interactions throughout this course, consider the copy center’s responsibility and role in economic social issues. Discuss some of the social issues that the copy center did not address or was not involved in throughout this course. Then, recommend a business strategy to increase its role in economic issues.