Solved by verified expert :Arab Open University
BE210: TMA – Summer – 2014
Cut-Off Date: August 10, 2014
About
TMA:
The TMA covers the financial accounting
concepts and practices in the businesses. It is marked out of 100 and is worth 20%
of the overall assessment component. It is intended to assess students’
understanding of some of the learning points within chapters 1 to 4. This TMA
requires you to apply the course concepts.
The TMA is intended to:
ØIncrease the students’ knowledge about the reality of the accounting
as a profession.
ØAssess students’ understanding of key learning points within
chapters 1 to 4.
ØDevelop the ability to understand and interact with the nature of
the financial statements in reality.
ØDevelop students’ communication skills, such as memo writing, essay
writing, analysis and presentation of material.
ØDevelop basic ICT skills such as using the internet.
The TMA:
The TMA requires you to:
1-
Review various study chapters
(from Chapter 1 to 4) of ‘Financial and Managerial Accounting’
Book and apply some of the concepts within it.
2-
Conduct a simple information
search using the internet.
3- Present your findings in not more than 1,200
words. The word count excludes headings, references, title page, and diagrams.
4-
You should use a Microsoft
Office Word and Times New Roman Font of 14 points.
5-
You should read and follow the
instructions below carefully. Each part of the process will carry marks for the
assignment.
Criteria for Grade Distribution:
Criteria
Content
Referencing
Structure and Presentation of ideas
Total marks
Financial
Reporting on the Internet (Precision Castparts Corp.)
Marks
90
5
5
100
The TMA Questions
Financial Reporting on the Internet
(Precision Castparts Corp.)
The internet is a good place to get information that is useful to
you in your study of accounting. For example, you can find information about
current events, professional accounting organizations, and specific
companies that may support your study.
Precision Castparts Corp. (PCC), a
worldwide manufacturer of complex metal components and products, provides
high-quality investment castings, forgings, fasteners/fastener systems and
aerostructures for critical aerospace and power applications. The company manufactures complex metal
components and products in three principal business segments: Investment Cast
Products, Forged Products and Airframe Products. Precision Castparts Corp. is one of the world’s largest and most
diversified producer of high-performance, nickel-based alloys, supplying more
than 5,000 customers.
Access the Precision
Castparts Corp. web page at: www.precast.com,
From Precision Castparts’ home page, choose “Investor
Relations”, then “SEC Filings”, followed by clicking on “Annual Filings” from “Filter
Results” to download 2014 annual report on Form 10-K PDF and/or Form 10-K Word.
The annual report provides a
comprehensive overview of the company for the past year, 2014.
Instructions:
Use the annual report to answer the following
questions:
1-
For Precision Castparts
Corp., in brief, what is meant by Form 10-K. Who is responsible for the
preparation of the financial statements and related information that are
presented in each report? (Hint: some research is required here.)
[10 marks]
2-
Why is it important that
Precision Castparts Corp. follows a standard set of accounting policies (Called
Generally Accepted Accounting Principles ‘GAAP’), e.g. ‘Revenue Recognition and
the Cost Principle’, in the preparation of financial statements?
[10 marks]
3-
Precision Castparts Corp.’
financial statements are followed by a series of explanatory notes. Why those
notes are important for the users? What are some of the subjects covered by
those notes?
[10 marks]
4-
For the two most recent
years (2014 and 2013), list the amounts reported for “Total Assets”, “Total
Liabilities”, and “Total (Owner’s or Shareholder’s) Equity”. Does the
accounting equation hold true for Precision Castparts Corp.?
[10 marks]
5-
Describe
andgive examples of intangible assetsfrom
Precision Castparts Corp.’s 2014 annual report. Support your answer with
suitable figures from the Precision’s 2014 annual report.
[8 marks]
6-
Continue paging through the
annual report until you find the “Consolidated Statements of Income.” For the three
most recent years, list the amounts reported for “Net Sales Revenue” and “Net Income”.
Is Precision Castparts Corp. growing and expanding? Is Precision Castparts
Corp. a profitable company”? Comment whether the three years trend of revenues
is favorable or unfavorable. Support your answer with suitable figures
from the Precision’s 2014 annual report.
[12 marks]
7-
Does Precision Castparts’
net income represent a supply of cash that could be distributed to stockholders
in the form of dividends? Substantiate your answer by suitable figures from the
annual report.
[8 marks]
8-
Does the Precision
Castparts Corp. use cash-basis or accrual-basis accounting? How can you tell?
Which gives a more accurate picture of the profitability of Precision Castparts
Corp.? Explain and support your answer by suitable figures from the Precision’s
2014 annual report.
[10 marks]
9-
In
reviewingPrecision’sConsolidated
Statements of Cash Flows:
a-
What journal entry did Precision
Castparts Corp. make in 2014 to record:
a.1. Common
stock issued
a. 2.
Depreciation and amortization
a. 3. Cash
dividends
b-
What
are the primary sources and uses of cash fromPrecision’s investing activities? Did investing activities causePrecision’s cash to increase or decrease?
[12 marks]
In your answer, you should explain each point or inquire
separately. Use the following headings (below) to make up the different
sections of your answer:
PT3 form (Cover)
Available on
LMS
Contents
Title and contents page
TMA
Financial Reporting on the
Internet (Precision Castparts Corp.)
Reference list
Recorded
according to the Harvard style – Available on LMS
Good
Luck!
Dr.
Helal Afify
