Question 1:

For this week’s Discussion, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company website and financial statements. Also locate information on the types of bonds the company issues. Review the Liabilities section of the company’s Balance Sheet. Be prepared to discuss.

Imagine that you just read about another company in the same industry facing criminal charges for misrepresenting their liabilities. Naturally, you’re worried that the company you’re researching might be doing something similar. Hypothesize a scenario in which someone at the company could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that these companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain. Justify your response.

Imagine that you are advising an investor who is considering purchasing bonds issued by the selected company. Analyze the types of bonds the chosen company issues. Make a recommendation to the investor as to which type of bond would provide the most value. Justify your response.

Question 2:

For this week’s discussion, research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Review its most recent statement of cash flows and income statement on the company’s Website. Be prepared to discuss.

Outline a strategy for companies to spend excess cash and maximize the value of that spend. Provide a rationale for your response.

Compare and contrast the selected company’s statement of cash flows to its income statement. Suggest at least two (2) items from each statement that investors should analyze when deciding whether or not to purchase the company’s stock. Justify your response.

Question 3:

Describe sustainable income and the importance of sustainable income in the evaluation of the income statement. Choose at least two (2) items or events that will affect sustainable income of a company.

Propose the manner in which you would disclose these items or events to investors. Justify your response.

RESPONSES ONLY NEED TO BE ABOUT 6-7 SENTENCES LONG

Answer preview

Question1

A look at Amazon’s liabilities section, there would be a possibility, which the number of liabilities that have been recorded in the long-term debt; where the company is seen to remain almost constant, may imply, that the true representation of the long-term debt is not done correctly. There have been office grapevines that have pointed fingers on the accountant, for obeying the orders of some of the shareholders, for taking advantage of the situation. This can, however, be dealt with, such that the accounting functions are completely segregated and involving more people in the accounting process. Another measure would be coming up with a very strong controlled environment…

 

(600 words)