INVESTIGATION OF ALLEGED MISUSE OF INVESMENT FUNDS AND THE ALLEGED MATERIAL MISREPRESENTATIONS OF THE FINANCIAL CONDITION OF BERNARD L. MADOFF INVESTMENT SECURITIES LLC.

A. Investigation Summary
B. Background Information
B.1. Background of Company
B.2. Persons and Entities under investigations
B.3. Scope of the Investigation
B.5. Investigation Procedures
B.5.1. Analytics
B.5.2. Electronic Data Review
B.5.3. Background Checks
B.5.4. Surveys
B.5.5. Interviews/Inquiries
C. Investigation Details
C.1. External Audit Details
C.2. Background Check Details
C.3. Surveys Details
C.4. Interviews/Inquiries Details
D. Findings
D.1. External Audit Findings
D.1.1. Corporate Debt
D.1.2. Earnings and Operational Statistics
D.1.3. Self-dealing transaction
D.2. Forensic Audit Findings
D.2.1. Background Checks
D.2.2. Surveys
D.2.3. Interviews/Inquiries
D.2.4. Financial Impact
D.3. Legal Opinions
E. Applicable Laws (what law did they violated)
F. Conclusion
G. Recommendations

Accounting ratio analysis and capital budgeting

Step 1: Ratio Analysis

1. This assessment task involves you calculating a range of ratios for your firm and using these ratios to assess the business performance of your firm.

2. Go to the ‘Ratios’ tab in your firm’s spreadsheet. In this worksheet is a list of ratios. Please calculate these ratios for your firm.

Calculate these ratios for the last four (4) years for your firm. Do this by linking back to the numbers in your firm’s financial statements (in your ‘Financial Statements’ worksheet) or to the numbers in your firm’s restated financial statements (in your ‘Restated Financial Statements’ worksheet). If you are unsure about how to link cells between worksheets in Excel, see this short video about how to link cells between worksheets (control + click on this link):

Linking Data from Different Excel Sheets and Workbooks

You can also discuss with others in the course about how to do this – everyone will be facing the same issue.

Once you have calculated these ratios for your firm sit back and have a look at them. What do these ratios actually tell you (or not tell you) about your firm? How do you make sense of them?

Discuss your ratios with other students in the course. How do your company’s ratios differ to the ratios of companies of other students in the course? What do your firm’s ratios tell you about how well your firm is performing?

3. Calculate economic profit for your firm for the past four (4) years. Use 10% as your firm’s cost of capital when calculating your firm’s economic profit (unless you have reasons to use a different number; if so, clearly state those reasons).

4. The key drivers of your firm’s past economic profit are RNOA, cost of capital and NOA. The two key accounting drivers of RNOA are PM and ATO. (See Study Guide Chap 4, Section 4.4).

Comment on what is driving or causing your firm’s economic profit over the past four years to be at the levels it is. If your firm’s economic profit is negative (or positive), what is causing it to be negative (or positive)? If it is a large number, what is causing it to be so large? If it is a small number, what is causing it to be so small? If it changed a lot over the past three or four years, why did it? If it stayed much the same over the past three or four years, why was this?

5. Discuss your thoughts on what is driving your firm’s economic profit with other students. What similarities or differences are there between the economic profit of your different firms? Why is this? What is causing these similarities or differences? What insights have you gained by ‘breaking into bits’ your firm’s financial statements? What insights have you not gained?

6. Include in your assignment your firm’s spreadsheet, including your firm’s ratios and economic profit that you have calculated, as well as a Word file setting out your commentary on your firm’s ratios and what is driving your firm’s economic profit.

Please allow about 540 – 600 minutes to complete Step 1.

Step 2: Capital Budgeting

Develop a capital investment decision for your firm. This decision should involve a choice between two options and involve you discounting cash flows for between 5 and 10 years.

Please use a required cost of capital of 10% (Hint: This is the discount rate to use).

Calculate the payback period, net present value (NPV) and internal rate of return (IRR) for each of the two options for your firm that you developed and advise your company which option it should invest capital in.

Please go to the ‘NPV & IRR’ worksheet and calculate the NPV and IRR for each of the two capital investment options for your firm in this worksheet, using the NPV and IRR functions in Excel. See this short video for guidance about how to calculate NPV and IRR using Excel (control + click on this link):

Calculating IRR (Internal Rate of Return) and NPV (Net Present Value) using Excel

Briefly discuss your thought processes in coming to your recommendation. Also briefly discuss the strengths and weaknesses of your analysis.

For example, I have developed a capital investment decision for Ryman Healthcare. This is shown in the Appendix to this assignment. This is by way of example only. Please do not use this example in your answer to Step 2. You need to develop your own capital investment decision for your firm.

1. Estimated life is how long Ryman Healthcare expects to own the new retirement village units before selling the retirement village they are part of.

2. Expected cash flow when sell each retirement village to another retirement village operator at the end of the ’Estimated life’.

3. Comprise estimated future cash flows from selling occupancy rights to the retirement village units each year, and fees from management rights and other services.

LAW:International Business Transactions

Problem-Question Scenario:
Assume SMART Invention (SI), a US based company, gained significant trans-border reputation for it two distinctive brands: Paddy and Monda. In 2012, it decided to expand its market in Australia via two different modes of business such as franchising and licensing. Accordingly, SI entered into a franchise agreement with SOMA Pty Ltd in Sydney on 24 March 2012 for a period of four years. The agreement entitled SOMA to produce and sell Paddy across the nation by requiring it (SOMA) to inter alia, open two outlets in different locations of NSW subject to the approval and limited operational support of SI. On 11 April 2012, SI signed another licence agreement with High-Tech, a Melbourne based Australian company. SI while granting the power to manufacture Monda for a period of three years in return for a royalty accepted an undertaking from High-Tech that ‘the agreement does not intend to create a franchise relationship but requires High-Tech to follow a specific system of manufacturing plan approved by SI based on its financial and operational support.’

In March 2014, just after two years, SI realised that it could not afford any operational support to SOMA due to its huge financial loss incurred from several businesses with Elite, a UK based company, of which SOMA was not informed. Consequently, SI terminated the agreement. SOMA wishes to go for a legal battle. SI’s financial hardship with its various franchisees including SOMA eventually affected its (SI) ability to continue the licence agreement with High-Tech. Consequently, SI failed to provide High-Tech with the required operational support that led to the demise of Monda production in Melbourne. High-Tech is planning to go for a legal battle as it has already invested AUS$ 5 million in this project.

Frustrated and in despair, SI would like to proceed now with other modes of operating business overseas such as agency and distributorship but is worried about the start-up and operating cost and risk factors involved in those modes. Meanwhile, a number of companies from China and India have expressed their interest in using its brand name Paddy. SI, however, is unsure of what to do as it is yet to study the relevant factors.

Answer the following:

1. What are the possible legal issues raised in the above scenario from the perspective of International Business Transactions? Identify and examine briefly statutory and judicial authorities in Australia that could be relevant to adequately deal with those issues.

2. Advise SI and SOMA as to:

2.1. Whether SI has breached any statutory or common law duties to SOMA by:
(i) terminating the agreement;
(ii) not disclosing its business engagement with Elite and

Analyse the above issues with special reference to Competition and Consumer Act 2010 and leading judicial decisions in Australia.

3. Whether High-Tech has a strong case against SI. What grounds does High-Tech need to establish in order to obtain favourable remedies? What are other issues that may also arise in determining the ‘nature’ of the deed and the obligations of SI towards High-Tech? Support your argument by relying on relevant laws and judicial decisions.

4. What policy and legal consideration should be taken into account in expanding business abroad through agency and distributorship? Would you advise SI to negotiate separate agreements with those foreign companies for manufacturing and distributing Paddy? Why or why not?

Chef as a performer

Using the idea of chef as a performer and explore how their creativity happen and use food as performance medium to put on a show and treat the restaurant as art and theater. Draw connection to gastronomy issues on how do people eat well. I am using Hestal Blumenthal and Ben Shewry as Culinary artist example. I

 

Professional communication

Case study information
You are the practice manager for an accounting firm which specialises in business advice for mostly small businesses. Currently there are three partners, four associates, four newly graduated accountants and administrative staff. At the recent business planning meeting, a discussion item on the agenda related to Cloud Accounting. MYOB had sent marketing literature which focused on the benefits for your firm if clients could be encouraged to use MYOB Cloud Accounting.

One of partners believed there were many benefits and that Cloud Accounting in general was ‘the way of the future’. She argued that the accountants and partners should speak with all their clients about investing in Cloud technologies. Another partner was very much against the idea as it would involve costs for clients and he was not convinced there were enough benefits to justify the costs. The meeting members could not reach agreement, and eventually admitted that their knowledge of Cloud Accounting was limited and they needed more information. You are commissioned to write a report on Cloud Accounting, with a focus on whether it is viable for the firm to work with their clients to make it an integral part of their working relationship. As the partners see time as limited, they have asked you to include a section on communications strategy for introducing this change, to be used if you recommend the adoption of a Cloud strategy.

You should define and give adequate description of Cloud Accounting. Include a discussion of the benefits and problems with Cloud Accounting and information on costs. The partners may find it useful to read examples of the use of Cloud in other accounting firms.

The bank note is dead: Electronic money rules

Question 1: What is money? What are the different forms of money mentioned in the article? Consider the properties desirable in anything that is used as money. Do the forms of money mentioned in the article have those properties?

Question 2: Explain the factors determining demand and supply for money and what effect does the demand and supply of money has on equilibrium in the money market?

Question 3: Cheques once accounted for more than 80 percent of the value of all non-cash payments, but now they are down to less than 30 percent. Can yon explain the reason for this trend?

Question 4: What are the motivations of holding money? Is the ‘cashless economy’ getting closer, as the author of the article states? Justify your answer.

Question 5: The heading declares “the banknote is dead”. Do you agree with this title? Explain why or why not and justify your answer with the amount of usage of cash versus other forms of payment.

Marketing Report

Discuss the MACRO environmental forces impacting the company’s environment.

Discuss their impact on the industry, then the company, product and brand on the question.

The company operates in Australia and distributes its product in Australia.

Details information:

Assume you are the new marketing manager of a “real-company” that operate in Australia, providing a key brand product item (a distinct unit within a product line or brand distinguishable by size, price appearance or some other attribute.)

The company that have been selected by the group is Kellogg’s and the product is “NURI-GRAN” the breakfast cereal