Introducing Financial Accounting - CCSN Computer Graphics Program

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46 Chapter 1 Introducing Financial Accounting
COMMUNICATING
IN PRACTICE
A1 C2
TAKING IT TO
THE NET
A2
TEAMWORK IN
ACTION
C1
ENTREPRENEURIAL
DECISION
A1 P1
Check (2) 10.7%
HITTING THE
ROAD
C2
BTN 1-4 Refer to this chapter’s opening feature about Facebook. ® Assume that Mark Zuckerberg desires
to expand his online services to meet people’s demands. He decides to meet with his banker to discuss
a loan to allow Facebook to expand.
Required
1. Prepare a half-page report outlining the information you would request from Mark Zuckerberg if you
were the loan officer.
2. Indicate whether the information you request and your loan decision are affected by the form of business
organization for Facebook.
BTN 1-5 Visit the EDGAR database at (www.sec.gov). Access the Form 10-K report of Rocky
Mountain Chocolate Factory (ticker RMCF) filed on May 26, 2009, covering its 2009 fiscal year.
Required
1. Item 6 of the 10-K report provides comparative financial highlights of RMCF for the years 2005–2009.
How would you describe the revenue trend for RMCF over this five-year period?
2. Has RMCF been profitable (see net income) over this five-year period? Support your answer.
BTN 1-6 Teamwork is important in today’s business world. Successful teams schedule convenient
meetings, maintain regular communications, and cooperate with and support their members. This assignment
aims to establish support/learning teams, initiate discussions, and set meeting times.
Required
1. Form teams and open a team discussion to determine a regular time and place for your team to meet
between each scheduled class meeting. Notify your instructor via a memorandum or e-mail message
as to when and where your team will hold regularly scheduled meetings.
2. Develop a list of telephone numbers and/or e-mail addresses of your teammates.
BTN 1-7 Refer to this chapter’s opening feature about Facebook. Assume that Mark Zuckerberg decides
to open a new Website devoted to social networking for accountants and those studying accounting. This
new company will be called AccountBook.
Required
1. AccountBook obtains a $500,000 loan and Mark Zuckerberg contributes $250,000 of his own assets in
exchange for common stock in the new company.
a. What is the new company’s total amount of liabilities plus equity?
b. What is the new company’s total amount of assets?
2. If the new company earns $80,000 in net income in the first year of operation, compute its return on asset
(assume average assets equal $750,000). Assess its performance if competitors average a 10% return.
BTN 1-8 You are to interview a local business owner. (This can be a friend or relative.) Opening lines of
communication with members of the business community can provide personal benefits of business networking.
If you do not know the owner, you should call ahead to introduce yourself and explain your position
as a student and your assignment requirements. You should request a thirty minute appointment for a
face-to-face or phone interview to discuss the form of organization and operations of the business. Be
prepared to make a good impression.
Required
1. Identify and describe the main operating activities and the form of organization for this business.
2. Determine and explain why the owner(s) chose this particular form of organization.
3. Identify any special advantages and/or disadvantages the owner(s) experiences in operating with this
form of business organization.