The GrAde Final only

ACC 660 Final Project Guidelines and Rubric

Overview The final project for this course is the creation of a controller case study analysis. Within a company, the lead accounting executive is the controller, someone who is tasked with ensuring all accounting information is allocated and documented appropriately. Not only are controllers responsible for these tasks, but they are also responsible for establishing and executing internal controls over the accounting and financial procedures of the company, for the financial reporting and planning of the company, and for analyzing financial information in depth and providing an expert financial perspective. For the final assessment of this course, you will imagine yourself in the role of a controller working for a variety of different companies. You will review three case studies, each dealing with a different aspect of controllership, and apply your knowledge and understanding of accounting principles to resolve issues and formulate recommendations. The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three, Five, and Seven. The final product will be submitted in Module Nine. In this assignment, you will demonstrate your mastery of the following course outcomes:

 Analyze financial accounting information from transactions through financial statement preparation for reporting results to internal and external users of information

 Appraise decisions relating to investments, portfolio management, and acquisitions for improving the financial position of the company

 Interpret financial information in relation to a company’s mission and vision for aligning recommendations to attain strategic goals

 Recommend value-added policies and process flows specific to accounting, finance, and payroll for improving the quality of operations

 Analyze fiscal budgets utilizing data from multiple programs for defending both revenue and expenditure forecasts and realignments

Prompt For the final assessment of this course, you should imagine yourself in the role of a controller. You will review three case studies, each dealing with a different aspect of controllership, and apply your knowledge and understanding of accounting principles to resolve issues and formulate recommendations. You will present each in the form of a report. You will submit drafts of the first two case studies as milestones of the final project; you will receive feedback on these milestones, make any necessary revisions, and then compile them together for your final summative assessment.

Specifically, the following critical elements must be addressed: Case Study 1: Starbucks

I. Financial Indicators and Trend Analysis A. Analyze various ratio analyses and compare them to the financial statements and footnotes. Note any similarities or differences. B. In reviewing the gross profit ratio, 2010 and 2011 were consistent versus a slight decrease in 2012. If management is looking to increase the

gross profit ratio by 4%, what changes would need to be made in the components of gross profit (i.e., how much would sales increase if prices remained the same?)? Defend your response.

C. Analyze the return on assets (ROA) and discuss the advantages or disadvantages if Starbucks should expand assets by 5% but remain stable with sales.

D. Perform a horizontal trend analysis on the revenue components of Starbucks’s Consolidated Statements of Earning and develop a pro-forma financial statement for the next year, noting that coffee inventory will increase by 20% and same store sales will remain flat. Ensure all information is entered accurately.

II. Recommendations

A. Review the past three years of Starbucks’s annual reports and compare the investments, changes in portfolio management, and acquisitions and disposal of assets. What patterns do you see emerging from your review?

B. Based on the review of the annual reports, are the investments improving the company’s financial position? Why or why not? C. Management is interested in determining whether it is feasible to expand U.S. operations by 50 stores. Review the current U.S. market store

locations in the Miami/Ft. Lauderdale area and determine if two additional stores can be opened. What issues will need to be addressed (including but not limited to competition, population, and pricing) regarding a decision to open the additional stores?

D. Assume it is not feasible to open additional stores in Miami/Ft. Lauderdale. What other Florida metropolitan area would you recommend to management? Why?

III. Interpret Financial Information

Based on the case and researching Starbucks corporate philosophy: A. Summarize how Starbucks meets its mission of “creating a reservoir of trust with their customers, partners, and communities that is deeper than

at any time in their history.” B. What considerations would need to be identified in the financial statements if Starbucks carries out its commitment to hiring veterans and

military spouses? Why? C. As Controller, what are three challenges related to meeting this goal? D. Starbucks is planning to open 1,500 new stores within the next ten years. Evaluate the feasibility of opening stores in China, Brazil, and the

Czech Republic. E. Rate each of the three locations with regard to prior sales history.

Case Study 2: University Day Care Center Review the case study and respond to the following:

A. Analyze the fiscal budget at the UDC. What is the source of the financial problems? B. Compare the budget to actuals and explain the reason for the differences. C. As the controller, what corrective action would you recommend to management in order to continue the day care center? Defend your

recommendation. D. Prepare a memorandum to the board identifying five recommendations along with support for each.

Case Study 3: Acme Business Products (Hypothetical) You have been hired as the new controller for Acme Business Products. You discover that there are no formal procedures in place for processing cash receipts from customers. Your staff consists of the following: you, one general ledger accountant, one accounts receivable staff, one accounts payable staff, and one administrative assistant. Compose your responses to the following in the form of a narrative:

A. Develop a step-by-step process for the intake, deposit, recording, and reconciling of cash payments received from customers. Be sure to defend your rationale for each step of your process.

B. Provide recommendations as to who in your office should perform which process tasks. Why are these the most appropriate assignments? a) Predict the impact that would take place if one of your staff left and another were on leave. Recommend temporary adjustments to the process

that would be necessary if this took place.

Milestones Milestone One: Financial Information and Trend Analysis In Module Three, you will submit a draft of Critical Elements I and III of the Starbucks case study (Section I: Financial Indicators and Trend Analysis and Section III: Interpret Financial Information). This milestone will be graded with the Milestone One Rubric. Milestone Two: Recommendations In Module Five, you will submit a draft of Critical Element II: Recommendations of the Starbucks case study. This milestone will be graded with the Milestone Two Rubric. Milestone Three: University Day Care Center Case Study In Module Seven, you will submit the University Day Care case study concerning the budget. This milestone will be graded with the Milestone Three Rubric. Final Project Submission: Controller Case Study Analysis In Module Nine, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.

Deliverables Milestone Deliverable Module Due Grading

One Financial Information and Trend Analysis Three Graded separately; Milestone One Rubric

Two Recommendations Five Graded separately; Milestone Two Rubric

Three University Day Care Center Case Study Seven Graded separately; Milestone Three Rubric

Final Submission: Controller Case Study Analysis Nine Graded separately; Final Project Rubric

Final Project Rubric

Guidelines for Submission: Your case study analyses report containing your memo and spreadsheets should be 10–15 pages in length, with double-spacing, one- inch margins, 12-point Times New Roman font, and APA format.

Critical Elements Exemplary Proficient Needs Improvement Not Evident Value

Case Study 1: Financial Indicators and Trend Analysis: Compare

Meets “Proficient” criteria and is well qualified with concrete examples (100%)

Analyzes various ratio analyses and compares them to the financial statements and footnotes, supporting the comparison with similarities and differences (90%)

Analyzes various ratio analyses and compares them to the financial statements and footnotes, but does not support the comparison with similarities and differences (70%)

Does not analyze various ratio analyses (0%)

4.9

Case Study 1: Financial Indicators and Trend Analysis: Gross Profit

Ratio

Meets “Proficient” criteria and defense is well supported and contextualized (100%)

Identifies changes that would need to be made in the components of the gross profit to increase the gross profit ratio and defends response (90%)

Identifies changes that would need to be made in the components of the gross profit to increase the gross profit ratio but does not defend response (70%)

Does not identify changes that would need to be made in the components of gross profit to increase the gross profit ratio (0%)

4.9

Case Study 1: Financial Indicators and Trend

Analysis: Expand Assets

Meets “Proficient” criteria and shows keen insight into the relationship between expansion of assets and sales (100%)

Analyzes the return on assets (ROA) and discusses the advantages or disadvantages of expanding assets by 5% while remaining stable with sales (90%)

Analyzes the return on assets (ROA) and discusses the advantages or disadvantages of expanding assets by 5% while remaining stable with sales but discussion lacks depth or detail (70%)

Does not analyze the return on assets (ROA) (0%)

4.9

Case Study 1: Financial Indicators and Trend

Performs a horizontal trend analysis and develops a pro

Performs a horizontal trend analysis and develops a pro forma financial statement for the

Does not perform a horizontal trend analysis (0%)

4.9

Analysis: Horizontal Trend Analysis

forma financial statement for the next year (100%)

next year but contains inaccuracies (70%)

Case Study 1: Recommendations:

Annual Reports

Meets “Proficient” criteria and uses concrete examples to substantiate claims (100%)

Compares the investments, changes in portfolio management, and acquisitions and disposal of assets and discusses emerging patterns (90%)

Compares the investments, changes in portfolio management, and acquisitions and disposal of assets, but does not discuss emerging patterns (70%)

Does not compare the investments, changes in portfolio management, and acquisitions and disposal of assets (0%)

4.9

Case Study 1: Recommendations:

Improving

Meets “Proficient” criteria and uses concrete examples to substantiate claims (100%)

Assesses whether or not the investments are improving the company’s financial position based on the review of the annual reports (90%)

Assesses whether or not the investments are improving the company’s financial position but does not base this on the review of the annual reports (70%)

Does not assess whether or not the investments are improving the company’s financial position (0%)

4.9

Case Study 1: Recommendations:

Expand

Meets “Proficient” criteria and offers possible solutions for the issues identified (100%)

Determines if two additional stores can be opened and describes issues regarding decision to open additional stores (90%)

Determines if two additional stores can be opened but does not describe issues regarding decision to open additional stores (70%)

Does not determine if two additional stores can be opened (0%)

4.9

Case Study 1: Recommendations:

Recommend

Meets “Proficient” criteria and recommendation is well supported with concrete evidence (100%)

Recommends an alternative Florida metropolitan area in which to open additional stores and defends decision (90%)

Recommends an alternative Florida metropolitan area in which to open additional stores but does not defend decision (70%)

Does not recommend an alternative Florida metropolitan area to open additional stores (0%)

4.9

Case Study 1: Interpret Financial Information:

Mission

Meets “Proficient” criteria and summary is exceptionally clear and contextualized (100%)

Summarizes how Starbucks meets its mission (90%)

Summarizes how Starbucks meets its mission but summary lacks depth or detail (70%)

Does not summarize how Starbucks meets its mission (0%)

4.9

Case Study 1: Interpret Financial Information:

Considerations

Meets “Proficient” criteria and justification is well supported with concrete examples (100%)

Identifies considerations that would need to be addressed and justifies response (90%)

Identifies considerations that would need to be addressed but does not justify response (70%)

Does not identify considerations (0%)

4.9

Case Study 1: Interpret Financial Information:

Challenges

Meets “Proficient” criteria and shows keen insight into potential challenges a controller may face (100%)

Identifies three challenges related to meeting the goal (90%)

Identifies three challenges but they are not related to meeting the goal (70%)

Does not identify challenges (0%) 4.9

Case Study 1: Interpret Financial Information:

Feasibility

Meets “Proficient” criteria and cites scholarly research to illustrate claims (100%)

Evaluates the feasibility of opening stores in China, Brazil, and the Czech Republic (90%)

Evaluates the feasibility of opening stores in China, Brazil, and the Czech Republic, but

Does not evaluate the feasibility of opening stores in China, Brazil, and the Czech Republic (0%)

4.9

evaluation is cursory or lacks detail (70%)

Case Study 1: Interpret Financial Information:

Rate

Meets “Proficient” criteria and rankings are well supported and logical (100%)

Rates each of the three locations with regard to the prior sales history (90%)

Rates each of the three locations but does not take prior sales history into consideration (70%)

Does not rate the three locations (0%)

4.9

Case Study 2: Source

Meets “Proficient” criteria and source identified is well supported with evidence from the fiscal budget (100%)

Analyzes the fiscal budget at the University Day Care Center (UDC) and identifies the source of the financial problems (90%)

Analyzes the fiscal budget at the University Day Care Center (UDC) but does not identify the source of the financial problems (70%)

Does not analyze the fiscal budget at the University Day Care Center (UDC) (0%)

4.9

Case Study 2: Actuals

Meets “Proficient” criteria and explanation is well supported with concrete examples (100%)

Compares the budget to actuals and explains the reason for the differences (90%)

Compares the budget to actuals but does not explain the reason for the differences (70%)

Does not compare the budget to actuals (0%)

4.9

Case Study 2: Corrective Action

Meets “Proficient” criteria and recommendations are well supported with concrete examples (100%)

Recommends and defends a corrective action in order to continue the day care center (90%)

Recommends a corrective action in order to continue the day care center but does not defend recommendation (70%)

Does not a recommend corrective action (0%)

4.9

Case Study 2: Five Recommendations

Meets “Proficient” criteria and uses industry-specific language to establish expertise (100%)

Prepares a memo to the board identifying five recommendations and provides support for each (90%)

Prepares a memo to the board identifying five recommendations but does not provide support for each (70%)

Does not prepare a memo to the board identifying five recommendations (0%)

4.9

Case Study 3: Process

Meets “Proficient” criteria and rationale is well supported and logical (100%)

Develops the step-by-step process and defends rationale for each step (90%)

Develops the step-by-step process but does not defend rationale (70%)

Does not develop the step-by- step process (0%)

4.9

Case Study 3: Recommendations

Meets “Proficient” criteria and justification is well supported and logical (100%)

Provides and justifies assignment recommendations (90%)

Provides recommendations but does not provide justification as to why the new assignments are appropriate (70%)

Does not provide recommendations (0%)

4.9

Case Study 3: Impact

Meets “Proficient” criteria and recommendations are well supported and logical (100%)

Predicts the impact of staff changes and recommends temporary adjustments to the process (90%)

Predicts the impact that would take place but does not recommend temporary adjustments to the process (70%)

Does not predict the impact that would take place (0%)

4.9

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format (100%)

Submission has no major errors related to citations, grammar, spelling, syntax, or organization (90%)

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas (70%)

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas (0%)

2

Total 100%