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11 pages/≈3025 words
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Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Research Paper
Language:
English (U.S.)
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Research Project: Durango Manufacturing Company

Research Paper Instructions:

Overview
Imagine you have been selected as the consultant to develop a business plan for Durango Manufacturing Company, a start-up, medium-sized public manufacturing company. The CEO has a background in manufacturing and is well versed in supply chain management. However, the CEO has limited experience in financial management and creating value for the various stakeholder groups. Your business plan must include a five-year strategy to increase revenues by 10% and a recommendation for creating an organizational structure to comply with SOX mandates for strong corporate governance over the internal controls. Your business plan must also include prescriptions for creating an ethical environment. Your recommendation must be approved by the board of directors before the company can begin its operations.
Instructions
Based on your knowledge of accounting and financial, prepare a 10–12 page report in which you:
1. As the consultant, create an argument to present to the CEO that suggests accounting and financial management knowledge and skills will be essential to the company’s success and stability over the next five years. Provide support for the argument.
2. Suggest to the CEO how the company’s stakeholders (investors, lenders, and employees) will use financial statement information and ratio calculations to make key determinations related to the financial condition and operational efficiency of the company. Provide support for the rationale.
3. Given the strategy to increase revenue during the five-year plan period, which will need to be achieved through expansion and capital expenditures, determine which capital budgeting ratio is appropriate for Durango to evaluate its proposals for capital expenditures, such as NPV, IRR, etc. Defend the position.
4. For the company to improve its operational efficiency, recommend which production departments should use process, job order, and activity-based costing—all three of which must be implemented within Durango. Defend the choice for each department.
5. The CEO would like to consider outsourcing manufacturing operations if labor can be supplied cheaper overseas than in the United States. Create an argument for or against outsourcing the manufacturing operation to a foreign country. The argument should include key points that support the position. The key points should address economic and business management aspects related to outsourcing.
6. Predict the economic and business environment over the next five years, indicating at least two ways it may affect Durango’s ability to achieve the desired 10% growth in revenue. Provide support for the prediction.
7. Formulate a strategy to improve the opportunities for Durango to reach its revenue goals (i.e., increase revenue by 10% within five years).
8. Assess the potential for fraud within Durango based on the lack of IT controls, and determine at least two ways Durango will structure its internal IT controls to ensure that such controls are effective in detecting fraudulent transactions.
9. Use at least six quality academic resources in this assignment. Note: Wikipedia and other websites do not qualify as academic resources.

Research Paper Sample Content Preview:

Durango Manufacturing Company
Name of Student
Institutional Affiliation
Durango Manufacturing Company is presented as a medium-sized manufacturing business enterprise which is located in Colorado. The company is specialized in the production of customized cabinets for the residential and commercial market extensive use. Since the company stands at a higher stance in the market, it is well established. A professional Chief Executive Officer has all the necessary knowledge and experience in the construction sector. In addition, his extensive skills in supply chain management enhance the stability of the company operations. However, in as much as the Chief Executive officer has all the vast knowledge in chain management and the construction sector, he has a lesser experience when it comes to financial management matters. In addition, forming the value for stakeholder groups is still some areas where his experience is deficient. The company SWOT analysis is quite healthy considering that its strength is that it has a well-experienced and vanished Chief Executive Officer. When it comes to the weakness of the company, the Chief executive officer has limited knowledge when it comes to financial management and forming the values of the stakeholders. The financial aspect is very crucial in a company since it measures the growth of the company. When it comes to the opportunities of the company, Durango is a midsized company; thus, it has an extensive option of growing in the future to the next level, thus expanding its operations. The threats of the company are that it is more deficient, especially in the technology used in the management of most operations. This is in regards to the Information systems since it exposes the company to financial fraud risks which may lead to massive losses.
Question one
There is a need to understand the financial management basics and skills since it will ensure that the company is progressive and all the expenses are documented and accounted for by the company. Therefore, in accounting and financial management, some of the basic knowledge and skills include understanding the basic information about general accounting, accepting the general accounting principles, and understanding the common tax principles. Furthermore, there is a need to have extensive knowledge about cost accounting along with financial methods, including the discounted cash flows. Management accountants who always work within the company ought to have a good grounding reputation in the field of economics. In addition, they have to have excellent communication and presentation skills. Their interpersonal relations abilities need to be magnificent since they often deal with clients; thus, there is a need to practice high standards of enthusiasm. 
These are some of the skills which the Chief Executive Officer has lesser information; thus, accounting and financial management are curtailing his good reputation in the company. These skills are very vital in every business enterprise since it determines the progress of the company. Therefore, understanding this core knowledge would help the Chief Executive Officer in accessing the company's progress s of the company, especially in the field of financial management and accounting...
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