XM, Ltd. was a small engineering firm that built high-tech robotic devices for electronics manufacturers. One very complex device was partially completed at the end of 2016. Barb McLauren, head engineer, knew the experimental technology was a failure and XM would not be able to complete the $20,000,000 contract next year. However, the corporation was getting ready to be sold in January. She told the controller that the device was 80% complete at year-end and on track for successful completion the following spring. The controller accrued 80% of the contract revenue on December 31, 2016. McLauren sold the company in January 2017 and retired. By mid-year, it became apparent that XM would not be able to complete the project successfully, and the new owner would never recoup his investment.

For this week’s discussion, please respond to the questions listed below.  In addition to your initial response, please be sure to respond to at least two other students’ initial responses, as well.

Required Responses:

1. For complex, high-tech contracts, how does a company determine the percentage of completion and the amount of revenue to accrue?
2. What action do you think was taken by XM in 2017 with regard to the revenue that had been accrued the previous year?  Was this action in accordance with Generally Accepted Accounting Principles?
3. When a company is being sold, does that company have an obligation to disclose all unfavorable facts to the prospective buyer?  Or does the company being sold only have an obligation to disclose facts the prospective buyer specifically asks about?  (Note: Please answer this question from the selling company’s viewpoint.)

Week 8 Discussion “Visualization Technologies” Please respond to the following:

• Determine the main reasons why visualization technologies are becoming an important part of organizational success. Select two (2) such technologies related to information systems and analyze the manner in which the utilization of the selected technologies could help the organization stay efficient. Include at least one (1) example of such utilization to support your response.
• Assume that you are the Chief Information Officer (CIO) for a mid-sized company. Speculate on the overall manner in which you would use mobile visualization technology to aid your risk management activities. Provide a rationale for your response.

Class,

It is important as managers that we be able to communicate our ideas both verbally and in writing.  In this course we’ll practice writing about accounting and finance topics that we cover in this course and that we might likely be called to report upon in real-life.  We’ll draw inspiration from library research and the article readings in class.

It is important in both academic and business environments that we write with clarity, employ good grammar, and properly attribute ideas drawn from research.  To assist you in this writing task, I’d like you to use the following tools.

1) Essay Tips document within Session 1.     

2) Word – Spelling and Grammar Check:  In Microsoft Office 2003, Word, under Tools, Options, Spelling and Grammar, make sure Spelling and Grammar are checked.  This feature checks for split infinitives and passive voice.   Most of us rely extensively on the passive voice in our writing.  Doing so often raises issues of ‘voice’ in our writing and confuses the reader.  If Word issues a passive voice error during a spelling and grammar review of your work, try re-writing the sentence with someone performing the action.  To learn more about how to avoid using the passive voice, visit http://www.unc.edu/depts/wcweb/handouts/passivevoice.html.

 The information will  be provided in Week 3 of the course.

Please use the UMUC library to download the article below. 

The article is “Challenges for financial managers in changing economic environment” and was published in 

Procedia Economics and Finance 27 ( 2015 ) 726 – 730.

The article is by: Livia Ilie

It is available in PDF from the UMUC library. Let me know if you’re unable to locate it.

http://ac.els-cdn.com/S2212567115010540/1-s2.0-S2212567115010540-main.pdf?_tid=ed74f852-599d-11e6-b016-00000aacb35e&acdnat=1470244731_5037a733f5be148152564de3492a62ae

 Please respond to the following question from Session Please do this as a “response.”

Session 1 – Role of the Financial Manager

1. What are 3 fundamental decisions that are of concern the finance team? What is the impact of these on the balance sheet?

2. Explain the difference between a stakeholder and a stockholder and why both are important to the success of an organization.

Don’t forget to respond to the postings of your colleagues to keep the discussion going!

Session 2 – Financial Statements, Cash Flows and Taxes

The topic for discussion this week is: Cash Flow and Taxes

1. How does net cash flow differ from net income and why is that difference relevant to financial decision making?

2. With regard to tax purposes, which type of depreciation methods do organizations prefer and why?

Don’t forget to respond to the postings of other students!