Forum 1 (Module 2) Topic: Stewardship of Resources Thread: Owners, managers, and employees all are accountable to some extent for their use of resources owned by others. In light of what you have...

Finance Assignment
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September 21, 2019
    Forum 1: Stewardship of Resources
Stewardship of resources means efficient administration and use of resources of business. Generally financial reporting is done to understand the stewardship in business. So for this stewardship reporting is done. It helps to understand the progress of business or any shortfalls or any area that needs to be focused. Therefore it becomes pertinent to understand the stewardship of business.
Implications it may have on the business:
In accounting there is need for understanding the events happened in the past, so that future can be predicted based on past accountability. Managers are mainly responsible for efficient use of resources, thus they use different financial tools like cash flows, costs, profitability, assets to keep a check on the business. So use of financial statements is an important factor in analyzing stewardship of resources.
Forum 2: Implications and Responsibilities of Financing Debt
Debt financing is way to get financial support and help for the business from outside by borrowing principal amount and making interest payments on them. Leveraging is an important part of every business to build capital assets or day to day working of business. There are some implication and responsibilities of financing debt:
It helps in generating funds from outside without any giving away of ownership rights. It helps in keeping business within control and no interference from outside like shareholders in equity.
It becomes vital to understand financing of debt has its own advantages and disadvantages. If too much debt is raised within a firm, it becomes a highly leveraged firm.
It is therefore becomes responsibility of business to repay principal as well as interest generated on the debt and meet all the financial obligations in time.
Forum 3: Long Term Financing
Long term financing instruments are generally considered those instruments with maturity more than a year in the form of bank loan, bonds, lease agreements. It is a form of financing which is generally secured by mortgage or pledge but sometimes unsecured if taken from secondary markets.
Banks and finance houses are generally the main sources of funding. The purpose of this type of funding is to build capital assets or goods, construction and long term projects.
Since the funds are blocked for a longer span, this type of funding requires high interest rates. And the risk of default or lesser repayments gets high in such a form of financing. So execution of projects plays a crucial role to repay the loan and interest.
    BUSI 320 Comprehensive Problem 1 Version FALL
    
    Income Stmt info:
    2017
    2018
    
    Sales
     $ 900,000
     $ 990,000
    
    less Cost of Goods Sold:
     325,000
     346,125
    
    Gross Profit
     575,000
     643,875
    
    Operating Expenses
     450,000
     477,000
    
    Earnings before Interest & Taxes
     125,000
     166,875
    
    Interest exp
     25,000
     31,000
    
    earnings before Taxes
     100,000
     135,875
    
    Taxes
     40,000
     54,350
    
    Net Income
     $ 60,000
     $ 81,525
    
    
    
    
    
    
Balance Sheet info:
    12/31/2017
    12/31/2018
    
    Cash
     60,000
     $ 63,600
    
    Accounts Receivable
     80,000
     $ 89,600
    
    Inventory
     110,000
     $ 118,800
    
    Total Current Assets
     $ 250,000
     $ 272,000
    
    Fixed Assets (Net)
     $ 300,000
     $ 330,000
    
    Total Assets
     $ 550,000
     $ 602,000
    
    
    
    
    
    Current...