Please read Case: 1 purchase point media corporation pages 11-33 in the enclosed PDF labeled for detailed instructions
500905 Project Senior Capstone: Business By A. J. Cataldo II, Ph.D., CMA, CPA Peter F. Oehlers, DBA, CMA, CPA Sandra Pelfrey, MBA, CPA Copyright © 2015 by Penn Foster, Inc. All rights reserved. No part of the material protected by this copyright may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner. Requests for permission to make copies of any part of the work should be mailed to Copyright Permissions, Penn Foster, 925 Oak Street, Scranton, Pennsylvania 18515. Printed in the United States of America All terms mentioned in this text that are known to be trademarks or service marks have been appropriately capitalized. Use of a term in this text should not be regarded as affecting the validity of any trademark or service mark. About the Author A. J. Cataldo is a professor of accounting at West Chester University in West Chester, Pennsylvania. He holds a B.S. in accounting/finance, a master of accounting from the University of Arizona, and a Ph.D. from the Virginia Polytechnic Institute and State University. He has worked in public accounting as a government auditor, as a controller, and has provided expert testimony in business litigation engagements. His articles have appeared in Journal of Accountancy, National Tax Journal, Research in Accounting Regulation, Journal of Forensic Accounting, Accounting Historians Journal, and many others. He has published in and served on editorial review boards for Institute of Management Accounting association journals, including Management Accounting, Strategic Finance, and Management Accounting Quarterly. Contributing Authors Peter Oehlers, DBA, CPA, CMA is currently department head and assistant professor of accounting at West Chester University. He has twice received the Leslie Quick School of Business Distinguished Undergraduate Teaching Award and also received the Interfraternity Council Outstanding Professor Award at Widener University. He serves as associate editor of the Journal of Mentored Management Accounting Research and on the accounting advi- sory boards of the Atlantic City Cape Community College and Widener University as well as Issues in Innovation and a number of student organi- zations. His work in identity theft, accounting theory, and tax Web site research has been published in Issues in Innovation, The Journal of Financial Services Professionals, Accounting World and The Bottom Line. Sandra Pelfrey, MBA, CPA is an Associate Professor of Accounting at Oakland University in Rochester, Michigan. iii P r e v ie w P r e v ie w Welcome to your senior capstone project! You’ll begin your course by planning the meetings you’ll attend for your professional development assignment, which requires that you participate in two networking activities to expand your knowledge, experience, and contacts in the business world. Then you’ll analyze two cases that draw on and integrate much of the material you’ve learned throughout your business coursework. Both cases were developed from real fact patterns and real data. Your professional development work requires you to evaluate, choose, and make arrangements to attend two workshops, business meetings, or similar events. You’ll also document your planning time and report on the activities you attended. By beginning with this assignment, you’ll be able to plan and attend your activities while you also work on the two cases. Case 1 is from a firm called Purchase Point Media Corporation, or PPMC. PPMC was a thinly traded over-the-counter stock that issued some detailed financial projections. The data was presented in a very poor form; however, the substance and sequence of the data was organized in such a way that it was possible to compute a break-even point. You’ll study PPMC’s “Projected Statement of Net Income” and additional informa- tion provided, then integrate marketing and finance techniques to write a report on your findings. Case 2 is quantitative and involves the analysis of selected financial data for a firm we’ll call “Motomart.” Motomart was a retail automobile dealership seeking permission to relocate in an area already served by a similar automobile dealership. The existing dealership brought a lawsuit to block the reloca- tion. Although the data provided by the company is flawed, you’ll prepare a summary of your observations and answer several questions about problems with the case. P r e v ie w P r e v ie w v C o n t e n t s C o n t e n t s PROFESSIONAL DEVELOPMENT PROJECT: PD SEMINARS AND COMMUNITY NETWORKING 1 CASE 1: PURCHASE POINT MEDIA CORPORATION 11 CASE 2: MOTOMART 33 SUBMITTING YOUR WORK 49 C o n t e n t s C o n t e n t s 1 Professional Development Project: PD Seminars and Community Networking INTRODUCTION Professional development (PD) is an important aspect of busi- ness that enables you to network with other professionals, continue learning, and expand your business experience. For this part of your senior capstone project, you’ll plan, attend and reflect upon at least two approved workshops, confer- ences, seminars, or professional business meetings at the local, state, or national level. These activities or events must represent a learning experience that contributes to your development as a business professional. You’ll earn credit for your 15 hours of assigned PD-related activities, including your attendance at two events. To receive credit, you must provide documentation of your planning efforts (approximately one hour for each event), your two approved professional-development activities (approximately three hours each), and a thoughtful report (approximately four hours) reflecting on and summarizing your professional- development activity and/or event. Note: Read all the way through the assignment before you begin, to make sure you choose acceptable activities, collect the necessary information, and complete all the requirements for the project. Senior Capstone: Business Senior Capstone: Business2 OBJECTIVES When you complete this professional-development assignment, you’ll be able to • Explain the benefits of professional-development activities • Evaluate the professional-development potential of specific workshops, conferences, seminars, and professional business meetings • Plan for and arrange to attend professional- development events • Present your reflections on the value of professional- development activities RECOMMENDED ACTIVITIES The following are suggested activities to consider for your professional development activities. There may be other opportunities in your area, but whether you choose one of the suggested activities or find something on your own, your instructor must approve your choices before you begin. Attend a Local Chamber of Commerce Meeting A local Chamber of Commerce meeting is a good place to meet people and to see what’s going on in business in your area. You can Google the U.S. Chamber of Commerce Web site or contact your local Chamber of Commerce for its meet- ing schedule. Spend some time navigating through the local Chamber’s Web site to familiarize yourself with their mission and/or vision statement, officers, members, and activities. Typically, local Chamber of Commerce Web sites provide information that’s valuable to the local members. Rather than just showing up at a meeting, first call the local Chamber and speak with the staff. Tell them that you’re com- pleting a coursework assignment and would like a mentor, if available—someone willing to introduce you to Chamber Senior Capstone: Business 3 members and assist you in learning more about the organiza- tion. Doing so will enhance the quality of your experience and afford greater success in both networking and maintaining your connection with new contacts. Attend a Guest-Speaker Event at a College or University Every college and university presents outside speakers to enrich their students’ education and to attract local leaders and community members to the campus. Look for a college or university event in your area that’s related to business, economics, or public-policy issues. Events are often publicized in newspapers and on the institution’s Web site. You may wish to call the university’s business department to ask if any public events are coming up or contact several institutions and ask to be placed on their mailing lists to receive e-mail or printed notices for these opportunities. Attend an Institute of Management Accountants Chapter Meeting The membership of the Institute of Management Accountants (IMA) includes professionals in accounting, finance, and information technology. The vast majority of those attending will be Certified Public Accountants (CPAs) and Certified Management Accountants (CMAs). However, the CMA exam, unlike the CPA exam, tests all business disciplines, so you also may find attorneys and real estate brokers at these meetings. Membership in each group will vary. Begin planning to attend a local meeting by reviewing the IMA Web site. You should be able to locate a nearby IMA chapter on this Web site; if not, send an e-mail asking for the nearest group. Once you make contact, ask if they’ll recom- mend a mentor to introduce you to chapter members and improve the quality of your networking experience. PROFESSIONAL DEVELOPMENT PLANNING TOOLS AND FORMS The following is a summary of your professional development (PD) planning tools and submission requirements. Check each step to help you organize and complete your assign- ments for this part of your capstone project. 1. Professional Development (PD)—What Counts Read the “What Counts” requirements and the section on self-evaluation and planning before you choose your PD activities. Then discuss your ideas with your instructor and make sure you have approval for the activities before you attend. 2. Self-Evaluation and Planning Framework Use the criteria to plan your intended PD activities and to evaluate their value after you complete them. If you’re not satisfied with the potential value of one or both of them, look further to find a more worthwhile experience. For instance, you may live in a small town and learn that your local Chamber of Commerce or business pro- fessionals’ organization has a very small membership and isn’t very active. You might decide to call an organi- zation in a larger community or a nearby city to make arrangements to attend their meeting instead. On the other hand, if you plan to work in your small town, the local group might be a