Advanced Management Accounting: Case Study

3795 Words 16 Pages
Texas A&M-Commerce
M.S. Accounting Comprehensive Exam
Matthew Naab
CWID: 50112666
October 2, 2014 1.) #1 – Advanced Management Accounting If three businesses show cash increases of $15 million on their balance sheets, they will likely have very different financial positions depending on the source or destination of cash during the period. One should ask generates that cash flow. The flow of cash is a strong indicator of the health of a business. To identify and understand these sources of cash, one should examine the statement of cash flows to see how a business’s financial positions change. The statement of cash flows presents three primary activities of cash flow. These are cash flow from operating activities, investing activities,
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It was her privately owned truck, and she was operating the vehicle negligently. Therefore, she committed the tort alone. Shrubs R Us did not intend for Ann to operate her vehicle negligently, nor did they direct her to meet with a potential customer at a given time.
Assuming Ann is an employee of Shrubs R Us, Shrubs R Us is vicariously liable for the tort committed. In this case, Ann would have been involved in an accident while performing duties as an employee for Shrubs R Us. Shrubs R Us has an indemnity against Ann for the tort, which they will probably never recover. The facts do not indicate Shrubs R Us had an agreement with Ann to cover expenses in such situations. Hank is likely to succeed in receiving judgment against Ann, but not against Shrubs R Us as the facts indicate Ann is an independent contractor for the following reasons. First, Shrubs R Us pays her a commission and does not provide her with other benefits such as vacation or medical insurance. Second, Shrubs R Us does not provide her with a vehicle to perform her duties; she drives her privately owned truck and is responsible for all her expenses. Third, Shrubs R Us does not dictate or set policy on how Ann goes about her business. Shrubs R Us is not
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If I web-search “where technology sector companies are located” one of the first results to come back is “Silicon Valley” located in tax-heavy California. As CEO, looking at all factors, why locate there? First, it is established. With other technology companies already there, a major benefit is supply chain cost reduction. Secondly, the area has a talent pool that recruits from top-tier technical institutions within the state of California (The Times Higher Education). California’s public school system is highly regarded. The high taxes paid are in effect developing the company’s workforce if the school systems produce the talent (The Economist, 2012). Third, California is the eighth largest economy in the world (KPBS). Now all things being equal, a low tax state is preferred, but this is rarely the case, but by making tax the sole factor, one could see the potential

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