Hi sandip! how are you

I have few discussion on following on Introduction to Financial Management Accounting

Discussion 1 - Ron Abrams, VP Operations for Wilson Bros. has come wandering into your office muttering under his breath (clearly exasperated) after reading the financial statements for one of the plants in Western Europe. After composing himself somewhat he says, "How can a Canadian finance executive sign off on these statements? They look nothing like any statement I've seen in Canada before! I know we paid a translator to present these in English, but I cannot make heads or tails of these. Are we profitable there or not?"

Knowing what you have read about financial statements briefly describe if these financial statements could be correct, and if so why? (8 marks)

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Discussion 2

Ron is back in your office this week for a regular update on the projects you have been working on. His comment this week is "You know, I've been going through cost centre classifications all week with our accounting team in terms of profit, cost, and investment centres. Do you know what they had the audacity to classify HR as?"

Can you tell Ron the appropriate answer and explain how you would measure the performance of the type of centre in which HR has been placed? (8 marks)

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Discussion 3

Ron's been buried in sales agents' meetings and dialog with some US regional managers for three straight days and it seems they have the opportunity to buy a new bottling plant that could significantly decrease their cost of production for drinks. He arrives in your office for your weekly meeting and proudly says "After all is said and done buying this bottling plant makes good sense - It will cost less than the one we bought last year."

Why is the rationale for the decision not necessarily an appropriate one? What else needs to be considered? (8 marks)

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Discussion 4

This time Ron is at his wits end. He has sent the accounting team out of his office to rework the numbers. "That simply cannot make sense. If I'm making more than I'm spending, it's a good decision; right?" He walks into your office for your weekly meeting and asks rhetorically "If I'm spending $2,000,000 today on a new plant and that new plant is going to produce $205,000 for each of the next ten years in income how can that possibly be a negative net decision for the company?"

Can you explain to Ron the concept involved and how that could be a "negative net decision"? (8 marks)

THank-you