Objectives There will be two cases in the course, each worth 5%, that will involve students applying financial accounting concepts to real-world applications. These are due in Unit 4 and Unit 9. Students are expected to do the following in each case: Develop an ability to identify and assume an assigned role. Identify and rank the importance of explicit issues. Illustrate the importance of hidden (undirected) issues that arise from a detailed analysis. Identify accounting issues (GAAP/IFRS compliance issues), assess their implications, generate alternatives, and provide recommendations within the bounda GAAP/IFRS to meet the client's needs. Examine how accounting standards impact financial measures (ratios, covenants, etc.). Prepare a coherent report and integrated analysis that meets specific user neds. Instructions . In order to complete your case analysis successfully, you should consider identifying the role you are playing, assessing the financial reporting landscape considering the user needs, constraints, and business environment, identifying the issues analyzing the issues (qualitatively and quantitatively), and providing a recommendation for each issue identified in the case You are required to prepare for the case before the class and bring any documents that will support your analysis. An average grade will come from you answering questions with basic coverage and accuracy, showing all your preparation Additional points come from including greater detail astute and informed commentary where appropriate, and connections to readings and other content. Respond in a single Word doc (or comparable text editor) nd12369.56 Henrietta's Pine Bakery Background You are an Analyst for the professional service firm, BUSI 1043 LLP. Your firm specializes in providing a wide variety of internal business solutions for different clients. Given the outstanding feedback you received on your first engagement working for Big Spenders Inc, a Senior Manager in the Financial Advisory group requested your support on a compilation engagement, Additional Information Henrietta's was established in 1963 when it first opened its doors in Dwight, Muskqka on highway 60. Over the past 50 years, there have been tour owners and is currently owned by Carine & Geoff Harris who incorporated and took over the store'n January 1, 2013. Their sons, Kyle and Nicholas have been an intricate part the business from dishwashing to head bakers. Henrietta's has grown over the years with the addition of new items all the time, but the 'Sticky Buns and Clouds remain the most popular items amongst the 150 varieties of bread and pastries. Henrietta's runs out of 90 square meters (1,000 share feet) of space. It has one entrance into the bakery and doors leading out to highway 60. Henrietta's pays $5 per month for the rental of the space. Carine and Geoff were able to negotiate with the landlord and were not required to pay the first month's rend in advance. All the rental payments are current and up to date. For the last two years, Henrietta's has had a very reliable accountant prepare its year end financial statements and everything has been correct. This year, Henrietta's accountant retired and Geoff did the best he could to record his own financial information. For the information was not sure about, he kept all of the required supporting documentation, Geoff hired your firm, BUSI 1043 LLP to prepare his financial statements for the year. 6 supplied you with his unadjusted trial balance and the information in Exhibit ito assist you. Supplementary Information The amount currently sitting in prepaids arose due the insurance policy last year, Geoff didn't know how to correct it, so he left it. This year's Insurance policy was purchased on November 1 for $9,000. The policy runs from November 1 to October 31 of each year, Geoff didn't know how to record amortization for the year and so left it for you to record, Amortization for all assets is charged using a stroghane method taking the cost of the asset and dividing it by its expected useful life. The assets have expected useful lives as follows: pplementary Information The amount currently sitting in prepaids arose due the insurance policy last year. Geoff didn't know how to correct it, so he left it. This year's insurance pol was purchased on November 1 for $9,000. The policy runs from November 1 to October 31 of each year. Geoff didn't know how to record amortization for the year and so left it for you to record. Amortization for all assets is charged using a straight-line metho taking the cost of the asset and dividing it by its expected useful life. The assets have expected useful lives as follows: Computer 5 years Bakery equipment: 10 years Furniture and fixtures: 20 years The information shows that Henrietta's owes $400 for a telephone bill and $400 for electricity for December. These amounts have not been recorded yet Exhiti Henrietta's Pine Bakery Unadjusted Trial Balance December 31, 2015 Account Name Debit Credit Cash $35,000 Accounts Receivable 5,600 Food Inventory 21,000 Merchandise inventory 62,500 Prepaids 3,400 Computers 30,000 Accumulated Amortization - Computers 12,000 Bakery Equipment 90,000 Objectives There will be two cases in the course, each worth 5%, that will involve students applying financial accounting concepts to real-world applications. These are due in Unit 4 and Unit 9. Students are expected to do the following in each case: Develop an ability to identify and assume an assigned role. Identify and rank the importance of explicit issues. Illustrate the importance of hidden (undirected) issues that arise from a detailed analysis. Identify accounting issues (GAAP/IFRS compliance issues), assess their implications, generate alternatives, and provide recommendations within the bounda GAAP/IFRS to meet the client's needs. Examine how accounting standards impact financial measures (ratios, covenants, etc.). Prepare a coherent report and integrated analysis that meets specific user neds. Instructions . In order to complete your case analysis successfully, you should consider identifying the role you are playing, assessing the financial reporting landscape considering the user needs, constraints, and business environment, identifying the issues analyzing the issues (qualitatively and quantitatively), and providing a recommendation for each issue identified in the case You are required to prepare for the case before the class and bring any documents that will support your analysis. An average grade will come from you answering questions with basic coverage and accuracy, showing all your preparation Additional points come from including greater detail astute and informed commentary where appropriate, and connections to readings and other content. Respond in a single Word doc (or comparable text editor) nd12369.56 Henrietta's Pine Bakery Background You are an Analyst for the professional service firm, BUSI 1043 LLP. Your firm specializes in providing a wide variety of internal business solutions for different clients. Given the outstanding feedback you received on your first engagement working for Big Spenders Inc, a Senior Manager in the Financial Advisory group requested your support on a compilation engagement, Additional Information Henrietta's was established in 1963 when it first opened its doors in Dwight, Muskqka on highway 60. Over the past 50 years, there have been tour owners and is currently owned by Carine & Geoff Harris who incorporated and took over the store'n January 1, 2013. Their sons, Kyle and Nicholas have been an intricate part the business from dishwashing to head bakers. Henrietta's has grown over the years with the addition of new items all the time, but the 'Sticky Buns and Clouds remain the most popular items amongst the 150 varieties of bread and pastries. Henrietta's runs out of 90 square meters (1,000 share feet) of space. It has one entrance into the bakery and doors leading out to highway 60. Henrietta's pays $5 per month for the rental of the space. Carine and Geoff were able to negotiate with the landlord and were not required to pay the first month's rend in advance. All the rental payments are current and up to date. For the last two years, Henrietta's has had a very reliable accountant prepare its year end financial statements and everything has been correct. This year, Henrietta's accountant retired and Geoff did the best he could to record his own financial information. For the information was not sure about, he kept all of the required supporting documentation, Geoff hired your firm, BUSI 1043 LLP to prepare his financial statements for the year. 6 supplied you with his unadjusted trial balance and the information in Exhibit ito assist you. Supplementary Information The amount currently sitting in prepaids arose due the insurance policy last year, Geoff didn't know how to correct it, so he left it. This year's Insurance policy was purchased on November 1 for $9,000. The policy runs from November 1 to October 31 of each year, Geoff didn't know how to record amortization for the year and so left it for you to record, Amortization for all assets is charged using a stroghane method taking the cost of the asset and dividing it by its expected useful life. The assets have expected useful lives as follows: pplementary Information The amount currently sitting in prepaids arose due the insurance policy last year. Geoff didn't know how to correct it, so he left it. This year's insurance pol was purchased on November 1 for $9,000. The policy runs from November 1 to October 31 of each year. Geoff didn't know how to record amortization for the year and so left it for you to record. Amortization for all assets is charged using a straight-line metho taking the cost of the asset and dividing it by its expected useful life. The assets have expected useful lives as follows: Computer 5 years Bakery equipment: 10 years Furniture and fixtures: 20 years The information shows that Henrietta's owes $400 for a telephone bill and $400 for electricity for December. These amounts have not been recorded yet Exhiti Henrietta's Pine Bakery Unadjusted Trial Balance December 31, 2015 Account Name Debit Credit Cash $35,000 Accounts Receivable 5,600 Food Inventory 21,000 Merchandise inventory 62,500 Prepaids 3,400 Computers 30,000 Accumulated Amortization - Computers 12,000 Bakery Equipment 90,000