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Discuss the principles of data integrity, professional ethics, and legal requirements related to data security, regulatory requirements, confidentiality, and client’s right to privacy. (PO 6)

Empircal methods in accounting and finance

CO 4: Investigate safeguards and decision‐making support tools embedded in patient care technologies and information systems to support a safe practice environment for both patients and healthcare workers. (PO 4)

CO 6: Discuss the principles of data integrity, professional ethics, and legal requirements related to data security, regulatory requirements, confidentiality, and client’s right to privacy. (PO 6)

CO 8: Discuss the value of best evidence as a driving force to institute change in the delivery of nursing care. (PO 8)

What is your conclusion about the solvency and efficiency of the company?How successful is ABC Company relative to the industry average and leaders in the small specialty retail store industry?

THE BALANCE SHEET SLP 2

Assume that ABC Company is a small specialty retail store.

Ratios are relevant when assessed over time or across companies. IBISWorld is a comprehensive resource containing market research and statistics, which can be used to compare ABC Company to the industry and leaders in the industry.

Below is a brief introduction to financial ratios using IBISWorld and screenshots that provide guidance for accessing IBISWorld via the Trident library.

Required

Part 1

First, choose three ratios from the background materials. ABC is a simple organization (see balance sheet in case), so pick ratios for which sufficient financial data is available. Verify that at least one of the ratios is included in the IBISWorld database.

Identify the name of the ratio, the formula, and show your computations.

Part 2

Next, respond to the following questions.

Comment on the purpose and information conveyed by each ratio.

What did you learn about ABC Company by reviewing the three ratios?

What is your conclusion about the solvency and efficiency of the company?

How successful is ABC Company relative to the industry average and leaders in the small specialty retail store industry? Write two paragraphs or more for this question. Refer to an actual ratio found in the IBISWorld database to support your conclusion.
A suggested approach to the assignment:

Step 1

Watch the brief introduction to financial ratios using IBISWorld as suggested.

Step 2

Access the IBISWorld database in the Trident library. See screenshots on this page for guidance.

Step 3

Choose three ratios from the background materials for which information is available in the ABC Company’s balance sheet. Make sure at least one of the ratios is included in the IBISWorld database.

A General Example Not Using to ABC Company data.

EFG is a business with $42,000 of current assets and $40,000 of current liabilities. Therefore, the current ratio is:

Current ratio = current assets / current liabilities Current ratio = $42,000 / $40,000 Current ratio = 1.05 (or 1.05 to 1 or 1.05:1)

EFG’s current ratio of 1.05 may be small or large depending on the industry. For example, which factors should be considered in interpreting the ratio?

Step 4

Use data from the module 2 case balance sheet to compute ratios. Identify each ratio and show the computations.

Step 5

Analyze and interpret.

Step 6

Locate at least one of the industry ratios computed above in the IBISWorld database to make a comparison to the ABC Company.

Online Library Step One

Step 2

Online Library Step 2

Step 3

IBIS Step 3

Step 4

IBIS Step 4

Step 5

IBIS Step 5

This short presentation provides the same information as above.

SLP Assignment Expectations

Identify three balance sheet ratios. Use numbers from ABC’s balance sheet. Show the formula and computations.

What is the “total wealth” of the company according to the balance sheet? What are some other accounting terms for “wealth” in connection with corporate entities? For example, retained earnings account fits this category, but it is not the only account.

THE BALANCE SHEET Case 2

Answer 10 questions relating to ABC’s balance sheet.
Case Assignment Part 1

Write a minimum of 300 words about the role of the balance sheet as one of the four required financial statements.

Comment on some significant characteristics of the balance sheet.
Who is interested in the information?

What kind of information does the balance sheet convey to users?
Part 2

Answer each question below and explain your answer with numbers, computations, and 3 to 5 sentences.

1. Determine total assets and total liabilities for ABC Company. Add some thoughts about the significance of the classifications.

2. Complete the accounting equation below using numbers from ABC’s balance sheet instead of words. In addition, explain how this equation is significant for the creation and understanding of the financial statements.
Assets = Liabilities + Equity

3. Are short-term payables or receivables larger? Show the computation. Explain the significance of the difference.

4. Is the order in which assets and liabilities are listed on the balance sheet significant? Explain.

5. the total amount owed by ABC at the end of the year. How could this information be useful to a reader of the balance sheet?

6. Does the company have more assets or liabilities? What is the significance of determining the difference between net assets and net liabilities? What happens to a company if the total liabilities exceed the total assets?

7. If the company borrows an additional $15,000, which two balance sheet accounts will be affected? The new totals for total assets and total liabilities are ……?

8. Explain retained earnings. How is this accounting computed? Is retained earnings an asset, a liability, or an equity account?

9. What is the “total wealth” of the company according to the balance sheet? What are some other accounting terms for “wealth” in connection with corporate entities? For example, retained earnings account fits this category, but it is not the only account.

10. Assume that the company paid $20,000 in dividends to the shareholders. Which balance sheet accounts (items) would have been affected by the payment? Use numbers and be specific.

Discuss the empirical designs in (i) Yu and Yuan (2011) and Wang (2018a), and (ii)Wang (2018b) and Wang and Duxbury (2021) (20 MARKS)

Empirical Methods in Accounting and Finance

A wide range of theories are proposed to explain the weak risk-return tradeoff, such as investor sentiment (Yu and Yuan, 2011; Wang, 2018a&b; Wang and Duxbury, 2021) and differences in overnight and intraday returns (Wang, 2021).

In line with the above, answer the following requirements:

1. Discuss the empirical designs in (i) Yu and Yuan (2011) and Wang (2018a), and (ii)Wang (2018b) and Wang and Duxbury (2021) (20 MARKS)

2. Critically review literature, and summarize and evaluate approaches to construct proxies for the investors sentiment. (12 MARKS)

3. Suppose that you decide to extend Wang (2021) to another developed market. Select the market and justify your selection (8 MARKS)

4. For the selected market, show present and interpret descriptive statistics of stocks returns for the whole sample period, along with high- and low-sentiment periods.
(15 MARKS)

5. Use the rolling window method to filter conditional volatility. Present and interpret descriptive statistics of conditional volatility for the whole sample period, along with high- and low-sentiment period.
(20 MARKS)

6. Examine the mean-variance relation for the whole sample period, along with high-and low-sentiment periods interpret.

(25 MARKS)

Describe a selected medium-sized private company, its operations, and its associated industry and evaluate these areas to determine whether the company should be publicly traded or not.

Week 2 Assignment: Investment Strategies

Write a 4–5 page paper in which you:

Describe a selected medium-sized private company, its operations, and its associated industry and evaluate these areas to determine whether the company should be publicly traded or not.

Analyze four leading financial ratios and how each would affect investment strategies and a decision for a medium-sized private company to go public or stay private.

Evaluate the application of each of the four financial ratios to a selected medium-sized private company based on comparable or benchmark industry ratios.

Explain how each of the ratios within that class is calculated and how they are used to analyze financial statements.

Building Block Financial Ratio: Profitability

Write a paper on one of the four building blocks of financial ratios we have studied in this course. Select one of the categories in Exhibit 13.16 in your text and discuss all ratios in that category (Attached the category I chose Profitability.

Explain how each of the ratios within that class is calculated and how they are used to analyze financial statements. Then, select a recently filed set of financial statements and calculate all the ratios in the building block you selected for that company. Explain what these ratios tell you about the company.

What would you have done if you were in Sherron’s position?Did Watkins owe an ethical duty to Enron, to its shareholders, or to the investing public to go public with her suspicions? Explain your answer.

Cases from the Real World

Reflection Questions

What would you have done if you were in Sherron’s position?

What factors would contribute to your decision?

How would you weigh the consequences of your decision?

What effect would your decision have on key stakeholders (Enron managers, investors, customers, and your coworkers)?
Critical Thinking

Did Watkins owe an ethical duty to Enron, to its shareholders, or to the investing public to go public with her suspicions? Explain your answer.

How big a price is it fair to ask a whistleblowing employee to pay?

Explain each of the FIVE Fundamental Principles of the ACCA’s Code of Ethics and Conduct. (10 marks)

Auditing

Explain each of the FIVE Fundamental Principles of the ACCA’s Code of Ethics and Conduct. (10 marks)

Using the information above, identify and explain FIVE Ethical Threats which may affect the independence of Birkbeck LLP’ financial statement audit of Sound Plc; and for each threat, explain how the auditor may respond to reduce these to an acceptable level.
For each your answer should consider: (i) Ethical Threat, (ii) Explanation, and (iii) Auditor Response.
(20 marks)

Why do you believe that a course of study at the PhD level is the appropriate goal for your future work?

Interesting Topics under The Corporate Governance

From your prior experience and study, what has stimulated you to wish to continue your education at the PhD level?