GB518 Financial Accounting Principles and Analysis Unit 3

GB518: Financial Accounting Principles and Analysis | Unit 3
Unit 3 Assignment: Case Study Part 1
1. For Unit 3, only the 1) APA title page, 2) APA abstract, 3)
APA headings and subheadings, and 4)
preliminary APA reference list are due.
2. The full Case Study Paper will be due in Unit 4.
3. A PowerPoint presentation for the Case will be due in Unit 5.
4. The Case Project is developed over three units: 3, 4, & 5. The
Case Project should be considered a
single assignment, not three separate assignments. Therefore, do
not overemphasize the score on any
single component of the Case. Rather, take a broader and more
accurate view of the Case Project as a
single, unified assignment worth a total of 200 points. The Case
point distribution is as follows:
Part I (Due Unit 3) - The Initial Formatting/Outline = 25
Points
Part II (Due Unit 4) - The Full Paper (Analysis) = 100 Points
Part
III (Due Unit 5) - The Case PowerPoint presentation = 75
Points

Total Case Assignment Points = 200 Points
5. The textbook, Continuing Problem Assignment Instructions,
Classroom/course Assignment instructions,
etc. use several terms interchangeably. The following terms can
be understood as referring to your
Project or individual elements of the Project: Case Project,
Continuing Problem, Continuing Case, “CC,”
“CCC.” If you have any questions about any of the terminology,
please bring them the Virtual Office.
6. Much of the Case Project will be an exercise in developing
your critical thinking skill and your ability to
follow instructions. Therefore, be sure to read all Assignment
instructions (all units: 3, 4, & 5) very
carefully before starting the writing process.
Very Important Initial Gentle Reminder: If you do not
understand plagiarism and how to avoid violating the
rules of academic integrity, please review the tutorial in the
classroom titled “Plagiarism.” It can be found under
the Academic Tools tab. All written assignments will be
submitted to Turnitin to determine originality of content.
If you do not understand the rules for proper attribution of
sources, please carefully review the information
available in the Writing Center in the tutorial titled “Using
Sources.” Unit 3 Case Part 1 Assignment
Specifics:
Part 1 of the Continuing Case, due in Unit 3, includes: creating
the title page, the abstract, a “framework”
outline of all Level 1 and Level 2 APA headings and
subheadings, and a preliminary reference list for a formal
analysis paper. For the Case, you are to complete a series of

“Continuing Problems” from your textbook. No
other content is appropriate in the Unit 3 Case Assignment Part
1.
The Continuing Case (CC) Problems involve a series of
business issues related to the Cookie Creations
company progressive narratives in the textbook end-of-chapter
resources. These are the CC you will
complete:
Textbook’s Continuing Case Problems:
● CC 1 – pp. 1–37 in the physical text.
● CC 7 – Part 1, only, pp. 7–52 in the physical text.
● CC 8 – Requirement (a), only, pp. 8–42 in the physical text.
Although not due in Part 1 or 2, the following additional
Continuing Problem will be included in the Unit 5 Case
Part 3 PowerPoint Assignment:
● CC 11– Part 1 (a), only, pp. 11–49 in the physical text.
You should preview the Unit 4 & 5 Assignment instructions.
The full Continuing Problem Narratives are not included in the
physical textbook pages. Also, do not try to

locate the full CC narratives at the Textbook Companion
Website.
Rather, ALL detailed Case Project instructions are located in
the Course Resources in the left navigation
panel in the GB518 Classroom.
The order of presentation must follow the grading rubric order.
Use the CC Problem elements and the grading
rubric as a guide to your basic outline (i.e., headings and
subheadings) for your paper. Do not present a
Roman numeral outline. You may use the individual CC
Problem parts to build your headings and
subheadings. The rubric is provided at the end of this document.
Important Notes:
1. Your Unit 3 Assignment should only include sufficient page
length to include: title page, abstract,
headings and subheadings (for the full analysis), and a
preliminary reference list.
2. You must use the APA template provided in the classroom as
the basis for constructing your Unit 3
Assignment. Be sure you eliminate all APA template content
and replace it with your own Assignment
content.
3. The physical textbook only supplies a portion of the complete
narrative in some CC Problems.
Therefore, you must use the full, detailed instruction documents
located in the Course Content.
4. Part 2 in Unit 4 will be an analysis; do not present an
“interview” format with questions and answers.

Do not simply provide “short-answer” responses; use a more
formal approach in the communication
style. In case you do not understand the difference between
formal and informal styles, please review
the information provided by the Writing Center in their tutorial
“Formal versus Informal W riting.”
5. A properly formatted title page with running head is required.
The completed abstract is required.
6. Do not include a table of contents. APA does not use a TOC
unless specifically required by the
assignment instructions.
7. Do not repeat or copy the assignment question narratives.
You may use abbreviated versions of the
questions as headings and subheadings. Anything that
artificially increases the length of the paper but
does not add value to the analysis will result in a reduced score.
8. For more specific information and guidance, please access
the following tutorial resources available in
the Purdue University Global Writing Center:
a. “How to Write an Abstract”
b. “How to Get Help with Your W riting”
c. “APA Headers and Title Page Tutorial”
d. “Using Headings and Subheadings in APA”
e. “APA Reference Page”
f. “Formal versus Informal Writing”
g. “Using Sources”
The final paper must be presented in a single W ord document.
The full paper due in Unit 4 must be between 7
and 9 pages in length, not including the title and reference

pages. The paper must use proper APA
Publication Manual 7th edition formatting, including title page,
running head, abstract, and reference list with
properly formatted citations in the body of the paper. Headings
and subheadings are required.
After you have completed the Unit 3 Case Paper title page,
abstract, outline, and preliminary reference list,
upload your W ord document to the Unit 3 Assignment Dropbox
before 11:59 p.m. ET on Tuesday of Unit 3.
Use this format for your filename:
YourLastName_YourFirstName_Unit#_AssignmentName
(For example: Smith_Joan_Unit3_CasePart1)
Assignments submitted late will be subject to the Late Policy
described in the Syllabus.
GB518: Assignment Grading Rubric
1) Create the Continuing Problem Case Title Page and Filename
NOTE: Please review all guidance and feedback presented in
the margins and within
the paper.
Points
Possible
Points
Earned

Properly formatted running head with page numbers in upper
right corner only. 1
Properly formatted title page body. 2
Are only the 3 required elements for the body of the title page
included? 2
Other considerations, as appropriate. For example, no graphics
or color in title page. 1
Does the filename match the required format? 1
2) Write an Abstract
Properly formatted abstract page.
● Proper length (150 to 250 words).
● Proper margins and paragraph format.
1
1
Is the abstract content appropriate? 1
Other considerations as appropriate. 1
3) Heading and Subheading Outline
Are all CC Problem narrative elements represented in the
outline as headings or
subheadings? 2
Are the headings and subheadings appropriately formatted in
Level 1 and Level 2 APA

style? 2
Other considerations, as appropriate. 1
4) Preliminary Reference List
Heading centered and properly formatted. 1
Proper hanging indent paragraph format used. 1
Minimum of 4 or 5 references included. 2
Preliminary references formatted properly and contain all
required elements of an APA
reference. 2
Preliminary references in alphabetical order. 2
Other considerations, as appropriate. (For example, was the
APA Template used?) 1
Content Subtotal 25
Late penalty in accordance with Syllabus
● 1–7 days late = 10% penalty
● Over 14 days late an assignment will not be accepted for
grading.

Total Points 25
THE TITLE GOES HERE WITH FEWER THAN 50
CHARACTERS 1
THE TITLE GOES HERE
2
NOTE: Replace ALL of the content in this template with your
Assignment-specific and appropriate content. Do NOT submit
your Unit 3 Case Assignment with ANY of the template content
included.
The Title Goes Here and Should be Centered, Bold & with
Primary Words Capitalized
Your Name
Name of School
Abstract
This is the abstract. Having an abstract is mandatory for
dissertations and final course projects. An abstract may be
required based upon assignment requirements or instructor
stipulation; however, usually student papers do not require an
abstract. Please check with your instructor. Unlike the rest of
the paper, it is not indented. The abstract should be an
interesting, short, accurate representation of elements of the

presentation. There is no specific word length requirement, but
150–250 words would be appropriate. Because conciseness is
so important in the abstract, use digits for all numbers except at
the beginning of sentences. Restructure sentences so they do
not begin with a number. Also, use abbreviations more liberally
than you would in the body of the paper (uncommon
abbreviations need to be explained, just as you would in the
body of the paper). See the APA Publication Manual 7th
edition for the content required in an abstract. Also, use the
Purdue University Global Writing Center tutorial titled
“Abstracts.”
Additional Guidance:
An abstract must be a brief but comprehensive description of
the contents of the paper, but it should NOT serve as a summary
of the contents. It should not be used as or include promotional
or subjective language.
An APA abstract should include a recommended 150 to 250
words.
An APA abstract paragraph is not indented.
Use bold type for the abstract heading.
Only 1 paragraph in an APA abstract.
Avoid using citations in an abstract.
Avoid such wording as “The research project will cover . . .” or
“This paper will discuss . . .” because these are instances of
anthropomorphism — that is, attributing human behavior or
emotions to inanimate objects.
The Title is Repeated Here, Bold, Centered with Primary Words
Capitalized

The title placed above where you start your text should be in
bold font. The title should be identical to the title in the cente r
of the title page. The introduction of the paper begins here —
BUT — do NOT use a heading titled “Introduction.” Times New
Roman, size 12-point font is one approved font style. Double-
space throughout the paper, including the title page, abstract,
body of the document, and references. Only use left-justified
paragraph formatting.
NOTE: Use the Purdue Global Writing Center tutorial titled
“Introductions & Conclusions.”
CC1 – Initial Business Decisions (This is a Level 1 Heading)
This is a Level 2 Subheading There must be 5 Level 2
Subheadings for CC1 (a thru e).
This is a Level 3 Subheading. It is recommended that Level 3
subheadings be used where appropriate to further organize the
analysis.
CC2 – Accounting Decisions
There must be 7 Subheadings for CC2 (a thru g).
CC5 – Inventory Decisions
There must be 3 Subheadings for CC5
CC7 – Internal Control Decisions
CC8 – Credit Decisions
Conclusion
Do NOT start the conclusion with the words, “In
conclusion.” The conclusion section should be a reflection of
the introduction. The introduction outlined the purpose of the
paper and what the writer will discuss, mentioning the key
evidence. The conclusion section of the paper outlines what the
writer discussed and how key evidence supported the writer’s
argument.
NOTE: Use the Purdue Global Writing Center tutorial titled
“Introductions & Conclusions.”

The reference section begins on a new page.The References
heading is centered on the first line below the manuscript page
header. The references (in hanging indent format) begin on the
line following the references heading. The reference pages are
also double-spaced. The easiest way to create a hanging
indentation is to select the Word “Paragraph” option, and set the
reference list page format to “Hanging Indent.”
Word Instructions to Set “Hanging Indent”
When you complete the list of citations, highlight all the
sources, select paragraph, and then under special in the open
box, select hanging and click ok. Word will automatically
format the entries with the hanging indentation.
When entering references, pay special attention to the format
for the particular type of reference being used. Especially look
at capitalization, making sure there is no underlining, and check
your punctuation. On the next page are two examples of
references. Please refer to the APA Publication Manual for
more details as this is intended just to show you how a
reference page looks. And, the Purdue Global Writing Center
has comprehensive guidance available.
References
Abramson, L. Y., Seligman, M. E. P., & Teasdale, J. D. (1978).
Learned helplessness in humans: Critique and reformulation.
Journal of Abnormal Psychology, 87(1), 49-74.
https://www.apa.org/search?query=volume+87&DocumentType
=Journal+Article&sort=Relevance
Bolling, M., Kohlenberg, R. J., & Parker, C. R. (2000).
Depression: A radical behavioral analysis and treatment
approach. In M. Dougher (Ed.), Clinical behavior analysis (pp.
127-152). Context Press.
NOTE: These are only examples. Do not submit them in your
Unit 3 Assignment or Unit 4 Paper.

Unit 4 Assignment: Case Study Part 2
1. The Full Case Study is due in Unit 4.
2. A PowerPoint presentation for the Case will be due in Unit 5.
3. The Case Project is developed over three units: 3, 4, & 5. The
Case Project should be considered a
single assignment, not three separate assignments. Therefore, do
not overemphasize the score on any
single component of the Case. The Case point distribution is as
follows:
Part I (Due Unit 3) -The Initial formatting/outline = 25 Points
Part II (Due Unit 4) - The Full Paper (Analysis) = 100 Points
Part III (Due Unit 5) - The Case PowerPoint presentation = 75
Points
Total Case Assignment Points = 200 Points
4. The Textbook, Continuing Problem Assignment Instructions,
Classroom/course Assignment
instructions, etc. use several terms interchangeably. The
following terms can be understood as
referring to your Project or individual elements of the Project:
Case Project, Case Study, Continuing
Problem, Continuing Case, “CC,” “CCC.”
5. Much of the Case Project will be an exercise in developing
your skill at following instructions. Therefore,

be sure to read all Assignment instructions very carefully.
Very Important Initial Gentle Reminder: If you do not
understand plagiarism and how to avoid violating the
rules of academic integrity, please review the tutorial in the
classroom titled “Plagiarism.” It can be found under
the Academic Tools tab. If you do not understand the rules for
proper attribution of sources, please carefully
review the information available in the Writing Center in the
material related to “Using Sources.”
Part 2 of the Continuing Case, due in Unit 4, builds on the work
completed in Unit 3. The title page, abstract,
outline and preliminary reference list completed in Unit 3 will
be the foundation for the Unit 4 Paper.
All of the feedback and guidance provided to you in your Unit 3
Case Assignment must be fully incorporated in
the Unit 4 Paper. Note: None of the feedback is to be submitted
in your Unit 4 Paper. It must be removed
before you submit your Unit 4 Case Paper.
For the Case Part 2, you are to complete a series of “Continuing
Problems” from your textbook. Those
Continuing Problems involve a series of business issues related
to the Cookie Creations company progressive
narratives in the textbook end-of-chapter resources. This is the
list of Continuing Problems you will complete:
Textbook’s Continuing Problems:
● CC 1 – pp. 1–37 In the physical text.
● CC 7 – Part 1, only, pp. 7–52 in the physical text.
● CC 8 – Requirement (a), only, pp. 8–42 in the physical text.

The full Continuing Problem Narratives are not included in the
physical textbook pages. Also, do not try to
locate the full CC narratives at the Textbook Companion
Website.
Rather, ALL detailed Case Project Instructions are located in
the Course Resources in the left navigation
panel in the GB518 Classroom.
Although not due in Part 1 or 2, the following additional
Continuing Problem will be included in the Unit 5 Case
Part 3 PowerPoint Assignment:
● CC 11 – Part 1 (a), only, pp. 1149 in the physical text.
You should preview the Unit 5 Assignment instructions.
The order of presentation must follow the grading rubric order.
Important Notes:
1. Use the APA template located in Course Resources as the
format basis for your Unit 4 Assignment.
2. The final paper must be presented in a single Word
document. The full paper due in Unit 4 must be
between 7 and 9 properly formatted pages in length, not
including the title, abstract, and reference

list pages. The paper must use proper APA Publication Manual
6th edition formatting, including title
page, running head, abstract, and reference list with properly
formatted citations in the body of the
paper. Headings and subheadings are required.
3. Part 2 is an analysis; do not present an “interview” format
with questions and answers.
4. Do not simply provide “short-answer” responses; use a more
formal approach in the communication
style. If you do not understand the differences between formal
and informal writing, please carefully
review the guidance available in the Writing Center.
5. A properly formatted title page with running head and an
abstract are required.
6. Do not include a table of contents.
7. Do not repeat or copy the Assignment question narratives.
You should use abbreviated versions of the
questions as headings and subheadings.
8. Anything that artificially increases the length of the paper
but does not add value to the analysis, such
as oversized type or additional line “points” in the paragraph
format, will result in a reduced score.
9. Before submitting your Unit 4 Case Paper, submit it to the
Writing Center for “Paper Review.”
10. For more specific information and guidance, please access
the following resources available in the
Writing Center:
a. “Writing a Research Paper”
b. “Introductions and Conclusions”
c. “Plagiarism Prevention”

d. “Formal Versus Informal Writing”
e. “Critical Thinking and the Writing Process"
f. “Using Sources”
After you have completed the Unit 4 Case Paper, upload your
Word document to the Unit 4 Assignment
Dropbox before 11:59 p.m. ET on Tuesday of Unit 4.
YourLastName_YourFirstName_Unit#_AssignmentName
(For example: Smith_Joan_Unit4_CasePart2).
Assignments submitted late will be subject to the Late Policy
described in the Syllabus.
Special Note: You may only submit your Unit 4 Case Paper
after the Unit 3 Case Assignment has been
submitted and returned to you with feedback.
1) Introduction
Note: Please review all guidance and feedback presented in the
margins and within
the paper.
Points
Possible
Points
Earned
All elements of the introduction conform to the guidance
available in the Writing Center
Resources. Use the tutorial titled “Introductions and
Conclusions.”

2
Content effectively communicates the introductory
requirements. 2
Any additional, relevant introductory content appropriate to the
Assignment. 2
2) CC 1
Subpart a) Recommend business form. Discuss the benefits and
weaknesses of each
form that Natalie might consider.
2
Subpart b) Accounting information needed? What information
will she need / why? How
often is the information needed?
2
Subpart c) Identify specific accounts that Cookie Creations
uses. 2
Subpart d) Open a separate bank account? Why or why not? 2
Subpart e) Recommendations about keeping business and
personal assets separate? 2

3) CC 2
Subpart a) Type of information each financial statement
provides? 2
Subpart b) Financial statements needed to evaluate whether cash
meets current
liabilities? Explain.
2
Subpart c) Evaluate long-term viability of Biscuits. Explain. 2
Subpart d) Financial statements needed to evaluate Biscuits’
profitability? Explain. 2
Subpart e) Where can Natalie find out whether Biscuits has
outstanding debt? How can
Natalie determine whether Biscuits would be able to meet its
interest and debt
payments on any debts it has?
2
Subpart f) How could you determine if Biscuits pays dividends?
2
4) CC 5
Subpart 1) Inventory classification discussion. 2
Subpart 2) Perpetual versus periodic. 2

Subpart 3) Inventory count. 2
5) CC 7
Subpart a) Identify weaknesses in internal controls in the
system John recommends. 2
Subpart b) Suggest any improvements if John is hired. 2
6) CC 8
What calculations are needed and how will the results help?
Provide examples of actual
ratios, formulas, and/or calculations.
2
Alternatives to credit extension for 30 days? 2
Advantages and disadvantages of credit card payment. 2
7) Conclusion
Create a conclusion that incorporates the guidance found in the
Writing Center.
Use the Tutorial titled “Introductions and Conclusions.”
6
Content Subtotal 50

Analysis and Critical Thinking:
Is the page-length requirement met?
Notes:
a) The title page, abstract, and reference list are required, but
they do not count
toward the 7- to 9-page length requirement.
b) This is an Either/Or grading component. That is: If fewer
than 7 full pages of
properly formatted analysis are presented, the score earned =
0/10. No partial
credit is allowed for this component of the rubric.
10
● Concise/precise language used?
● Appropriate formal language?
● Economy of expression?
● Elements of critical thinking used where appropriate? (1-
Identify premises &
conclusions, 2- Clarify arguments, 3- Establish facts, 4-
Evaluate Logic, 5- Final
evaluation)

20
APA Format (6th Edition):
For example, is all content properly cited/referenced? 5
Is all feedback/guidance from Part 1 incorporated here in Part
2? 5
Grammar/spelling/punctuation formatting (Including
appropriate filename). 10
Deduct late penalty in accordance with Syllabus:
grading.
Total Points 100
Assignment Details
Case Project Part 2
The following Course Outcome is assessed in the Unit 4
Assignment Case Project Part 2:
GB518-2: Integrate accounting information into the
development of business strategies, decision-making and
management processes.

Part 2 of the Continuing Case, due in Unit 4, builds on the work
completed in Unit 3. The title page, abstract, outline, and
preliminary reference list completed in Unit 3 will be the
foundation for the continued effort in Unit 4.
For the Case Part 2, you are to complete an analysis of the
“Continuing Problems” from your textbook.
The Case Project spans Unit 3, Unit 4, and Unit 5. For the Case
Project, you are to complete a series of “Continuing Problems”
from company progressive narratives in the textbook end-of-
chapter resources in your textbook. Those Continuing Problems
involve a series of business issues related to the Cookie
Creations company.
Review the complete Unit 4 Case Project Assignment Part 2
details and rubrics.
Submit your completed Unit 4 Case Project Assignment Part 2
to the Unit 4 Assignment Dropbox. Assignments are due
Tuesday 11:59 p.m. ET of their assigned unit.
The Detailed CC Problem Narratives are not fully included in
the physical textbook. So, please review the Detailed
Instructions for all of the CC Problems in your Course
Resources.
Unit 5 Assignment: Case Study Project Part 3
PowerPoint Presentation with Voiceover
The third and final part of the Case Study is due at the end of
Unit 5. You will create a PowerPoint presentation
with voiceover. (Steps for creating a PowerPoint voiceover are
presented at the end of this document). The
voiceover will be the narrative you would be presenting if this

were a live presentation. You will, in essence, be
making a presentation to your colleagues and instructor.
Your Unit 4 Assignment, Part 2 of the Case Study, will be the
beginning point for your PowerPoint
presentation. Begin with a brief introduction on the introductory
slide. Then, using your Unit 4 Case Study
Assignment as the basis, build a PowerPoint presentatio n that
discusses all required components of the
appropriate textbook Continuing Case problems.
In addition to the requirements for the Unit 4 Case Part 2, the
Unit 5 Case PPT will require additional content.
CC11 from the textbook, Part 1 (a) is a new requirement.
Incorporate your answers to those three questions.
Assume that your colleagues are your audience and they have
not read the Unit 4 Case you completed in Part
2 of the Project. Even though this will be a brief presentation, it
should include all essential information and
data in condensed format. This aspect of the presentation would
provide the proper perspective they need to
make informed decisions.
Include a summary slide immediately before your references
slide. Be sure to review the grading rubric (at the
end of this document) before submitting your Assignment to
ensure optimum assessment!
The PowerPoint presentation must include a minimum of 12 and
a maximum of 14 slides. The first slide
must be a title slide, and the final slide must be your reference
list. The audio presentation itself (voiceover)
should be 12–15 minutes long.
In addition to recording the voiceover, the text (or “script”) of

your voiceover must be written into the Notes
section of each slide. Proper grammar and spelling will be an
important part of the Assignment. Be sure to
perform a spell check.
Remember this very important presentation technique — Do not
present slides that contain too much
information. Keep the slides clean and uncluttered by using
bullet points. The Notes section allows you to
provide as much content and details about the presentation as
are needed. The slides should also be designed
to serve as the basis for the voiceover narrative. That is, the
slides should simply be an outline or “platform”
from which you launch your full presentation.
Submit your PowerPoint presentation to the Unit 5 Assignment
Dropbox before 11:59 p.m. ET on Tuesday of
Unit 5.
YourLastName_YourFirstName_Unit#_AssignmentName (For
example:
Smith_Joan_Unit5_CaseStudyPart3).
Steps to create a PowerPoint slide with voiceover:
1. Select the “Insert” tab at the top tool bar.
2. Select the “Audio” icon at far right.
3. Select “Record Audio” in the drop-down menu.
4. To start recording, click on the red circle button.
5. To end the recording, click on the blue square button.
6. To play back, click on the triangle Forward button at the left.
7. If you are satisfied with the slide’s recording, click the “OK”
button.

8. You should see the faint watermark audio speaker icon
appear on the slide.
9. Repeat for each slide.
Note: No need to add audio for the reference slide.
1) Title & Reference Slides
Points
Possible
Points
Earned
Required content fully presented 2
Proper formatting 2
Reference slide included 2
2) Introduction Slide
Properly describes content 1
Informs audience about case 1
Other content as appropriate 1

3) Notes Section and Slides
Notes section used for narrative 6
Uncluttered slides 2
Content mirrors the Case Paper 2
Other content as appropriate 2
4) Slides
12 to 14 slides, total 2
5) Voiceover
12 to 15 minutes 5
6) Case Project Part 2 Paper Content Fully Included?
CC 1 4
CC 2 4
CC 5 4
CC 7 4
CC 8 4
7) CC 11 – New Content Slide

Advantages of issuing preferred stock 5
Advantages and disadvantages of issuing cumulative preferred 5
Issuing stock in lieu of cash payment. Allowable? How many
shares? 5
Subtotal 63
Critical thinking, format, grammar, spelling, punctuation (and,
is the filename correct)?
Are citations properly included in the appropriate locations in
the body of the PPTs?
10
2
Deduct late penalty in accordance with Syllabus:
grading.
Total Points 75

Continuing Cookie Chronicle 1
Continuing Cookie Chronicle
(Note: This is a continuation of the Cookie Chronicle from
Chapters 1 through 10.)
CCC11 – Investment Decisions ( (Use this as the Slide heading
in Unit 5 Case Assignment)
Part 1 Because Natalie has been so successful with Cookie
Creations and Curtis has been just as successful with his coffee
shop, they both conclude that they could benefit from each
other’s business expertise. Curtis and Natalie next evaluate the
different types of business organization, and because of the
advantage of limited personal liability, decide to form a new
corporation.
Curtis has operated his coffee shop for 2 years. He buys coffee,
muffins, and cookies from a local supplier. Natalie’s business
consists of giving cookie-making classes and selling fine
European mixers. The plan is for Natalie to use the premises
Curtis currently rents as a location for her cookie-making
classes and demonstrations of the mixers that she sells. Natalie
will also hire, train, and supervise staff hired to bake cookies
and muffins sold in the coffee shop. By offering her classes on
the premises, Natalie will save on travel, and the coffee shop
will provide one central location for selling the mixers.
Combining forces will also allow Natalie and Curtis to pool
their resources and buy a few more assets to run their new
business venture.
The current market values of the assets of both businesses are as
follows.
Description
Curtis’ Coffee

Cookie Creations
Cash
$ 7,500
$12,000
Accounts receivable
100
500
Merchandise inventory
450
1,130
Equipment
2,500
1,000
$10,550
$14,630
Curtis and Natalie meet with a lawyer and form their
corporation, called Cookie & Coffee Creations Inc., on
November 1, 2021. The new corporation is authorized to issue
50,000 shares of $1 par common stock and 10,000 shares of no
par, $6 cumulative preferred stock.
The assets held by each business will be transferred into the
corporation at current market value of $1 per share. Curtis will
receive 10,550 common shares, and Natalie will receive 14,630
common shares in the corporation.
Natalie and Curtis are very excited about this new business
venture. They come to you with the following questions.
1.
Curtis’ dad and Natalie’s grandmother are interested in
investing $5,000 each in the new business venture. Curtis and
Natalie are considering issuing them preferred shares. What
would be the advantage of issuing them preferred stock instead
of common?

2.
What would be the advantages and disadvantages of issuing
cumulative preferred?
3.
“Our lawyer sent us a bill for $750. When we talked the bill
over with her, she said she would be willing to receive common
stock in our corporation instead of cash. We would be happy to
issue her stock, but we’re worried about accounting for this
transaction. Can we do this? If so, how do we determine how
many shares to give her?”
Instructions
(a)
Answer Natalie and Curtis’ questions.
CCC8- Credit Policy ( (Use this as the Level One heading in the
Case Assignments)
One of Natalie’s friends, Curtis Lesperance, runs a coffee shop
where he sells specialty coffees and prepares and sells muffins
and cookies. He is eager to buy one of Natalie’s fine European
mixers, which would enable him to make larger batches of
muffins and cookies. However, Curtis cannot afford to pay for
the mixer for at least 30 days. He asks Natalie if she would be
willing to sell him the mixer on credit.
Natalie comes to you for advice and asks the following
questions.

1.
“Curtis has provided me with a set of his most recent financial
statements. What calculations should I do with the data from
these statements, and how will the results help me decide if I
should extend credit to Curtis?”
2.
“Is there an alternative other than extending credit to Curtis for
30 days?”
3.
“I am thinking seriously about permitting my customers to use
credit cards. What are some of the advantages and
disadvantages of letting my customers pay by credit card?”
Instructions
(a)
Answer Natalie’s questions. Create 3 BRIEF subheadings using
the 3 questions.
CCC5 – Inventory Decisions ( (Use this as the Level One
heading in the Case Assignments)
Because Natalie has had such a successful first few months, she
is considering other opportunities to develop her business. One
opportunity is to become the exclusive distributor of a line of
fine European mixers. The current cost of a mixer is
approximately $550, and Natalie would sell each one for
$1,100. Natalie comes to you for advice on how to account for
these mixers. Each appliance has a serial number and can be
easily identified.
Natalie asks you the following questions.
1.

“Would you consider these mixers to be inventory? Or, should
they be classified as supplies or equipment?”
2.
“I’ve learned a little about keeping track of inventory using
both the perpetual and the periodic systems of accounting for
inventory. Which system do you think is better? Which one
would you recommend for the type of inventory that I want to
sell?”
3.
“How often do I need to count inventory if I maintain it using
the perpetual system? Do I need to count inventory at all?”
Instructions
(Use the 3 questions above to create BRIEF Level Two
subheadings)
Using the information that you have gathered and the adjusted
trial balance from December, plus the new information above,
do the following:
Answer Natalie’s 3 questions.
CC7 Part 1–Internal Control Issues ( (Use as the Level One
Natalie is struggling to keep up with the recording of her
accounting transactions. She is spending a lot of time marketing
and selling mixers and giving her cookie classes. Her friend
John is an accounting student who runs his own accounting
service. He has asked Natalie if she would like to have him do
her accounting.
John and Natalie meet and discuss her business. John suggests
that he do the following for Natalie.
1.

Hold onto cash until there is enough to be deposited. (He would
keep the cash locked up in his vehicle). He would also take all
of the deposits to the bank at least twice a month.
2.
Write and sign all of the checks.
3.
Record all of the deposits in the accounting records.
4.
Record all of the checks in the accounting records.
5.
Prepare the monthly bank reconciliation.
6.
Transfer all of Natalie’s manual accounting records to his
computer accounting program. John maintains all of the
accounting information that he keeps for his clients on his
laptop computer.
7.
Prepare monthly financial statements for Natalie to review.
8.
Write himself a check every month for the work he has done for
Natalie.
Instructions
(Create TWO BRIEF Level Two subheadings)
1- Identify the weaknesses in internal control that you see in the
system that John is recommending. (Consider the principles of
internal control identified in the chapter.) NOTE: Be specific
and address the 8 issues presented.
2- Suggest any improvements to the Internal Controls if John is
hired to do Natalie’s accounting? Specifically address the
weaknesses identified.
Cookie Creations Continuing Problem 1
Cookie Creations Continuing Problem
CC1 – Business Decisions ( (Use this as the Level One heading
in the Case Assignments) Natalie Koebel spent much of her

childhood learning the art of cookie-making from her
grandmother. They spent many happy hours mastering every
type of cookie imaginable and later devised new recipes that
were both healthy and delicious. Now at the start of her second
year in college, Natalie is investigating possibilities for starting
her own business as part of the entrepreneurship program in
which she is enrolled.
A long-time friend insists that Natalie has to include cookies in
her business plan. After a series of brainstorming sessions,
Natalie settles on the idea of operating a cookie-making school.
She will start on a part-time basis and offer her services in
people’s homes. Now that she has started thinking about it, the
possibilities seem endless. During the fall, she will concentrate
on holiday cookies. She will offer group sessions (which will
probably be more entertainment than education) and individual
lessons. Natalie also decides to include children in her target
market. The first difficult decision is coming up with the
perfect name for her business. She settles on “Cookie
Creations,” and then moves on to more important issues.
Instructions (Use to create BRIEF Level Two subheadings)
(a)
What form of business organization—proprietorship,
partnership, or corporation— do you recommend that Natalie
use for her business? Discuss the benefits and weaknesses of
each form that Natalie might consider.
(b)
Will Natalie need accounting information? If yes, what
information will she need and why? How often will she need
this information?
(c)
Identify specific asset, liability, revenue, and expense accounts
that Cookie Creations will likely use to record its business

transactions.
(d)
Should Natalie open a separate bank account for the business?
Why or why not?
(e)
Natalie expects she will have to use her car to drive to people’s
homes and to pick up supplies, but she also needs to use her car
for personal reasons. She recalls from her first-year accounting
course something about keeping business and personal assets
separate. She wonders what she should do for accounting
purposes. What do you recommend?
( (Use this as the Level One heading in the Case Assignments)
(Use to create BRIEF Level Two subheadings)
Cookie Creations 2
Cookie Creations Continuing Problem 2
(Note: This is a continuation of Cookie Creations from Chapter
1.)
CC2 – Accounting Decisions ( (Use this as the Level One
After investigating the different forms of business organization,
Natalie Koebel decides to operate her business as a corporation,
Cookie Creations Inc., and she begins the process of getting her
business running.
While at a trade show, Natalie is introduced to Gerry Richards,
operations manager of “Biscuits,” a national food retailer. After
much discussion, Gerry asks Natalie to consider being Biscuits’
major supplier of oatmeal chocolate chip cookies. He provides
Natalie with the most recent copy of the financial statements of
Biscuits. He expects that Natalie will need to supply Biscuits’

Watertown warehouse with approximately 1,500 dozen cookies
a week. Natalie is to send Biscuits a monthly invoice, and she
will be paid approximately 30 days from the date the invoice is
received in Biscuits’ Chicago office.
Natalie is thrilled with the offer. However, she has recently read
in the newspaper that Biscuits has a reputation for selling
cookies and donuts with high amounts of sugar and fat, and as a
result, consumer demand for the company’s products has
decreased.
Instructions (Use to create BRIEF Level Twosubheadings)
Natalie has several questions. Answer the following questions
for Natalie.
(a)
What type of information does each financial statement
provide?
(b)
What financial statements would Natalie need in order to
evaluate whether Biscuits will have enough cash to meet its
current liabilities? Explain what to look for.
(c)
What financial statements would Natalie need in order to
evaluate whether Biscuits will be able to survive over a long
period of time? Explain what to look for.
(d)
What financial statement would Natalie need in order to
evaluate Biscuits’ profitability? Explain what to look for.
(e)
Where can Natalie find out whether Biscuits has outstanding
debt? How can Natalie determine whether Biscuits would be

able to meet its interest and debt payments on any debts it has?
(f)
How could Natalie determine whether Biscuits pays a dividend?
(g)
In deciding whether to go ahead with this opportunity, are there
other areas of concern that Natalie should be aware of?
Unit 5 Assignment.htmlAssignment Details
Case Project Part 3
The following Course Outcomes are assessed in the Unit 5
Assignment Case Project Part 3:
GB518-3: Appraise ethical principles of accounting in diverse
business environments.
PC-3.2: Interact with others in a professional manner using
appropriate communication and presentation skills.
The third and final part of the Case Project is due at the end of
Unit 5. You will create a PowerPoint presentation with
voiceover. The voiceover will be the narrative you woul d be
presenting if this were a live presentation. You will, in essence,
be making a presentation to your colleagues and instructor
based primarily on your Unit 4 Case Paper.
Your Unit 4 Assignment, Part 2 of the Case Study, will be the
beginning point for your PowerPoint presentation. Begin with a
brief introduction on the introductory slide. Then, using your
Unit 4 Case Study Assignment Part 2 as the basis, build a
PowerPoint presentation that discusses all required components
of the appropriate textbook Continuing Case problems.
In addition to the requirements for the Unit 4 Case Part 2, the
Unit 5 Case PPT will require additional content. CC11 from the
textbook, Part 1 (a), is a new requirement. Incorporate your
answers to those three questions in addition to the CC problems
of the Unit 4 Paper.

from company progressive narratives in the textbook end-of-
chapter resources in your textbook. Those Continuing Problems
involve a series of business issues related to the Cookie
Creations company.
Instructions for all of the CC Problems in Course Resources.
Submit your completed Unit 5 Case Project Assignment Part 3
to the Unit 5 Assignment Dropbox. Assignments are due
Tuesday 11:59 p.m. ET of their assigned unit.
Assignment Details
Case Project Part 1
Part 1 of the Continuing Case, due in Unit 3, includes four
elements: creating the title page, the abstract, the APA-
formatted Level 1 headings and subheadings, and a properly
formatted preliminary reference list for a formal analysis paper.
from your textbook. Those Continuing Problems involve a
series of business issues related to the Cookie Creations (CC)
company progressive narratives in the textbook end-of-chapter
resources.
Submit your completed Assignment to the Unit 3 Assignment
Dropbox. Assignments are due Tuesday 11:59 p.m. ET of their
assigned unit.
Instructions for all of the CC Problems in the Course
Documents in the left navigation.

GB518 Financial Accounting Principles and Analysis Unit 3

GB518 Financial Accounting Principles and Analysis Unit 3

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GB518 Financial Accounting Principles and Analysis Unit 3