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Mergers and Acquisitions

1. A small but growing firm has recently hired you to investigate a potential fraud the firm suspects its purchases journal clerk of periodically entering fictitious acquisitions. The nonexistent supplier's address is given as a post office mailbox, which the clerk has rented. The clerk forwards notifications of fictitious purchases for recording in the accounts payable ledger. Payment is ultimately mailed to the mailbox. The clerk then deposits the checks in an account in the name of the nonexistent supplier. Respond to the following: Describe the terms "fraud," "fraud deterrence," "fraud detection," and "fraud investigation." From the given scenario, list four red-flag indicators that might point to the existence of fraud. (Provide personal factors only.) From the given scenario, list two procedures you could follow to uncover the clerk's fraudulent behavior. Justify your answer using examples and reasoning. 2. Fraudulent financial reporting usually occurs as a result of environmental, institutional, or individual pressures and opportune situations. These pressures and opportunities, present to some degree in all companies, motivate individuals and companies to engage in fraudulent reporting. The prevention and detection of fraudulent financial reporting require that these pressures and opportunities be identified and evaluated in terms of the risks they pose to a company. These risk factors include internal ethical and control factors, as well as external environmental conditions. Respond to the following: Identify two company situational pressures that would increase the likelihood of fraud. Identify three corporate opportunities that make fraud easier to commit and detection less likely. For each of the following, identify the external environmental factors that should be considered in assessing the risk of fraudulent financial reporting: A company's industry A company's business environment A company's legal and regulatory environment Justify your answer using examples and reasoning.

1. A small but growing firm has recently hired you to investigate a potential fraud the firm suspects its purchases journal clerk of periodically entering fictitious acquisitions. The nonexistent supplier's address is given as a post office mailbox, which the clerk has rented. The clerk forwards notifications of fictitious purch

Strategic Corporate Finance - Net Present Value, Mergers, and Acquisitions

Net Present Value, Mergers, and Acquisitions Part I of this cse assignment is related to capital budgeting decision and part II is about mergers and acquisitions. Part 1: Net Present Value (NPV) method is one of the most important methods which is used to make capital budgeting decisions by almost every company. NPV m

According to the article Alternatives for Application Software

According to the article Alternatives for Application Software Acquisition (nd), "contracted software development projects may prove to be more costly as they may see higher costs per hour labor cost than with in-house staff" What are your thoughts? Pan American Health Organization (nd) Alternatives for Application Softwar

Change at Pfizer: Jeff Kindler rhe Wyeth Acquisition

Discuss the change at Pfizer that Jeff Kindler implemented with the acquisition of Wyeth. Topics should address: what are the issues of the case of the Wyeth Acquisition, cover the pros and cons of the acquisition of Wyeth, A current environmental scan of the company, and internal analysis, How is Pfizer positioned for the futur

Bank Mergers Difficulties

There has recently been a wave of mergers between banks such as JP Morgan and Washington Mutual, Wells Fargo and Wachovia, etc. What difficulties do you think the acquiring banks will face in the next few years trying to make these mergers work?

Barclay Capital's Edge over Competitors; Recent development

How does Barclays Capital differentiate itself from its competitors? Describe a recent development in the Investment Banking industry. What implications might this development have for the Business Analysis Department where you intend to join?

Foreign Direct Investment: Lakshmi Mittal and the Growth of Mittal Steel

Foreign Direct Investment Read the Closing Case: Lakshmi Mittal and the Growth of Mittal Steel and write a paper in APA format with a detailed analysis that answers the following questions: - What forces drove Mittal Steel to start expanding across national borders? - Mittal Steel expanded into different national through

Leading Strategic Change at DaVita: Gambro Acquisition

The case is attached. 1. Once you have read the case fully, you should write several paragraphs of reaction to the case and decide what actions you would recommend. The case ends with some basic questions, which should be used as the focal point of the response Please give general thoughts and suggestions, and address the

Vertex Merger Article Synopsis

Please provide a synopsis of the article in the link below. The synopsis needs to focus on the goal of the corporate restructuring that Vertex was involved in and your general thought's on the dealing with Eli-Lily. http://www.prnewswire.com/news-releases/vertex-pharmaceuticals-restructures-agreement-with-eli-lilly-vertex-to

Acquisition costs

Please show the steps to follow to complete the exercises. 10-8 Pinewood Company purchased two buildings on four acres of land. The lump sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the buildings and $300,000 for the land.

Kraft Food, Inc. (KFT) plays a dominant role in distributing manufactured goods to consumers worldwide. The company has provided consumers a plethora of products from dairy products to cookies to steak sauce. KFT prides itself on its overwhelming ability to diversify their products in an ever changing market. The organization understands consumer demands and quickly transitions to exceed consumer expectations. Their products appeal to every generation. KFT is the second largest food company in the world with annual revenues of $49 billion. KFT's global market positioning is #1 for products ranging from; biscuits, gum, chocolate, candy, and nuts. "Over the last several years, KFT has transformed its portfolio by expanding geographically and by building its presence in the fast-growing snacking category. A series of strategic acquisitions, notably of LUbiscuit from Danone and of Cadbury Plc, together with the strong organic growth of its Power Brands, have made Kraft Foods the world's leading snacks company. At the same time, the company has continued to invest in product quality, marketing and innovation behind its iconic North American brands, while implementing a series of cost management initiatives. As a result, the company has delivered a remarkable outcome in very challenging economic conditions" (PRNewswire, 2011).

Kraft Food, Inc. (KFT) plays a dominant role in distributing manufactured goods to consumers worldwide. The company has provided consumers a plethora of products from dairy products to cookies to steak sauce. KFT prides itself on its overwhelming ability to diversify their products in an ever changing market. The organization

Ross Technology Acquisition of Valpo Corporation

Question 6 At the beginning of 2007, Ross Technology, Inc. acquired the Valpo Corporation for $350 million. In addition to cash, receivables, and inventory, the following allocations were made: Plant and equipment (depreciable assets) $120 million Developed technology 60 milli

Acquisitions and Shareholder Losses

Many corporate acquisitions result in losses to the acquiring firms' stockholders. A coworker has asked you to explain what a firm would gain from purchasing another corporation. Explain to the coworker the fundamentals of corporate acquisitions. Research corporate acquisitions using your text, course materials, and Web resou

Evaluate job offers; Synergy through mergers and acquisitions.

You have two job offers, one from a dominant-business firm and one from an unrelated diversified firm (suppose the beginning salaries are virtually identical). Which offer would they accept and why? What is synergy, and how do firms create it through mergers and acquisitions? In your opinion, how often do acquisitions creat

Identifying Two Success Mergers and Contributing Factors

Examine the successes and failures of mergers by addressing the following: a) Identify two organizations that have successfully merged. b) Describe the factors that you think contributed to the success of the merger identified. c) Hypothesize about two organizations that you think would create a successful merger based

Messner Co. reported $145,000 of net income for 2010. The accountant, in preparing the statement of cash flows, noted several items occurring during 2010 that might affect cash flows from operating activities. These items are listed below. 1-Messner purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share. 2- Messner sold 100 shares of IBM common at $200 per share. The acquisition cost of these shares was $165 per share. This investment was shown on Messner's December 31, 2009, balance sheet as an available-for-sale security. 3- Messner revised its estimate for bad debts. Before 2010, Messner's bad debt expense was 1% of its net sales. In 2010, this percentage was increased to 2%. Net sales for 2010 were $500,000, and net accounts receivable decreased by $12,000 during 2010. 4- Messner issued 500 shares of its $10 par common stock for a patent. The market value of the shares on the date of the transaction was $23 per share. 5- Depreciation expense is $39,000. 6- Messner Co. holds 30% of the Sanchez Company's common stock as a long-term investment. Sanchez Company reported $27,000 of net income for 2010. 7- Sanchez Company paid a total of $2,000 of cash dividends to all investees in 2010. 8- Messner declared a 10% stock dividend. One thousand shares of $10 par common stock were distributed. The market price at date of issuance was $20 per share. Instructions Complete a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2010 net cash flow from operating activities. Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities: $ $ $ $ $ $ Net cash provided/used by operating activities $

Messner Co. reported $145,000 of net income for 2010. The accountant, in preparing the statement of cash flows, noted several items occurring during 2010 that might affect cash flows from operating activities. These items are listed below. 1-Messner purchased 100 shares of treasury stock at a cost of $20 per share. These sha

InterClean - EnviroTech Merger Scenario

Write in which you determine when rightsizing is appropriate and which steps are necessary to implement this process for the InterClean--EnviroTech Merger. Be sure to address the following questions within the paper: 1) Introduction 2) What are the viable options the company has at this point? 3) When might rightsizin