Arab Open University BE210: TMA – Summer 2013 Cut-Off Date: 2nd of August 2013 About TMA: The TMA covers the financial accounting concepts and practices in the businesses. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within chapters 1 to 4. This TMA requires you to apply the course concepts. The TMA is intended to: Increase the students’ knowledge about the reality of the accounting as a profession. Assess students’ understanding of key learning points within chapters 1 to 4. Develop the ability to understand and interact with the nature of the financial statements in reality. Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material. Develop basic ICT skills such as using the internet. The TMA: The TMA requires you to: 1- Review various study chapters (from Chapter 1 to 4) of ‘Financial and Managerial Accounting’ Book and apply some of the concepts within it. 2- Conduct a simple information search using the internet. 3- Present your findings in not more than 1,200 words. The word count excludes headings, references, title page, and diagrams. 4- You should use a Microsoft Office Word and Times New Roman Font of 14 points. 5- You should read and follow the instructions below carefully. Each part of the process will carry marks for the assignment. Criteria for Grade Distribution: Criteria Content Referencing Structure and Presentation of ideas Total marks Financial Reporting on the Internet (AMETEK, Inc.) Marks 100 (5) (5) 100 The TMA Questions Financial Reporting on the Internet (AMETEK, Inc.) AMETEK, Inc. (“AMETEK” or the “Company”) is incorporated in Delaware. Its predecessor was originally incorporated in Delaware in 1930 under the name American Machine and Metals, Inc. The Company maintains its principal executive offices in suburban Philadelphia at 1100 Cassatt Road, Berwyn, Pennsylvania, 19312. AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The Company is listed on the New York Stock Exchange (symbol: AME). The common stock of AMETEK is a component of the S&P MidCap 400 and the Russell 1000 Indices. Access the AMETEK’s web page at: emetek. From AMETEK’s home page, choose Investors, and then “Financial News & Information”. From “Financial Reports”, download 2012 annual report on Form 10-K (PDF). Instructions: Use the annual report to answer the following questions: 1- Who is responsible for the preparation of the financial statements and related information that are presented in this report? Support your answer with evidence from AMETEK’s 2012 annual report. [10 marks] 2- Why is it important that AMETEK follows a standard set of accounting policies (Called Generally Accepted Accounting Principles ‘GAAP’). e.g. ‘Revenue Recognition and the Cost Principle’) in the preparation of financial statements? [10 marks] 3- For the two most recent years, 2012 and 2011, list the amounts reported for “Revenue”, “Operating Income”, and “Net Income”. Is AMETEK growing and expanding? Is AMETEK a profitable company”? Comment whether the three years (2012, 2011, and 2010) trend of revenues is favorable or unfavorable. Support your answer with suitable figures and ratios from the AMETEK’s 2012 annual report. [10 marks] 4- For the two most recent years (2012 and 2011), list the amounts reported for “Total Assets”, “Total Liabilities”, and “Total (Owner’s or Shareholder’s) Equity”. Does the accounting equation hold true for AMETEK? Is the consolidated balance sheet presented in a classified format? How can you tell? [10 marks] 5- Briefly explain what is meant by the term property, plant and equipment, identifying at least three items included in this category. Support your answer with suitable figures from AMETEK’s 2012 annual report. [10 marks] 6- Does AMETEK, Inc. use cash-base or accrual-base accounting? How can you tell? How much cash was provided by operations during 2012 and 2011? Where did you find this information? [10 marks] 7- Identify four accounts on AMETEK’s consolidated balance sheet that provide evidence that AMETEK uses accrual accounting. In each case, identify the income statement account that would be affected by the adjustment process. [10 marks] 8- Find AMETEK’s 2012 consolidated statement of cash flows. What journal entry did AMETEK make in 2012 to record: a- Additions to property, plant and equipment. b- Dividends paid to shareholders. [10 marks] 9- For the two recent years (2012 and 2011), calculate the current ratio for AMETEK. What is meant by this ratio? Show your work in calculating this ratio. Write a brief statement describing what you have learned about the AMETEK’s liquidity and its trend. [10 marks] 10- For the two most recent years (2012 and 2011), are AMETEK’s assets primarily financed by debt or owner’s equity? Explain your reasoning. [10 marks] In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your answer: PT3 form (Cover) Available on LMS Contents Title and contents page TMA Financial Reporting on the Internet (AMETEK, Inc.) Reference list Recorded according to the Harvard style - Available on LMS
Posted on: Thu, 18 Jul 2013 19:39:30 +0000