Unit 1 AssignmentFinancial Statement Overview· Activity Contex.docx

Unit 1 Assignment
Financial Statement Overview
· Activity Context
Revisit the MBA6014 Course Alignment Map to review how all
activities assist you in achieving the course competencies and
overall program outcomes.
Activity Instructions
This assignment provides you the opportunity to prepare basic
financial statements and apply the knowledge learned in Unit 1
to locate financial information in a set of financial statements.
Complete P1-1 (page 33) and CP1-2 (page 37) from Chapter 1
of your Financial Accounting textbook.
Submission Requirements
All quantitative assignments must be completed in the Microsoft
Excel templates provided. In conjunction with the purchase of
your textbook, Excel templates have been specially arranged
with the publisher and embedded directly throughout the
courseroom for easy access (see the Resources section).
Create one workbook with multiple tabs, copying each
problem's template onto a separate tab and completing the work
there. Submit this single file in the assignment area. Include
your name and the assignment number in the file name; also
include your name and the problem number on each tab of the
document. All work should be shown. Assignments must not be
submitted as a PDF.
Refer to the scoring guide for this assignment to ensure that you
meet the grading criteria. Note that one scoring guide is used to
evaluate both of the problems in this assessment; each criterion
in the scoring guide relates to one or both of the problems here.
Unit 1 Assignment 2
The Effects of Transactions in T-Accounts· Activity Context
overall program outcomes.Activity Instructions

The ability to determine the financial impact of transactions is
an important skill that all business professionals should possess.
T-accounts provide a valuable tool for analyzing the effects of
transactions. This assignment provides you the opportunity to
analyze various transactions using T-accounts and utilize the
information to prepare a classified balance sheet. In addition,
you will utilize the new concepts learned in this chapter to
further analyze the financial statements of Urban Outfitters.
Complete P2-3 (pages 88–89) and CP2-2 (page 93) from
Chapter 2 of your Financial Accounting textbook.Submission
Requirements
All quantitative assignments must be completed on the
Microsoft Excel templates provided. Create one workbook with
multiple tabs, copying each problem's template onto a separate
tab and completing the work there. Submit this single file in the
assignment area. Include your name and the assignment number
in the file name; also include your name and the problem
number on each tab of the document. All work should be shown.
Assignments must not be submitted as a PDF.
Unit 1 Discussion 1
The Balance Sheet
· Place yourself in the role of one of the following stakeholders
in a company: an investor, a creditor, or a manager. Summarize
the information you would look for on each of the four basic
financial statements, and explain why that information is
pertinent to you. Include answers to two of the four questions
below in your summary:
· Why is the balance sheet important in order to understand the
financial condition of the organization?
· What types of accounts are found in the balance sheet, and
how are the accounts arranged and grouped?
· What types of business transactions add to the balances in

each grouping of accounts on the balance sheet?
· What types of information may users of the balance sheet
discern by properly analyzing it?
Post your answers in this discussion, then proceed to the
response guidelines. Response Guidelines
Respond to at least two other learners who assumed a role other
than the one you took on for this discussion. Compare and
contrast the way someone in their roles would use the financial
statements to the way you in your role would use them.
Unit 2 Assignment 1
Financial Performance Analysis· Activity Context
This assignment provides you the opportunity to analyze
transactions with the use of T-accounts and prepare financial
statements. In addition, you will analyze and interpret the
information found in the financial statements and communicate
those findings in a professional manner.
Requirements
Unit 2 Assignment 2
Adjusting Entries· Activity Context

This assignment addresses the impact of adjusting entries on
financial statements and will help you to demonstrate your
understanding of deferred revenue, deferred expense, accrued
revenue, and accrued expense, as well as your understanding of
the accounting entries that record these items in the accounting
system.
of your Financial Accounting textbook.Submission
Requirements
Unit 2 Discussion 1
Financial Condition
· For this discussion, assume the role of a financial manager in
a company, and assume that you have just hired a new
bookkeeper to join your team. You want to assess the new hire's
understanding of the accounting processes as a whole, so you
decide to ask a series of questions. Select three of the six
questions listed below to ask your new bookkeeper, and
describe the response you expect to hear:
· Define the accounting cycle.
· Explain the revenue principle and its implication on the

financial statements.
· Define the matching principle and why it is critical in the
preparation of the accrual-based financial statements.
· Compare and contrast a prepaid account and a deferred
account. Give an example of each and how each affects the
· Define and differentiate between the purpose of a journal
entry, an adjusting entry, and a closing entry.
· Define the difference between a trial balance and a post-
closing trial balance.Response Guidelines
Respond to at least two of your peers' posts, evaluating the
completeness of their answers. Include any details or further
information you think should appear in their responses.
Unit 3 Assignment 1
Classified Balance Sheet· Activity Context
This assignment will provide you the opportunity to prepare a
classified balance sheet. Using the classified balance sheet, you
will then analyze and draw conclusions on the classifications in
aggregate and individual components.
Requirements

Unit 3 Assignment 2
Bank Reconciliation and Journal Entries· Activity Context
For this assignment, you will prepare a bank reconciliation and
the related journal entries required through the reconciliation
process.
Requirements
Unit 3 Assignment 3
Internal Controls· Activity Context
There is an ongoing debate about the cost-benefit relationship
of internal controls and their ethical implications. Find one
recent news article (published within the past three years)
relating to internal controls over cash. Search Web sites like
those of the New York Times and the Wall Street Journal. Then
write a 1–2 page analysis of the particular situation, and discuss
the ethical implications of the internal controls in that context.

Apply what you know and have learned about the ethical
standards of accounting practices to analyze the situation.
Include a cover page and references in APA format.Submission
Requirements
· Written communication: It should be free of errors that detract
from the overall message.
· APA formatting: Resources and citations are formatted
according to APA (6th edition) style and formatting.
· Length of paper: 1–2 pages, not including cover page and
references.
· Font and font size: Times New Roman, 12-point.
meet all of the grading criteria before submitting your document
for instructor feedback and evaluation.
Unit 3 Discussion 1
Revenue and Gross Margin
· For this discussion, assume that you are an investor and
considering the buyout of an existing publicly traded company.
There are several areas you plan to focus on during your due
diligence process in order to determine the organization's
potential as a long-term investment. Discuss the key factors you
would evaluate on the statement of cash flows and what
significance the income from operations line item has on your
decision. In addition, discuss why the accounts receivable
turnover rate and accounts payable turnover rate would be of
interest in your decision making. Lastly, explain what
meaningful insight you might obtain by reviewing the sales
allowances and sales discounts amounts for this
company.Response Guidelines
Review the posts of your peers, and respond to at least two. For
each response, address any discrepancies between your findings
and your peer's. Seek clarification of any aspects of the post
that are not clear to you. Provide feedback on any particular
topics that could be clarified.
Unit 4 Assignment 1
Inventory Analysis· Activity Context

In this assignment, you will apply the various concepts of the
cost assumptions presented in Chapter 7 regarding inventory.
Utilizing your understanding of inventory, you will locate and
interpret the information provided within a given set of
Requirements
Unit 4 Assignment 2
Property, Plant, and Equipment Analysis· Activity Context
This assignment provides you an opportunity to apply the
concepts of accounting for property, plant, and equipment, such
as determining and recording the cost of tangible assets and
computing the depreciation expense based on various
depreciation methods. Using the knowledge gained from the
Unit 4 studies, you should be able to analyze and interpret the
financial information provided in a set of financials pertaining
to property, plant, and equipment.

Requirements
Unit 4 Assignment 3
Inventory Valuation Methods and Ethical Considerations·
Activity Context
Net income results, reported in the financial statement
presentation, can be affected by the inventory reporting methods
used. FIFO, LIFO, and weighted average methods each have
their own implications during periods of inflation and deflation.
Assume the role of a manager, employee, or an investor, and in
1–2 pages analyze the GAAP and ethical implications of each
reporting method in a hypothetical company. Then, given your
role, select which reporting method you would use, and explain
why. Consider tax liabilities and profit levels in your response,
as well as ethical considerations you may have for your
valuation method selection.Submission Requirements
· Written communication: It should be free of errors that detract
from the overall message.
· APA formatting: Resources and citations are formatted
according to APA (6th edition) style and formatting.

· Length of paper: 1–2 pages, not including cover page and
references.
· Font and font size: Times New Roman, 12-point.
meet all of the grading criteria before submitting your document
for instructor feedback and evaluation.
Unit 4 Discussion 1
Inventory Valuation and Cost of Goods Sold
· For this discussion, assume that you are the chief financial
officer for your organization and that you are preparing the
organization's financial statement footnotes. As you prepare and
gather corporate information supporting the financial practices,
policies, and procedures in your company, you consider the
importance of the following six questions. Choose three of the
following six questions, and describe what type of information
would be included in the footnotes to the financial statements,
how that information would be stated, and the significance of
that information to the user of the financial statement:
· What are the acceptable inventory valuation methods under
U.S. GAAP? How does each affect the valuation of inventory
and cost of goods sold?
· Explain the accounting principle of lower of cost or market
and how it relates to the income statement.
· What do the ratios inventory turnover and days to sell
inventory indicate to the financial statement users?
· Can an organization change its selected inventory method,
and, if so, is there an effect on current net income or retained
earnings? Why or why not?
· Compare and contrast depreciation, amortization, and
depletion, giving an example of each.
· How does net book value on fixed assets differ from fair
market value of fixed assets, and how do they relate to
liquidation?Response Guidelines

Unit 5 Assignment 1
Current Liabilities and Cash Flow· Activity Context
In this assessment, you will compute working capital and the
quick ratio. Based on your computations, you will interpret and
explain the implications of working capital and the quick-ratio
results.
Complete CP9-2 (page 496) from Chapter 9 and E13-5 (page
675) from Chapter 13 of your Financial Accounting
textbook.Submission Requirements
Unit 5 Assignment 2
Stockholders' Equity· Activity Context
Throughout the course, you have covered the various forms of
financial ratio analysis. In this assignment, you will bring
together these various financial analysis measures and interpret
their meaning in order to draw conclusions about various

companies.
Complete P11-2 (page 580) and CP11-2 (page 585) from
Chapter 11, and CP13-2 (page 687) from Chapter 13 of your
Financial Accounting textbook.Submission Requirements
evaluate all of the problems in this assessment; each criterion in
the scoring guide relates to one or more of the problems here.
Unit 5 Discussion 1
Liquidity, Debt, and Equity
· For this discussion, assume the role of an investor. How would
you know whether the company you are considering to invest in
has repurchased any of its own stock and/or issued stock
dividends during the current period? Why is this important, and
would you find any of this information on the statement of cash
flows? What level of liquidity and solvency would you be
looking for? Why? Tip: Consider the footnotes in your
reply.Response Guidelines
Unit 6 Assignment 1
Bond Reporting· Activity Context

In this assignment, you will compute the issue price for bonds
issued at par and determine the amount of interest expense that
should be recorded on the financial statement during various
dates. In addition, you will compute the amount of interest that
should be paid to bond holders as of specific interim dates.
Requirements
Unit 6 Assignment 2
Statement of Cash Flows· Activity Context
In this assignment, you will create and analyze the statement of
cash flows. Based on your analysis, you will interpret and
discuss the implications of the analysis to support any
conclusions developed.
Requirements

Unit 6 Discussion 1
Issuing Bonds
· For this discussion, assume the role of a business owner who
has to make a decision to raise additional capital. What
considerations would you evaluate relative to issuing bonds as
compared with conventional financing methods? How would
you reflect the bond transactions on your statement of cash
flows, and how would the financial statement users use that
information?
Response Guidelines
and your peer's. Seek clarification for any aspects of the post
that are not clear to you.
Unit 6 Discussion 2
Course Reflection
· Throughout the course, you have been building toward the
achievement of the following competencies:
· Apply theories, models, and practices of accounting in the
construction and analysis of financial statements.
· Examine regulatory, ethical, and credibility issues in
accounting.
· Integrate accounting theories, models, and practices across the
organization.
· Integrate accounting analyses into general business
management planning and decision making.
· Communicate in a manner that is professional and consistent
with expectations for members of the business professions.

For this discussion, reflect on the knowledge and skills you
have developed over the past six weeks. Address the following
questions in your post:
· For each competency, how has your ability to perform these
skills and apply this knowledge evolved?
· What concepts, skills, or insights were most relevant to you?
· How have you grown in your academic and professional goals?
· Have you made progress on any items in the action plan you
developed during first course?
Response Guidelines
Respond to at least two other learners. When responding to
others, provide encouraging feedback about how learners have
grown over the past six weeks. If applicable, provide
recommendations for how learners may continue to develop
these skills, and knowledge or suggest additional strategies for
leveraging the knowledge gained in the course.
MANAGEMENT & BUSINESS ETHICS – MGT 330
PAPER CRITERIA
(500 Points)
This is to be presented as one report that begins with your Exam
# 1 and # 2 reports and concludes with the criteria below.
The following will result from your personal evaluation of the
research as to how this organization should proceed forward.
This will be based upon your analyses and conclusions drawn
from your research.
· SWOT ANALYSIS
· PROPOSE THREE STRATEGIC ALTERNATIVES FOR THE
FUTURE (BASED ON RESEARCH AND YOUR ANALYSES)

· CHOOSE ONE THE ALTERNATIVES FOR
IMPLEMENTATION
· PROPOSE AN IMPLEMENTATION PLAN
*STATE & EXPLAIN STRATEGIC GOAL & OBJECTIVES
*STATE & EXPLAIN TACTICAL / OPERATIONAL PLANS
*ILLUSTRATE & EXPLAIN TIME FRAME TO IMPLEMENT
EACH FUNCTION (Minimum of 15 organizational functions
shown in a “GANTT Like Chart”)
>EXPLAIN EACH FUNCTIONAL ROLE IN YOUR
PLANS
*STATE & EXPLAIN METRICS FOR SUCCESS
(ILLUSTRATE WITH A BALANCE SCORECARD)
REQUIRED: (your grade depends on you reading and following
this criteria)
Prepare a report applying each of the above criteria to
Monsanto. This is to be presented as one
report that begins with your Term Paper Part # 1 and Term
Paper Part # 2 reports and concludes
with the criteria in this document. Do not show any break for
these 2 reports. Rather, make this
Final Term Paper flow as if it was all written at one time. Use
this opportunity to make any
improvements to your Term Paper Parts # 1 and # 2, if you feel
it is necessary to do so.
Be specific and current in your reporting of each of the criteria.
Prepare your report with proper college level English in a
proper sentence structure and paragraph format. Follow APA
guidelines for the entire paper. Outlines are not acceptable as a
report format for any of this assignment. Avoid adding quoted
lists to report. Avoid adding large word count quotes to your

report. Include a cover sheet and a reference page. Remember
to show your name on your paper. Show at least 15 sites for all
of your research this semester in proper APA format. All
citation and reference sources must be noted on the reference
page. All quotes must be in quotations with the last name of the
author in parentheses immediately following the quote. Prepare
your paper using Times New Roman number 12 fonts and
double spaced format with a minimum of 5000 words. This
word count includes Term Paper Parts # 1 and # 2 in the Final
Term Paper count. Do not color any words in this report. Do
not number your paragraphs. Submit this paper via email in a
Microsoft Word file only and include all assignment materials
in one file (i.e., cover page, content, any exhibits, and reference
page). Name your file “your last name – MGT330 – FINAL
TERM PAPER”. This assignment is due by 11:59PM (CT) on
the date shown in your syllabus. Papers submitted within 24
hours after the due date and exact time will drop a full letter
grade level before grading begins. This assignment will not be
accepted after 1 day following the due date and time stated
above.
· Your written work will be evaluated based on the following
elements of writing, listed in order of importance:
· Focus: Concentration or emphasis on a subject or objective.
May be addressed in the following terms: objectives of
assignment, thesis, argument, main point, central theme,
conclusions, or recommendations.
· Development: Support and/or elaboration of the focus. May
include: explanation, description, analysis, narrative,
exploration, use of source material or data, or discussion of
methodology.
· Organization: Coherent order and grouping of material. May
be addressed in the following terms: overarching structure,
paragraph structure, or use of transitions.
· Style: Tone conveyed toward material and/or audience. May
be addressed in the following terms: word choice, sentence

structure, voice, or persona.
· Conventions: Adherence to standards of grammar,
punctuation, spelling, and APA discipline-specific rules of
formatting and citation.
Balance Scorecard Information Sources:
http://balancedscorecard.org/Resources/About-the-Balanced-
Scorecard
http://www.bing.com/videos/search?q=balanced+scorecard+yout
ube&FORM=VIRE1#view=detail&mid=9010A7871F298477A9E
E9010A7871F298477A9EEhttp://www.smartdraw.com/examples
/view/strategy+balanced+scorecard/
GANTT Like Chart Site:
https://www.smartsheet.com/s/best-online-gantt-
chart?s=16&c=73&m=3000&a=-
4333006107&mtp=bb&k=%2Bgantt&qst=gantt%20like%20chart
&dev=c&utm_source=bing&utm_medium=cpc&utm_campaign=
search
CP12-2CP12-2Finding Financial InformationLO12-2, 12-4, 12-
6Refer to the financial statements of Urban Outfitters given in
Appendix C at the end of this book.Required:1. Does Urban
Outfitters use the direct or indirect method to report cash flows
from operating activities?2. What amount of tax payments did
the company make during the most recent reporting year? (Hint:
The statement of cash flows may be helpful to answer this
question.)3. Explain why the “share-based compensation” and
“depreciation and amortization” items were added in the
reconciliation of net income to net cash provided by operating
activities.4. Has the company paid cash dividends during the

last three years? How do you know?5. What was free cash flow
for the year ended January 31, 2012? (Dollars in
thousands.)Cash Flows from Free Cash Flow:
CP12-2 Check FiguresCP12-2Finding Financial
InformationLO12-2, 12-4, 12-6Refer to the financial statements
of Urban Outfitters given in Appendix C at the end of this
book.Required:1. Does Urban Outfitters use the direct or
indirect method to report cash flows from operating activities?2.
What amount of tax payments did the company make during the
most recent reporting year? (Hint: The statement of cash flows
may be helpful to answer this question.)Tax payments of
$120,847 thousand were made (located near the bottom of the
Statement of Cash Flows).3. Explain why the “share-based
compensation” and “depreciation and amortization” items were
added in the reconciliation of net income to net cash provided
by operating activities.4. Has the company paid cash dividends
during the last three years? How do you know?5. What was free
cash flow for the year ended January 31, 2012? (Dollars in
thousands.)Cash Flows from Free Cash Flow:
Sheet2List 1List 2List3Direct MethodYesOperating
ActivitiesIndirect MethodNoInvesting ActivitiesFinancing
ActivitiesDividendsCapital ExpendituresList 4Plus:Less:
CP10-2CP10-2Finding Financial InformationLO10-1, 10-2Refer
to the financial statements of Urban Outfitters given in
Appendix C at the end of this book.Required:1. Unlike most
companies, Urban Outfitters does not report the amount of
interest paid in cash during the most recent reporting year.
Explain why you think the company has omitted this
information.2. Explain why the company does not report bonds
payable on its balance sheet.3. Describe the company's
established arrangements, if any, that permit it to borrow money
if needed.
InformationLO10-1, 10-2Refer to the financial statements of
Urban Outfitters given in Appendix C at the end of this

book.Required:1. Unlike most companies, Urban Outfitters does
not report the amount of interest paid in cash during the most
recent reporting year. Explain why you think the company has
omitted this information.2. Explain why the company does not
report bonds payable on its balance sheet.3. Describe the
company's established arrangements, if any, that permit it to
borrow money if needed.The notes disclose that the company
has established an unsecured line of credit.
CP13-2CP13-2Analyzing Financial StatementsLO13-4, 13-5,
13-6, 13-7Refer to the financial statements of Urban Outfitters
given in Appendix C at the end of this book. Compute the
following ratios for the most recent reporting year for which
you have available information: Return on equity: =Earnings
per share:As reported:Profit margin: =Current ratio: =Inventory
turnover: =Debt/Equity: =Price/earnings:(Assume the stock
price is $35.) =Dividend yield:
CP13-2 Check FiguresCP13-2Analyzing Financial
StatementsLO13-4, 13-5, 13-6, 13-7Refer to the financial
statements of Urban Outfitters given in Appendix C at the end
of this book. Compute the following ratios for the most recent
reporting year for which you have available information:
Return on equity: =Earnings per share:As reported:Profit
margin: =Current ratio: =Inventory turnover: =Debt/Equity:
=Price/earnings:(Assume the stock price is $35.) =29.2Dividend
yield:
CP11-2CP11-2Finding Financial InformationLO11-1, 11-3, 11-
4, 11-6Refer to the financial statements of Urban Outfitters
given in Appendix C at the end of this book.Required:1. How
many shares of common stock are authorized at the end of the
current year? How many shares are issued and outstanding at
the end of the current year?shares authorizedshares issued and
outstanding2. Did the company pay dividends during the most
recent reporting year? If so, what was the total amount of
dividends paid and how much were they per share?3. Does the

company have any treasury stock? If so, how much?4. Has the
company issued a stock dividend or a stock split over the past
three reporting years? If so, describe.5. Does the company's
common stock have a par value? If it does, what is the par
value?
InformationLO11-1, 11-3, 11-4, 11-6Refer to the financial
statements of Urban Outfitters given in Appendix C at the end
of this book.Required:1. How many shares of common stock are
authorized at the end of the current year? How many shares are
issued and outstanding at the end of the current year?shares
authorizedshares issued and outstanding2. Did the company pay
dividends during the most recent reporting year? If so, what was
the total amount of dividends paid and how much were they per
share?3. Does the company have any treasury stock? If so, how
much?The company does not have any Treasury Stock.4. Has
the company issued a stock dividend or a stock split over the
past three reporting years? If so, describe.5. Does the company's
common stock have a par value? If it does, what is the par
value?
CP9-2CP9-2Finding Financial InformationLO9-1, 9-5, 9-6Refer
Appendix C at the end of this book.Required:1. What is the
amount of accrued compensation at the end of the most recent
reporting year? (Dollars in thousands.)2. As reported on the
Statement of Cash Flows, by what amount did accounts payable,
accrued expenses and other current liabilities change over the
most recent reporting year? (Dollars in thousands.)How did this
change affect cash flows from operating activities during the
most recent reporting year?3. What is the amount of long-term
liabilities at the end of the most recent reporting year? (Dollars
in thousands.)
CP9-2 Check FiguresCP9-2Finding Financial InformationLO9-
1, 9-5, 9-6Refer to the financial statements of Urban Outfitters
given in Appendix C at the end of this book.Required:1. What is

the amount of accrued compensation at the end of the most
recent reporting year? (Dollars in thousands.)$ 15,6302. As
reported on the Statement of Cash Flows, by what amount did
accounts payable, accrued expenses and other current liabilities
change over the most recent reporting year? (Dollars in
thousands.)How did this change affect cash flows from
operating activities during the most recent reporting year?3.
What is the amount of long-term liabilities at the end of the
most recent reporting year? (Dollars in thousands.)
Sheet2List 1IncreaseDecrease
CP7-2CP7-2Finding Financial InformationLO7-2, 7-4, 7-5, 7-
7Refer to the financial statements of Urban Outfitters given in
Appendix C at the end of this book.Required:1. The company
uses lower of cost or market to account for its inventory. At the
end of the year, do you expect the company to write its
inventory down to replacement cost or net realizable value?
Explain your answer.2. What method does the company use to
determine the cost of its inventory?Where did you find this
information?3. If the company overstated ending inventory by
$10 million for the year ended January 31, 2012, what would be
the corrected value for Income before Income Taxes?4.
Compute the inventory turnover ratio for the current year.
Fiscal Year EndedCost of Goods Sold /Average Inventory =
Inventory Turnover1/31/12What does an inventory turnover
ratio tell you?
2, 7-4, 7-5, 7-7Refer to the financial statements of Urban
Outfitters given in Appendix C at the end of this
book.Required:1. The company uses lower of cost or market to
account for its inventory. At the end of the year, do you expect
the company to write its inventory down to replacement cost or
net realizable value? Explain your answer.2. What method does
the company use to determine the cost of its inventory?Where
did you find this information?3. If the company overstated
ending inventory by $10 million for the year ended January 31,

2012, what would be the corrected value for Income before
Income Taxes?If the company had overstated its ending
inventory by $10 million, its income before income taxes would
be overstated by $10 million. 4. Compute the inventory turnover
ratio for the current year. Fiscal Year EndedCost of Goods
Sold /Average Inventory = Inventory Turnover1/31/12What
does an inventory turnover ratio tell you?
Sheet2List 1Specific identificationFirst-in, first-out Last-in,
first-outAverage cost
to the financial statements of Urban Outfitters in Appendix C at
the end of this book.Required:1. How much is in the Prepaid
Expenses and Other Current Assets account at the end of the
most recent year (for the year ended January 31, 2012)? (in
thousands)Where did you find this information?2. What did the
company report for Deferred Rent and Other Liabilities at the
end of the most recent year (for the year ended January 31,
2012)? (in thousands)Where did you find this information?3.
What is the difference between prepaid rent and deferred rent?4.
Describe in general terms what accrued liabilities are.5. What
would generate the interest income that is reported on the
income statement?6. What company accounts would not have
balances on a post-closing trial balance?7. Describe the closing
entry, if any, for Prepaid Expenses.8. What is the company's
earnings per share (basic only) for the three years reported?Year
Ended:EPS: January 31, 2012 January 31, 2011 January 31,
20109. Compute the company's total asset turnover ratio for the
three years reported. (Dollars in thousands.) Fiscal Year
EndedSales Revenue /Average Total Assets = Total
Asset Turnover1/31/121/31/111/31/10What does the trend
suggest to you about Urban Outfitters?
in Appendix C at the end of this book.Required:1. How much is
in the Prepaid Expenses and Other Current Assets account at the

end of the most recent year (for the year ended January 31,
2012)? (in thousands)Where did you find this information?2.
What did the company report for Deferred Rent and Other
Liabilities at the end of the most recent year (for the year ended
January 31, 2012)? (in thousands)Where did you find this
information?3. What is the difference between prepaid rent and
deferred rent?4. Describe in general terms what accrued
liabilities are.Accrued Liabilities would consist of costs that
have been incurred by the end of the accounting period but
which have not yet been paid. 5. What would generate the
interest income that is reported on the income statement?6.
What company accounts would not have balances on a post-
closing trial balance?7. Describe the closing entry, if any, for
Prepaid Expenses.8. What is the company's earnings per share
(basic only) for the three years reported?Year Ended:EPS:
January 31, 2012 January 31, 2011 January 31, 20109. Compute
the company's total asset turnover ratio for the three years
reported. (Dollars in thousands.) Fiscal Year EndedSales
Revenue /Average Total Assets = Total Asset
Turnover1/31/121/31/111/31/10What does the trend suggest to
you about Urban Outfitters?
Sheet2List 1Auditor's ReportBalance SheetIncome
StatementNotes to Financial StatementsStatement of Cash
FlowsStatement of Shareholders' Equity
to the financial statements of Urban Outfitters in Appendix C at
the end of the book.Required:1. What is the company's revenue
recognition policy? (Hint: Look in the notes to the financial
statements.)2. Assuming that $50 million of cost of sales was
due to noninventory purchase expenses (distribution and
occupancy costs), how much inventory did the company buy
during the year? (Hint: Use a T-account of inventory to infer
how much was purchased.)INVENTORY (in
thousands)Inventory purchased during the year:3. Calculate
selling, general, and administrative expenses as a percent of

sales for each year presented. (Dollars in thousands.)Year
EndedSG&A Expenses /Net Sales Revenue =
Percentage201220112010By what percent did these expenses
increase or decrease from fiscal years ended 2011 and 2012 and
between 2010 and 2011? (Hint: Percentage Change = [Current
Year Amount − Prior Year Amount]/Prior Year Amount.) %
ChangeIncr. or Decr.Between years ended 2011 and
2012:Between years ended 2010 and 2011:4. Compute the
company's net profit margin for each year presented. (Dollars in
thousands.) Fiscal Year Ended Net
Income /Net Sales (or Operating) Revenues = Net Profit Margin
Ratio201220112010Explain net profit margin ratio and discuss
the results shown above.
in Appendix C at the end of the book.Required:1. What is the
company's revenue recognition policy? (Hint: Look in the notes
to the financial statements.)2. Assuming that $50 million of cost
of sales was due to noninventory purchase expenses
(distribution and occupancy costs), how much inventory did the
company buy during the year? (Hint: Use a T-account of
inventory to infer how much was purchased.)INVENTORY (in
thousands)Inventory purchased during the year:3. Calculate
selling, general, and administrative expenses as a percent of
sales for each year presented. (Dollars in thousands.)Year
EndedSG&A Expenses /Net Sales Revenue =
Percentage201220112010By what percent did these expenses
increase or decrease from fiscal years ended 2011 and 2012 and
between 2010 and 2011? (Hint: Percentage Change = [Current
Year Amount − Prior Year Amount]/Prior Year Amount.) %
ChangeIncr. or Decr.Between years ended 2011 and
2012:Between years ended 2010 and 2011:4. Compute the
company's net profit margin for each year presented. (Dollars in
thousands.) Fiscal Year Ended Net
Income /Net Sales (or Operating) Revenues = Net Profit Margin
Ratio20127.5%20112010Explain net profit margin ratio and

discuss the results shown above.
Sheet2List 1List
2BeginningIncreaseEndingDecreasePurchasesCost of Sales
CP2-2CP2-2Finding Financial InformationLO2-1, 2-2, 2-5, 2-
6Refer to the financial statements of Urban Outfitters in
Appendix C at the end of this book.Required:1. Use the
company's balance sheet to determine the amounts in the
accounting equation (A = L + SE) as of January 31, 2012.
Assets=Liabilities+Shareholders’ Equity=+2. If the company
were liquidated at the end of the current year (January 31,
2012), are the shareholders guaranteed to receive
$1,066,268,000?Why or why not?3. What are the company's
noncurrent liabilities?4. What is the company's current
ratio?Current ===Ratio5. Did the company have a
cash inflow or outflow from investing activities? Of how much?
1, 2-2, 2-5, 2-6Refer to the financial statements of Urban
Outfitters in Appendix C at the end of this book.Required:1.
Use the company's balance sheet to determine the amounts in
the accounting equation (A = L + SE) as of January 31, 2012.
Assets=Liabilities+Shareholders’ Equity=+2. If the company
were liquidated at the end of the current year (January 31,
2012), are the shareholders guaranteed to receive
$1,066,268,000?Why or why not?3. What are the company's
noncurrent liabilities?4. What is the company's current
ratio?Current ===2.56Ratio5. Did the company have
a cash inflow or outflow from investing activities? Of how
much?
Sheet2List 1List 2List 3YesCurrent AssetsNet Cash
InflowNoTotal AssetsNet Cash OutflowCurrent LiabilitesTotal
LiabilitiesTotal Shareholders' Equity
P10-2P10-2 Reporting Bonds Issued at Par LO 10-2On January
1, 2014, Nowell Company issued $500,000 in bonds that mature
in five years. The bonds have a stated interest rate of 8 percent

and pay interest on June 30 and December 31 each year. When
the bonds were sold, the market rate of interest was 8
percent.(If necessary, use the appropriate factor(s) from the
tables provided.) (FV of $1PV of $1FVA of
$1PVA of $1)Required:1What was the issue price on January 1,
2014?Issue price2What amount of interest expense should be
recorded on (a) June 30, 2014? and (b) December 31, 2014?June
30, 2014December 31, 2014Interest expense3What amount of
cash interest should be paid on (a) June 30, 2014? and (b)
December 31, 2014?June 30, 2014December 31, 2014Cash
paid4What is the book value of the bonds on (a) December 31,
2014? and (b) December 31, 2015?December 31, 2014December
31, 2015Bonds
payablehttp://lectures.mhhe.com/connect/0077516958/fv.jpghttp
://lectures.mhhe.com/connect/0077516958/pv.jpghttp://lectures.
mhhe.com/connect/0077516958/fva.jpghttp://lectures.mhhe.com
/connect/0077516958/pva.jpg
P10-2 Check FiguresP10-2 Reporting Bonds Issued at Par LO
10-2On January 1, 2014, Nowell Company issued $500,000 in
bonds that mature in five years. The bonds have a stated interest
rate of 8 percent and pay interest on June 30 and December 31
each year. When the bonds were sold, the market rate of interest
was 8 percent.(If necessary, use the appropriate factor(s) from
the tables provided.) (FV of $1PV of
$1FVA of $1PVA of $1)Required:1What was the issue price on
January 1, 2014?Issue price2What amount of interest expense
should be recorded on (a) June 30, 2014? and (b) December 31,
2014?June 30, 2014December 31, 2014Interest
expense$20,0003What amount of cash interest should be paid
on (a) June 30, 2014? and (b) December 31, 2014?June 30,
2014December 31, 2014Cash paid4What is the book value of
the bonds on (a) December 31, 2014? and (b) December 31,
2015?December 31, 2014December 31, 2015Bonds
payablehttp://lectures.mhhe.com/connect/0077516958/fv.jpghttp
://lectures.mhhe.com/connect/0077516958/pv.jpghttp://lectures.
mhhe.com/connect/0077516958/fva.jpghttp://lectures.mhhe.com

/connect/0077516958/pva.jpg
P11-2P11-2 Preparing the Stockholders Equity Section of the
Balance Sheet LO11-3, 11-7Witt Corporation received its
charter during January 2014. The charter authorized the
following capital stock:Preferred stock: 10 percent, par $10,
authorized 21,000 sharesCommon stock: par $8, authorized
50,000 shares.During 2014, the following transactions occurred
in the order given:a.Issued a total of 40,000 shares of the
common stock to the four organizers at $12 per share.b.Sold
5,500 shares of the preferred stock at $16 per share.c.Sold 3,000
shares of the common stock at $15 per share and 1,000 shares of
the preferred stock at $26.d.Net income for the year was
$96,000.Required:Prepare the Stockholders’ Equity section of
the balance sheet at December 31, 2014.Possible input areas are
shaded.WITT CORPORATIONBalance Sheet (Partial)At
December 31, 2014Stockholders’ equity:Contributed
capital:Total contributed capital-Total stockholders’ equity$ -
P11-2 Check FiguresP11-2 Preparing the Stockholders Equity
Section of the Balance Sheet LO11-3, 11-7Witt Corporation
received its charter during January 2014. The charter authorized
the following capital stock:Preferred stock: 10 percent, par $10,
authorized 21,000 sharesCommon stock: par $8, authorized
50,000 shares.During 2014, the following transactions occurred
in the order given:a.Issued a total of 40,000 shares of the
common stock to the four organizers at $12 per share.b.Sold
5,500 shares of the preferred stock at $16 per share.c.Sold 3,000
shares of the common stock at $15 per share and 1,000 shares of
the preferred stock at $26.d.Net income for the year was
$96,000.Required:Prepare the Stockholders’ Equity section of
the balance sheet at December 31, 2014.Possible input areas are
shaded.WITT CORPORATIONBalance Sheet (Partial)At
December 31, 2014Stockholders’ equity:Contributed
capital:Total contributed capital639,000Total stockholders’
equity
Sheet2List1Accounts payableAvailable for sale securitiesBonds

payableCapital in excess of par, common stockCapital in excess
of par, preferredCashCommon stockDiscount on bonds
payableDividends payablePaid-in capital, stock
optionsPreferred stockPremium on bonds payableRetained
earningsTrading securitiesTreasury stock
E13-5E13-5 Matching Each Ratio with Its Computational
Formula LO 13-4, 13-5, 13-6, 13-7Match each definition with
its related ratios or percentages by selecting the appropriate
letter in the drop down provided.Definitions:Ratios or
PercentagesDefinitionsA.Net Income (before extraordinary
items) ÷ Net Sales1Profit marginB.Days in Year ÷ Receivable
Turnover ratio2Inventory turnover ratioC.Net Income ÷ Average
Stockholders’ Equity3Average collection periodD.Net Income ÷
Average Number of Shares of Common Stock
Outstanding4Dividend yield ratioE.Return on Equity − Return
on Assets5Return on equityF.Quick Assets ÷ Current
Liabilities6Current ratioG.Current Assets ÷ Current
Liabilities7Debt-to-equity ratioH.Cost of Goods Sold ÷ Average
Inventory8Price/earnings ratioI.Net Credit Sales ÷ Average Net
Receivables9Financial leverage percentageJ.Days in Year ÷
Inventory Turnover Ratio10Receivable turnover ratioK.Total
Liabilities ÷ Stockholders’ Equity11Average days’ supply of
inventoryL.Dividends per Share ÷ Market Price per
Share12Earnings per shareM.Market Price per Share ÷ Earnings
per Share13Return on assetsN.[Net Income + Interest Expense
(net of tax)] ÷ Average Total Assets14Quick ratioO.Cash from
Operating Activities (before interest and taxes) ÷ Interest
Paid15Times interest earnedP.Net Sales Revenue ÷ Net Fixed
Assets16Cash coverage ratioQ.(Net Income + Interest Expense
+ Income Tax Expense) ÷ Interest Expense17Fixed asset
turnover ratio
E13-5 Check FiguresE13-5 Matching Each Ratio with Its
Computational Formula LO 13-4, 13-5, 13-6, 13-7Match each
definition with its related ratios or percentages by selecting the
appropriate letter in the drop down provided.Definitions:Ratios

or PercentagesDefinitionsA.Net Income (before extraordinary
items) ÷ Net Sales1Profit marginB.Days in Year ÷ Receivable
Turnover ratio2Inventory turnover ratioC.Net Income ÷ Average
Stockholders’ Equity3Average collection periodD.Net Income ÷
Average Number of Shares of Common Stock
Outstanding4Dividend yield ratioE.Return on Equity − Return
on Assets5Return on equityF.Quick Assets ÷ Current
Liabilities6Current ratioG.Current Assets ÷ Current
Liabilities7Debt-to-equity ratioH.Cost of Goods Sold ÷ Average
Inventory8Price/earnings ratioI.Net Credit Sales ÷ Average Net
Receivables9Financial leverage percentageEJ.Days in Year ÷
Inventory Turnover Ratio10Receivable turnover ratioK.Total
Liabilities ÷ Stockholders’ Equity11Average days’ supply of
inventoryL.Dividends per Share ÷ Market Price per
Share12Earnings per shareM.Market Price per Share ÷ Earnings
per Share13Return on assetsN.[Net Income + Interest Expense
(net of tax)] ÷ Average Total Assets14Quick ratioO.Cash from
Operating Activities (before interest and taxes) ÷ Interest
Paid15Times interest earnedP.Net Sales Revenue ÷ Net Fixed
Assets16Cash coverage ratioQ.(Net Income + Interest Expense
+ Income Tax Expense) ÷ Interest Expense17Fixed asset
turnover ratio
Sheet2List1ABCDEFGHIJKLMNOPQ
P8-3P8-3 Computing the Acquisition Cost and Recording
Depreciation under Three Alternative Methods LO8-2, 8-3At the
beginning of the year, Plummer’s Sports Center bought three
used fitness machines from Advantage, Inc. The machines
immediatelywere overhauled, installed, and started operating.
The machines were different; therefore, each had to be recorded
separately in the accounts.Machine AMachine BMachine
C Amount paid for asset$ 11,000$ 30,000$
8,000 Installation costs5001,000500 Renovation costs prior to
use2,5001,0001,500By the end of the first year, each machine
had been operating 4,800 hours.Required:1Compute the cost of
each machine.Total CostMachine AMachine BMachine

CRequired:2Prepare one entry to record depreciation expense at
the end of year 1, assuming the following: (If no entry is
required for a transaction/event, select "No journal entry
required" in the first account
field.)EstimatesMachineLifeResidual ValueDepreciation
MethodA5 years $ 1,000 Straight-lineB60,000 hours $
2,000 Units-of-productionC4 years $ 1,500 Double-declining-
balanceTransactionGeneral JournalDebitCredit1
P8-3 Check FiguresP8-3 Computing the Acquisition Cost and
Recording Depreciation under Three Alternative Methods LO8-
2, 8-3At the beginning of the year, Plummer’s Sports Center
bought three used fitness machines from Advantage, Inc. The
machines immediatelywere overhauled, installed, and started
operating. The machines were different; therefore, each had to
be recorded separately in the accounts.Machine AMachine
BMachine C Amount paid for asset$ 11,000$ 30,000$
8,000 Installation costs5001,000500 Renovation costs prior to
use2,5001,0001,500By the end of the first year, each machine
had been operating 4,800 hours.Required:1Compute the cost of
each machine.Total CostMachine AMachine BMachine
CRequired:2Prepare one entry to record depreciation expense at
the end of year 1, assuming the following: (If no entry is
required for a transaction/event, select "No journal entry
required" in the first account
field.)EstimatesMachineLifeResidual ValueDepreciation
MethodA5 years $1,000 Straight-lineB60,000 hours 2,000
Units-of-productionC4 years 1,500 Double-declining-
balanceTransactionGeneral JournalDebitCredit1Depreciation
expense10,000
Sheet2List1No journal entry requiredAccounts payableAccounts
receivableAccumulated depreciation, Machine AAccumulated
depreciation, Machine BAccumulated depreciation, Machine
CAdditional paid-in capitalAllowance for uncollectible
accountsAmortization expenseBuildingCashCommon
stockDepreciation expenseEquipmentGain on
saleGoodwillInterest expenseInventoriesLandLoss on saleNote

payableNote receivablePatentRepair and maintenance
expenseTruck
P7-3P7-3 Evaluating Four Alternative Inventory Methods Based
on Income and Cash Flow LO7-2, 7-3At the end of January
2014, the records of Donner Company showed the following for
a particular item that sold at $16 per
unit:Transactions UnitsAmount Inventory, January 1,
2014500$ 2,365 Purchase, January 126003,600 Purchase,
January 261601,280 Sale(370) Sale(250)Required:1a.Compute
Cost of Goods Sold under each method of inventory: average
cost, FIFO, LIFO, and specific identification. For specific
identification, assume that the first sale was selected from the
beginning inventory and the second sale was selected from the
January 12 purchase. (Round unit price to 2 decimal places.
Input all amounts as positive values.)Input areas are
shaded.Average CostCost of Good Available for SaleCost of
Goods Sold# of UnitsCost per UnitCost of Goods Available for
Sale# of Units SoldCost per UnitCost of Goods SoldBeginning
inventoryPurchases:January 12, 2014January 26,
2014TotalFIFOCost of Goods Available for SaleCost of Goods
Sold# of UnitsCost per UnitCost of Goods Available for Sale#
of Units SoldCost per UnitCost of Goods SoldBeginning
2014TotalLIFOCost of Goods Available for SaleCost of Goods
2014TotalSpecific IdentificationCost of Goods Available for
SaleCost of Goods Sold# of UnitsCost per UnitCost of Goods
Available for Sale# of Units SoldCost per UnitCost of Goods
SoldBeginning inventoryPurchases:January 12, 2014January 26,
2014TotalRequired:1b.Prepare a partial income statement under
each method of inventory: (a) average cost, (b) FIFO, (c) LIFO,
and (d) specific identification. For specific identification,
assume that the first sale was selected from the beginning

inventory and the second sale was selected from the January 12
purchase.DONNER COMPANYPartial Income StatementFor the
Month Ended January 31, 2014(a)(b)( c )(d)Average
CostFIFOLIFOSpecific IdentificationRequired:2a.FIFO and
LIFO, which method would result in the higher pretax
income?2b.FIFO and LIFO, which would result in the higher
EPS?3FIFO and LIFO, which method would result in the lower
income tax expense? Assume a 30 percent average tax
rate.4FIFO and LIFO, which method would produce the more
favorable cash flow?
P7-3 Check FiguresP7-3 Evaluating Four Alternative Inventory
Methods Based on Income and Cash Flow LO7-2, 7-3At the end
of January 2014, the records of Donner Company showed the
following for a particular item that sold at $16 per
unit:Transactions UnitsAmount Inventory, January 1,
2014500$ 2,365 Purchase, January 126003,600 Purchase,
January 261601,280 Sale(370) Sale(250)Required:1a.Compute
Cost of Goods Sold under each method of inventory: average
cost, FIFO, LIFO, and specific identification. For specific
identification, assume that the first sale was selected from the
beginning inventory and the second sale was selected from the
January 12 purchase. (Round unit price to 2 decimal places.
Input all amounts as positive values.)Input areas are
shaded.Average CostCost of Good Available for SaleCost of
Goods Sold# of UnitsCost per UnitCost of Goods Available for
Sale# of Units SoldCost per UnitCost of Goods SoldBeginning
2014TotalFIFOCost of Goods Available for SaleCost of Goods
inventory500$0Purchases:January 12, 2014600$0January 26,
2014160$0Total1,260$00LIFOCost of Goods Available for
SaleCost of Goods Sold# of UnitsCost per UnitCost of Goods
Available for Sale# of Units SoldCost per UnitCost of Goods
SoldBeginning inventory500Purchases:January 12,
2014600January 26, 2014160Total1,260$ - 00$ 4,040Specific

IdentificationCost of Goods Available for SaleCost of Goods
inventory500Purchases:January 12, 2014600January 26,
2014160Total1,260$ - 00Required:2a.FIFO and LIFO, which
method would result in the higher pretax income?2b.FIFO and
LIFO, which would result in the higher EPS?3FIFO and LIFO,
which method would result in the lower income tax expense?
Assume a 30 percent average tax rate.4FIFO and LIFO, which
method would produce the more favorable cash flow?
Sheet2List1FIFOLIFO
Appendix C at the end of this book.Required:1. What method of
depreciation does the company use?2. What is the amount of
accumulated depreciation and amortization at the end of the
most recent
reporting year?3. For depreciation purposes, what is the
estimated useful life of furniture and fixtures?4. What was the
original cost of leasehold improvements owned by the company
at the end of the most
recent reporting year?5. What amount of depreciation and
amortization was reported as expense for the most recent
reporting year?6. What is the company’s fixed asset turnover
ratio for the most recent year? What does it suggest?
given in Appendix C at the end of this book.Required:1. What
method of depreciation does the company use?2. What is the
amount of accumulated depreciation and amortization at the end
of the most recent
reporting year?3. For depreciation purposes, what is the
estimated useful life of furniture and fixtures?4. What was the
original cost of leasehold improvements owned by the company
at the end of the most

recent reporting year?5. What amount of depreciation and
amortization was reported as expense for the most recent
reporting year?6. What is the company’s fixed asset turnover
ratio for the most recent year? What does it suggest?3.89
Sheet2List 1Specific identificationFirst-in, first-out Last-in,
first-outAverage cost
P4-7P4-7 Recording Adjusting and Closing Entries and
Preparing a Balance Sheet and Income Statement Including
Earnings per Share LO4-1, 4-2, 4-4Tunstall, Inc., a small
service company, keeps its records without the help of an
accountant. After much effort, an outside accountant prepared
the following unadjusted trial balance as of the end of the
annual accounting period, December 31, 2014:Account
TitlesDebitCredit Cash$ 42,000 Accounts
receivable11,600 Supplies900 Prepaid insurance800 Service
trucks19,000 Accumulated depreciation$ 9,200 Other
assets8,300 Accounts payable3,000 Wages payable Income
taxes payable Note payable (3 years; 10% interest due each
December 31)17,000 Common stock (5,000 shares
outstanding)400 Additional paid-in capital19,000 Retained
earnings6,000 Service revenue61,360 Remaining expenses (not
detailed; excludes income tax)33,360 Income tax
expense Totals$ 115,960$ 115,960Data not yet recorded at
December 31, 2014, included:a.The supplies count on December
31, 2014, reflected $300 remaining supplies on hand to be used
in 2015.b.Insurance expired during 2014, $800.c.Depreciation
expense for 2014, $3,700.d.Wages earned by employees not yet
paid on December 31, 2014, $640.e.Income tax expense,
$5,540.Required:1Record the 2014 adjusting entries. (If no
entry is required for a transaction/event, select "No journal
entry required" in the first account field.)TransactionGeneral
JournalDebitCredita.b.c.d.e.Required:2-a.Prepare an income
statement that includes the effects of the preceding five
transactions. (Round "Earnings per share" to 2 decimal
places.)TUNSTALL, INC.Income StatementFor the Year Ended

December 31, 2014Operating revenue:Operating expenses:Total
expenses-Earnings per shareRequired:2-b.Prepare a classified
balance sheet that includes the effects of the preceding five
transactions. (Amounts to be deducted should be indicated by a
minus sign.)TUNSTALL, INC.Balance SheetAt December 31,
2014AssetsLiabilities and Stockholders’ EquityCurrent
assets:Current liabilities:Total current assets-Total current
liabilities-Total liabilities-Stockholders' equity:Total
stockholders' equity-Total assets$ -Total liabilities and
stockholders' equity$ -Required:3Record the 2014 closing
entry. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account
field.)TransactionGeneral JournalDebitCredit1
P4-7 Check FiguresP4-7 Recording Adjusting and Closing
Entries and Preparing a Balance Sheet and Income Statement
Including Earnings per Share LO4-1, 4-2, 4-4Tunstall, Inc., a
small service company, keeps its records without the help of an
accountant. After much effort, an outside accountant prepared
the following unadjusted trial balance as of the end of the
annual accounting period, December 31, 2014:Account
TitlesDebitCredit Cash$ 42,000 Accounts
receivable11,600 Supplies900 Prepaid insurance800 Service
trucks19,000 Accumulated depreciation$ 9,200 Other
assets8,300 Accounts payable3000 Wages payable Income
taxes payable Note payable (3 years; 10% interest due each
December 31)17000 Common stock (5,000 shares
outstanding)400 Additional paid-in capital19000 Retained
earnings6000 Service revenue61360 Remaining expenses (not
detailed; excludes income tax)33,360 Income tax
expense Totals$ 115,960$ 115,960Data not yet recorded at
December 31, 2014, included:a.The supplies count on December
31, 2014, reflected $300 remaining supplies on hand to be used
in 2015.b.Insurance expired during 2014, $800.c.Depreciation
expense for 2014, $3,700.d.Wages earned by employees not yet
paid on December 31, 2014, $640.e.Income tax expense,
$5,540.Required:1Record the 2014 adjusting entries. (If no

entry is required for a transaction/event, select "No journal
entry required" in the first account field.)TransactionGeneral
JournalDebitCredita.b.c.d.e.Required:2-a.Prepare an income
statement that includes the effects of the preceding five
transactions. (Round "Earnings per share" to 2 decimal
places.)TUNSTALL, INC.Income StatementFor the Year Ended
December 31, 2014Operating revenue:Operating expenses:Total
expenses- 0Net income$16,720Earnings per shareRequired:2-
b.Prepare a classified balance sheet that includes the effects of
the preceding five transactions. (Amounts to be deducted should
be indicated by a minus sign.)TUNSTALL, INC.Balance
SheetAt December 31, 2014AssetsLiabilities and Stockholders’
EquityCurrent assets:Current liabilities:Total current assets-
0Total current liabilities- 0Total liabilities- 0Stockholders'
equity:Total stockholders' equity- 0Total assets$ - 0Total
liabilities and stockholders' equity$ - 0Required:3Record the
2014 closing entry. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)TransactionGeneral JournalDebitCredit1
Sheet2List 1List 2List 2Balance SheetList 3List 4No journal
entry requiredAccounts payableAccounts payableNet
incomeOperating incomeAccounts payableAccounts
receivableAccounts receivableNet lossOperating lossAccounts
receivableAccrued expenses payableAccrued expenses
payableAccrued expenses payableAccumulated
depreciationAccumulated depreciationAccumulated
depreciationAdditional paid-in capitalAdditional paid-in
capitalAdditional paid-in capitalAdvertising expenseAdvertising
expenseAdvertising expenseCashCashCashCommission
expenseCommission expenseCommission expenseCommon
stockCommon stockCommon stockConsulting
expenseConsulting expenseConsulting expenseCost of goods
soldCost of goods soldCost of goods soldDepreciation
expenseDepreciation expenseDepreciation
expenseEquipmentEquipmentEquipmentFee revenueFee
revenueFee revenueGain on sale of landGain on sale of

landGain on sale of landIncome taxes expenseIncome taxes
expenseIncome taxes expenseIncome taxes payableIncome taxes
payableIncome taxes payableInsurance expenseInsurance
expenseInsurance expenseInterest expenseInterest
expenseInterest expenseInterest payableInterest payableInterest
payableInterest receivableInterest receivableInterest
receivableInterest revenueInterest revenueInterest
revenueInventoryInventoryInventoryInvestmentsInvestmentsInv
estmentsLandLandLandLong-term debtLong-term debtLong-
term debtMaintenance expenseMaintenance
expenseMaintenance expenseNotes payableNotes payable, long-
termNotes payableNotes payable, long-termNotes
receivableNotes payable, long-termNotes receivableOther
assetsNotes receivableOther assetsPrepaid expensesOther
assetsPrepaid insurancePrepaid rentPrepaid insurancePrepaid
rentProperty tax expensePrepaid rentProperty tax
expenseProperty tax payableProperty tax expenseProperty tax
payableProperty, plant and equipmentProperty tax
payableProperty, plant and equipmentRemaining expenses (not
detailed)Property, plant and equipmentRemaining expenses (not
detailed)Rent expenseRent expenseRent expenseRent
receivableRent receivableRent receivableRent revenueRent
revenueRent revenueRepairs expenseRepairs expenseRepairs
expenseResearch and development expenseResearch and
development expenseResearch and development
expenseRetained earningsRetained earningsRetained
earningsSalaries expenseSales revenueSalary expenseSales
revenueService revenueSales revenueService
revenueSuppliesService revenueService trucksSupplies
expenseSuppliesSuppliesUnearned revenueSupplies
expenseSupplies expenseUtilities expenseUnearned
revenueUnearned revenueUtilities payableUtilities
expenseUtilities expenseWages expenseUtilities
payableUtilities payableWages payableWages expenseWages
expenseWages payableWages payable

P3-4P3-4 Analyzing the Effects of Transactions Using T-
Accounts, Preparing an Income Statement, and Evaluating the
Net Profit Margin Ratio as a Manager LO3-4, 3-5, 3-6Kaylee
James, a connoisseur of fine chocolate, opened Kaylee’s Sweets
in Collegetown on February 1, 2014. The shop specializes in a
selection of gourmet chocolate candies and a line of gourmet ice
cream. You have been hired as manager. Your duties include
maintaining the store’s financial records. The following
transactions occurred in February 2014, the first month of
operations.a.Received four shareholders’ contributions totaling
$30,200 cash to form the corporation; issued 400 shares of $.10
par value common stock.b.Paid three months' rent for the store
at $1,750 per month (recorded as prepaid expenses).c.Purchased
and received candy for $6,000 on account, due in 60
days.d.Purchased supplies for $1,560 cash.e.Negotiated and
signed a two-year $11,000 loan at the bank.f.Used the money
from (e) to purchase a computer for $2,750 (for recordkeeping
and inventory tracking); used the balance for furniture and
fixtures for the store.g.Placed a grand opening advertisement in
the local paper for $400 cash; the ad ran in the current
month.h.Made sales on Valentine's Day totaling $3,500; $2,675
was in cash and the rest on accounts receivable. The cost of the
candy sold was $1,600.i.Made a $550 payment on accounts
payable.j.Incurred and paid employee wages of
$1,300.k.Collected accounts receivable of $600 from
customers.l.Made a repair to one of the display cases for $400
cash.m.Made cash sales of $1,200 during the rest of the month.
The cost of the candy sold was $600.Required:1 & 2.Record in
the T-accounts the effects of each transaction for Kaylee’s
Sweets in February, referencing each transaction in the accounts
with the transaction letter. Show the ending balances in the T-
accounts. An example amount has been posted to the Cash T-
Account from transaction (l).CashAccounts ReceivableBeg.
bal.Beg. bal.400(l)End. bal.End. bal.400SuppliesInventoryBeg.
bal.Beg. bal.End. bal.End. bal.Prepaid ExpensesEquipmentBeg.
bal.Beg. bal.End. bal.End. bal.Furniture and FixturesAccounts

PayableBeg. bal.Beg. bal.End. bal.End. bal.Notes
PayableCommon StockBeg. bal.Beg. bal.End. bal.End.
bal.Additional Paid-in CapitalSales RevenueBeg. bal.Beg.
bal.End. bal.End. bal.Cost of Goods SoldRepair ExpenseBeg.
bal.Beg. bal.End. bal.End. bal.Advertising ExpenseWage
ExpenseBeg. bal.Beg. bal.End. bal.End. bal.Required:3Prepare
an income statement at the end of the month ended February 28,
2014.KAYLEE’S SWEETSIncome Statement (unadjusted)For
the Month Ended February 28, 2014Revenues:Expenses:Total
cost and expenses-Required:5After three years in business, you
are being evaluated for a promotion. One measure is how
effectively you managed the sales and expenses of the business.
The following data are available: 2016* 2015
2014 Total assets$ 88,000$ 58,500$ 52,500 Total
liabilities49,50022,00018,500 Total stockholders’
equity38,50036,50034,000 Net sale
revenue93,50082,50055,000 Net income22,00011,0004,400* At
the end of 2016, Kaylee decided to open a second store,
requiring loans and inventory purchases prior to the store’s
opening in early 2017.5-a.Calculate the net profit margin ratio
for each year. (Round your answers to 1 decimal place.)Net
Profit Margin Ratio2016%2015%2014%5-b.Do you think you
should be promoted?
YES
NO
P3-4 Check FiguresP3-4 Analyzing the Effects of Transactions
Using T-Accounts, Preparing an Income Statement, and
Evaluating the Net Profit Margin Ratio as a Manager LO3-4, 3-
5, 3-6Kaylee James, a connoisseur of fine chocolate, opened
Kaylee’s Sweets in Collegetown on February 1, 2014. The shop
specializes in a selection of gourmet chocolate candies and a
line of gourmet ice cream. You have been hired as manager.
Your duties include maintaining the store’s financial records.
The following transactions occurred in February 2014, the first
month of operations.a.Received four shareholders’ contributions
totaling $30,200 cash to form the corporation; issued 400 shares

of $.10 par value common stock.b.Paid three months' rent for
the store at $1,750 per month (recorded as prepaid
expenses).c.Purchased and received candy for $6,000 on
account, due in 60 days.d.Purchased supplies for $1,560
cash.e.Negotiated and signed a two-year $11,000 loan at the
bank.f.Used the money from (e) to purchase a computer for
$2,750 (for recordkeeping and inventory tracking); used the
balance for furniture and fixtures for the store.g.Placed a grand
opening advertisement in the local paper for $400 cash; the ad
ran in the current month.h.Made sales on Valentine's Day
totaling $3,500; $2,675 was in cash and the rest on accounts
receivable. The cost of the candy sold was $1,600.i.Made a
$550 payment on accounts payable.j.Incurred and paid employee
wages of $1,300.k.Collected accounts receivable of $600 from
customers.l.Made a repair to one of the display cases for $400
cash.m.Made cash sales of $1,200 during the rest of the month.
The cost of the candy sold was $600.Required:1 & 2.Record in
the T-accounts the effects of each transaction for Kaylee’s
Sweets in February, referencing each transaction in the accounts
with the transaction letter. Show the ending balances in the T-
accounts. An example amount has been posted to the Cash T-
Account from transaction (l).CashAccounts ReceivableBeg.
bal.Beg. bal.400(l)End. bal.End. bal.SuppliesInventoryBeg.
bal.Beg. bal.End. bal.End. bal.Prepaid ExpensesEquipmentBeg.
bal.Beg. bal.End. bal.End. bal.Furniture and FixturesAccounts
PayableBeg. bal.Beg. bal.End. bal.End. bal.Notes
PayableCommon StockBeg. bal.Beg. bal.End. bal.End.
bal.Additional Paid-in CapitalSales RevenueBeg. bal.Beg.
bal.End. bal.End. bal.Cost of Goods SoldRepair ExpenseBeg.
bal.Beg. bal.End. bal.End. bal.Advertising ExpenseWage
ExpenseBeg. bal.Beg. bal.End. bal.End. bal.Required:3Prepare
an income statement at the end of the month ended February 28,
2014.KAYLEE’S SWEETSIncome Statement (unadjusted)For
the Month Ended February 28, 2014Revenues:Expenses:Total
cost and expenses0Net income$400Required:5After three years
in business, you are being evaluated for a promotion. One

measure is how effectively you managed the sales and expenses
of the business. The following data are available: 2016*
2015 2014 Total assets$ 88,000 $ 58,500 $ 52,500
Total liabilities49,500 22,000 18,500 Total stockholders’
equity38,500 36,500 34,000 Net sale revenue93,500 82,500
55,000 Net income22,000 11,000 4,400 * At the end of
2016, Kaylee decided to open a second store, requiring loans
and inventory purchases prior to the store’s opening in early
2017.5-a.Calculate the net profit margin ratio for each year.
(Round your answers to 1 decimal place.)Net Profit Margin
Ratio2016%2015%2014%5-b.Do you think you should be
promoted?
YES
NO
Sheet2List 12112(a)Net incomeAccounts payable(b)Net
lossAccounts receivable(c)Additional paid-in-
capital(d)Advertising expense(e)Cash(f)Commission
expense(g)Common stock(h)Consulting expense(i)Cost of goods
sold(j)Equipment(k)Fuel expense(l)Games revenue(m)Insurance
expenseInterest expenseInterest
revenueInventoryLandMiscellaneous expensesNotes payable
(long-term)Notes payable (short-term)Prepaid expensesRent
expenseRent revenueRepair expenseRetained earningsSales
revenueSuppliesSupplies expenseUnearned revenueUtilities
expenseWage expenseWages payable
P2-3P2-3 Recording Transactions in T-Accounts, Preparing the
Balance Sheet from a Trial Balance, and Evaluating the Current
Ratio LO2-2, 2-4, 2-5Cougar Plastics Company has been
operating for three years. At December 31, 2014, the accounting
records reflected the following: Cash$22,000Accounts
payable$15,000 Investments (short-term)3,000Accrued
liabilities payable4,000 Accounts receivable3,000Notes
payable (short-term)7,000 Inventory20,000Long-term notes
payable47,000 Notes receivable (long-term)1,000Common
stock10,000 Equipment50,000Additional paid-in

capital80,000 Factory building90,000Retained
earnings31,000 Intangibles5,000During the year 2015, the
company had the following summarized activities:a.Purchased
short-term investments for $10,000 cash.b.Lent $5,000 to a
supplier who signed a two-year note.c.Purchased equipment that
cost $18,000; paid $5,000 cash and signed a one-year note for
the balance.d.Hired a new president at the end of the year. The
contract was for $85,000 per year plus options to purchase
company stock at a set price based on company
performance.e.Issued an additional 2,000 shares of $0.50 par
value common stock for $11,000 cash.f.Borrowed $9,000 cash
from a local bank, payable in three months.g.Purchased a patent
(an intangible asset) for $3,000 cash.h.Built an addition to the
factory for $24,000; paid $8,000 in cash and signed a three-year
note for the balance.i.Returned defective equipment to the
manufacturer, receiving a cash refund of $1,000.Required:1. &
2.Record each necessary entry for the events in 2015 in T-
accounts (including referencing) and determine the ending
balances. The balances at the end of 2014 have been entered as
beginning balances for 2015.(Transaction (a) has been
completed in the T-accounts as an example.)CashInvestments
(short-term)Beg. Bal.22,000Beg.
Bal.3,00010,000(a)(a)10,000End. Bal.13,000End.
Bal.12,000Accounts ReceivableInventoryBeg. Bal.3,000Beg.
Bal.20,000End. Bal.3,000End. Bal.20,000Notes Receivable
(long-term)EquipmentBeg. Bal.1,000Beg. Bal.50,000End.
Bal.1,000End. Bal.50,000Factory BuildingIntangiblesBeg.
Bal.90,000Beg. Bal.5,000End. Bal.90,000End.
Bal.5,000Accounts PayableAccrued Liabilities PayableBeg.
Bal.15,000Beg. Bal.4,000End. Bal.15,000End. Bal.4,000Notes
Payable (short-term)Long-Term Notes PayableBeg.
Bal.47,000Common StockAdditional Paid-in CapitalBeg.
Bal.80,000Retained EarningsBeg. Bal.31,000End.
Bal.31,000Required:4Prepare a trial balance at December 31,

2015.COUGAR PLASTICS COMPANYTrial BalanceAt
December 31, 2015Account TitlesDebitCreditCashInvestments
(short-term)Accounts receivableInventoryNotes receivable
(long-term)EquipmentFactory buildingIntangiblesAccounts
payableAccrued liabilities payableNotes payable (short-
term)Notes payable (long-term)Common stockAdditional paid-
in capitalRetained earningsTotals$ -$ -Required:5Prepare a
classified balance sheet at December 31, 2015.COUGAR
PLASTICS COMPANYBalance SheetAt December 31,
2015AssetsLiabilitiesCurrent assets:Current liabilities:Total
current liabilities-Total current assets-Non-current assets:Total
liabilities-Stockholders' EquityTotal non-current assets-Total
stockholders' equity-Total assets$ -Total liabilities and
stockholders' equity$ -Required:6 Compute the current ratio
for 2015. (Round your answer to 2 decimal places.)Current ratio
P2-3 Check FiguresP2-3 Recording Transactions in T-Accounts,
Preparing the Balance Sheet from a Trial Balance, and
Evaluating the Current Ratio LO2-2, 2-4, 2-5Cougar Plastics
Company has been operating for three years. At December 31,
2014, the accounting records reflected the
following: Cash$22,000Accounts payable$15,000 Investments
(short-term)3,000Accrued liabilities payable4,000 Accounts
receivable3,000Notes payable (short-
term)7,000 Inventory20,000Long-term notes
payable47,000 Notes receivable (long-term)1,000Common
stock10,000 Equipment50,000Additional paid-in
capital80,000 Factory building90,000Retained
earnings31,000 Intangibles5,000During the year 2015, the
company had the following summarized activities:a.Purchased
short-term investments for $10,000 cash.b.Lent $5,000 to a
supplier who signed a two-year note.c.Purchased equipment that
cost $18,000; paid $5,000 cash and signed a one-year note for
the balance.d.Hired a new president at the end of the year. The
contract was for $85,000 per year plus options to purchase
company stock at a set price based on company
performance.e.Issued an additional 2,000 shares of $0.50 par

value common stock for $11,000 cash.f.Borrowed $9,000 cash
from a local bank, payable in three months.g.Purchased a patent
(an intangible asset) for $3,000 cash.h.Built an addition to the
factory for $24,000; paid $8,000 in cash and signed a three-year
note for the balance.i.Returned defective equipment to the
manufacturer, receiving a cash refund of $1,000.Required:1. &
2.Record each necessary entry for the events in 2015 in T-
accounts (including referencing) and determine the ending
balances. The balances at the end of 2014 have been entered as
beginning balances for 2015.(Transaction (a) has been
completed in the T-accounts as an example.)CashInvestments
(short-term)Beg. Bal.22,000Beg.
Bal.3,00010,000(a)(a)10,0003,000(g)End. Bal.End.
Bal.Accounts ReceivableInventoryBeg. Bal.3,000Beg.
Bal.20,000End. Bal.End. Bal.Notes Receivable (long-
term)EquipmentBeg. Bal.1,000Beg. Bal.50,000End. Bal.End.
Bal.Factory BuildingIntangiblesBeg. Bal.90,000Beg.
Bal.5,000(g)3,000End. Bal.End. Bal.Accounts PayableAccrued
Liabilities PayableBeg. Bal.15,000Beg. Bal.4,000End. Bal.End.
Bal.Notes Payable (short-term)Long-Term Notes PayableBeg.
Bal.7,000Beg. Bal.47,000End. Bal.End. Bal.Common
StockAdditional Paid-in CapitalBeg. Bal.10,000Beg.
Bal.80,000End. Bal.End. Bal.Retained EarningsBeg.
Bal.31,000End. Bal.Required:4Prepare a trial balance at
December 31, 2015.COUGAR PLASTICS COMPANYTrial
BalanceAt December 31, 2015Account
TitlesDebitCreditCashInvestments (short-term)Accounts
receivableInventoryNotes receivable (long-
term)EquipmentFactory buildingIntangiblesAccounts
payableAccrued liabilities payableNotes payable (short-
term)Notes payable (long-term)Common stockAdditional paid-
in capitalRetained earningsTotals$243,000$0Required:5Prepare
a classified balance sheet at December 31, 2015.COUGAR
PLASTICS COMPANYBalance SheetAt December 31,
2015AssetsLiabilitiesCurrent assets:Current liabilities:Total
current liabilities- 0Total current assets- 0Non-current

assets:Total liabilities0Stockholders' EquityTotal non-current
assets- 0Total stockholders' equity- 0Total assets$ - 0Total
liabilities and stockholders' equity$ - 0Required:6 Compute
the current ratio for 2015. (Round your answer to 2 decimal
places.)Current ratio
Sheet6V1Y1(a)Accounts payable(b)Accounts
receivable(c)Accrued liabilities payable(d)Additional paid-in
capital(e)Cash(f)Common stock(g)Dividends
payable(h)Equipment(i)Factory
buildingIntangiblesInventoryInvestmentsLandLong-term
debtLong-term investmentsLong-term notes payableMortgage
notes payableNotes payable (long-term)Notes payable (short-
term)Notes receivable (long-term)Notes receivable (short-
term)Other current assetsOther Noncurrent AssetsOther
stockholders' equity itemsRetained earningsStore fixtures
P1-1P1-1 Preparing an Income Statement, Statement of
Stockholders Equity, and Balance Sheet LO1-1Assume that you
are the president of Highlight Construction Company. At the
end of the first year (December 31, 2014) of operations, the
following financial data for the company are
available: Cash$25,600 Receivables from customers (all
considered collectible)10,800 Inventory of merchandise (based
on physical count and priced at cost)81,000 Equipment owned,
at cost less used portion42,000 Accounts payable owed to
suppliers46,140 Salary payable for 2014 (on December 31,
2014, this was owed to an employee2,520 who was away
because of an emergency; will return around January 10,
2015, at which time the payment will be made) Total sales
revenue128,400 Expenses, including the cost of the
merchandise sold (excluding income taxes)80,200 Income taxes
expense at 30% × pretax income; all paid during 2014?
Common stock (December 31, 2014)87,000 Dividends
declared and paid during 201410,000(Note: The beginning
balances in Common stock and Retained earnings are zero
because it is the first year of operations.)Required:1. Prepare a

summarized income statement for the year 2014.HIGHLIGHT
CONSTRUCTION COMPANYIncome StatementFor the Year
Ended December 31, 20142. Prepare a statement of
stockholders' equity for the year 2014HIGHLIGHT
CONSTRUCTION COMPANYStatement of Stockholders’
EquityFor the Year Ended December 31, 2014Common
StockRetained EarningsBalance December 31, 2013Balance
December 31, 20143. Prepare a balance sheet at December 31,
2014.HIGHLIGHT CONSTRUCTION COMPANYBalance
SheetAt December 31, 2014AssetsTotal assets$ -
LiabilitiesTotal liabilities$ -Stockholders' EquityTotal
stockholders' equity$ -Total liabilities and stockholders'
equity$ -
Check FiguresP1-1 Preparing an Income Statement, Statement
of Stockholders Equity, and Balance Sheet LO1-1Assume that
you are the president of Highlight Construction Company. At
the end of the first year (December 31, 2014) of operations, the
following financial data for the company are
available: Cash$25,600 Receivables from customers (all
considered collectible)10,800 Inventory of merchandise (based
on physical count and priced at cost)81,000 Equipment owned,
at cost less used portion42,000 Accounts payable owed to
suppliers46,140 Salary payable for 2014 (on December 31,
2014, this was owed to an employee2,520 who was away
because of an emergency; will return around January 10,
2015, at which time the payment will be made) Total sales
revenue128,400 Expenses, including the cost of the
merchandise sold (excluding income taxes)80,200 Income taxes
expense at 30% × pretax income; all paid during 2014?
Common stock (December 31, 2014)87,000 Dividends
declared and paid during 201410,000(Note: The beginning
balances in Common stock and Retained earnings are zero
because it is the first year of operations.)Required:1. Prepare a
summarized income statement for the year 2014.HIGHLIGHT
CONSTRUCTION COMPANYIncome StatementFor the Year
Ended December 31, 2014Net income$27,1602. Prepare a

statement of stockholders' equity for the year 2014HIGHLIGHT
CONSTRUCTION COMPANYStatement of Stockholders’
EquityFor the Year Ended December 31, 2014Common
StockRetained EarningsBalance December 31, 2013Balance
December 31, 20143. Prepare a balance sheet at December 31,
2014.HIGHLIGHT CONSTRUCTION COMPANYBalance
SheetAt December 31, 2014AssetsTotal assets$
159,400LiabilitiesTotal liabilities$ -Stockholders' EquityTotal
stockholders' equity$ -Total liabilities and stockholders'
equity$ -
Sheet2list1list2name new listFinancial StatementsAccounts
payableNet incomePretax incomeAuditor's
ReportincreasedCashNet lossPretax lossBalance
SheetdecreasedCommon stockIncome StatementEquipmentAdd:
Net IncomeNotes to Financial StatementsIncome tax
expenseAdd: Net lossStatement of Cash FlowsIncome taxes
payableLess: Net incomeStatement of Shareholders'
EquityInterest payableLess: Net lossInventory of
merchandiseInvestmentsAdd: DividendsLong-term debtLess:
DividendsNote payableReceivables from customersRetained
earningsSalary payableStock issuanceTotal expensesTotal sales
revenue
CP1-2CP1-2 Finding Financial Information LO 1-1Refer to the
financial statements of Urban Outfitters in Appendix C at the
end of this book.Required:1. What is the amount of net income
for the most recent year?Net incomeThis information can be
found on the2. What amount of revenue was earned in the most
recent year?Net salesThis information can be found on the3.
How much inventory (in dollars) does the company have as of
January 31, 2012?InventoryThis information can be found on
the4. By what amount did cash and cash equivalents * change
during the most recent year?Cash and Cash EquivalentsbyThis
information can be found on the5. Who is the auditor for the
company?* Cash equivalents are short-term investments readily
convertible to cash whose value is unlikely to change.

Check FiguresCP 1-2 Finding Financial
InformationRequirement 2: Net Sales = $2,473,801,000.
Sheet2list1list2name new listFinancial StatementsAccounts
payableNet incomePretax incomeAuditor's
ReportincreasedCashNet lossPretax lossBalance
SheetdecreasedCommon stockIncome StatementEquipmentAdd:
Net IncomeNotes to Financial StatementsIncome tax
expenseAdd: Net lossStatement of Cash FlowsIncome taxes
payableLess: Net incomeStatement of Shareholders'
EquityInterest payableLess: Net lossInventory of
merchandiseInvestmentsAdd: DividendsLong-term debtLess:
DividendsNote payableReceivables from customersRetained
earningsSalary payableStock issuanceTotal expensesTotal sales
revenue
[Type text] [Type text] [Type text]
8
Running Head: Leadership Analysis
Leadership Analysis
Learner, Bea
MPA 5410-Strategic Management and Planning
Capella University

Sample: This was an “A” paper for MPA5410: u04a1
222 East Court
Fake City, CA. 22222
Telephone: (***) ***-****
Email: ____________
Instructor: Dr. Linda Roseburr
Introduction
In the article, “Quality Communication: A Key to Quality
Leadership”, Spinks and Wells (1995) posit leadership is the
heart and soul of any organization and state that what leaders
really manage in the workplace is people. Leadership can be
defined as the ability to guide or direct others. Strategic
leadership requires creating meaning and purpose for the
organization and inspiring others to fulfill powerful mission and
vision statements to create lasting public value for the
organization (Bryson, 2011).
Public administrators must possess strong leadership
characteristics, communicate clearly, and demonstrate the
ability to motivate, inspire, and lead their staff to fulfill its
mission. Utilizing the transformational and trait theories of
leadership, leadership characteristics will be examined that
assess the strengths needed for effective strategic planning
processes in public organization. Strategic learning will be
evaluated, and an analysis of benefits and challenges that
confront leaders in the ability to enhance strategic planning in
the public sector will be provided.
Explain the Theories and Role of Leadership in the Strategic
Planning Process for Public Organizations
The transformational style of leadership generally inspires
positive change from followers. The style has been defined by
Bass (1985), as a process in which leaders increase their

follower’s awareness about what the desired behavior or
outcome is, and motivates them to supersede the leader’s
expectation (as cited in Lee et. al, 2010, p. 35). A strong
transformational leader is always looking for ways to coach and
enhance skill development, so staff will feel good about the
work being produced, understand the purpose for the work, and
feel inspired to fulfill the organization’s mission and vision.
Strong communication skills are also necessary and
transformational leaders value open communication. This
leadership style blends very nicely with Bryson’s 10-step
Strategy Change Cycle. Leaders must first identify key
stakeholders and then must obtain “buy-in” to the process.
Transformational leaders make good strategic leaders.
Identifying where an organization needs to start and obtaining a
consensus is not always easy but worthwhile in the end
(McClamrock, J., Byrd, J.J, & Sowell, S. L., 2001). If public
administrators do not communicate the value of mission and
setting agreed upon goals and strategies, many stakeholders will
not buy in to the need to participate. This is fundamental for the
process to be successful.
Leadership is the ability to motivate and inspire people to work
together to achieve shared goals (Spinks and Wells, 1995).
These leadership skills are necessary to implement a successful
strategic planning process throughout an organization
Transformational leaders are thought to be creative, risk takers,
and innovative (Mathew, 2009). Research has shown a
connection between creativity and leadership; both creators and
leaders tend to demonstrate similar personality traits. Strategic
leadership success can be linked to those who have high levels
of creativity and provide a vision, sense of mission, and the
ability to be a role model for their staff (Mathew, 2009).
Strategic leaders are willing to take risks and try new strategies,
which are attributes of the transformational theory of
leadership.
Because public sector leaders must make many tough
decisions every day, other necessary traits that must be

possessed are intelligence, self-confidence, and the ability to be
independent. Further, strong strategic leaders must also have an
extremely high work ethic and demonstrate strong values of
doing what is right (legally, ethically, and morally), which are
dominate characteristics associated with the trait theory of
leadership. The trait theory is based on the concept that a leader
is born, and disputes that leadership skills are learned. Scholars
that support this theory posit, leaders have an innate superiority
and are genetically predisposed to positions of authority and
power (Cragg & Spurgeon, 2007). Many leadership scholars
question if leadership is a personality trait, or a trait some
leaders obtain by birth. Locke (1991) posits both are true; some
people are born with leadership traits while others must learn
them (as cited in Lee et. al, 2010). Mathew (2009) states,
“leadership is indisputably a multidimensional phenomenon”
(31). This means that while leaders may have a dominant
leadership style, successful strategic leaders must possess an
understanding of what leadership characteristics are best suited
for the environment, the issue, and individuals they are working
with, to be highly effective at implementing strategies and ideas
during the strategic planning cycle.
Analyze What is Uniquely Required for a Public Organization
and its Leader to Think Strategically
Today public administrators are asked to balance
competing sources of authority, manage people and projects
without direct supervision, and create innovative, strategic
solutions to complex social problems (Holmes, 2009, p. 254).
Public sector organizations must also develop successful ways
to meet the organization’s purpose of delivering services timely
to citizens regardless of budget cuts and programmatic changes.
Given the rapid political and environmental changes occurring
within the public sector today, public sector leaders must
become effective strategists in an effort to achieve its missions,
fulfill mandates, meet consumer’s needs, and create sustainable
public value (Bryson, 2011, xii).

Analyzing data and problem solving requires forward thinking
and public sector leaders must know how to think, act, and learn
strategically. Strategic thinking is defined by Bryson (2011) as
“thinking in context about how to pursue purposes or achieve
goals” (p. 14). Strategic thinking involves “synthesis –
encouraging intuitive, innovative and creative thinking at all
levels” (as cited in Graetz, 2002, pg. 456). Strategic thinking is
a process that takes time to develop. Learning, experiencing,
and having a strong strategic thinking mentor are all important
activities that take place on one’s leadership journey. There is
disagreement among leadership theorists about whether leaders
are born with inherent abilities to lead (trait theorists) and those
that argue leadership is a learned skill, however both sides
agree that these skills and abilities must be enhanced as part of
management development (Goldman, 2007).
In child welfare, there is a need for skilled leadership to take
over in the coming years as many former Directors will be
retiring and leaving the field. Strategic succession planning
must take place so that new leadership can learn from
experienced managers the art of strategic thinking. Learning to
handle many of the work force issues required of public
administrators comes with experience by implementing
coaching and mentoring from experienced managers can also be
helpful. Learning how to navigate budget reductions and flat
funding while not compromising child safety, meeting
mandates, and serving the community requires organizational
leaders to think in terms of Bryson’s preferred process of
strategic thinking. Learning how to prioritize needs, develop
create ideas, achieve goals, and meet the overall organization’s
mission are things new leaders must learn in order to be lead
their organization. One must think, learn, and act strategically
to be a successful public administrator.
Discuss the Benefits of Leadership in Enhancing the
Effectiveness of the Strategic Planning Function
Public administrators must possess strong leadership

characteristics, communicate clearly, and demonstrate the
ability to motivate, inspire, and lead their staff to task
completion. Leadership is one of the most important
components of management. Brumm and Drury (2013) state of
all the areas where a leader should show competency, planning
the direction in which one is leading is the most important (p.
17). Effective leadership that possess strong communication
skills is also necessary because having deliberate conversations
about the overall purpose of the organization and how to set
strategic goals, and developing plans to achieve them are
clearly benefits to the planning process.
Strategic thinking is a conceptual, systems-oriented approach
used to change the future direction of an agency by moving out
of the past (Goldman, 2007). Strategic leaders look forward in
time to set the direction for the organization. A survey
conducted by Hughes in 1998 quoted an experienced executive
as saying, “if you don’t take care of the present, you will not
have a future” (as cited in Bass, 2007, p. 35). Strong
organizational leaders must implement strategic thinking to
write policies, define purpose, set goals, implement strategies,
and acquire resources for their organizations to move forward to
meet needs and create sustainable public value.
Public sector leaders must also make decisions everyday to
move their organizations forward and meet the needs of their
community. The strategic planning process allows leaders to set
priorities and build strategies to address issues and concerns.
Bass (2007) posits effective strategies depend on effective
decision-making (p. 43). Another benefit to applying the
strategic planning process to a public sector organization is
strengthened decision-making. Determining the most critical
issues within an organization, prioritizing each issue, and
identifying ways to solve them improve the overall decision-
making process. Bryson (2011) posits strategic planning can
improve organizational responsiveness, enhance overall
performance, and increase accountability (p. 17). This process
must be lead from a motivational and support leader with skills

in both communicating while still being action oriented.
Strong leadership requires the ability to process, analyze, and
plan. Knowing what to do and when to do it are additional
benefits strong organizational leaders bring to an effective
strategic planning process. Knowing how to package the
message can be the difference between stakeholder buy-in and
checking-out of the process. The State Deputy Director is a
strong motivational leader in California’s Child Welfare
System. When California moved to a statewide implementation
of Differential Response Model, communication and messaging
was critical. The Deputy Director was able to identify the
formal mandates (step-two of the Strategy Change Cycle) and
clarify the overall mission (step-three) of the state department
of keeping all kids safe from abuse. The message became one of
wrapping safety around every child in Ohio and asked
stakeholders for input on how to accomplish the statewide
rollout. This was a critical component in stakeholder buy-in and
it was how the message was delivered through effective and
thoughtful leadership that made the difference. Directors and
agencies throughout the state supported the radical shift in
practice and a leadership council was created to strategically
plan statewide implementation
Discuss the Challenges that Confront Leaders in their Ability to
Enhance the Effectiveness of the Strategic Planning Function
There have been many challenges in the twenty first century
that have changed the way public administration leaders do
business. Public administrators are being asked to do more; to
make their organizations more efficient, to produce better
outcomes that are measurable and sustainable, and serve more
people while at the same time doing it all with less resources.
To do this Public Administration leaders are required to make
decisions every day to meet the challenges of their organization
and the demands of the public in which they serve. As
Milakovich and Gordon (2014) posit, it is the making of these
decisions that is at the heart and soul of public administration

(p. 194). Public sector leaders make many decisions daily and
face challenges such as time restraints, budget restrictions, and
poor communication skills that greatly affect their ability to
enhance the effectiveness of the strategic planning function.
A strategic plan is a tool that provides direction for an
organization to fulfill its stated mission. It is important for
agency leadership to understand and support the organizational
vision, and adopt the identified value statements on the way to
achieve the mission (Senge, 2005). However, Kilpatrick and
Silverman (2005) posit, most nonprofit agencies do not take the
time or (can not) make the effort to keep updated vision
statements (p.24). Vision statements describe where an agency
wants to be or as Peter Senge (2005) states, vision is “a picture
or image of the future we seek to create” (p. 3). In this learner’s
experience, this has been found to be true. While trying to keep
up with the changing demographics and work objectives,
revising and trying to keep up with an organization’s mission
and vision statement can unfortunately be let go. A dedicated
team, who values the strategic planning process, cannot make
much progress without support from top leadership executives
or agency directors. Active participation or “buy-in” from an
organization’s director is critical for the staff to take strategic
planning seriously. Regardless of how long it takes a new
leadership to learn how to think strategically, there actions must
be supportive of the planning process (Mittenthal, 2002).
Budgets also play a huge role both at the initial stages, as well
as, implementation of any projects associated with the plan.
Without strong leadership support both participatory and
budgetary, the strategic planning process will be unsuccessful.
This learner has lived through a situation where a new Director
came in and made sweeping, agency-wide changes (some were
necessary) but the manner and approach was very authoritarian
in nature. Many workers struggled with the mass changes
because they felt disrespected and had no buy-in to the process.
There was no “planning to plan” or strategic thinking involved.
Had a strategic planning process been implemented, different

opinions and values been assessed, this learner believes the
reaction would have been very different. This learner thinks it
takes a strong, innovative leader to change the direction of an
organization. While not every decision leaders of public
organizations have to make will be popular, communicating the
reason and need, can make staff more understanding of the
process.
Finally other barriers that can confront leaders in their ability to
enhance the effectiveness of the strategic planning function are
federal and state mandates. Leaders must balance what is
legally and ethically required as well as what is in the best
interest of their staff and citizens in which they serve.
Conclusion
Strategic planning is a process public sector leaders use to
develop short and long-term plans to guide the organization
towards clearly defined mission, goals, and objectives. The goal
of a strategic leader is to inspire their staff, community
partners, and citizens to fulfill these goals and objectives while
creating sustainable public value. This is done by leaders who
possess strong communication skills are creative and visionary
as they move their organization towards the future.
Transformational leaders motivate and inspire people. They are
creative and understand innovative ideas are necessary to move
their agency forward. Change is not always easy, but followers
of transformational leadership often can be inspired to believe
that change will benefit the overall good of the agency. Leaders
who possess traditional skills identified by the trait theory are
confident and implement change that is necessary within the
organization. Simply put, strategic planning is documenting
what an organization wants to achieve and outlines how
leadership within the organization will get it done.

References
Bass, B. M. (2007). Executive and strategic
leadership*. International Journal of
Business, 12(1), 33-52. Retrieved from
http://search.proquest.com.library.capella.edu/docview/1981656
47?accountid=27
965
Bryson, J. (2011). Strategic Planning for Public and Non-Profit
Organizations: A Guide
to Strengthening Organizational Achievement (4th ed.). San
Francisco, CA:
Jossey-Bass.
Brumm, C. A., & Drury, S. (2013). Leadership that empowers:
How strategic planning
relates to followership. Engineering Management
Journal, 25(4), 17-32.
Retrieved from
908?accountid=2
7965
Cragg, R., & Spurgeon, P. (2007). Competencies of a good
leader. Clinician In Management, 15(3/4), 109-114.
Goldman, E. F. (2007). Strategic thinking at the top. MIT Sloan
Management Review,
48(4), 75. Retrieved from
40?accountid=27965
Graetz, F. (2002). Strategic thinking versus strategic planning:
Towards understanding
the complementarities. Management Decision, 40(5), 456.
Retrieved from
89?accountid=27965
Holmes, M. H. (2009). VALIDATING THE RELEVANCE OF
LEADERSHIP IN PUBLIC ADMINISTRATION. International

Journal of Organization Theory and Behavior, 12(2), 254-
265. Retrieved from
135446?accountid=27965
Lee, W., Koenigsberg, M. R., Davidson, C., & Beto, D. R.
(2010). A pilot survey linking personality, leadership style, and
leadership success among probation directors in the
U.S. Federal Probation, 74(3), 34-42,56. Retrieved from
233913?accountid=27965
Kilpatrick, A., & Silverman, L. (2005). The power of
vision. Strategy &
Leadership,33(2), 24-26. Retrieved from
76?accountid=27965
Matthew, C. T. (2009). Leader creativity as a predictor of
leading change in organizations. Journal of Applied Social
Psychology, 39(1), 1-41. doi:10.1111/j.1559-
1816.2008.00427.x
McClamrock, J., Byrd, J.J, & Sowell, S. L. (2001). Strategic
Planning. Journal of
Academic Librarianship. 27(5), 371-375.
Milakovich, M. E. & Gordon, G. J. (2013). Public
Administration in America, 11th Edition. Boston, MA:
Wadsworth, Cengage Learning.
Mittenthal, R. (2002). Ten Keys to Successful Strategic
Planning for Nonprofit and
Foundation Leaders. TCC Group, 1-10. Retrieved from https://
http://www.tccgrp.com/pdfs/per_brief_tenkeys.pdf.
Senge, P. M. (2004). Learn to innovate. Executive
Excellence, 21(6), 3-4. Retrieved from
24?accountid=27965

Spinks, N., & Wells, B. (1995). Quality communication: A key
to quality leadership. Training for Quality, 03(2), 14-19.
Retrieved from
538781?accountid=27 965.
Professional Challenge: Capella University
Learner’s Name
MBA 6250, Dr. Jane Petrick
Organization Description
Capella University currently services 38,000 learners by
offering 136 graduate and undergraduate programs. Capella
was established in 1993 as online learning institution that
strived to service working adults. The Capella values are the
pillars that support the rest of the organization including current
diversity initiatives. The Capella values are: Capella
Learners, Human Potential, Achievement, Decisive
Collaboration, Innovation, and Integrity. The Capella value
statement is:
“Values define how we conduct ourselves. They ensure that we
act consistently with colleagues, learners, suppliers, external
stakeholders, and anyone else who comes in contact with our
organization. We go beyond the purely cognitive dimension of
learning. We provide a nurturing community of support that
helps people define their goals, stay focused, and achieve their
personal dreams” (Capella.edu, 2011).
The Capella philosophy “provides the foundation for the
superior learning outcomes and superior learning experience

that Capella University intends to provide to all of its learners”
(Capella.edu, 2011). The Capella philosophy is an eleven part
educational vision that strives to solidify the company as a
leader in the online education field.
The business strategy of Capella University is aimed at
excelling in the online education market. Capella develops
degree programs that are based on professional standards and
employer recommendations so that from the beginning, a
student’s program delivers what he/she needs to succeed .
In terms of diversity at Capella University, I will be addressing
gender, race, and sexual orientation laterally and vertically in
the organization. One key question that I would like to answer
in my final proposal is: Do Capella University’s current
diversity initiatives support diversity at all levels of
employment?
Need for Change
The current economic situation for for-profit schools and for
education in general in America is on a downward trend. Public
opinion has shifted from a belief in the redeeming quality of
education in hard economic times to a realization that education
means incurring more personal debt. Capella University is one
such institution that is feeling the backlash of the anti-for-profit
education movement. However, Capella University prides itself
as a leader in online higher education, and the current economy
is an opportunity for Capella to establish new paradigms in
order to separate itself from the pack. If Capella leveraged its
diversity, it could see organizational, cultural, and financial
benefits, and this could offset the current factors that are
affecting the company.
Diversity is defined as, “The variation of social and
cultural identities among people existing together in a defined
employment or market setting” (Cox, 2001, p.3). In an
organization, diversity can assist in assimilating people from
different backgrounds and helping them to focus on a common
goal. One such emerging paradigm asserts that when a company
enables employees to incorporate their individual perspectives

in to the main work of the organization, it can enhance work
“by rethinking primary tasks and redefining markets, products,
strategies, missions, business practices, and even cultures”
(Thomas and Ely, 1996, p.85)
At the present time, Capella University could highly benefit
from adopting a diversity paradigm, especially in the current
economic and social situation regarding for-profit educational
institutions. In the past year, there are several external factors
that have threatened Capella’s mission. First, the Department
of Education has placed stricter regulations to ensure that
students do not “take on more debt than their earning potential
would allow them to handle” (Tilson and Heins, 2010, p. 22).
Second, the Government Accountability Office sent mystery
shoppers to 15 online for-profit institutions (Capella was not
among them), and all 15 of the shoppers encountered deceptive
marketing practices. Finally, Senate hearings have recently
focused on high loan-default rates and low graduation rates
among for-profit colleges. Together this has affected the
enrollment at Capella quite a bit, and it is now an opportune
moment for Capella to reshape itself as an institution and
separate itself from other online institutions.
Capella University has always been a diverse company, and it
prides itself on making diversity initiatives a priority. The
issue at present is whether Capella’s current diversity initiatives
support its employees’ backgrounds and encourage people to
embrace their differences in order to help the company become
more successful. Capella has a target market, and that is made
up of middle-aged, working women of color. It is very
important to investigate whether Capella is using its staff as a
way to enhance this target market and help it grow. Diversity
efforts can be detrimental to a company’s success if they are
limited, such as if “companies are operating on the assumption
that the main virtue identity groups have to offer is a knowledge
of their own people” (Thomas and Ely, p. 80).
Capella University needs a diversity paradigm that will align
with the strategy of the organization. The business strategy of

Capella University is aimed at excelling in the online education
market. Capella develops degree programs that are based on
professional standards and employer recommendations so that
from the beginning, a student’s program delivers what he/she
needs to succeed. If diversity can play a role in helping the
students at Capella succeed, then it needs to begin at the top of
the organization, and incorporate the diversity initiative
throughout the entire company.
Vision Statement
In order to successfully develop a diversity initiative at Capella
University, it is necessary to create a cohesive vision for the
future. Kotter writes, “A vision says something that helps
clarify the direction in which an organization needs to move”
(2000, p. 63). The vision statement for Capella must
incorporate a defined notion of diversity, and it must encompass
the new ideas for incorporating employees' individual
backgrounds in to the work of the company.
Merriam-Webster defines diversity as “the inclusion of
different types of people (as people of different races or
cultures) in a group or organization” (2011). This definition
views diversity as a numerical way to level the playing field by
supplying equal numbers of types of people. Thomas and Ely
write, “Most people assume that diversity is about increasing
racial, national, gender, or class representation- in other words,
recruiting and retaining more people from traditionally
underrepresented 'identity groups’ " (2009, p. 80). This is
essentially an out-dated way of defining diversity, as it
quantifies it. Diversity should be a qualifying idea that
leverages employees' experiences and cultural backgrounds.
Cox defines diversity as “The variation of social and
cultural identities among people existing together in a defined
employment of market place” (2001, p. 3). The good thing
about this definition is that it takes cultural backgrounds in to
account and it does not only look at diversity through a minority
lens.
Thomas and Ely define diversity as “the varied

perspectives and approaches to work that members of different
identity groups bring” (2009, p. 80). This definition also takes
a person's background in to account. This is the most accurate
definition of diversity for what Capella University needs. A
more specific definition would include something relating to the
diversity paradigm that is going to be taking place within the
organization: Diversity is about leveraging social and cultural
identities to enhance workplace efficiency and productivity.
The new school of thought has come to have an outlook on
diversity “that enables them to incorporate employees'
perspectives into the main work of the organization and to
enhance work by rethinking primary tasks and redefining
markets, products, strategies, missions, business practices, and
even culture” (2009, p. 85).
The reason that this definition is important to the future of
Capella is that it encompasses more than just the classic
paradigms based on discrimination and fairness. This new way
of thinking realizes that an individual's cultural background and
perspectives can actually be profitable to a company. Capella
has a specific target market, which is middle-aged professional
women of color. It would make sense to have a varied
workforce with different backgrounds in order to find specific
individuals who could relate to the target market. One would
obviously think that Capella should hire employees who fit the
description of its target market. However, it is more important
to look at diversity from an individual perspective rather than
from the perspective of an entire class of people.
Capella University needs to incorporate diversity in to its
future vision in order to maintain a position of excellence
among other online universities. If Capella establishes a new
diversity paradigm, it will not only be pushing boundaries and
keeping its culture current, but it can help the company stay
financially ahead as well.
Change Model and Assessment
In order to implement a diversity initiative at an organization, it
is necessary to develop a model for change that can be used to

set milestones and measure progress. Cox's model for cultural
change is an excellent tool to use for analyzing issues that can
halt transformation efforts. This model is a good foundation for
building a diversity model for Capella University and for
analyzing the current climate of the organization.
Cox's model is made up of five steps; Leadership,
Research and Measurement, Education, Alignment of
Management Systems, and Follow-Up. The initial stage,
Leadership, is “behavior that establishes a direction or goal for
change (a vision), provides a sense of urgency..and cultivates
necessary conditions for achievement of the vision” (Cox, 2001,
p. 18). Cox's leadership stage addresses several of Kotter's
issue with leading change: Establishing a Sense of Urgency,
Forming a Powerful Guiding Coalition, and Creating a Vision.
It is imperative that change initiatives begin at the top, and the
leaders of the organization must be in sync with how they are
going to enact change.
The next step of the model, Research and Management,
addresses the issue Planning for and Creating Short-Term Wins.
Research and Management “is the purposeful collection of data
by which we can answer questions about some environmental
element or phenomenon”(2001, p. 20). The third step,
Education, solves for the issues Communicating the Vision and
Empowering Others to Act on the Vision. Education and
training is crucial if an organization can hope to enact change.
Cox writes, “Education is a central feature of any change
effort...and learning must be approached through a variety of
methods” (2001, p. 21).
The fourth stage of Cox's model is Alignment of
Management Systems, meaning that any organizational policy,
practice, rule, or procedure must be aligned with the goal of
leveraging diversity. Cox writes, “The fulfillment of this
component in the change model requires a fairly deep
understanding of diversity and its effects” (2001, p. 22). The
fourth step of the model solves for the issue Consolidating
Improvements and Producing Still More Change. The last

stage of Cox's model is Follow-Up, which helps with the issue
Institutionalizing New Approaches. Cox writes, “This
component involves implementing action, establishing
accountability for results, and capturing and recycling the
learning so that the action steps become more and more precise”
(2001, p. 22). An organization cannot simply facilitate a
diversity initiative and expect it to last without doing follow-up
training and measurement.
In terms of Capella University, a good diversity model
could be represented by the following: Leadership> Aligning
initiative with core Values> Education and Training>
Measurement of Progress> Follow-Up. Capella University
needs to have a similar change model to Cox's, but with greater
emphasis on alignment with company values and with
identifying how successful the initiative is. The goal is to not
only implement diversity, but rather to enhance the business, so
measurement is imperative in order to realize the company's rate
of return.
At the present moment, Capella does have a strong
commitment to diversity, but the model is slightly skewed.
Capella trains and educates from the beginning, but they should
hold off on fully training the diversity model until employees
get a good understanding of what they themselves are able to
contribute to the company.
Action Plan
Capella University is already dedicated to maintaining a strong
sense of diversity, but the follow-up is one area where the
organization fails to live up to the highest standards. In order
to get to the end vision, Capella needs to dedicate itself to
creating diversity change agents inside the organization.
Action Plan Steps
1. Capella leadership announces current diversity initiatives and
a 5 year plan for new implementations
2. New hires are fully integrated in to diversity plan with
training, and existing staff is realigned with new goals
3. Align management systems to reflect new values in terms of

recruitment, promotions, orientation, etc.
4. Follow-up for accountability, progress, and performance
results.
As a striving diversity change agent, I hope that I will be able
to contribute to the company-wide diversity initiative by
promoting my desire for awareness and by becoming personally
involved.
Personal Action Steps
1. Seek out ways to interact with culturally diverse individuals
solely on a professional basis
2. Join at least one committee that promotes cultural diversity
3. Actively advertise that I am seeking to promote cultural
diversity in my organization, which will help me to be more
accountable in the long-run.
In order to measure my effectiveness in my role as a diversity
change agent, I hope to look at my own ability to train others in
the future. If I get to the point where I can successfully train
current teammates and new hires about Capella University’s
diversity initiative, I will be able to consider myself a
successful change agent.
Sources
Capella University (2011). Retrieved on 02/24/11 from:
http://www.capella.edu
Cox, T., Jr. (2001). Creating the multicultural organization: A
strategy for capturing the power of diversity. San Francisco:
Jossey-Bass. ISBN: 9780787955847
Katz, J. H., & Miller, F. A. (2002). The Inclusion Breakthrough:
Unleashing the Real Power of Diversity. San Francisco, CA:
Berrett-Koehler Publishers.
Kotter, J. P. (1995, March/April). Leading change: Why
transformation efforts fail. Harvard Business Review, 73(2),
59–67.
McIntosh, P. (1990). White privilege: Unpacking the invisible

knapsack. Independent School, 49(2), 31–35
Mehta, S., Chen, C., Garcia, F. & Vella-Zarb, K. (2000, July
10). What minority employees really want. Fortune, 142(2),
180–185.
Thomas, D. & Ely, R. (1996). Making differences matter: A new
paradigm for managing diversity. Harvard Business Review,
74(5), 79–90.
Tilson, W., & Heins, J. (2010). Skip School Stocks. Kiplinger's
Personal Finance, 64(12), 22. Retrieved from EBSCOhost.
Sheet1WaynesfieldNTotal WaynesfieldClear CreekNTotal Clear
CreekWoolfordNTotal WoolfordE. WoolfordNTotal E.
WoolfordGlenridgeNTotal GlenridgeLittletonNTotal
LittletonKeelerNTotal KeelerMt. TomNTotal Mt.
TomWarrenNTotal WarrenLansdaleNTotal LansdaleNew
BremenNTotal New BremenProfessional StaffFull-timeHead
Librarian40,000140,00025,000125,00027,500127,50025,500125
,50024,750124,75031,150131,15024,000124,00026,500126,5003
2,500132,50027,000127,000Branch
Librarians34,0006204,0000Reference
Librarians32,0005160,000026,500126,50029,750129,750Assista
nt
Librarians29,0009261,000024,000248,00022,750122,75025,000
250,00028,500128,50024,500124,500Part-time00Head
Librarians14,000114,000Reference
Librarians15,500231,0000014,500114,500Assistant
Librarians13,375340,1250012,000112,00013,000113,00013,750
113,75000Other Staff00Full-time00Administrative
Assistants22,000122,00000Circulation
Clerks20,0008160,000014,000114,00014,500114,50017,500470,
00014,000114,00019,500478,00016,500116,500Secretaries19,50
0239,000014,500114,50013,500113,50015,500115,500Maintena
nce
Workers16,000464,0000014,500114,50015,400115,400Pages15,
000345,0000012,000112,000Part-time00Circulation

Clerks6.007,02042,120005.258004,2005.255202,7305.251,2006,
3005.751,5608,970Secretaries00Maintenance
Workers5.752,00011,5005.457804,25105.255202,7305.251,0005
,250Pages5.0013,26066,30005.251,0405,46005.001,5607,8005.2
55202,7305.253,30017,3255.252,30012,0750000Other
Operating
Expenses0000Acquisitions275,0001275,0002,50012,50012,5001
12,50017,000117,0001,35011,35025,700125,7001,40011,400001
4,000114,000124,0001124,00035,700135,700Supplies110,00011
10,00075017502,45012,4503,40013,40060016006,42516,425200
120030013002,22512,22534,000134,0004,30014,300Utilities96,
700196,7003,60013,6004,20014,2004,70014,7002,50012,5005,3
0015,3002,10012,100170011,7003,50013,5006,78016,7803,8001
3,800Maintenance32,600132,6001,26011,2603,50013,5002,0001
2,00027512752,67512,67500002,75012,7503,60013,6005,62515,
625Other43,000143,0000000001,30011,3000050015000012,500
112,50000TOTAL$1,743,345$37,361$132,110$107,550$32,205
$268,080$34,000$19,230$81,225$410,605$153,970
Sheet2
Sheet3
The Public Administration Workbook by PEARSON
EDUCATION. Reproduced with permission of
PEARSON EDUCATION in the format Post in a course
management system.

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Exercise 12
Line-Item Budgeting
BUDGETING FOR CONTROL
Line-item budgeting is the oldest and most ubiqui-
tous form of budgeting. So widely used is this tech-
nique, in fact, that to most people a budget is a
line-item budget, even if they’ve never heard the
term.

Table 12.1 is an example of a line-item budget.
Note that it contains two basic elements: a com-
modity be purchased (personal services, office
supplies, telephone, etc.) and a cost. Although line-
item budgets can be organized in many different
ways, similar commodities are usually classified
together. This makes it easier for the budget to be
read and interpreted.
Some line-item budgets are more detailed and
include more information than others. For instance,
the “Office Supplies” category in this Department of
Parks and Recreation budget might, in another orga-
nization’s budget, be broken down into “pencils,”
“paper clips,” “staples,” and so forth. The amount of
detail in a line-item budget i s a function of the
Table 12.1 Budget Request Form: Department of Parks and
Recreation
FY 2000-200 (Request)
PERSONAL SERVICE
Classified positions
Administrative
Secretarial
Maintenance
Nonclassified positions
Seasonal recreation
Seasonal maintenance
TOTAL PERSONAL SERVICE
OTHER OPERATING EXPENSES

Telephone
Postage
Printing and advertising
Office supplies
Equipment maintenance
Grass seed, fertilizer
Contingencies
TOTAL OTHER OPERATING EXPENSES
TOTAL DEPARTMENTAL EXPENSES
$84,000 $92,000
32,000 34,000
53,000 56,500
23,600 25,300
17,000 19,400
209,600 227,200
3,600 4,000
1,750 2,200
12,300 4,000
2,600 3,250
4,350 5,300
1,500 1,750
3,700 4,800

29,800 5,300
$239,400 $262,500
21 1
212 Public Budgeting
amount of control that central budget administrators
wish to extend over their operating units. The more
autonomy and discretion granted, the less detailed
the line-item budget. The idea of control i s central
to line-item budgeting. Line-item budgets were
developed initially and have retained their popular-
ity precisely because they provide such an effective
means of controlling public expenditures. The infor-
mation that a line-item budget offers can also be
expanded by providing extra data on costs or
expenditures. The budget in Table 12.1 shows actual
expenditures for FY 1999-2000, as well as the FY
request. Some line-item budgets require
the organization to show expenditures in earlier
years FY or to provide a column
of figures that show the percentage change from
one year’s expenditure to the next. Information of
this kind is often used by public officials, especially
legislators, to help them decide whether to grant a
budget request.
FURTHER READING
Technical accounting treatises aside, the literature

on line-item budgeting is relatively sparse. Allen
Schick‘s Budget Innovation in the States
(Washington, D.C.: Brookings Institution, 1971
contains some useful material. Two dated but still
interesting accounts are William F. The
Movement for Budgetary Reform in the States (New
York: Appleton, 1918), and Frederick A. Cleveland
and Arthur E. Buck, The Budget and Responsible
Government (New York: Macmillan, 1920).
Especially enterprising students may wish to
read through the report of the Taft Commission of
1912 and the Budget and Accounting Act of 1921.
These two documents, which had formative effects
on budgeting in the federal government, are pre-
sented in Albert C. Hyde and Jay M. Shafritz, eds.,
Government Budgeting: Theory, Process, Politics
(Oak Park, Moore, 1978).
Overview of Exercise
The Adams County Board of Supervisors has
recently approved a plan to consolidate library ser-
vices in the county. In an effort to cut costs and
improve services next year, the public libraries from
the county‘s six incorporated towns, four villages,
and one city are to be merged and operated as one
system. Complicated negotiations by county offi-
cials, municipal officials, and representatives of two
public employee unions have produced an agree-
ment for a single new organizational structure
known as the Adams County Library.
As deputy county budget director, it i s your
responsibility to prepare an initial line-item budget
for the new library system. Your task is complicated

because there is no single budget base on which to
build. Because the system is new, you basically
have to start from scratch. You do have two sources
of information to guide your efforts, however. The
first is a memorandum from the budget director out-
lining her expectations and those of the supervisors
with respect to the new library system. Second, you
have the results of a budget survey you conducted
that summarizes the operating expenses of the 11
units to be consolidated.
INSTRUCTIONS
Step
Read the memo from the budget director (Form and
review your budget survey data (Forms You
may fill in the date on her memo with the current year.
Step Two
Use Budget Request Form 58 to construct a line-
item budget for the new Adams County Library.
Although you may organize the budget in any way
you see fit, make sure you take Budget Director
directives into account. Note that the des-
ignation “FY is used on Form 58 rather than a
specific year (or pair of years); this convention is
used throughout these budget exercises to avoid
assigning particular dates that may not correspond
to the year you are actually completing them. To
add a touch of realism, you may substitute the
appropriate upcoming fiscal year (assume a July 1 to

June 30 fiscal year) in place of FY 1.
IT Option
Download the Excel file from
. This contains all of
the information found on Forms 57a-k and will
allow you to manipulate the data in a spread-
sheet.
• Create a consolidated spreadsheet-in effect an
electronic template for the final budget you
must present on Form 58. This will allow you to
experiment with changing different numbers
without having to worry about complicated
calculations and recalculations.
Step Three
Answer the questions on Form 59.
FORM 56
14 October 20 -

TO: A. C. Andrews
Deputy Budget Director
FROM: Sarah T. Johnson
Budget Director
RE: Library Budget
As you know, the supervisors voted last night to approve the
consolidation
plan for the county library system. I’d like you to take charge of
putting
together a preliminary first-year budget for the board’s review.
Your budget should take the following points into
consideration:
1. All existing public libraries in the county, including the
branches in the city
of Waynesfield, are to remain open.
2. The county’s cost-sharing agreement with the
municipalities assumes that
there will be an overall savings of three percent from the
aggregate of
the existing library budgets.
3. No cuts are to be made in any full-time library employees.
Cuts may be
proposed in other categories.
4. As per the county’s agreement with the public employee
unions, salary
scales within job classifications are to be standardized at the
highest levels

currently paid by any of the newly consolidated units.
5. All township and village librarians previously designated
“head librarians”
(full- or part-time) are to be redesignated “branch librarians”
and are to be
compensated accordingly.
6. The position of head librarian for the city of Waynesfield i
s to be elimi-
nated. A new position, director of county libraries, is to be
created, bud-
geted at $45,000.
As the start-up date for the new system is July 1, we’ll include
this in our reg-
ular budget cycle. Please have all documentation completed by
December 15.
FORM 57a
Library Budget Survey
Municipality of Wavnesfield
JobTitle Salary Number or Hours -cost
PROFESSIONAL STAFF
Ful I-time Head librarian $40,000 1 $ 40,000
Branch librarian 34,000 6 204,000
Reference librarian 32,000 5 160,000
Assistant librarian 29,000 261,000

Reference librarian Part-time 15,500 2 31,000
Assistant librarian 13,375 3 40,125
OTHER STAFF
Full-time Administrative assistant 22,000 I 22,000
Circulation clerk 20,000 8 160,000
Secretary 19,500 2 39,000
Maintenance worker 16,000 4 64,000
Page 15,000 3 45,000
Part-time Circulation clerk $6. r. 7,020 hrs. 42,120
Maintenance worker h rs. 11,500
Page 13,260 hrs. 66,300
OTHER ANNUAL OPERATING EXPENSES
Acquisitions $275,000
SuppI ies 110,000
Utilities 96,700
Maintenance 32,600
Other (please specify)
*Includes $21,000 for bookmobile services, $1 1,000 for
programs, and $4,500 for travel.
in-school programs, $6,500 for summer children’s
FORM
Municipality

job Title Salarv Number or Hours
PROFESSIONAL STAFF
Full-time Head librarian $25,000 1 $25,000
Part-time
OTHER STAFF
Full-time
Part-time Maintenance worker 780 hrs. 4/251
Acquis tions $2,500
Supplies 750
UtiI ties 3,600
Maintenance 1,260
Other (please specify) -
218
FORM
Municipality of Woolford
Number or Hours JobTitle Salary
PROFESSIONAL STAFF

1 $27,500 Full-time Head librarian $27,500
2 48,000 Assistant librarian 24,000
Part-time
OTHER STAFF
14,000 1 14,000 FulI-time Circulation clerk
1 14,500 Maintenance worker 14,500
1,040 hrs. 5,460 Part-time
Supplies 2,450
Utilities 4,200
Maintenance 3,500
FORM
Municipality of East Woolford
JobTitle Salary Number or Hours -cost
PROFESSIONAL STAFF
Assistant librarian 22,750 1 22,750
Part-time

OTHER STAFF
Full-time Circulation clerk 14,500 14,500
Part-time Circulation clerk 800 hrs. 4,200
Acquisitions $1 7,000
Supplies 3,400
UtiI ities 4,700
Maintenance 2,000
220
FORM 57e
Municipality Village of Glenridge
JobTitle Salary
PROFESSIONAL STAFF
Full-time Head librarian $24,750
Part-time
OTHER STAFF
Full-time
Part-time Maintenance worker

Number or Hours
1
520 hrs.
$24,750
2,730
OPERATING
Acquisitions $1,350
Supplies 600
Utilities 2,500
Maintenance 275
-
221
FORM 57f
Municipality Town of Littleton
JobTitle Salary
PROFESSIONAL STAFF

Full-time Head librarian $31,150 $31 50
Reference librarian 26,500 26,500
Assistant librarian 25,000 50,000
Part-time Assistant librarian 12,000 12,000
OTHER STAFF
Full-time Circulation clerk 17,500 4 70,000
12,000 1 12,000
Part-time Circulation clerk $5.2 520 2,730
Page 5. r. 1,560 7,800
Supplies 6,425
UtiIities 5,300
Maintenance 2,675
*Senior Center outreach program.
222
FORM 57g

Municipality Town of Keeler
lob Title Salarv Number or Hours
1
hrs.
$24,000
6,300
PROFESSIONAL STAFF
Fu II-time
Part-ti me
OTHER STAFF
Full-time
Part-time
Head librarian $24,000
Circulation clerk $5.2 r.
Acquisitions $1,400
Supplies 200
Uti Iities 2,100

Maintenance -
223
FORM 57h
Municipality Town of Mt. Tom
JobTitle Salary
PROFESSIONAL STAFF
Full-time
Part-time Head librarian $14,000
OTHER STAFF
Full-time
Part-time Page
Acqu s itions -
Supplies $300
Utilities 1,700
Maintenance -

organize the annual Mt.Tom book drive, the main source of
book don
Number or Hours
1
520 hrs.
ations for the Mt.Tom library.
$14,000
2,730
224
FORM
Municipality Town of Warren
JobTitle Salary
PROFESSIONAL STAFF
Part-time Assistant librarian $13,000 1 $1 3,000
OTHER STAFF
Ful I-time Circulation clerk 14,000 1 14,000

Part-time Maintenance worker 1,000 hrs. 5,250
Acquisitions $1 4,000
Supplies 2,225
Utilities 3,500
Maintenance 2,750
FORM 57j
Municipality Town of Lansdale
Job Salary
PROFESSIONAL STAFF
Reference librarian 29,750
Assistant I ibrarian 28,500
Part-time Reference librarian 14,500
Assistant I ibrarian 13,750
OTHER STAFF
FulI-time Circulation clerk 19,500
Maintenance worker 15,400
5.2 Part-time

Supplies 34,000
Uti ities 6,780
Maintenance 3,600
*Saturday children's programming and Sunday afternoon foreign
film series.
Number or Hours
4
1
3,300 hrs.
-cost
$32,500
29,750
28,500
14,500
13,750
78,000
15,400
17,325

226
FORM 57k
Municipality Town of New Brernen
JobTitle Salarv
PROFESSIONAL STAFF
Assistant librarian $24,500
Part-time
OTHER STAFF
FulI-time Circulation clerk 16,500
Maintenance worker 15,500
Part-time Circulation clerk r.
Page
Number or Hours
1
1
1
1
1,560 hrs.

2,300 hrs.
$27,000
$24,500
16,500
15,500
8,970
12,075
Supplies 4,300
Utilities 3,800
Maintenance 5,625
FORM 58
Budget Request Form
Administrative Unit: Adams County Library
FY 1 Request
229
FORM 59

Questions
1. What was the aggregate budget for all preconsolidation
Adams County libraries?
2. Did you achieve the mandated 3 percent savings? If not, why
not?
3. Assume that you are a member of the board of supervisors.
What questions would come to your mind as
you reviewed this line-item budget?Is there any information you
would like to have that this budget does
not contain?
4. In general, what are the strengths and weaknesses of the line-
item format?
23 1
Capella University Writing Center
May 2007
Developing an Annotated Outline

The word “annotation” refers to adding information, usually
comments,
explanations, or references
An annotated outline, then, would be an outline to which
additional information is
added, also known as annotations. Information included in the
annotations is
determined by the purpose of the annotated outline.
Not all annotated outlines are alike
The preparation of the annotated outline is governed by the
nature of a larger course
project and the role that the annotated outline plays in the
context of the course as a
whole. In some cases, the annotations are expected to consist of
• comments or explanations
• citations of sources appropriate to each outline entry
• information about each of the cited sources
• topic sentences
Some examples
This outline is not annotated.

I. Transforming chaos into order
A. Definitions of chaos and order
One way to add annotations: adding citations of sources.
Arling, T.J., (2006). Understanding order and chaos. New
York: Wylie and
Sons.
Carling, A.B. (2006). Chaos and you. Boston: Prentice Hall.
A. Definitions of chaos and order
Palova, X.R. (2005). Toward a typology of typologies.
Journal of
Thinking, 23(2), 176-201.
Caldorone, M.C. (2006). Chaotic concepts. Thinking and
learning.
15(3), 1-2.
May 2007

Another way to add annotations: adding additional information
about each of
the sources.
York: Wylie and
Sons.
Arling provides a broad overview of the relationship between
ordered and
unordered systems. Included in this overview is a discussion
of how the
contrast between these systems has affected scientific thought
over the past
200 years.
Still another way to add annotations: adding complete
sentences, with each
sentence usable as a topic sentence for a paragraph in a project
or paper.
York: Wylie and
Sons.
The contrast between ordered and unordered systems – order
and chaos –
has affected scientific thought over the past 200 years.

Important!
If you have any questions regarding the expectations of an
annotated outline:
• read the assignment description
• review the grading checklist provided in the course
• ask your instructor
Annotated
Bibliographies
Capella University | 225 South 6th Street, 9th Floor
Minneapolis, MN 55402 | 1-888-CAPELLA (227-3552)
September 2008
Long Document Template
2
Table of Contents

Types of Annotated
Bibliographies................................................................... 3
Sample Summative Annotation
.......................................................................................... 3
Sample Evaluative Annotation
............................................................................................ 5
Uses of Annotated Bibliography
....................................................................... 6
Format of Annotated Bibliography Entries (in APA style)
.............................. 6
Sample format for an Annotated Bibliography Entry:
......................................................... 6
Organization of Annotated Bibliography
Entries............................................. 8
Frequently Asked Questions
............................................................................. 9
3
Annotated Bibliography
An annotated bibliography is a great tool to help scholarly
writers move from the research to
the drafting phase of a writing project, particularly when

managing a large number of sources.
A bibliography is an alphabetized list of sources relevant to a
particular area of inquiry or
research question; an annotated bibliography goes beyond
merely giving the citation
information for the sources to provide the reader with more
information about the content of
those sources. The content information is called the annotation.
Types of annotation
There are at least two different kinds of annotated
bibliographies: those that are summative and
those that are evaluative. Length of annotations can also vary,
from approximately 150-word
paragraphs to one- or two-page annotations. Occasionally some
are designed with shorter
annotations. If writing an annotated bibliography for a class, be
sure to check with the
instructor to determine which type of annotation is required for
the assignment you are
completing, and the preferred length required.
Summative annotations provide the reader with a solid sense of
the content of the article or
book being annotated. They are similar to abstracts, but usually
are a little more detailed and
convey more aspects of the arguments being presented.
Summative annotations are not as long
or detailed as summaries, however, which are generally longer
essay assignments in which the
writer is representing all the main points of an article.
Sample summative annotation:
Kemp, F. (1998). Computer-mediated communication: Making

nets work for writing
instruction. In J.R. Galin & J. Latchaw (Eds.), The dialogic
classroom (pp. 133-150).
Urbana, IL: National Council of Teachers of English.
Fred Kemp, associate professor of English at Texas Tech
University is the
author of this early investigation of the potential uses of
network computing in
teaching writing.1 Opening with a historical discussion of the
perceived impact
of the microcomputer on writing pedagogy, he notes that while
machines lack
the natural language capability to become graders of student
papers, they have
1 In the opening of this annotation, we introduce the author and
his qualifications, linking to an
overview of the article he has written.

4
had great impact as network tools useful for facilitating peer
review in writing
instruction.2 Through a series of examples dating back to
Trent Batson’s use of
networked computers to enable deaf students to communicate
in writing with
each other at Gaullaudet University in 1985, Kemp traces the
impact of applied
networking on collaborative learning theories such as Kenneth
Bruffee, Thomas
Kuhn, and Karen Burke LeFevre.3 He further recalls his own
work developing
“The Daedalus Integrated Writing Environment” [DIWE]
software for writing
instruction at the University of Texas in the mid-1980s, which
was a precursor to
the computer-mediated communication [CMC]-based
instruction that emerged in
the 1990s.4 Giving examples of student responses to
networked writing and peer
review assignments collected as part of the Computer-Based
Writing Project at

Texas Tech in the 1990s, Kemp concludes by arguing that
“societal changes in
information access and communication will require profound
changes in the
classroom and in the way most people learn” (p. 149).5
Evaluative annotations include both a description and a critical
assessment of the article or
book being annotated. They are designed to give the reader a
sense of the quality of the source
and the argumentative position of the author relative to others
in the field. Some evaluative
annotations are focused specifically on how the source responds
or contributes to a particular
research question or area of inquiry in the field. Consideration
of methodology and how data
were gathered are often a part of an evaluative annotation.
These types of annotations may be
stand-alone entries, or they may be comparative, referencing the
other entries to give a total
picture of how different articles on the topic are in conversation
with each other.
2 Here we characterize the intent and purpose of the article,
giving the main idea (or thesis)
advanced.

3 Key examples and central figures cited are noted here as a
means of summarizing critical
content found in the article.
4 Kemp’s discussion of his own involvement in the development
of instructional technology is
related to his historical account of how network computing
became instrumental in realizing
the previously mentioned educational theories.
5 This sentence provides further information about the content
of the article and ends with a
quoted passage documenting Kemp’s final conclusion about the
impact of technology on the
writing classroom.
5
Sample evaluative annotation (adapted from the summative
example above):
Kemp, F. (1998). Computer-mediated communication: Making
nets work for writing
instruction. In J.R. Galin & J. Latchaw (Eds.), The dialogic
classroom (pp. 133-150).
Urbana, IL: National Council of Teachers of English.
Fred Kemp, associate professor of English at Texas Tech
University is the

author of this early investigation of the potential uses of
network computing in
teaching writing. Opening with a historical discussion of the
perceived impact of
the microcomputer on writing pedagogy, he notes that while
machines lack the
natural language capability to become graders of student
papers, they have had
great impact as network tools useful for facilitating peer
review in writing
instruction. Through a series of examples dating back to Trent
Batson’s use of
networked computers to enable deaf students to communicate
in writing with
each other at Gaullaudet University in 1985, Kemp traces the
impact of applied
networking on collaborative learning theories such as Kenneth
Bruffee, Thomas
Kuhn, and Karen Burke LeFevre. He further recalls his own
work developing
“The Daedalus Integrated Writing Environment” [DIWE]
software for writing
instruction at the University of Texas in the mid-1980s, which
was a precursor to

the computer-mediated communication [CMC]-based
instruction that emerged in
the 1990s. Giving examples of student responses to networked
writing and peer
review assignments collected as part of the Computer-Based
Writing Project at
Texas Tech in the 1990s, Kemp concludes by arguing that
“societal changes in
information access and communication will require profound
changes in the
classroom and in the way most people learn” (p. 149).
Although now dated, his
1998 argument was eerily prescient and the article is useful in
establishing an
historical account of early applications of network technology
on writing
6
pedagogy.6 As such, this article would be helpful in a study
tracing the initial
impact of computers in the writing classroom as teachers first

sought to put
network technology to use.7
Uses of annotated bibliography
Annotated bibliographies can be invaluable in the research
process, especially when working
with large numbers of sources over a long period of time. It is
very difficult (if not impossible)
to recall details about every source on a given topic. Well-
written annotations can help
crystallize key information presented in each article or book,
preserving it in a format that can
be easily accessed and revisited at any stage of the writing
process.
An annotated bibliography can be created in response to a
specific research question, or it
might represent exploratory research on a broader topic at an
earlier stage of the research
process. Writing about each source individually helps clarify
and situate the perspectives of
different scholars and their approaches to a given topic. In this
way, the annotated bibliography
can serve as the basis of a review of literature; it functions as
the “nuts and bolts” of the
research, laying out different themes and positions that have
emerged about the topic in the
literature of the field.
Format of annotated bibliography entries (in APA style)
The basic format of each entry in an annotated bibliography is
simple: begin with a complete

reference list citation in correct APA format, and follow that
citation with the annotation. Use
hanging indent for the whole paragraph, just as you would for
the citation alone, and double-
space the entire entry.
The following example illustrates the format for an annotated
bibliography entry:
Shor, I. (1992). Empowering education: Critical teaching for
social change. Chicago:
University of Chicago Press.
This book by Ira Shor, a professor of English at the City
University of New
6 In this sentence, we move from summary of the content of the
article to an evaluative
statement assessing its purpose and value, advancing a critique
based on its age while noting
some strengths that make it useful for contemporary research.
7 The addition here of a final evaluative statement suggests why
the article will be of interest to
a researcher pursuing a particular research project.

7
York, offers new pedagogical methods of “critical teaching for
social change.”8
The author, who teaches composition and basic writing
courses, integrates his
own classroom experiences with a discussion of Freirean and
other pedagogical
theories.9 Beginning with the politics of socialization in the
education system,
Shor makes a case for empowering (as opposed to traditional)
education, defined
as “a critical-democratic pedagogy for self and social change”
(p. 15).10 Student
participation, he argues, is a key element of this model, and it
is up to the teacher
to foster positive feelings about the class and invite
participation from the
students. This can be achieved by a technique called “problem-
posing,” in which
the teacher generates a dialogue in class rather than delivering
information in a
lecture format.11 Problem-posing is especially helpful as a
strategy in a

multicultural classroom, since it underscores the impact of
situated learning, in
which students establish their own vantage point and
knowledge in relation to
the course material.12 By discussing student resistance in
terms of actual
classroom examples, Shor applies pedagogical theory to his
own experiences
and makes the application of Freire’s ideas clear in a
contemporary American
educational context.13
8 Here we establish the identity of the author and his
qualifications, as well as offering a key
phrase quoted from the text to establish the main idea conveyed
in the text.
9 This sentence serves as a description of the methods and
theories used in the text.
10 By incorporating a direct quote, we establish the main point
Shor is making and link that to a
discussion of the content of the book.
11 Here we introduce a key term central to his argument,
defining it are relating it to the overall

point Shor is making in the text.
12 This sentence offers insight into a potential application of
Shor’s pedagogy, in this case its
use specifically in the multicultural classroom.
13 In this final sentence, Shor’s methodology is explained in a
description of the purpose and
particular value of the text. This is a summative annotation; an
evaluative one would be
followed by more specific statements addressing the strengths
and weaknesses of the book, as
well as its specific relevance to a particular research topic or
project.
8
Organization of annotated bibliography entries
Entries in annotated bibliographies are typically placed in
alphabetical order; however, it is
also possible to organize entries according to a theme or
particular aspect of the topic. This is
most frequently done in cases of longer annotated
bibliographies involving many sources, and
can be a really helpful way to further organize or highlight the
sources pertaining to different
aspects of the research topic. Another way to think about this is
as a longer annotated
bibliography divided into a series of shorter ones, each with its
own subheading focused on a
theme or specific approach to the larger topic. Organizing an

annotated bibliography in this
way can make it very easy to develop a well-structured review
of literature from the research
you have done on a scholarly topic.

9
Frequently Asked Questions
Why did my instructor assign an annotated bibliography as part
of my research project?
The annotated bibliography is helpful in allowing you as the
writer to organize and assess the
scholarly research you have gathered on a topic. As you write
an annotation for each source,
you will gain a better understanding of what each article or
book contributes to the knowledge
about the topic, and how each source relates to the others you
have read. By the time your
annotated bibliography is complete, you will have developed
your critical thinking about the
topic and should find it easier to begin drafting your essay or
thesis.
What is the difference between an abstract and an annotation?
Can’t I just cut and paste
the library abstract into my annotated bibliography?
An abstract is usually shorter than an annotation, and is really
just a brief descriptive summary
of an article or essay. Library abstracts are designed to let the
reader know at a glance more
about the content of an article; they are useful for a cursory
appraisal but don’t provide as
much information about the argument being presented, nor do

they evaluate the content of the
work. Annotations are often more detailed and critical, allowing
the reader to learn about the
specific perspective of the author in relation to the topic and his
or her authority to take a
particular position. Cutting and pasting the library abstract
would not be sufficient for an
annotation, since it would not be as detailed and would not
include critical evaluation of the
work or specific relevance to your individual project topic.
Can I use software programs to create my annotated
bibliography? Why should I
consider doing that?
The use of reference software programs is an optional way of
storing bibliographic entries in a
database format. While annotated (and other) bibliographies can
also be created in a word
processing program, there are certain advantages to building
and storing bibliographic entries
in database software programs like EndNote, RefWorks, or
StyleWriter. Each of these
programs allows the user to link complete reference information
on a source to a list of
keywords, an annotation, and/or notes fields in which you can
enter specific and personalized
information about the work and its relevance to your own area
of inquiry. Over time, these
programs can allow you to build a virtual “library” of
references relevant to one or more
research topics, and they can be recalled and accessed later as
needed through specific
keyword searches. When embarking on a lengthy research
project like a dissertation, the ability
to save annotated sources in a thematically retrievable way is

invaluable in that it enables you
to locate the sources most relevant to any aspect of the project
you might be working on, as
well as simultaneously recalling your own notes on the content
of those sources.
Annotated BibliographyTypes of annotationSample summative
annotation:Sample evaluative annotation (adapted from the
summative example above):Uses of annotated
bibliographyFormat of annotated bibliography entries (in APA
style)The following example illustrates the format for an
annotated bibliography entry:Organization of annotated
bibliography entriesFrequently Asked Questions
Theory Matrix
Organizational Behavior Management and Leadership Theory
Matrix
Theory:
Primary Characteristics.
Unique assumptions or
Features.
Strengths.
Weaknesses.
Where applicable
(public sector or public administration application if possible).

Questions or concerns..
Personal Experience
(if none state “No,” or “None”).
Results of your experience (+ -).
Theory:
Unique assumptions and
Features.
Strengths.
Weaknesses.
Where applicable
(public sector and public administration application if possible).
Personal Experience
Theory:

Features.
Strengths.
Weaknesses.
Where applicable
Personal Experience
Theory:
Features.
Strengths.
Weaknesses.

Where applicable
Personal Experience
Theory:
Features.
Strengths.
Weaknesses.
Where applicable
Questions or concerns.
Personal Experience

Theory:
Features.
Strengths.
Weaknesses.
Where applicable
Personal Experience
Theory:

Features.
Strengths.
Weaknesses.
Where applicable
Personal Experience
Theory:
Features.
Strengths.
Weaknesses.

Where applicable
Personal Experience
Theory:
Features.
Strengths.
Weaknesses.
Where applicable

Personal Experience
Theory:
Features.
Strengths.
Weaknesses.
Where applicable
Personal Experience

Theory:
Features.
Strengths.
Weaknesses.
Where applicable
Personal Experience
Theory:

Features.
Strengths.
Weaknesses.
Where applicable
Personal Experience
Theory:
Features.
Strengths.

Weaknesses.
Where applicable
Personal Experience
Theory:
Features.
Strengths.
Weaknesses.
Where applicable

Personal Experience
References
PAGE
1
©Capella Education Company
1
Organizational Behavior Management and Leadership Theory
Matrix
Theory: Contingency Theory
Primary
Characteristics.
Focuses on the match between the leader’s style and specific
situational variables (Northouse, 2015, p.2)
Unique assumptions

or
Features.
Task Motivated or Relationship Motivated
Strengths.
• Caring for peer’s feelings so that it produces great work
relationships;
• Being motivated to complete specific tasks that they have
particular
interest in; and
• Organizational structure in regards to task completion
Weaknesses.
• Non-motivated in specific task/goals which can lead to
disruption of
the organization’s purpose;
• Great relationships being a leniency when it comes to assigned
work;
and
• Not expecting leaders to be equally effective.

Where applicable
(public sector or
public administration
application if
possible).
Program managers within Harlem Children’s Zone.
Questions or
concerns..
Will all tasks have the same effort put into them if the leader is
only
moved based of specific task motivation?
Personal Experience
(if none state “No,”
or “None”).
Harlem Children’s Zone is filled with many goals but some
goals are
more important than others. Example: Working here, I service
the
academic career of college students. Recently, a scholarship
opportunity became available but only those that were awarded

received notice. Those that were denied did not receive notice.
When
asked about students denied being informed, it was said not to
be the
priority.
Results of your
experience (+ -).
Can have positive experience if deemed beneficial.
Theory: Systems Theory
Primary
Characteristics.
Like a logic model, inputs determine the outputs. “General
system
theory focuses on the relationships between elements of a
system and
the system and its environment (Conradie, 2013).
Unique assumptions
and
Features.

One input can or cannot affect the output. “Under this
formulation, it
is critical to establish and maintain reliable and valid measures
of
results” (Milakovich & Gordon, 2013).
Strengths.
Able to get an overview of what they would like to achieve.
Weaknesses.
Consistent changes in inputs if an outcome isn’t what was
expected to
be.
2
Where applicable
(public sector and
application if
possible).

Harlem Children’s Zone can set out a systematic approach for
their
goals. But if inputs are being implemented with notice that
outputs
will not be what is expected, the organization can change the
input in
mid-process.
Questions or
concerns..
How big will the impact or goal be if inputs keep changing? If
changing the input during the process still produces a low
output, is it
still beneficial to go back to the initial input?
Personal Experience
or “None”).
Specific programs follow a systems theory to achieve goals
within.
The College Success Office goes through different inputs to
gain
specific results. When trying to communicate with students that

may
be hard to reach, different inputs or options are made to achieve
the
connection between employer and student.
Results of your
experience (+ -).
Positive
Theory: Management by Objectives (MOB)
Primary
Characteristics.
Requires managers to set specific objectives to be achieved in
the
future and encourages questions on what more can be done
(Thomson,
1998).
Unique assumptions
and
Features.
With the process of the MBO, it can give the manager tools they
may

need to best utilize the organization.
Strengths.
is being recognized
and beneficial to the organization
to help or support the development to better succeed in the
agency (Thomson, 1998)
Weaknesses.
MBO calls for dialogue between leader and employer but can
lead to
Theory X Assumption 2: People need to be direct and
controlled. With
this assumption, it puts pressure into completing goals.
Where applicable
(public sector and
application if

possible).
Harlem Children’s Zone programs.
Questions or
concerns..
If pressure is utilized on employers to get goals done, will
employers
feel that their efforts are feasible enough to still be encouraged
for
future goals?
Personal Experience
or “None”).
Programs initiate leaders to communicate with their employers
for
feedback and push those that are showing strength to move
forward
with growth opportunities.
Results of your
experience (+ -).
Positive when MOB is used correctly.

3
Theory: Theory X
Primary
Characteristics.
People need incentives or repercussions to do their job.
Unique assumptions
and
Features.
• People do not like work
• People need direction and control
• People do not want responsibility
(Northouse, 2015, pg.84-85)
Strengths.
This theory offers creativity when leaders think of incentives
for their

workers.
Weaknesses.
done when told what to do.
done
Where applicable
(public sector and
application if
possible).
Harlem Children’s Zone does utilize this theory specifically the
students.
Questions or
concerns.
Can students benefit from Harlem Children’s Zone programs
without

incentives?
How much money is the agency losing to consistently give
incentives?
Personal Experience
or “None”).
Students apart of the agency rely on incentives (small stipends)
based
on the grades they receive at school. Students work harder to
get
better grades to receive incentive. With no incentive, grades
wouldn’t
be as prominent.
Results of your
experience (+ -).
Positive for students.
Negative for program managers to gain results.
Theory: Theory Y
Primary
Characteristics.

People naturally want to work and many leaders use this
perspective
today. (Northouse, 2015 pg 86-88)
Unique assumptions
and
Features.
- motivated to complete goals
Strengths.
Weaknesses.
Not all employees can be self-motivated or have time
management
skills to get work done.
.

Where applicable
(public sector and
Evident when impacting goals are achieved in the agency.
4
application if
possible).
Questions or
concerns.
How many of Harlem Children’s Zone employers are actually
happy
doing their job?
Personal Experience
or “None”).
Employees are able to get through tasks on their own.

Employees
show responsibility along with compassion when dealing with
students.
Results of your
experience (+ -).
Positive for employees
Negative for employees not motivated

Unit 1 AssignmentFinancial Statement Overview· Activity Contex.docx

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Unit 1 AssignmentFinancial Statement Overview· Activity Contex.docx