Enron’s Questionable Accounting Practices

Enron used multiple strategic partners to help cover up their accounting schemes. Houston law firm Vinson ; Elkins’ top client was Enron. The law firm wrote opinion letters supporting the legality of the deals Enron was making even though they were illegal. Additionally, Arthur Andersen LLP was Enron’s auditor. More than 100 employees at Arthur Andersen were dedicated to Enron’s account. The firm was a major business partner of Enron and some Arthur Andersen executives accepted jobs with Enron. Some believe there was a conflict of interest.It is also believed Andersen was influenced to destroy auditing documents because of the large consulting fees Enron paid them. Also, Merrill Lynch, one of the largest investment banking firms, was also a contributor. They reportedly helped in a scheme of Enron’s to improperly record their earnings in 1999 through the sale of Nigerian Barges. Andrew Fastow, Enron’s Chief Financial Officer, is believed to be the ma stermind behind the partnerships used to hide the $1 billion debt that led to Enron’s bankruptcy.He defrauded Enron and its shareholders to make Enron look more profitable than it really was (â€Å"Castalar Articles†,  2005). Castalar Articles (2005) says, â€Å"People have described the organizational culture of Enron as being arrogant. Enron’s compensation plans seemed less concerned with generating profits for shareholders than with enriching officer wealth. Enron’s corporate culture reportedly encouraged flouting or even breaking the rules. Enron's focus shifted from working hard and being successful, to taking short cuts to stay successful.Former CEO Jeffrey Skilling is seen as the mastermind behind Enron’s fraudulent accounting. Skilling has been quoted as saying Enron could make â€Å"a kazillion dollars† in a new accounting scheme. He is also reported dumping 39 percent of his Enron stock before the company disclosed its financial troubles. † I think it is easy to say what we would have done in this situation. We would all like to believe we would have done the right thing and report the company and its CEO as well as the CFO. I know that I would have not stayed with a company I thought was acting unethically.If I had been hired to audit Enron, I would certainly not have swept things under the rug, destroyed documents or accepted bribes. I do not believe this behavior helps anyone in the end. If there would have been some honest reporting and accounting the company would have most likely been successful. However, due to greed and selfishness the company was driven into collapse. Source: Castalar articles. (2005). Retrieved from http://articles. castelarhost. com/enron_questionable_accounting_leads_to_collapse. htm

M1a3 livoria sandwiches, inc. Essay

This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash * One supplier of all store requirements/ingredients * Bank requires $20,000 minimum cash balance at any given time * Number of hours work * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment – Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark – 52.93% highest Contribution margin than industry average – High growth % versus set by the industry – Available line of credit -Impressive performance among competitors whether franchising or non-franchising -Debt free Key Success Factors: * High-quality traditional custom-made sandwiches developed through generations *Loyal client base and recognition * Effective obsolescence plan * Zero Debt Key Risks: Losing market share and competitive advantage Limited experience how to compete and to grow the business Just one supplier to sustain store operation/production MAJOR ISSUES 1. Increase profitability 2. Growing market STRATEGIC ALTERNATIVES 1. Expanding without franchising 2. Open Franchise Agreement ANALYSIS OF STRATEGIC ALTERNATIVES I. EXPANDING WITHOUT FRANCHISING PROS CONS Develop product lines by introducing vegetable sandwiches (Appendix 4) shows an increase in cash inflow from 155% in 2013 to 319% in 2015 May cannibalized existing/old product lines which the company is being known for Attracts customers with other preferences and may compete broadly in the industry by branching out in new locations Requires additional training cost, space, business strategy and building customers recognition, hire professional help which may cause additional fund or used available line of credit Established and maintained more suppliers that would provide more options and huge discounts in large orders May affect existing quality standard of the custom-made sandwiches Discover more hidden opportunities from existing operations, by adding value to the product, and improve training the staff Financial Assessment if expansion without franchising: a.Total CM% increase from 2012 52.93% to 60.50% in 2015 (Appendix 3) b. Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit c.Return on investment assuming initial cash balance net of the minimal requirement ($20,000) was use to introduce new line of menus showed a remarkable result of 21% ROI in 2013 to 249% return in 2015, Appendix 3 d.Cash budget projections with new line of products showed increase cash inflows from $556K (2013),$869K (2014) and tremendous increase of $2.3 M by the end of 2015 – Appendix 2 e. Appendix 4 showing Statement of Cash Flow present a positive economic growth, from $423K cash inflow generated in 2013 155% increase in cash to $1.9M in 2015. Calculating IRR for the next 3 years showed 478% return. II. OPEN FOR FRANCHISE AGREEMENT PROS CONS 1. opportunity to grow faster than would be the case of training employees create internal marketing strategy, sales and distribution 1. significant disadvantage is loss of control, though substantial restrictions may apply because of franchise agreement, franchise is still considered a 3 rd party who would seek to maximize return of investment at your expense 2. use of franchising fee/capital will expedite growth/network of the company than finding one for the business 2. part of your profit is use to utilized to promote your franchise/s 3. franchising motivates franchisee to excel and go beyond to succeed due to incentive scheme and growth is dependent upon the success of your business 3. substantial product knowledge and expertise has to be shared concerning your business although restrictions may apply but control over it is difficult to enforce and monitor 4. will increase purchasing power as franchising network grows and that eventually reduced cost to operate, gain profitability from small units 4. skills required to monitor, manage and support franchise/s are far different than handling your own employees 5. may thrive from downturn like recession compared to non-franchise business 5. standard sets in doing franchise may alter your consumer taste. RECOMMENDATION Both alternatives if done in a well thought out plan may manage company’s growth strategically. Since it can be done drastically and uncontrolled way major casualties of which could be customer dissatisfaction and will adversely affect cash flow. IMPLEMENTATION PLAN So it is necessary therefore to manage the growth process so we can obtain benefits in a medium and long term. The following may be executed: 1.Plan your expansion, not just by reacting to the circumstances but creating a solid plan, Ansoff Matrix (Exh 2) can be a helpful tool in creating this roadmap. 2.Don’t over expand, which is one of the biggest danger in growth phase. A 3 to 5 year projections plan capacity is doable and allow additional 10% capacity over and above that for challenging times. 3.Get professional financial advice because expansion entails monetary implications, with expert help we can reduce the risk and address issues right away. 4.Shop around, look for the target-location where marketing the product may established the same acceptance by the customers. 5.Develop a project management for the expansion in a formal way to uncover other possibilities 6. Keep customers informed about expansion plan and what to expect, when disruption may take up and how will the company will deal with it. 7.Announce the completion of the expansion. Inform target customers about the increase capacity, new menu and additional services to be offered. A good marketing device will help the company introduce this expansion in a high note.

Accounting Analysis Essay

Michael Burton has recently been hired as the CEO of Tesca Works, Inc. Previously he had been the marketing manager for a large manufacturing company and had established a reputation for identifying new consumer trends. Tesca Works Inc. is a California-based generator manufacturing company. The company is well known for manufacturing large, heavy-duty generators at a reasonable cost. One of its greatest achievements is that its generators can be easily modified or customized for different applications. Also, Tesca Works currently builds commercial appliances. The company is considering an expansion of its current product line to include refrigerator and maybe, sometime in the future, consumer appliances. Mr. Burton feels that due to high energy prices, consumers will be more willing to consider purchasing new efficient appliances. See more: Beowulf essay essay Tesca Works Inc. is a California-based generator manufacturing company. The company is well known for its innovation and ability to produce high quality products at a reasonable cost. One of its greatest achievements is that its manufacturing processes are adaptable to other durable goods. Also, Tesca Works currently builds commercial appliances. Profile of Tesca Works Tesca Works, Inc. was established by the Smith brothers in 1880 as the Logging Saw Company. The firm started manufacturing large steam saws to serve the logging industry which processed lumber. Their customers were construction companies that provided housing for the population increase in California. The Smith brothers quickly realized that the times were changing. They started looking for the technologies that would keep them at the forefront of their field of business. In 1915, the Smith brothers decided that they needed to make generators as replacements for the saws. They realized that the logging industry was not viable anymore and that generators were starting to serve the same purpose. The company started making generators in the early 1940’s. Tesca Works then opted to produce commercial appliances. It was an easy decision to make since the commercial appliances would use common parts with the company’s generators and the customers were local hospitals, schools, and governments. Starting in the 1950’s the commercial appliances business accounted for about 50% of Tesca Works’ revenues. The Refrigerator Mr. Burton arranged a meeting with the firm’s top management and the chief design and the chief manufacturing engineers to propose a new product. Mr. Burton presented an argument that more individuals in the United State and Canada would be willing to purchase newer appliances because people are becoming more environmentally conscious. The new appliances are more efficient and environmentally friendly. Also, the recent increase in electricity costs seems to be long lasting. This is an opportunity to get people hooked on environmentally friendly appliances as he put it. The proposal under consideration is for the introduction of a new, energy star refrigerator. To distinguish Tesca Works from other manufacturers, the proposal included details about the convenience, large shelves in the doors, high volume water and ice dispensers, efficiency, and quietness of operation that need to be developed. Mr. Phillips and Mr. Lopez, the two engineers, enthusiastically and quickly pointed out that the needed technology could be based on the company’s generators. The framework currently used for building the generators can be modified to work for appliances at a low cost. The marketing vice president, Mr. Chen, pointed out that the marketing analysis could be done quickly and at a reasonable cost. At this point, Mr. Burton charged the participants in the meeting to produce a financial plan for the development and production of the refrigerator. Consumer Appliances Most people purchase appliances and keep them for a very long time or until they stop working. Some get them when they purchase a home and do not think about them. Recently, most power companies started educating people about the efficiency of new appliances and began offering rebates on the most efficient consumer models. These approaches increased public interest. This renewed the public’s interest in low power-consuming appliances. The Decision Three weeks later, the vice presidents presented the sales and cost forecasts shown in the exhibits. The information presented contains the cost of production, financing information, and warranty cost estimates. In addition, there were two options for the compressor in the refrigerators. The MC – 004 is more expensive to install, but has a lower warranty cost. The TS – L12 is cheaper to install, but has a higher warranty cost. Which compressor should be used?

Introduction to Microeconomics Essay Example | Topics and Well Written Essays - 500 words - 1

Introduction to Microeconomics - Essay Example Although, the shift in demand can raise the quantity of food at any given prices, due to the present level of food supply, food prices would have to rise to let this ever-increasing food demand ‘make-up’ with the given supply-level. This making-up of food demand with supply describes upward (leftward) movement along the shifted (new ­) demand curve, raising the equilibrium food prices. Thus, equilibrium food quantity and prices are expected to rise, however, due to the upward movement along new demand curve, the increase in price would keep this increased equilibrium quantity lesser than the shift in demand. But what’s worsening the scenario is leftward shift in food supply which main determinants are unfavorable, volatile weather consequences including droughts, freezes, and floods in the main food producing and exporting countries: China, Russia, Australia, and Mexico. These unpleasant weather conditions have badly affected the crops and other productive resou rces, alarming the food production capacity in these countries. Other harmful environmental changes i.e. global warming can further shift the food supply leftward.

Changes in Roles of African Women Triggered by Colonial Rule Essay

Changes in Roles of African Women Triggered by Colonial Rule - Essay Example The period of colonization initiated discomfort and trust issues between the British and Agikuyu(Finke, par 2). Even though the regions of Kenya were unknown to the British, they immediately chose regions of Kenya that had contents of resources that were of great value to the economy. By this, the British ensured that there would be less cost in running administrative affairs of a colony. The Agikuyutribe was spread in central Kenya, and the area was densely fertile. The new colonists took benefit of the fertile land by farming on a large basis. They farmed extensively because there were scarce resources (Finke, par 7). Due to this act of the colonists, the Agikuyu had to leave some of their lands. The domestic and other roles of women such as cooking, bearing children, mat weaving, transportation of goods and going to the marketplace had changed due to the effect of the colonists. The locals had lost their lands due to compulsion from the colonists. These events changed the perspect ive of the women in several ways (Turner, par. 16).Introduction of Christianity:The first and foremost that the colonists brought about in women were change in beliefs. The locals had believed in traditional beliefs but as per changer, they converted to Christianity. This change of faith was spread through the colonies (Afrikan Eye, par. 8). Another change in the Kikuyu women was a change of roles. The women previously were labors but after the colonial rule they lost control of their products and were paid for their work.

Secure Computer System Essay Example | Topics and Well Written Essays - 750 words

Secure Computer System - Essay Example Firewalls are the most common security measures for computer networks. Certain mechanisms are put in place in order to provide adequate security to protect resources on the trusted network against potential access by attackers. There are numerous mechanisms in network security, one of which is the DMZ or Demilitarised Zone. DMZ is a network which is semi-protected and is common to medium scale to large scale enterprise (Pickering, 2009). DMZ has two (2) disadvantages: First, the firewall can be created to pass trusted'' services within the application gateway(s), thus, subverting the policy. The trusted'' services which get passed all around the application gateway typically end up being in contact with the site systems. Another disadvantage is placed on the routers for the provision of security. Packet filtering routers seemed complex to configure and errors could disclose the whole site to security holes (Wack, 2009). Added by Pickering (2003), the application proxy firewalls usually require frequent software updating to run the latest versions of the proxy code. This is important particularly when new exploits are detected, needs to be blocked, and in the event when problems emerge interactions between the proxy as well as widely deployed applications. Meaning, when the proxy is found actually breaking. 3. Using a Microsoft XP or 2000 system, open Internet Explorer. Open Internet Options under the Tools menu. Examine the contents of the Security and Privacy tabs. How can these tabs be configured to provide: a) content filtering, and b) protection from unwanted items like cookies Some actions that Microsoft XP or 2000 system allow a user to do in order to configure content, filtering, and protection from unwanted items like cookies are: 1. To personalize Windows XP settings for each user; and also 2. To assign user to create accounts and passwords in the computer to control the users who can access on the system. In other words, users who are not the "administrators" will have no access, unable to change critical system files or delete it. The system may also be upgraded by logging off from a regular user account, then, logging back in as

Parpgraising paragragh about phosphene and alkynyl legand Essay

Parpgraising paragragh about phosphene and alkynyl legand - Essay Example Large variety of phosphines are thus possible, while different widely available verities include 1,1’ (BINAP) and 2,2’-bis (diphenylphosphino). In such chiral systems, steric constraints come up, that can be resolved into diastereomers. While discussing reactivity of complexes belonging to phosphine ligands, two properties of these ligands are considered important. These properties relate to their steric bulk and their accepting ability, also called electron donating ability. (d-Metal OGANOMETALLIC CHEMISTRY) Like alkyl groups, alkynyl, alkenyl and aryl groups can bond to a metal form through a single carbon atom. For this property, these groups are described as â€Å"monohapto’. However, there is a possibility of each of these three groups accepting â€Å"pai† electron density into anti-bonding orbitals, although the same has not been observed, largely, so far. This can be ratified by an example, which shows little change in the stretching frequency of the triple bond in alkynyl complexes, as they attach to a metal; although â€Å"n-1 –alkynyl group† might be considered analogous to a CO group. As per d-metal organometallic chemistry noting, the displacement of halide with a lithium reagent at a metal center can make way for introduction of alkynyl groups into organometallic complexes. While looking at the donor-pair scheme of electron counting, alkynyl ligands are considered to be two-electron donors with a single negative charge. (alkenyl, alkynyl and aryl