At the end of each module, you will apply the module’s concepts by completing comprehensive assignments from the textbook.
Complete problems P9-28A (p. 517), P10-A-9B (p. 586), and P11-29A (p. 631) in your textbook.
Present your analysis of the assigned problems in Excel format. Enter non-numerical responses in the same worksheet using textboxes.
By Wednesday, January 29, 2014 deliver your assignment to the M4: Assignment 3 Dropbox.
Create the file with the following name: LastnameFirstInitial_M4A3.Excel.xls
LASA: IPO Presentation & MyAccountingLab Post-Tests
This assignment will consist of two parts.
Part I: IPO Presentation:
You work for a medium sized privately held electronics firm which is considering transitioning to a publically held organization. Your boss found out that you were taking business courses at Argosy University and has asked you to prepare a presentation for upper level management to explain the process by which a privately held company would transition to publicly held company. He has asked you to describe the general accounting processes involved in establishing an initial public offering (IPO), including but not limited to accounting for all assets, liabilities and equities of the firm. Prepare a 15-20 slide professional MS PowerPoint presentation which covers the following:
- Identify and explain the top five reasons private companies go public.
- Explain information the firm is required to provide to the investor with complete transparency.
- Compare and contrast the differences in accounting processes and procedures that medium sized companies such as yours go through when going public.
- Discuss any concerns you believe the company should guard against while transitioning from privately held to publicly held (shareholder apprehension, fair market value, etc.) and provide solutions to each concern.
Use the notes section in MS PowerPoint to explain your talking points. Use at least two charts and two additional graphics which support your points. Utilize at least three references (one of which may be your text) in your presentation.
Common and Preferred Stock
Respond to the following independent issues concerning the capital stock of corporations in your initial post:
- Why are paid-in-capital and retained earnings displayed separately in the stockholder’s equity section of the balance sheet?
- Why would investors buy common stock when preferred stock is available?
- If you owned 5,000 shares of common stock in Microsoft Corporation and someone offered to buy the stock for its book value, would you accept the offer? Provide rationale for your decision.