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Thought Provokers

Thought Provokers

TP 1. Choose three stakeholders (or stakeholder groups) for Walmart and prepare a written response for each stakeholder. In your written response, consider the factors about the business the particular stakeholder would be interested in. Consider the financial and any nonfinancial factors that would be relevant to the stakeholder (or stakeholder group). Explain why these factors are important. Do some research and see if you can find support for your points.

TP 2. Assume you purchased ten shares of Roku during the company’s IPO. Comment on why this might be a good investment. Consider factors such as what you expect to get from your investment, why you think Roku would become a publicly traded company, and what you think is the landscape of the industry Roku is in. What other factors might be relevant to your decision to invest in Roku?

TP 3. A trademark is an intangible asset that has value to a business. Assume that you are an accountant with the responsibility of valuing the trademark of a well-known company such as Nike or McDonald’s. What makes each of these companies unique and adds value? While the value of a trademark may not necessarily be recorded on the company’s balance sheet, discuss what factors you think would affect (increase or decrease) the value of the company’s trademark? Consider your answer through the perspective of various stakeholders.

TP 4. For each of the following ten independent transactions, provide a written description of what occurred in each transaction. Figure 2.4 might help you.

A table displaying financial data with columns for Assets, Liabilities, and Owner's Equity. The Assets section includes Cash, Inventory, and Equipment. The Liabilities section includes Accounts Payable and Wages Payable. The Owner's Equity section includes Common Stock and Retained Earnings. Each row contains numerical values representing different financial figures.

TP 5. The following historical information is from Assisi Community Markets.

A table showing the current assets and liabilities over five years. The columns are divided into Current Assets (Cash, Accounts Receivable, Inventory) and Current Liabilities (Accounts Payable, Wages Payable). The rows represent Year 1 to Year 5 with corresponding values for each category. Current Assets: Cash: Year 1: $42,000 Year 2: $34,500 Year 3: $26,800 Year 4: $22,100 Year 5: $15,700 Accounts Receivable: Year 1: $12,500 Year 2: $16,800 Year 3: $20,300 Year 4: $28,000 Year 5: $29,500 Inventory: Year 1: $6,200 Year 2: $7,600 Year 3: $10,300 Year 4: $20,400 Year 5: $16,700 Current Liabilities: Accounts Payable: Year 1: $12,500 Year 2: $14,600 Year 3: $19,800 Year 4: $20,600 Year 5: $22,900 Wages Payable: Year 1: $3,200 Year 2: $4,500 Year 3: $6,000 Year 4: $6,200 Year 5: $6,300

Calculate the working capital and current ratio for each year. What observations do you make, and what actions might the owner consider taking?

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