Accounting Information for Managers | Assignment
Added on 2019-11-19
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RUNNING HEAD: Accounting for managersAccounting for managers
Accounting for managers2Table of ContentsQuestion 1.............................................................................................................................................3Business description..........................................................................................................................3Question 2.............................................................................................................................................3Reason for selecting LLP:...................................................................................................................3Question 3.............................................................................................................................................4Financing options available for Platform:..........................................................................................4Question 4.............................................................................................................................................6Projected income statement and balance sheet...............................................................................6Question 5.............................................................................................................................................8Type of Financial statement analysis for business:............................................................................8Question 6.............................................................................................................................................9Accounting information help in management accounting.................................................................9Accounting information help in financial accounting:.......................................................................9Question 7...........................................................................................................................................10Dividend distributing is beneficial....................................................................................................10Implications for not distributing Dividend:......................................................................................11References:..........................................................................................................................................12
Accounting for managers3Question 1Business descriptionPlatformThe platform is a start-up retail clothing establishment which will be selling in market fashionable, comfortable and many more types of clothing to women’s. The platform will be located in Dubai, a famous place for tourist attraction and people’s entertainment. The platform will be initiated as an LLP having 5 members as partners. Platform initial aim will be to achieve target plan by opening shop in local markets of Dubai (Müller & Thoring, 2012). Their future plans are to bring for women’s of Dubai upcoming fashion from various countries by research, creating the customized online market and become a fashion brand in near future. In return, Platform will be expecting people to accept it openly and absorb a penetrable size in the market. Platform products will be centralized on women’s and girls. It will be creating the market area by closely adopting trends in the market as well customer preferences. They will also make tailor made clothes to meet the special requirements of customers with the main focus on style. The platform will also adopt reasonable cost policy to attract customers of the lower budget as well. Question 2Reason for selecting LLP:A. After formation, there is a lesser requirement of maintenance and moreover conveniencein adding new members. In LLP it is easy to sell the business to someone else. It requires lesser procedural follow-up in comparison to the company. There is a more relaxed structure in LLP, as minutes procedure like the company is not required for taking board decisions in
Accounting for managers4LLP. There are also fewer business restrictions on many management related decision if compared with other business structure.B. It also helps in protecting personal assets used in business from lawsuits against directed on business (Firth, Mo & Wong, 2012). A proprietorship and partnership will be risky entitiesto start. After some period of time growth and increased market share, LLC can convert their business to S-Corp as well as C-Corp. in takeover and merger, an LLC can benefit itself by acquiring sick companies giving the tax benefit to the business. C. LLC helps in avoiding double taxation and supports in maintaining various categories of inventory. Double taxation generally happens when in a business company and owners both are taxed separately but LLC helps in preventing this by taxing same as proprietor. This is very useful for a start-up business to enter to market.D. An LLC is an optimal structure for a business as it is easy, fast and simple to form. The registration process for LLP can also be completed without appointing an attorney. The charge for filing registration fee in LLP is very less. It is also beneficial for a business to register as LLP because after registration an LLP would get employee id from IRS which willhelp in an opening bank account. Question 3Financing options available for Platform:Equity financing: Equity can turn out to be beneficial since it enables the organization to put more assets over into the business, though debt financing confines income by commanding that speculators getpaid back on a customary timetable (Da, Guo & Jagannathan, 2012). This adaptability of equity financing empowers the organization to develop at a quicker rate as opposed to paying
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