ACC3300 SEMESTER GROUP PROJECT OVERVIEW You have just been asked by the CEO of y

Question

ACC3300 SEMESTER GROUP PROJECT OVERVIEW You have just been asked by the CEO of your company (Big Bucks Corporation) to investigate and analyze a publicly traded company. The CEO is considering the possibility of acquiring another corporation. The CEO would like you to prepare a report with the following included: An overview of the company Big Bucks Corp. should acquire and why A. summary of this company's outlook (make sure to include information from MD&A;) A concept from Cost Accounting that you plan o company . n implementing when we acquire this . Make sure to include at least a 1-page research summary of this concept Also include an explanation of how/why this concept will be (or should be) applied to the company being acquired o e A profit report analyzing best/worst case scenarios for your newly acquired company when you implement this new cost accounting concept The base case should be the company's most recent annual income statement o Use your company's average tax rate for all three scenarios o You will need to explain why profits went up/down and why expenses went up/down for both the best and worst case scenarios. Keep it realistic!! Show your income statement in summary form as follows: o Sales Revenues COGS Gross Profit perating Expenses Earnings before taxes - Taxes = Net Income (loss) ur best case must be a scenario where Sales/Revenues have increased and COGS has o Yo o Your worst case must be a scenario where Sales/Revenues have decreased and C o Show this analysis in a printed out Excel document (make sure you print a copy of decreased in percentage terms has increased in percentage terms formulas used as well) OGS Anything else of financial interest you wish to add e GRADING AND OTHER REQUIREMENTS You are allowed to work in teams of up to 4 people. This project will be worth a total of 100 points. The CEO has requested that you keep your report to 5-7 pages in length (excluding Excel exhibits). Make sure that you cite sources used throughout your paper (should have at least 5 different citations)

Explanation / Answer

Its pretty much self explanatry but let me break the process up in simple steps :

1) Chose any public company you want to aquire to keep it simple try a company which is very small. then create past finacial statements of big bugs ltd your company. try to keep both the company in same sector

2) Overview and historical data of company which you are acquiring. ie when was it formed what was the purpose and objectives its previous financial position

3) Why acquiring that company will benefit you. ie Synergy it provides , better distribution system etc

4) Cost accounting procedure. ie valuation of the stock of public related company it can be on various models income model , gordon growth model MM Approach

5) Post merger effect of those costing procedure on your income statement whether income increases or goes down. effect on PE Ratio, EPS, MPS etc

6) summarise the above report whether all in all is it profitable to acquire the company and at what price ?

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