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Assignment Week 12
1. MSMBC reported the following; “NEW YORK, May 29 — A design flaw at a Fidelity
Investments online service accessible to 300,000 people allowed Canadian account
holders to view other customers’ account activity. The problem was discovered over the
weekend by Ian Allen, a computer studies professor at Algonquin College in Ottawa.
Fidelity said it had fixed the problem and was offering customers the option of changing
account numbers.”
Most businesses regard their information as a private resource, an asset they plan,
develop and protect. Companies today look to information managers to design, and
implement systems to gather, organize and distribute information. The above story
illustrates the importance that information managers play within the firm.
How important is the idea of information management? Is that information manager
really someone that is necessary in today’s business community? Is there information that
you might need some day that without a sound information system the wrong information
may be entered and even more to the point information that could in fact create problems
for you. The following site http://www.american-free-credit-report-online.com/ provides
information about YOU. Did the information presented surprise you? Is the information
correct?
2. Over the last 10 years businesses have come to rely on information management in
ways that could not have been foreseen. Information systems are a critical part of the
business landscape. Being able to convert data or raw facts and figures into information,
that is, meaningful and useful is important. This interpretation can be the difference
between business survival and business failure. Simply determining what information is
required is a difficult task. Once you know what information is required how do you go
about collecting and managing the information is another critical consideration. For some
businesses, the infrastructure necessary to accommodate their information needs may be
too costly. This is where outsourcing plays a key role in information management. Many
firms today look for help in managing their information solutions. Medical Software
Associates, http://www.medical-software.org, is one company that offers information
management solutions for businesses in need of practice management software. They
describe themselves as: “Medical Software Associates is a national developer of medical
billing, electronic medical records and practice management software with a range of
experience in all healthcare industries, particularly focused on small to medium sized
practices. Our technological mandate is to minimize the time our clients spend on
practice management, medical billing and accounting so they can maximize the time they
spend doing what they do best - patient care.”
Access the site for Medical Software Associates. What solutions do they provide in the
area of Billing and Collections?
3. Through television and radio advertising, most everyone has heard about a
telecommunication technology available on GM automobiles called OnStar. For those
that do not know much about it, the following was taken from the OnStar website,
http://www.onstar.com. “Using innovative technology, OnStar can provide you with the
latest information and assistance. Just press the blue OnStar button and you will be
connected to the OnStar Center where trained, knowledgeable, live Advisors are ready to
help. Plus, some OnStar vehicles give you the ability to send and receive calls like you
would use a wireless phone minus inconvenient dialing. 24 hours a day, 365 days a year,
OnStar's only a button away. And if your front air bag deploys, OnStar will try contacting
you.” Developed in 1995 through joint collaboration between GM, EDS, and Hughes
Electronics Corporation, OnStar links takes mobile telecommunication, Internet, and GPS
technology networks to new levels to encourage peace of mind while driving.
Visit the OnStar website. Using networking and telecommunications, how is OnStar able
to help travelers with driving directions and roadside assistance?
4. Accounting is a worldwide practice. CPA Australia is “the nations largest professional
body with more than 97,000 members in Australia and oversees” according to its website,
http://www.cpaaustralia.com.au. According to CPA Australia, “As a leading player in the
business community, CPA Australia shapes and leads debate on issues affecting
professional accountants and the wider business environment. Through training, research
and other member benefits, the organization seeks to improve the professional lives of
members. As a not-for-profit organization it aims to run economically and to achieve a
modest annual surplus.”
Start by logging into the CPA Australia website. Found under the “About Membership”
link, what are the different categories of membership? Specifically, what is required to
meet the membership category: Certified Practicing Accountant CPA?
5. Financial statements (balance sheet, income statement, and statement of cash flows)
are among the most important reports created by accounting to show a company’s
financial condition. Dell, (http://www.dell.com/) has grown at a consistent rate and
maintains solid margins through outstanding leadership and sound financial discipline.
For the first quarter of fiscal year 2004, Dell reported record revenue and earnings.
Revenue increased by 18% compared to the first quarter of 2003 and earnings increased
35% (EPS) over the same period comparison. This information was release during their
press release of May 15, 2003. Through accurate use of the accounting tools, Dell will
continue to be able to monitor their financial condition throughout each fiscal year.
Log onto the Dell website noted above. Select the “About Dell” link found at the top of
the page. Then select the “Investor” link and then “Quarterly Earnings” from the drop
down box. By selecting the 2003 Annual Report please record the following information
for Fiscal years 2003 and 2002: Net Income, Current Assets, Current Liabilities, and
Total Owners’ (Shareholders) Equity. How did each area change from 2002 to 2003?
6. By applying solvency and profitability ratios to information provided by a company’s
financial statements, the financial condition or health can be determined by prospective
investors. These ratios can be applied from period to period to check a company’s
progress over a period of time. Based on Dell’s (http://www.dell.com/) financial
information, they have increased their net income from fiscal year to fiscal year. By
applying the information found in their financial statements, a potential investor could
determine whether they are a sound risk or not.
Log onto the Dell website noted above. Select the “About Dell” link found at the top of
the page. Then select the “Investor” link and then “Quarterly Earnings” from the drop
down box. By selecting the 2003 Annual Report please record the following information
for Fiscal years 2003 and 2002: Net Income, Current Assets, Current Liabilities, Total
Liability, and Total Owners’ (Shareholders) Equity. Determine the current ratio (shortterm solvent), debt-to-owner’s equity ratio, and return on equity for each fiscal year.
Based on the information obtained through application of the above ratios, which year
was stronger from a solvency and profitability standpoint?