Estimating Constant Growth Terminal Values

Question: Discuss about the Estimating Constant Growth Terminal Values. Answer: Introduction: As per my own personal experience, the previous firm where I had worked contained all the desired standards of the computing environment. I had got a chance of working in a retail firm in the past, which had a wide range of goods and products like packaged food products, linen and clothing. I had the work of reviewing the work and structure of the department of documentation and accurate completion of the administrative jobs. For maintain the records of the data and conducting the tasks related to documentation, I had the accessibility to the electronic systems of the office (Mintz, 2014). I have been able to save information of valuable nature and data in a storage file with the help of such systems. The data entered has been kept under protection through uploading of the same in the computer as it has a linkage with the system of networking. There was an access to the network system, which was convenient and necessary. In addition to the above, the firm has the usage of a wide rang e of programs of the Microsoft Office which included PowerPoint, Outlook and Publisher (Zhang et al., 2016). The present position involves the managerial position of a popular regional bank and I have received the permission of accessing various accessories like the task lamp, mouse rest and document holder. The input device has been positioned by the bank at a height, which is affordable and can have a reach with greater convince and ease. The arrangement of the workstation is in a manner suiting the designs and structure of the requirements. Furthermore, there is an easy accessibility of telephone services and manuals as the same is placed at a distance, which is near. The desk has been modernized and the space of mouse is sufficient which helps in the accessibility of the manual workplace. On the whole, the availability of the primary and secondary accessories in the firms has lead to enhancement of the comfort level of the staffs (Loughran McDonald, 2016). The report discusses the observation of the company ABC Learning with relation to the financial performance and ethical issues related to the organization. The report describes the lessons and the expectations from the company and the major financial reports prepared by the company along with the purpose of the peroration of such reports. Furthermore, the importance of the profit i.e. income and cash flow statement is discussed in relation with the company. Lastly, the ethical issues are identified and important recommendations for the company are provided to the management of the company for healthy continuance and overall development and growth of the organization. In accordance with the case study of ABC Learning, there has been an observation that at initial times, the company has remained slow and stable at the commencement time of the operations. The most essential progress during the time considered the development and growth of the federal government. There has been a global expansion due to the extensive and pervasive coverage of the media and the acquisition of the centres, on the part of the government. The increase in the value of the asset has enabled the rising of the price of the shares of the company ABC Learning (Cornell Gerger, 2016). Due to the financial inclusions, the base of the liability of ABC Learning has increased and furthermore, the company would have faced a downfall in the financial and cash base. The needs of the ABC Learning has been increased by the liquidity of the cross assets and liabilities and the inflationary valuations of the assets. The increase in the liability structure in 2008 has been due to the increase in the value of the liability for dollar to the contrast of 30 cents in the equity (Fields, 2016). With the decline in net income, there has also been a negative cash flow of $20 million due to the commitment of the line repayment related to the ABC Learning. Therefore, the financial condition of ABC Learning has been unfavourable and unworthy in nature. Furthermore, there was no reasonableness in the revenue realization and there was an inaccuracy in the revision due to the increase in the cash expenditure on the management of the intangible assets (Atanasov Black, 2015). Financial Reports and their importance ABC Learning has considered the preparation of a variety of financial statements, which include the statement of changes in equity, statement of balance sheet, income statement, and cash flow statement. The statement of equity defines the changes and inclusions in the capital structure of the company. The same may result in the increment or decline in the owners equity. The statement of balance sheet illustrates a relation between the assets and liabilities of a company. The income statement helps the management in gaining the overview of the revenues and expenditures of a firm during a particular year. The cash flow offers the data and the information related to operating, investing and financing actions of an enterprise (Hoyle, Schaefer Doupnik, 2015). Ethical Issues The chief ethical issues leading to the downfall of ABC Learning are explained as follows: There was no devotion in the adequate timing in regard to the financial condition for the generation of the profit, by the organization. There is a presence of the irregularities, which is in association with the accounting and loan margin for the purpose of funding. The deliverance of the wrong and inaccurate information to the variety of users of the financial report has resulted in loss of the confidence of the shareholders and eventual downfall and decline of the company ABC Learning. There is inflation in the valuation of the firm due to the valuation of the intangible assets (Nawaz et al., 2014). Therefore, it can be acknowledged that the factor which is most integrally related to the conducting of the business is very well related to the profitability. The operations of business can be diversified for ensuring success and profitability. Furthermore, the retained earnings and the cash flows can prove to be a major factor in the operational conduction of a business. References Mintz, S. (2014). Accounting for the public interest.Perspectives on accountability, professionalism and role in society. Loughran, T., McDonald, B. (2016). Textual analysis in accounting and finance: A survey.Journal of Accounting Research,54(4), 1187-1230. Hoyle, J. B., Schaefer, T., Doupnik, T. (2015).Advanced accounting. McGraw Hill. Fields, E. (2016).The essentials of finance and accounting for nonfinancial managers. AMACOM Div American Mgmt Assn. Atanasov, V. A., Black, B. S. (2015). Shock-based causal inference in corporate finance and accounting research. Nawaz, T., Haniffa, R., Hudaib, M. (2014, November). The Impact of Intellectual Capital on Corporate Performance of Islamic Financial Institutions. InInternational Conference on Intellectual Capital and Knowledge Management and Organisational Learning(p. 519). Academic Conferences International Limited. Cornell, B., Gerger, R. (2016). Estimating Constant Growth Terminal Values with Inflation. Zhang, Q., Zhang, X., Hu, T., Zhang, C. (2016). Service Comprehensiveness: Another Piece Of The Technology Acceptance Model.Issues in Information Systems,17(2).