Purpose:The purpose of this project is to examine your understanding of the challenges of managing critical employees who work in demanding jobs. Using an actual work case study, you will be asked to demonstrate how motivation, relationship building, and trust affect organizational effectiveness.Assignment:Using the case study below, course material and research. Write a 5-6 page paper not including the title and reference list pages. The paper should examine the follow points:Identify the relationship building issues that exist in the case study. Explain the reasoning behind their selection.Research the questions of motivation, trust and ethical behavior in creating sound management relationships and thus add to the success of an organization.Apply the research to the case study and create a plan for Jackson on how to best handle the situation. Be sure to examine all the stakeholders in the plan, his team the organization, himself and McConnell and the vendors.Explain the reasoning/conclusions behind your plan elements and support them with your research, class materials, and case study facts. Finally, discuss how the plan will maximize organizational effectiveness. Use at least five scholarly sources.Use the course material, research, and case study facts to support all your conclusions.Create a title page with your name, the instructors name, assignment name and date.Create a separate reference list and be sure to use APA format including in-text citations.Case StudyCharles Jackson is chief information officer (CIO) at McConnell Spice, a large Maryland Spice company. In an industry that has a large national market presence yet is global in its need for raw materials, McConnell Spice is always looking for ways to increase productivity and speed things up while staying connected to its worldwide sources. Two years into the job, Jackson suggested to company president Ann McConnell that McConnell implement a new global knowledge-sharing application that promises to cut development time and costs in half. Jackson has done extensive research on knowledge-sharing systems, and has talked closely with a fellow IT director at the global powerhouse ADM. The ADM director believes the knowledge-sharing systems play an important role in a company’s competitiveness and concurs that Jackson should pursue purchasing one.McConnell presented the idea to the board of directors, and everyone agreed to pursue the project. She has asked Jackson to investigate firms that could assist McConnell’s IT department in developing and implementing a global knowledge-sharing application that would be compatible with McConnell’s existing systems. McConnell explained that she wants to present the information to the board of directors for a decision next month.Jackson and his team, after many long nights, identified three major firms that he believed could handle the work and made an appointment with McConnell to go over the findings. At the appointed time Jackson crossed the lentil of the dMcConnell’s office door, where he was immediately greeted by Geraldine Fox, a young, petite, attractive woman who served as a sort of executive assistant to McConnell. Fox took the information from Jackson and promised the president would review it within two days. Disappointed with being unable to submit the findings in person Jackson returned to his team who was anxiously awaiting Mc Connell's response. Frustrated with the lack of feedback Jackson sent the team home early to put salve on the wound. The next afternoon, McConnell called Jackson to her office and asked why Standard Systems, a small local consulting firm, was not being considered as a potential provider. Jackson was surprised—Standard was known primarily for helping small companies computerize their accounting systems. Jackson was not aware that they had done any work related to knowledge-sharing applications, particularly on a global basis. Upon further investigation into the company, Jackson learned that Standard was owned by an uncle of McConnell’s son-in-law. Fortunately, he also learned that the firm had some limited experience in more complex applications. At their most recent meeting, McConnell insisted that Standard be included for possible consideration by the board.During the next two weeks, representatives from each company met with Jackson, his two top executives, and the IT staff to explain their services and give demonstrations. Jackson had suggested that the board of directors attend these presentations, but McConnell said they wouldn’t have the time and he, Jackson, would need to evaluate everything and make a recommendation to the board. At the end of these meetings, Jackson prepared a final report evaluating the pros and cons of going with each firm and making his first- and second-choice recommendations. Standard was dead last on his list. Although the firm had some excellent people and a good reputation, it was simply not capable of handling such a large and complex project.McConnell informed Jackson that the Board would meet in one week and he was to present his findings and decision to the Board for approval. McConnell said, “I know you agree with me and are for Standard but we have to pretend that these other companies are in contention.” McConnell winks and walks away leaving Jackson devistated and appauled at the idea that the least effective company could get the job.Additional Requirements and How to Prepare the SubmissionFollow the instructions carefully if the assignment asks for a memo, email, plan, report, etc. be sure to follow the format templates provided. Submissions should be in proper business writing forms. If appropriate for the assignment APA formatting is required (in-text and reference list only).Third-person writing is required. Third-person means that there are no words such as “I, me, my, we, or us” (first-person writing), nor is there use of “you or your” (second-person writing).Contractions are not used in business writing, Paraphrase and do not use direct quotation marks. This means you do not use more than four consecutive words from a source document, put a passage from a source document into your own words and attribute the passage to the source document. Provide the page or paragraph number. Note that a reference within a reference list cannot exist without an associated in-text citation and vice versa.

ObjectivesBack to TopThe objective of the Corporate Consolidation Project is to provide students with an in-depth, hands-on experience examining a real-world scenario. Students will address the following primary areas.Using actual financial results for the recently completed year and a set of assumptions, forecast proposed parent company financial results for the upcoming year assuming the acquisition is not attempted.Develop a set of revised, forecasted, separate financial statements for the parent company that reflect the proposed acquisition.Prepare a pro forma consolidation worksheet for the parent company and its proposed subsidiary.Perform ratio analysis based on (1) the separate financial statements and (2) the consolidated financial statements.Articulate findings, conclusions, and a recommendation in a memorandum to the chairperson of the parent company's acquisition committee.OverviewBack to TopThe Course Project is to be done in teams that will be assigned by the instructor during Week 1 of the course to solve a Case Study, which is listed below. The team will work together in private discussions assigned by the instructor and located in letter-designated areas (A, B, …)included in the Team Café link just below Week 8.There are three threads in each letter group that correspond to the three required milestones.Milestone 1—Required 1—due Week 3 (30 points)Milestone 2—Required 2 and 3—due Week 5 (70 points)Milestone 3—Required 4 and 5—due Week 6 (50 points)The team will choose a leader to be responsible for posting the team’s document(s) to that person's Dropbox for the appropriate week. In addition to the private Discussion areas, teams have private Doc Sharing and e-mail to facilitate project activities. Only one team submission is to be made; each person does not submit his or her own milestone.Please note: Any communication that occurs outside the Team Café will not be visible to me, thus it will not earn you points towards the individual participation component of each milestone's grade.Although this is a group project, it is required that each team member play a meaningful role in completing each milestone. You should review the grading rubric found at the bottom of the page, because it will be used to grade each submission and individual participation component of each milestone. Each individual will receive a separate grade dependent on both the submission and his or her participation. Note also that participation in the team thread does not count toward your required weekly discussion logins and posts, but it will count toward your individual team grade.DropboxFor instructions on how to use the Dropbox, read these step-by-step instructions or watch this Tutorial Dropbox Tutorial.Once you have been assigned to a group, go to the e-mail tool and note the group number/name in the address box. If you click on the group, then "add," you will see the names of your group members in the box. Go ahead and send an e-mail to say hello to your teammates and tell them a bit about yourself. At the bottom of the left side of your screen, under the Week 8 tab, you will find a Team Café, and if you click on this you will see a Discussion area for your team. This Discussion area will be open for the entire duration of the course, so I highly recommend that you keep your conversation with your team in this area. You will not be inundated with e-mails during the course, and you will not have to archive these to keep track of who is doing what.Teams are to begin working on Milestone 1 using your team thread in Team Café—see the Course Project Guidelines in Doc Sharing for specifics. Also, please let me know if you have not heard from a member of your group early in the course.Good luck and enjoy!SituationBack to TopParent Inc. is contemplating a tender offer to acquire 80% of Subsidiary Corporation's common stock. Subsidiary's shares are currently quoted on the New York Stock Exchange at $85 per share. In order to have a reasonable chance of the tender offer attracting 80% of Subsidiary's stock, Parent believes it will have to offer at least $105 per share. If the tender offer is made and is successful, the purchase will be consummated on January 1, 2013.A typical part of the planning of a proposed business combination is the preparation of projected or pro forma consolidated financial statements. As a member of Parent's accounting group, you have been asked to prepare the pro forma 2013 consolidated financial statements for Parent and Subsidiary assuming that 80% of Subsidiary's stock is acquired at a price of $105 per share. To support your computations, Martha Franklin, the chairperson of Parent's acquisitions committee, has provided you with the projected 2013 financial statements for Subsidiary. (The projected financial statements for Subsidiary and several other companies were prepared earlier for the acquisition committee's use in targeting a company for acquisition.) The projected financial statements for Subsidiary for 2013 and Parent's actual 2012 financial statements are presented in Table 1.AssumptionsBack to TopMs. Franklin has asked you to use the assumptions below to project Parent's 2013 financial statements.Sales will increase by 10% in 2013.All sales will be on account.Accounts receivable will be 5% lower on December 31, 2013, than on December 31, 2012.Cost of goods sold will increase by 9% in 2013.All purchases of merchandise will be on account.Accounts payable are expected to be $50,500 on December 31, 2013.Inventory will be 3% higher on December 31, 2013, than on December 31, 2012.Straight-line depreciation is used for all fixed assets.No fixed assets will be disposed of during 2013. The annual depreciation on existing assets is $40,000 per year.Equipment will be purchased on January 1, 2013, for $48,000 cash. The equipment will have an estimated life of 10 years, with no salvage value.Operating expenses, other than depreciation, will increase by 14% in 2013.All operating expenses, other than depreciation, will be paid in cash.Parent's income tax rate is 40%, and taxes are paid in cash in four equal payments. Payments will be made on the 15th of April, June, September, and December. For simplicity, assume taxable income equals financial reporting income before taxes.Parent will continue the $2.50 per share annual cash dividend on its common stock.If the tender offer is successful, Parent will finance the acquisition by issuing $170,000 of 6% nonconvertible bonds at par on January 1, 2013. The bonds would first pay interest on July 1, 2013, and would pay interest semiannually thereafter each January 1 and July 1 until maturity on January 1, 2023.The acquisition will be accounted for as a purchase and Parent will account for the investment using the equity method. Although most of the legal work related to the acquisition will be handled by Parent's staff attorney, direct costs to prepare and process the tender offer will total $2,000 and will be paid in cash by Parent in 2013.As of January 1, 2013, all of Subsidiary's assets and liabilities are fairly valued except for machinery with a book value of $8,000, an estimated fair value of $9,500, and a 5-year remaining useful life. Assume that straight-line depreciation is used to amortize any revaluation increment.No transactions between these companies occurred prior to 2013. Regardless of whether they combine, Parent plans to buy $50,000 of merchandise from Subsidiary in 2013 and will have $3,600 of these purchases remaining in inventory on December 31, 2013. In addition, Subsidiary is expected to buy $2,400 of merchandise from Parent in 2013 and to have $495 of these purchases in inventory on December 31, 2013. Parent and Subsidiary price their products to yield a 65% and 80% markup on cost, respectively.Parent intends to use three financial yardsticks to determine the financial attractiveness of the combination. First, Parent wishes to acquire Subsidiary Corporation only if 2013 consolidated earnings per share will be at least as high as the earnings per share Parent would report if no combination takes place. Second, Parent will consider the proposed combination unattractive if it will cause the consolidated current ratio to fall below two to one. Third, return on average stockholders' equity must remain above 20% for the combined entity.If the financial yardsticks described above and the nonfinancial aspects of the combination are appealing, then the tender offer will be made. On the other hand, if these objectives are not met, the acquisition will either be restructured or abandoned.Table 1Back to TopParent Inc. Actual Financial Statements for 2012 andSubsidiary Corporation Projected Financial Statements for 2013  Parent 2012 Actual Subsidiary 2013 ProjectedSales $800,000 $100,000Cost of goods sold (485,000) (55,000)Operating expenses (219,000) (10,000)Income before taxes 96,000 35,000Income tax expense (38,400) (14,000)Net income 57,600 21,000     Retained earnings, January 1 23,000 14,500Add; net income 57,600 21,000Less: dividends (38,000) (7,000)Retained earnings, December 31 42,600 28,500     Cash 36,200 19,500Accounts receivable 39,000 13,000Inventory 26,000 12,000Property, plant, and equipment 673,000 213,000Accumulated depreciation (490,000) (28,000)Total assets 284,200 229,500  Parent 2012 Actual Subsidiary 2013 ProjectedAccounts payable 44,600 21,000Common stock * 190,000 150,000Paid-in capital in excess of par 7,000 30,000Retained earnings 42,600 28,500Total liabilities and stockholders' equity 284,200 229,500     * Parent: $12.50 par; Subsidiary: $75 par    MilestonesBack to TopMilestoneDueRequirements1 (30 points) Week 3Forecast the separate financial statements of Parent Inc. Using Ms. Franklin's assumptions and Parent's 2012 financial statements, prepare pro forma 2013 financial statements for Parent Inc., assuming that the acquisition is not attempted. Support your statements with appropriate work papers and journal entries. Pro forma financial statements include a statement of operation, a statement of retained earnings, a balance sheet, and a cash flow statement.NOTE: There is a Template for Milestones 1 and 2 available for your download that is also located in Doc Sharing.2 (70 points) Week 5Adjust the separate financial statements of Parent Inc. to reflect the proposed acquisition. Adjust Parent's pro forma 2013 financial statements prepared in Milestone 1 to reflect the proposed acquisition (i.e., adjust Parent's forecasted financial statements for bond issuance, stock purchase, income from subsidiary, etc.). Support your statements with appropriate work papers and journal entries. Pro forma financial statements include a statement of operation, a statement of retained earnings, a balance sheet, and a cash flow statement.Prepare a pro forma consolidated worksheet. Prepare a pro forma consolidation worksheet for Parent Inc. and its proposed subsidiary as of December 31, 2013. To ensure you are starting with the right numbers, use the solution provided to Milestone 1 for the adjusted pro forma 2013 financial statements of Parent Inc., and the projected 2013 financial statements of Subsidiary Corporation in Table 1. Show all consolidation adjusting entries, including minority interest entries.NOTE: There is a Template for Milestones 1 and 2 available for your download that is also located in Doc Sharing.3 (50 points) Week 6Perform ratio analysis. Compute earnings per share for (1) the separate financial statements of Parent Inc. prepared in Milestone 1 and (2) the consolidated financial statements contained in the solution for the pro forma consolidation worksheet prepared in Milestone 3. Also, calculate current ratio and return on average stockholders' equity for the separate company and consolidated financial statements.Write a memorandum (as a Word document) to Ms. Franklin summarizing the results of your analysis, including a summary of the financial ratios you computed and your recommendation. Attach copies of both sets of pro forma financial statements of Parent Inc. and the pro forma consolidation worksheet.Grading RubricsBack to TopThe following grading rubric will be used to determine each individual’s total grade on each project milestone. Contributory content is defined as providing input into the creation of a component, with appropriate, relevant commentary on another’s posted content or discussion on technical questions related to the requirements of each particular course milestone. Grading will occur in a two-step process. The submission itself will be graded for technical and format and appearance components as follows.Total Points: Milestone 1 = 30; Milestone 2 = 70; Milestone 3 = 50CriterionUnsatisfactory (less than 40% of available content points) Needs Improvement (40–69% of available content points) Meets Requirements (70–100% of available content points)Content, Calculation, and Technical Accounting 80% of total pointsContent is incomplete or omits significant requirements.Major points are not clear and/or persuasive. Does not indicate a basic understanding of chapter concepts. Overall application of accounting theory visible but individual supporting calculations incorrect. Major adjustments are addressed but do not appear supported. Minor theoretical errors. Appropriate application of accounting theory, correct supporting calculations, appropriate journal entriesCriterion Unsatisfactory (less than 10% of available format points) Needs improvement (10–49% of available format points) Meets requirements (50–100% of available format points)Format and Appearance20% of total points Not submitted in appropriate format (Excel for Milestones 1 and 2, Word or Excel for Milestone 3)No apparent attempt to format for readability. Hard to follow/determine answer. No conclusion or indication of where to find the answer/conclusion for each requirement. Not a professional submission. Data just “typed” without any organization or format. No “white space” or graphics/formatting.Unable to clearly identify where the answer to each problem requirement is presented. Submission appropriate to present in a business or professional context. Excellent use of graphics, formatting, and labeling.Answer to each problem requirement clearly indicated and analysis clearly displayedThen, based upon the individual’s contribution in the Team Café consideration for the individual component of the grade will be given as follows.NOTE: Upon review of the Team Café Discussion area, if a team member has not posted any contributory content to the project, then no points for the milestone will be earned.Individual Participation  Six or more Contributory PostsFull individual participation credit3–6 Contributory PostsLoss of 15–25% of available milestone points1–3 Contributory PostsLoss of 26–50% of available milestone pointsGrading example:Group A submits the third milestone and earns 50 points based upon the actual content and presentation of the submission. Per review of the Team Café, it appears that one student, John Joe, posted only three times during the preparation of this milestone. The content of those posts was contributory. Based upon review of the actual content of his posts, John Joe can expect to earn between a 25 and 37 score for his participation in the Milestone 1 submission of Group A.Week_1_acct559_JTweek1.xls