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Assignment 2.2: Justification Report – Part 2
Due Week 5 and worth 150 points

In Part 1 of your Justification Report assignment, you built up the following sections: Problem Statement, Overview of Alternatives, Criteria, and Methods. In Part 2, you will revise Part 1 based on your instructor’s suggestions and add to it the following sections: Evaluation of Alternatives, Findings and Analysis, and References.

Use the basic outline below to draft your paper. Organize your responses to each question under the following section headings:

Evaluation of Alternatives (for Questions 1-3)
Findings and Analysis (for Questions 4-5)
References (for Question 6)

Using the provided template, write Part 2 of a single-spaced report in which you:

Include and revise the sections from Assignment 2.1 (Problem Statement, Overview of Alternatives, Criteria, and Methods) per instructor suggestions.
Research the two (2) alternatives (i.e. possible solutions) that you’ve identified in your Part 1 Evaluation of Alternatives section. Record bibliographic information during research.
1. Example: You might research other organizations that have attempted similar solutions to the problem you have identified and explore the results of those experiments.
Use what you discover in your research to evaluate each alternative by each of your five (5) criteria.
1. Example: If your research revealed that four (4) companies similar to yours increased productivity after allowing their workers to telework from home three days per week, you might conclude that one of your suggested alternatives – in this case, the option to telework from home three days per week – satisfies one of your criterion of “Productivity” as a high-potential solution to a problem you’ve identified (of decreased worker morale and productivity at Doe’s Electronics). However, additional research might frustrate a recommendation of this alternative if it is found to fall short of other criteria while a second alternative fares better. For instance, a telework alternative might be found to be too costly to implement; too frustrating for consumers who prefer daily, in-person customer service; or too divergent from the company’s brand, “Always there for you!”
Organize the assignment by your criteria. Explain in narrative form how each of your two (2) alternatives stacks up against your first criterion. Next, explain how each alternative stacks up against your second criterion, etc.
1. Example: An abbreviated outline of what this longer section might look like based on the above example is below (Note: Only the first two [2] of five [5] required criteria are included to give you a feel for the structure). Your researched findings, represented as circled bullets below, should be explained in two to five (2-5) sentences. Include in-text citations and follow up with References in APA style):
  Evaluation of Alternatives
  1. - Alternative A: Telework from home three (3) days per week
      - {narrate findings based on research article 1 here}
    - Alternative B: Offer two (2) extra Floating Holidays to each employee per year
      - {narrate findings based on research article 2 here}
  1. - Alternative A: Telework from home three (3) days per week
      - {narrate findings based on research article 1 here}
    - Alternative B: Offer two extra Floating Holidays to each employee per year
    - - {narrate findings based on research article 2 here}
Briefly summarize in narrative form the major discoveries that emerged from the Evaluation of Alternatives section.

Include a chart like the ones below to illustrate at a glance:

Figure 1: Alternatives Analyzed by Criteria

*Criteria*	*Telework Option*	*Floating Holiday Option*
Productivity	Very high	Negligible increase
Cost	Very high	Moderate
Company Image	Increased	Negligible increase
Worker Morale	Increased	Negligible increase
Practicality	Moderate	Low
*TOTAL Feasibility of Alternatives based on Criteria?**	Moderate to High	Low to Moderate

*Feasability = Capability of an alternative being carried out with success

Include an APA style (6th edition) References page that documents the two (2) sources (minimum) that you used and cited in-text in your Evaluation of Alternatives section. You may use secondary resources, or you may include one primary source and one secondary source. Remember that both in-text citations and References must be included (to avoid plagiarism) whenever you are directly quoting, summarizing, or paraphrasing researched material.

Your assignment must:

Be typed, single spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, your name, the professorâ€™s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Support ideas or claims in body paragraphs with clear details, examples, and explanations.
Organize ideas logically by using transitional words, phrases, and sentences.
Use sentence variety and effective word choice in written communication.
Apply writing process strategies to develop formal business reports and / or proposals.
Use technology and information resources to research issues related to selected topics.
Write clearly and concisely using proper writing mechanics.

Consider the feedback from your professor and / or online tutor when making your revisions.

Click here to view the grading rubric.

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July 1, 2023

P3-3: Income statement preparation On December 31, 2015, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed

$360,000 for her accounting services. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of $8,000, Ms. Chen paid annual salaries of $48,000 and $36,000 to the bookkeeper and the clerical assistant, respectively.

Employment taxes and benefit costs for Ms. Chen and her employees totaled $34,600 for the year. Expenses for office supplies, including postage, totaled $10,400 for the year. In addition, Ms. Chen spent $17,000 during the year on tax-deductible travel and

entertainment associated with client visits and new business development. Lease payments for the office space rented (a taxdeductible expense) were $2,700 per month. Depreciation expense on the office furniture and fixtures was $15,600 for the year. During

the year, Ms. Chen paid interest of $15,000 on the $120,000 borrowed to start the business. She paid an average tax rate of 30% during 2015. a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2015. • b. Evaluate her 2015 financial performance.

P3-6: Balance sheet preparation Use the appropriate items from the following list to prepare in good form Mellark’s Baked Goods balance sheet at December 31, 2015.

P3-10: Statement of retained earnings Hayes Enterprises began 2015 with a retained

earnings balance of $928,000. During 2015, the firm earned $377,000 after taxes. From this amount, preferred stockholders were paid $47,000 in dividends. At year-end 2015, the firm’s retained earnings totaled $1,048,000. The firm had 140,000 shares of common

stock outstanding during 2015. a. Prepare a statement of retained earnings for the year ended December 31, 2015, for Hayes Enterprises. (Note: Be sure to calculate and include the amount of cash dividends paid in 2015.) b. Calculate the firm’s 2015 earnings

per share (EPS). c. How large a per-share cash dividend did the firm pay on common stock during 2015?

P3-16: Accounts receivable management An evaluation of the books of Blair Supply, which follows, gives the end-of-year accounts receivable balance, which

is believed to consist of amounts originating in the months indicated. The company had annual sales of $2.4 million. The firm extends 30-day credit terms. a. Use the year-end total to evaluate the firm’s collection system. b. If 70% of the firm’s sales occur

between July and December, would this information • affect the validity of your conclusion in part a? Explain. •

P3-18: Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm’s financial leverage

and financial risk. On the basis of the debt ratios for Creek, along with the industry averages (see the top of the next page) and Creek’s recent financial statements (following), evaluate and • recommend appropriate action on the loan request.

P3-20: Common-size statement analysis A common-size income statement for Creek Enterprises’ 2014 operations follows. Using the firm’s 2015 income statement presented in Problem 3–18, develop the 2015 common-size income statement and compare it with • the 2014

statement. Which areas require further analysis and investigation? •

P3-21: The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of craft papers. Some financial statement

values for each company follow. Use them in a ratio analysis that • compares the firms’ financial leverage and profitability.