Qualitative Research In Business And Management

Questions: 1. Are the Financial Statements prepared by PMI correct in accordance with GAAP? 2. What are the differences in the financial statements for six months to end of year provided by PMI for 2011? 3. Consider the contract provisions signed by Dr. Jones with PMI are there ethical and/or accounting concerns from a management perspective? 4. As a manager, what would you advise Dr. Jones in regards to understanding financial statements, cash flows, etc.? 5. As a manager, what would be the course of action you would advise Dr. Jones as to PMIs services provided and/or future services provided? Answers: 1. From the following case study it can be understood that the Jackson and Associates along with the PMI uses a different mode of accounting methodology for professional judgement in order to prepare the financial statement. According to the Jackson and Associates and PMI it should be reviewed that the financial statement prepared by the PMI are in not in accordance with the GAAP rules as the methods adopted are based on cash and accrual basis and therefore they are not in compatible with the Generally Accepted Accounting Principle (Gollenia, 2016). Therefore, it can be concluded that both the revenues and the receivables will be inflated in the financial statement of PMIs financial statement. 2. At the beginning of the year 2012 it was noticed that PMI released the Sunset Medical financial statements for the financial year of 2011. It was evident from the financial statement that revenue of Sunset increased from 1,167,041 in the financial year of to 1,601,050 for the year ended 2011. Even though with such an additional increase in the revenue it was can be understood that the there was dramatic fall in the operations for the Sunset. Thus, Dr Jones had was left with no other option but to borrow a sum of $200,000 during the year. The borrowed sum consisted of $100,000, which was to be specifically used for the purchase of X-ray machine. 3. At the initial stages, the goal of the sunset business is to add into the agreement to ascertain that the PMI should estimate the data of Return on Assets, Return on Equity etc (Hatten, 2015). Furthermore the contract should be reasonably equal to right and liability. Under the given case study PMI is authorised with the rights to perform supervision and manage the daily operations of the business as manager which is accountable for the company. PMI should be held accountable for any possibilities of business failures. On the other hand, if PMI failed to execute the managerial practice PMI should be liable for business compensatory losses. Along with this, Dr Jonas should keep the power to supervise the business operations of PMI instead of completely authorising PMI to make complete use of power without any control. 4. In order to improve the cash flow of the organisation the best possible advise for Dr Jones is that, he shall ensure proper management of the business which includes the day to day operations of the accounting practice of the company (Myers, 2013). It is further recommended that instead of using the cash vs. Accrual mode of accounting Dr Jones should follows the GAAP mode of accounting. Adopting such mode of accounting would enable Dr Jones to improve the cash flow of the business. 5. As the manager of the practice it is advised that PMI in the future course of action shall assist the company with the recruitment, hiring and supervision. Furthermore, Dr Jones should ensure that PMI should report to the company in order to consult and confer any implementation of business management of services. Reference List: Gollenia, L.A., (2016).Business Transformation Management Methodology. Routledge. Hatten, T. S. (2015).Small business management: Entrepreneurship and beyond. Nelson Education. Myers, M. D. (2013).Qualitative research in business and management. Sage. Slack, N. (2015).Operations strategy. John Wiley Sons, Ltd.