Assignment 3: Capstone Research ProjectDue Week 10 and worth 410 pointsProject Parameters:You have been selected as the consultant to develop a business plan for Durango Manufacturing Company, which i

Assignment 3: Capstone Research ProjectDue Week 10 and worth 410 points

Project Parameters:You have been selected as the consultant to develop a business plan for Durango Manufacturing Company, which is a start-up, medium-sized public manufacturing company. The CEO has a background in manufacturing and is well versed in supply chain management. However, the CEO has limited experience in financial management and creating value for the various stakeholder groups. Your business plan must include a five (5) year strategy to increase revenues by 10% and a recommendation for creating an organizational structure to comply with SOX mandates for strong corporate governance over the internal controls. Your business plan must also include prescriptions for creating an ethical environment. Your recommendation must be approved by the Board of Directors before the company can begin its operations.Based on your knowledge of accounting and financial, prepare a ten to twelve (10-12) page report in which you:

1. As the consultant, create an argument that you will present to the CEO that suggests accounting and financial management knowledge and skills will be essential to the company’s success and stability over the next five (5) years. Provide support for your argument.
2. Suggest to the CEO how the company’s stakeholders (investors, lenders, and employees) will use financial statement information and ratio calculations to make key determinations related to the financial condition and operational efficiency of the company. Provide support for your rationale.
3. Given the strategy to increase revenue during the five (5) year plan period, which will need to be achieved through expansion and capital expenditures, determine which capital budgeting ratio is appropriate for Durango to evaluate its proposals for capital expenditures, such as NPV, IRR, etc. Defend your position.
4. In order for the company to improve its operational efficiency, recommend which production departments should use process, job order, and activity-based costing—all three (3) of which must be implemented within Durango. Defend your choice for each department.
5. The CEO would like to consider outsourcing his manufacturing operations if labor can be supplied cheaper overseas than in the U.S. Create an argument either for or against outsourcing the manufacturing operation to a foreign country. Your argument should include key points that support your position. The key points should address economic and business management aspects related to outsourcing.
6. Predict the economic and business environment over the next five (5) years, indicating at least two (2) ways it may impact Durango Manufacturing Company’s ability to achieve the desired 10% growth in revenue. Provide support for your prediction.
7. Formulate a strategy to improve the opportunities for Durango to reach its revenue goals (i.e., increase revenue by 10% within five [5] years). 
8. Assess the potential for fraud within Durango based on the lack of IT controls, and determine at least two (2) ways Durango will structure its internal IT controls to ensure that such controls are effective in detecting fraudulent transactions. 
9. Use at least six (6) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

• Be typed, double 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, the student’s name, the professor’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:

• Analyze financial reports, prepare analysis, and draw conclusions based on the financial analysis
• Calculate and interpret various financial and operating ratios used in business.
• Apply activity-based costing and other managerial accounting concepts to various business situations.
• Evaluate capital budgeting situations by calculating financial returns and drawing appropriate conclusions.
• Evaluate internal controls within an organization and create a risk assessment.
• Analyze ethical theories to evaluate a decision-making process to determine compliance with professional codes of ethics.
• Evaluate the health of organizations to assess the level of risk in an audit engagement.
• Evaluate financial data for potential fraud and prepare an audit approach for detecting fraud.
• Assess the risk of financial misstatement in an IT-based environment.
• Evaluate financial data for potential fraud and determine the business relationships contributing to the fraudulent reporting.
• Use technology and information resources to research issues in accounting management.
• Write clearly and concisely about accounting management using proper writing mechanics.