. In June of 2018, Northrim AeroParts found itself in the enviable position of having about $750,000...

 

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In June of 2018, Northrim AeroParts found itself in the enviable position of having about $750,000 of discretionary funds and decided to invest in a portfolio of equity securities. The investment is reported at fair value in accordance with GAAP. During the most recent three years, Northrim has not sold any of its investments and is investigating whether any changes are needed. You are an accounting analyst for the company and have been assigned the task of launching an initial investigation. To do so, you created a Tableau Dashboard showing the growth in market value of the portfolio along with that of the cost of the of growth in comparison with a market index representing stocks with a similar risk profile. investment. You also charted the rate Cost Market Value Equity Investments $1,400 $1.200. $1.000 $300,000 MELOD $400,000) $200 Investment Growth Relative to Market Tape2018: MORE ARE Wat asber 2018 October 2016 Nomber 2015 Thember 2918 6102 Server Finuary 2015 Mart 2015 starany steins Saat m SI Tuis: 2015 den 2015 Temer 2015 STOT PAR Thermber 2015 Jomars 2025 Fabibery: 29123 March 2020 Apont 2028 May 2009 June 2015 Pas 2031 Azer ning Met mer Ret lighting Histo: Tovestam Staates Brud tot 2 Juary 2921 Peway 2021 March 21 April 2002 May 2 Next > tableau Complete this question by entering your answers in the tabs below. Drawing from the data available, assess the following: 475 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2015 April 2019 May 2015 June 2015 July 2015 August 2019 September 2015 October 2015 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 202 July 2020 August 2029 September 2020 October 2029 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 16.09 80% 14 T 16... Investment Growth Relative to Market Market Index Equity Investments Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the likely reason for the shifts in the trend of the investment cost? ONorthrim invested an additional $100,000 at the beginning of 2019 and again in October of 2020. Northrim sold some of its investment at the beginning of 2019 and again in October of 2020. The FASB mandated a change in the way investments in equity securities are accounted for. Regon Required 2 > Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 How would you characterize the change in the investment portfolio since its inception? Despite relatively minor dips in value, the portfolio has maintained a steady growth. The market value of the portfolio has more than doubled. The market value of the portfolio has risen, but that growth has been almost entirely a result of additional investments. < Required 1 Required 3 > 1 of 2 Nex +ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 $10,000 invested in the same portfolio of stocks in June 2018 would be worth how much currently? $ 12,000 14,900 16,500 < Required 2 Required 4 > +ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What would you conclude regarding whether any changes are needed? Changes in the composition of the portfolio and the process by which it is managed should be considered due to it underperforming the market in the most recent year. Maintaining the current portfolio composition seems warranted due to performance essentially in line with that of the market. No changes are needed because the portfolio has grown at a healthy pace since its inception. < Required 3 Erev 1 of 2 Next In June of 2018, Northrim AeroParts found itself in the enviable position of having about $750,000 of discretionary funds and decided to invest in a portfolio of equity securities. The investment is reported at fair value in accordance with GAAP. During the most recent three years, Northrim has not sold any of its investments and is investigating whether any changes are needed. You are an accounting analyst for the company and have been assigned the task of launching an initial investigation. To do so, you created a Tableau Dashboard showing the growth in market value of the portfolio along with that of the cost of the of growth in comparison with a market index representing stocks with a similar risk profile. investment. You also charted the rate Cost Market Value Equity Investments $1,400 $1.200. $1.000 $300,000 MELOD $400,000) $200 Investment Growth Relative to Market Tape2018: MORE ARE Wat asber 2018 October 2016 Nomber 2015 Thember 2918 6102 Server Finuary 2015 Mart 2015 starany steins Saat m SI Tuis: 2015 den 2015 Temer 2015 STOT PAR Thermber 2015 Jomars 2025 Fabibery: 29123 March 2020 Apont 2028 May 2009 June 2015 Pas 2031 Azer ning Met mer Ret lighting Histo: Tovestam Staates Brud tot 2 Juary 2921 Peway 2021 March 21 April 2002 May 2 Next > tableau Complete this question by entering your answers in the tabs below. Drawing from the data available, assess the following: 475 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2015 April 2019 May 2015 June 2015 July 2015 August 2019 September 2015 October 2015 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 202 July 2020 August 2029 September 2020 October 2029 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 16.09 80% 14 T 16... Investment Growth Relative to Market Market Index Equity Investments Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the likely reason for the shifts in the trend of the investment cost? ONorthrim invested an additional $100,000 at the beginning of 2019 and again in October of 2020. Northrim sold some of its investment at the beginning of 2019 and again in October of 2020. The FASB mandated a change in the way investments in equity securities are accounted for. Regon Required 2 > Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 How would you characterize the change in the investment portfolio since its inception? Despite relatively minor dips in value, the portfolio has maintained a steady growth. The market value of the portfolio has more than doubled. The market value of the portfolio has risen, but that growth has been almost entirely a result of additional investments. < Required 1 Required 3 > 1 of 2 Nex +ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 $10,000 invested in the same portfolio of stocks in June 2018 would be worth how much currently? $ 12,000 14,900 16,500 < Required 2 Required 4 > +ableau Drawing from the data available, assess the following: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What would you conclude regarding whether any changes are needed? Changes in the composition of the portfolio and the process by which it is managed should be considered due to it underperforming the market in the most recent year. Maintaining the current portfolio composition seems warranted due to performance essentially in line with that of the market. No changes are needed because the portfolio has grown at a healthy pace since its inception. < Required 3 Erev 1 of 2 Next

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