BTB 110
Assignment #2
Value: 15%
due: Tuesday, December 2, 2003
1. In the book, Movies Door to Door.Com, mention is made of the fact that John is responsible for the financial
management of the company, and that to keep company records, he is using a personal money management
program. From your studies, it should be evident that a personal accounting system may not contain all the
necessary components required to keep accurate business financial records.
Using that perspective, choose one (1) personal money management software package, and two (2) small business
accounting software packages to research. Indicate the following items:
a) the package name
b) where it can be purchased
c) cost
d) technical support
e) features and functions of each package
f) benefits of each package
g) any reasons why it would not be a good choice for a company like Movies Door to Coor.Com
h) which of the packages you have analysed would best support the business functions of a company like
Door to Door.Com
Please answer the above in paragraph form and NOT in point form.
2.In Chapter 8 of Movies Door to Door.Com, John and Courtney deal with a server that keeps crashing because of
the high volume of traffic to their website. Even though they come up with a short-term solution to the problem,
they realize that they will have to purchase another server. They are faced with two choices. They can purchase a
new server for $30,086, or they can lease that same server by making monthly payments of $830 for 48 months
for a total cost of $39,840.
a) What rate of interest will they be charged if they choose to lease the server?
b) If they choose to borrow money from the bank to purchase the server, what types of costs would be associated
with the bank loan?
c) How would the server be reflected in Movies Door to Door.Com’s financial statements if they chose to purchase
the server?
d) How would the costs of repairs and maintenance be reflected in the company’s financial statements?
e) If the server is purchased, it will have to be depreciated. What would be an appropriate estimate for the life of
the server? What would be an appropriate estimate for the residual value of the server?