1. Assignment 3: Capstone Research Project
Due 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:
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.
Suggest to the CEO how the company’s stakeholders (investors,

2. 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.
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.
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.
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.
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.
Formulate a strategy to improve the opportunities for Durango
to reach its revenue goals (i.e., increase revenue by 10% within
five [5] years).

3. 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.
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.