Bitcoin

  ACC 4300 (10 points) Bitcoin Project It is your first week on the job as the Assistant Controller for a manufacturer of Agricultural Equipment. You run into the CFO in the elevator and the following conversation occurs: CFO: “Hi, what a coincidence, I’ve just returned from a trade show and we have a multimillion dollar equipment sales opportunity from a company in a developing nation in Africa. Have you ever heard of Bitcoins? I never have but they said it was “as good as cash” You: “I’ve heard of them” CFO: “Great, this country is a real mess... political instability, currency restrictions and all kinds of other problems. However, they have vast amounts of untapped natural resources and if we get a piece of that business it might be huge – we might end up being their exclusive provider of equipment and consulting services for series of projects that would be very profitable for this company. Because of the currency issues they can only pay in Bitcoins. I’m meeting with the Board in early October and will seek their approval to move forward with this initial sale. I’ll need a report from you about this Bitcoin thing by October 3rd so see if it makes sense.” The CFO also notes that this sales opportunity would be material to the Q4 financial statements and might be the “little extra umph” the company needs to meet analyst’s sales forecasts At this point the Elevator door opens and the CFO walks out, but not without turning to you and saying, “Welcome aboard Deliverable: Prepare in memo format the above request. Submit it in the drobox electronically and one hard copy in class. Your memo should clearly state whether or not you recommend moving forward with the transaction and why.