Using Matrix Algebra Functions in Spreadsheet Modifications

As firms are involved in mergers and acquisitions, it can often have an impact on the employees in the respective accounting departments. This case presents a situation where an employee in an acquired firm needs to adjust their processes to meet the requirements of the new, larger, acquiring firm. The employee must revise an existing spreadsheet to handle the more complex reciprocal accounting requirements of the acquiring firm.Learning objectives include: emphasizing the need to understand how spreadsheets work and why they might need to be altered; exposing students to matrix algebra which is not typically part of an undergraduate accounting student's studies; using matrix algebra to allocate the support department costs with the reciprocal method; and understand the importance of documenting spreadsheet calculations.Target students: upper division accounting and finance majors