At December 31, 2010, Coburn Corp. has assets of $10,000,000, liabilities of $6,000,000, common stock of $2,000,000 (representing 2,000,000 shares of $1 par common stock), and retained earnings of $2,000,000. Net sales for the year 2010 were $18,000,000, and net income was $800,000. As auditors of this company, you are makin
1. Profits might be compared to sales, assets, or stockholders' equity. Why are all three of these useful? Will trends in all three ratios always move in the same direction? Why or why not? 2. The Return on Assets for Smith Corporation has remained fairly stable at 15 percent, while the Return on Assets for Jones, Inc. has st
Upton Company was started on Jan. 1, 2011, when the owners invested $160,000 cash in the business. During 2011, the company earned cash revenues of $120,000 and incurred cash expenses of $82,000. The company also paid cash distributions of $15,000. Required: Prepare a 2011 income statement, capital statement (stateme
GASB-34 requires that state and local governments will include a Management Discussion and Analysis (MD&A) section preceding the basic financial statements. Describe and discuss this requirement and compare this requirement with the SB-2 Report - (MD&A) as required by SOX.
1. When computing the debt ratio, do you think the result would be more useful to financial statement users if the numerator included all liabilities as shown on the balance sheet, all liabilities as shown on the balance sheet plus any contingencies, or only long-term liabilities? Why 2. In assessing the ability of a company
Primary: Starbucks Corporation (SBUX) Year End: September Competitor: Caribou Coffee Co. Inc. (CBOU) Year End: December 1. Calculate the following ratios needed to assess liquidity and interpret the results. This should include the last 3 years of ratios for the company and the last 3 years of ratios for the
1. "The current ratio is preferred over the quick ratio when assessing a company's liquidity. Since these two ratios move in tandem (that is, if one goes up, the other goes up), computing the quick ratio is redundant." Do you agree or disagree? Why? 2. Overall, would a company rather have a longer or a shorter operating cyc
1. Two businessmen were discussing the purpose of depreciating long-term assets. The first stated, "My company depreciates assets to better reflect their market value. We all know that most items decrease in value over time, and depreciation helps us to reflect this, resulting in more relevant information." The second disagreed,
E5-11 (balance sheet preparation) Presented below is the adjusted trial balance of Abbey Corporation at December 31, 2010. cash $ ? office supplies 1200 prepaid insurance 100
See attached file. Question1. a. What is the company's average annual rate of sales growth from 2007 through 2009? b. How long, on average, was Better Mouse Trap taking to collect on its receivable accounts in 2009? (Assume all of the company's sales were on credit.) c. Was Better Mouse Trap more or less profitable i
See attached template. Need an analysis of transactions, balance sheet, income statement, and statement of owners equity completed. As of April 30th, Laird had Cash of 1,720. He has 3,240 in accounts receivable, $24,000 in land. $5,400 in accounts payable, and Daniels capital is $23,660 Considering this info log below.
See attached file for March of Dimes financial statements. List the differences and similarities between the not-for-profit statements and those of organizations operating for profit. Examine the unrestricted, temporarily restricted, and permanently restricted funds. List the types of donor-imposed restrictions and how
What are some of the key characteristics that comprise a desirable vision beyond those typically present in a mission statement? How has vision specifically taken shape in your workplace experience? Describe whether or not it has been a successful guideline by which decisions and actions are made within that organization
See attached file for clarity. Question 1 The balance sheet of Hero Ltd (H Ltd) and Silver Ltd (S Ltd) as at 31 December 2009 are as shown below: H Ltd S Ltd $000 $000 Tangible fixed assets Land and building 4,000 2,000 Plant and machinery
Three former software engineers have decided to pool a variety of work experiences by opening a store near a college campus to sell wireless equipment to students. The first products were Blackberries and Nokia cell phones. The business has been incorporated as Campus Wireless. The following transactions occurred during October:
1. Identify various financial statement users and discuss how the decisions these users make based on the financial statements might affect their wealth? 2. Since management prepares the company's financial statement, they may engage in certain brhaviours to alter the appearance of the statements and, possibly, mislead finan
As the CPA for Carismo Manufacturing Inc., you have been asked to develop some key ratios from the comparative financial statements. This information is to be used to convince creditors that the company is solvent and will continue as a going concern. Carismo Manufacturing Inc. asks you to prepare a list of brief comments sta
Below are accounting questions/calculations regarding financial statement analysis. If you could also provide the calculations used to get the solutions, I would really appreciate it! Thanks! -------------- Exercise 17-13 (Algorithmic) Ratio of liabilities to stockholders' equity and number of times interest charges are
The first place the auditor in charge should go on arriving at a company is to visit the CEO. This is important to touch base with the CEO and get any comments the CEO may have. I know of one case where this visit provided the auditor some important information that would not be known for at least a month. The CEO admitted in
Post-Balance-Sheet Events Keystone Corporation issued its financial statements for the year ended December 31, 2010, on March 10, 2011. The following events took place early in 2011. (a) On January 10, 10,000 shares of $5 par value common stock were issued at $66 per share. (b) On March 1, Keystone determined after nego
Sobrero Corporation, a Mexican affiliate of a major U.S based hotel chain starts the calendar year with 1 billion pesos (MXP) cash equity investment. It immediately acquires a refurbished hotel in Acapulco for MXP 900 million. Owing to a favorable tourist season, Sobrero Corporation's rental revenues were MXP 144 million for the
Need help with the following problem... ----------------- On January 1, Beckham Inc acquires 60 percent of the outstanding stock of Calvin for $36,000. Calvin Co. has one recorded asset, a specialized productioin machine with a book value of $10,000 and no liabilities. The fair value of the machine is $50,000 and the remaini
Recently, your Uncle Carlos Beltran, who knows that you always have your eye out for a profitable investment, has discussed the possibility of your purchasing some corporate bonds. He suggests that you may wish to get in on the "ground floor" of this deal. The bonds being issued by Neville Corp. are 10-year debentures which pr
Alex bought $50,000 worth of computers for his firm and he will pay the vendor for these computers on the fifteenth of next month. These items would be carried on the ____________ and listed as _________________. balance sheet, accounts payable balance sheet, notes payable income statement, accoun
The following information was obtained from the accounts of Lukes, Inc., as of December 31, 2008. It is presented in scrambled order. Common stock, no par value, 10,000 shares authorized, 5,724 shares issued $ 3,180 Retained earnings 129,950 Deferred income tax liability (long term) 24,000 Long-term debt 99,870 Acc
Corvallis Corporation owns 80% of the stock of Little Harrisburg, Inc. At December 31, 2008, Little Harrisburg had the following summarized balance sheet: LITTLE HARRISBURG, INC. Balance Sheet December 31, 2008 Current assets : $100,000 Property, plant, and equipment (net) : $400,000
See attached file. Complete an Income Statement and Balance Sheet using Financial Ratio Data. Use basic ratio calculations to determine the proper metrics within a balance sheet (see attached) Analytical Case - Complete an Income Statement and Balance Sheet Using Financial Ratio Data. Use basic ratio calculations to determ
Discuss the use of the financial statements in the determination of cash flow. Why are we concerned about their differences if we ultimately are concerned about the profitability of the firm which is demonstrated by the financial statements of the firm?
Requesting assistance for accounting word problems in order to study successfully for upcoming exam.
The following information relates to DFW Corporation: All sales are on account and are budgeted as follows: February, $350,000; March, $360,000; and April $400,000 DFW collects 70% of it sales in the month of sale and 30% in the following month. Cost of goods sold averages 60% of sales. Purchases total 65% of the following