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The Financial Statements

Financial Accounting - Balance Sheet

- One client had indicated that they were interested in purchasing $35,500 worth of products. However, the client has not actually committed to the purchase. - The bookkeeper may have made a mistake when computing cost of good sold. She included total production costs for 2012 and did not adjust ending inventory for the $35,50

Financial Statements and Material Misstatement

Required: At this stage, the auditor obtains an understanding of the entity and its environment to anticipate account balances and assertions that are likely to be misstated. Outline the important aspects of understanding Mt. Hood Furniture and its external environment. Discuss the key issues that are present in the Mt. Hood cas

Financial Statements for a Cats and Dogs Company

The following cash transactions took place during March, the first month of business for Cats and Dogs Company: You may refer to Units 1 & 2 and the multimedia presentation and activity for this course for assistance. 1. D.C. Dawg started a business, Cats and Dogs Company, by contributing $6,000. 2. The Cats and Dogs Compan

Prepare a memo to your CFO which does the following

Prepare a memo to your CFO which does the following: 1.Summarize what a contribution format income statement depicts, as compared to the traditional format. 2.Using the following company data, show how the two income statement formats would look side by side. 3.Explain why the contribution approach is more useful to project

Balance Sheet Checkable Deposits

The balance sheet of a bank follows. Suppose that the reserve requiremnet is 3% on the first $30 million of checkable deposits and 10% on checkable deposits in excess of $30 million. ( the amounts on the balqnce sheet are in millions of dollars): balance sheet: Assets-----------------------------Liabilities+Capital Reserves

Financial statement analysis

Analyze the information contained in the company's balance sheet and income statement to answer the following questions: Considering all the information you have gathered, why might this information be important to potential creditors, investors, and employees? Here are the links for the balance sheet and the income state

AT&T financial statement loss

A decrease in stockholder equity is not necessarily a bad thing. It really depends on the cause of it. According to my text cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to decrease both stockholders' equity and total assets" (p. 549). If this is the cause then it coul

Balance Sheet Medical Practices Events

Caren Smith opened a medical practice. During July, the first month of operation, the business, titled Caren Smith, M.D., experienced the following events: Jul 6 Smith invested $55,000 in the business by opening a bank account in the name of C. Smith, M.D. The business gave capital to Smith. Jul 9 Paid $46,000 cash for

Income Statement and Balance Sheet to Prepare a Ratio Analysis

Income Statement for Joe's-Fly-by-Night Oil company for the year ended December 31, 2011 Sales $10,000 Less: Cost of goods sold $4,000 Gross profit $6,000 Less: Selling, general, & administrative expenses $3,000 EBIT $3,000 Less: Interest Expenses $200 EBT $2,800 Less: Income tax expense $1,000 Net Income $1,800 Divi

Beth Nail: missing numbers in the illustrated balance sheet

Beth Nail discovered a piece of wet and partially burned balance sheet after her office was destroyed by fire. She could recall a current ratio of 1.75 and a debt to assets ratio of 45 percent Assets Current assets Cash $ 36,000 Accounts receivable

financial statement analysis

Review the financial statements of your choice of a publicly traded U.S. company. Post a link to the statements. What did you learn from the notes on long-term debt? What would you have liked to have seen that would have given you a better idea with the status of the company's long-term debt? What did you learn from the

Creation of a Common Sized Financial Statement

Common Sized Financial Statements Linden Corporation has a 10% market share in its industry. Below are income statements ($millions) for Linden and for the industry. Normal Income Statement Linden Industry Sales $6,000 $64,000 Cost of goods sold 3,200 33,65

Financial Statements for Genatron Manufacturing

Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011. GENATRON MANUFACTURING CORPORATION INCOME STATEMENT 2012 2011 BALANCE SHEET 2012 2011 Net sales $1,500,000 $1,300,000 ASSETS Cost of goods sold 900,000 780

This posting addresses the basics of financial statements.

Identify the four basic financial statements. Describe the purpose of each of the four financial statements. Discuss how the financial statements would be useful to internal users, such as to managers and employees. Discuss how the financial statements would be useful to external users, such as investors and creditors.

Computing work-in-process inventory from balance sheet

On June 30, 2011, a tornado damaged Jensen Corporation's warehouse and factor completely destroying the work-in-process inventory. Neither the raw materials nor finished goods inventories were damaged. A physical inventory taken after the tornado revealed the following values: Raw materials $87,000 Work-in-process 0

Comparison of Financial Statements for Textron vs. Gulfstream

Review the financial statements for two years for Textron and Gulfstream. Make a comparison of: -revenues -cost of good sold -accounts receivable -accounts payable -inventory Show trends for all five categories for each company during this two year period. Keeping the case analysis in mind, discuss and interpret the

Your firm audits Metropolitan Power Supply (MPS). The issue under consideration is the treatment in the company's financial statements of $700 million in capitalized construction costs relating to Eagle Mountain, a partially completed nuclear power plant.

Your firm audits Metropolitan Power Supply (MPS). The issue under consideration is the treatment in the company's financial statements of $700 million in capitalized construction costs relating to Eagle Mountain, a partially completed nuclear power plant. See attachment for full description.

Pickett Company: Prepare an income statement and a balance sheet

Your task is to prepare an income statement and a balance sheet in good format after adjusting for the two errors below. 1 - A physical count of inventory indicates $75,000 on hand. 2 - There's a check for $10,000 from a customer that has not been recorded in the working trial balance. The check is payment for a purchase ma

Financial Statements and the Production of Cash Flow Statements

Please address the following inquiries: - The significance of financial statement data is not in the amount alone. Why is it necessary to convert accrual-based net income to a cash basis when preparing a statement of cash flows? - How is the amount of cash payments to suppliers computed under the direct method in producing

Please explain in your own words and include references if used. Thank you... Examine the objective of conducting an audit of financial statements and its impact on stakeholders. Analyze the auditor's responsibilities in conducting an audit and the impact on stakeholders. Evaluate the importance of setting audit objectives, both general and specific, and their impact on the audit outcome.

Please explain in your own words and include references if used. Thank you... Examine the objective of conducting an audit of financial statements and its impact on stakeholders. Analyze the auditor's responsibilities in conducting an audit and the impact on stakeholders. Evaluate the importance of setting audit

Prepare entries for each event balance sheet

The 2012 balance sheet of the Blackberry Mountain Inc. is attached. During 2013, the following events occurred. 1. Paid cash $36,000 in advance for 3 years' rent of office on January 1. 2. On January 1, purchased 50 personal computers at a cost of $1,500 each, paying cash upon delivery. 3. On January 14, paid employees $5,560

Financial Statements of Univor Company

Univor Company reported an increase in inventories in the past year. What is the effect of this change on the current ratio (current assets _ current liabilities)? What does this tell a statement user about Buildeasy's liquidity? What is one of the major limitations of the balance sheet as a source of information? What is

Compare Financial Statements of Ascension Health and HCA, Inc.

Download and review the financial statements of Ascension Health, a not-for-profit, religious based healthcare system from: http://www.ascensionhealth.org/assets/docs/Audited_Financial_Statements_For_the_Year_Ended_June_30_2010.pdf. Download and review the financial statements of HCA, Inc., a for-profit healthcare system

Prepare a schedule showing the intangible asset section

Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $760,000 on January 1, 2009. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $390,000 when Lou sold it to

Investing Decisions, Pro Forma Statement

Discussion Questions C13 - Financial Analysis: The Big Picture 1. "Income statement provides investors with past financial data and information and therefore cannot be relied on to make future investing decisions." Do you agree? Explain. 2. What is pro forma income statement and in your opinion has this practice put too