please help me with the following problem. I don't understand phantom profit. In its first month of operation, Maze Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 150 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the comp
Need to see steps on how to do this problem: The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2010. Rental revenue $ 29,00
I need some help with approaching this question. Any help will be greatly appreciated. Pete is the president of Island Enterprises. Island Enterprises began business on January 1, 2008. The company's controller is out of the country on business. Pete needs a copy of the company's balance sheet for a meeting tomorrow and asks
The case requires you to analyze the balance sheet for the two companies in more detail. Is there a difference in approach to valuation by US GAAP and IFRS? Discuss and note two or three specific differences. In addition, briefly - Distinguish between an expense (expired cost) and an asset. - Distinguish between current and
- 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
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
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: 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
All of the following are guidelines for writing statistically measurable questions for a survey, EXCEPT: A. questions should avoid qualifying phrases. B. question response categories should be overlapping. C. questions and scale items should be meaningful to the respondent. D. questions should be simple and straig
Based on the attached spreadsheet, what can you determine about the Williams company based on this financial data?
In the early years of the 21st century the housing market in the United States was booming. Housing prices were increasing rapidly, new houses were being constructed at a record pace, and companies doing business in the construction and home improvement industry were enjoying rising profits. In 2006 the real estate market had s
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
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
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 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 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
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
Big Golf Corp paid taxes of $ 90,000 and purchased equipment worth $175,000 during the year that ended June 30, 2008. The firm had net income of $500,000 during the year ended June 30, 2008. After paying out $95,000 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $900,000, what w
What is the main purpose of a financial statement worksheet and its benefits?
Common Sized Financial Statements Linden Corporation has a 10% market share in its industry. Below are income statements ($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
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
Add ratio analysis to your Excel spreadsheet for each of the pages: The Consolidated Balance Sheets The Consolidated Statements of Income The Consolidated Statements of Cash Flows
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.
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
Using the same Excel spreadsheet you created for the Part One assignment, insert additional columns to: Calculate the percentage change from year to year in: The Consolidated Balance Sheets. The Consolidated Statements of Income. The Consolidated Statements of Cash Flows. Then, calculate common-size percentages for:
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
Alaska Company has been producing and selling 100,000 units per year. They have excess capacity. The following budget was prepared for the next year: Selling price per unit $12.50 Variable cost per unit: Direct materials $5.00 Direct labor $3.00 Overhead $1.00 Selling and administrative $.25 Fixed costs in total: Ove
Presented below is a list of items that could be included in the intangible assets section of the balance sheet. a) Indicate which items on the list above would generally be reported as intangible assets in the balance sheet. b) Indicate how, if at all, the items not reportable as intangible assets would be reported in the f
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.
Balance Sheet: -What components of stockholders' equity do each of the companies disclose? -Do the companies have preferred stock shares outstanding? If so, what special features do these shares contain? -Do any of the companies report treasury shares? If so, do the companies disclose the reason for reacquiring the shar