You are a senior portfolio manager with Reilly Investment Management reviewing the biweekly printout of equity value screens prepared by a brokerage firm. One of the screens used to identify companies is a “low long-term debt/total long-term capital ratio.” The printout indicates this ratio for Lubbock Corporation is 23.9%. Your reaction is that Lubbock might […]
You are an accountant for the city of Springfield record the following transactions General fund As one of the accountants for the city of springfield you will record the following transactions into the accompanying workbooks 1. The city levied its general property taxes for the year of 1,580,000 the city estimates that 30,000 of the […]
You are an accounting intern at Mooz4yoo, a company that produces a range of gourmet organic yogurts hat are sold to high-end grocery stores and restaurants. Production of the yogurts occurs in a single building, with offices for management and sales staff upstairs and the plant on the first floor. Production is made up of […]
You are auditing the financial statements of a cosmetics distributor that sells thousands of individual items. The distributor keeps its inventory in its distribution center and in two public warehouses. At the end of each business day, it updates its inventory file, whose records contain the following data: Item number ………Cost per item Item description […]
You are auditing the inventory of Husky Manufacturing Company for the year ended December 31, 2009. The book value is $8,124,998.66. Tolerable misstatement is $400,000 and expected misstatement is $10,000. Detection risk is 10% (confidence level of 90%). MUS sampling is to be used for a price test. Required a. Calculate the sampling interval and […]
You are beginning the adjusting and closing process at the end of your company s fiscal year. Does the trial balance carry the final ending amount of inventory if your company uses the perpetual inventory system? Why or why not?
You are conducting an accounting research project for your boss. Your boss has asked you to determine the appropriate U.S. GAAP that specifies how your company should recognize revenues from the sales of products in a retail store. Your boss is confused because most customers pay cash, but some customers purchase on credit terms, and […]
You are conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor keeps its inventory in its own distribution centre and in two public warehouses. A perpetual inventory database is maintained on a computer system and is updated at the end of […]
You are considering an investment in the common stock of Coca-Cola. The following information is from the consolidated statements of income of The Coca-Cola Company and Subsidiaries for the years ended December 31, 2015 and 2014 and for its competitor PepsiCo, Inc. and Subsidiaries for the years ended December 26, 2015 and December 27, 2014 […]
You are considering making a loan to Kellogg s (Kellogg Company). The following information is from the statements of cash flows and the notes to the consolidated financial statements included in Form 10-K for fiscal years 2015 and 2014 (in millions of dollars): ………………………………………………………2015…………… 2014 Net cash provided by operating activities …………$1,691 ………….$1,793 Additions to […]
