You receive the following partial balance sheet (Table 4-5) for 2013 and 2012 for a company that you are considering making an investing in. Perform a vertical analysis for each year on these accounts. Compare the two years, and in a sentence describe those changes that were beneficial or detrimental to this company.
You recently started work in the accounting department at Fagan Industries. Your first task is to reconcile the bank statement as at December 31, 2015. You have been provided with the required information to reconcile the bank statement, and you notice that the date of the previous bank reconciliation is October 31. DECEMBER BANK STATEMENT: […]
You want to change the mutual fund you have your IRA invested in. How might you change funds without triggering a tax on your withdrawal?
You were recently offered a position as an intern in the accounting firm Faitou and Dowal LLP. On your first day at work, your supervisor wanted to test your knowledge of accounting. She gave you the following list of accounts and related balances of New Look Corp. as at December 31, 2015, and asked you […]
Young Enterprises has budgeted sales in units for the next five months as follows: June …………………………..4,600 units July ……………………………7,200 units August ………………………5,400 units September ………………….6,800 units October ……………………..3,800 units Past experience has shown that the ending inventory for each month should be equal to 10% of the next month s sales in units. The inventory […]
Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their Christmas bonuses. None of the employees have reached the Social Security wage base for the year. What is the gross-up amount for each of the following employees? (Use the tax […]
Your boss has just presented you with the summary in the accompanying table of projected costs and annual receipts for a new product line. He asks you to calculate the IRR for this investment opportunity. What would you present to your boss, and how would you explain the results of your analysis? (It is widely […]
Your brother, Jackson, was laid off from his job with a large and famous software company. He would like to sell his stock in the company and use the proceeds to start a restaurant. The stock is currently valued at $500,000. He received a job offer from a competitor that will pay $90,000 per year […]
Your client, Cars Unlimited, Inc., is currently the largest client for the local office of the audit firm. Cars Unlimited, Inc. is a large car dealership that sells over 15,000 cars a year. You have been on this engagement for 3 years already but this is your first time as the senior associate. Over the […]
Your client has outsourced the majority of the accounting information system to a third-party data center. What impact would that have on your audit of the financial statements?
