Question 5: Detroit Tire Company has pre-tax profits of $300. The company's
Question 5: Detroit Tire Company has pre-tax profits of $300. The company's
Refer to the Dow Chemical financial statements for 2008 in answering the following: 1. Who are Dow’s external auditors? Describe the two opinion letters that Dow received for 2008. In your own words, explain what these opinions mean. Why are the opinions dated several weeks after Dow’s year end? 2. Use a spreadsheet to construct common-size income statements for 2008 and 2007. (Note: common-size income statements are constructed by dividing each income statement item by net sales). a. Was the company profitable during 2008? During 2007? What does the term “profitable” mean? b. Compute the percentage change in net sales and in net income from 2007 to 2008. c. What are Dow’s major categories of expenses? Do you detect any significant changes in the structure of costs in 2008 compared to 2007? d. Dow shows separate lines on the income statement for goodwill impairment losses, restructuring charges, purchased in-process research and development charges, acquisition-related expenses and asbestos-related credits. Why do you think the company chose not to just include all of the amounts within the line item for “Selling, general and administrative expenses.” e. How would the percentages you computed in part 2b change if the items in part 2d were excluded in measuring net income. (Caution: the items listed in part 2d are shown before tax, while net income is shown after tax. Be sure to adjust your answer accordingly, using the statutory tax rate of 35%.) f. In a single sentence, explain why Dow’s profitability changed from 2007 to 2008. 3. Refer to the statement of cash flows. a. Compare…
According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the bankruptcy court reopened the bidding process and recommended Parent’s plan of reorganization in August 2010. Finally, Parent received final confirmation of Poor Son’s plan.…
Prepare written responses to the following assignments from Managerial Accounting: Tools for Business Decision Making :…
Resource: Modern Auditing Prepare written answers to the following assignments: • Ch. 17: Comprehensive Question Substantive Tests for Stockholders’ Equity Balances • Ch. 18: Comprehensive Question Substantive Tests for Cash Balances 17-22 17-26 ACC 492 Week 4 Learning Team Assignments from the Text Study Guide www.paperscholar.com DIRECT LINK TO THIS STUDY GUIDE:…
Prepare written responses to the following assignments from Ch. 4 of Managerial Accounting: Tools for Business Decision Making :…
Identify the components of financial statements • Describe the relationship between the balance sheet and the income statement • Understand the implications of the decision to record expenditure as an asset or as an expense • Understand the differences between cash profit and accrual profit Required Reading Trotman, Gibbins & Carson Chapter 2 AASB: Framework for Presentation of Financial Statements (downloadable from your course website or http://www.aasb.gov.au ) Session 1, 2013 2. Tutorial Questions – Week 3 Preparation Questions • • • DQ 2.1, 2.2 P2.3 Case 2A…
Prepare written responses to the following assignments from Managerial Accounting: Tools for Business Decision Making…
[1] What is the amount of property and equipment on the balance sheet for the two most recent years? What is the amount of depreciation expense? What amounts are on the cash flow statement for the most recent year that relate to depreciation, gains and sales of property and equipment, and purchases and sale of property of equipment? What amounts are permitted for inclusion in the capitalized cost of property and equipment?…
Write responses to Problem P5-3 in Ch. 5 and Concepts for Analysis CA24-2 in Ch. 24 of Intermediate Accounting.…
1. Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses?…
Access the internet to acquire a copy of the most recent annual report for the public traded company used to complete the Financial Reporting Problem, Part 1 assignment due in week Four. Analyze the information contained in the company’s balance sheet and income statement to answer the following questions:…
1.The site you go to in order to form a business in Maryland is www.dat.state.md.us.…
At the conclusion of this course, it is expected that students will have developed skills necessary to prepare, understand and interpret financial statements prepared in accordance with international and private enterprise accounting standards (IFRS and ASPE). In order to achieve this goal, the course content and emphasis will consist of a blend of conceptual and procedural elements.…
1. Assignments from the Readings. Prepare responses to the following assignments from the e-text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby, and Libby…
exams that become the basis for assessment. To aid faculty in this endeavor, we have labeled each…