Mitchem Lethbridge Ltd. is an individual franchise of the parent company Mitchem Office Corporation, which holds a contest every third year to award the franchise with the greatest improvement in net income. This year the Lethbridge franchise has won the contest, however the Halifax franchise, who had a net income increase of 60%, contends that Lethbridge’s financial records have been manipulated to reflect higher net income numbers. The Mitchem head office has asked us to look at the financial records and interview the Lethbridge management to determine if an audit is required because of suspect manipulations to the statements. We also have been required to suggest some improvements to the contest rules to the Mithcem head office. The Lethbridge franchise is currently solely owned by Lisa McGovern and had been going through a tough year in 2010. At the end of the period they made many adjustments that had negative effects on the net income in the 2010 year and positive effects towards the net income of the 2011 year. These issues and the effects they had on net income will determine if there is a need for an audit. They will also help provide insight to determine any improvements that can be applied to the rules of the contest to ensure the future winners are indeed complying with the rules. Improvements would also help curb franchises towards the purpose of the contest, which is to be continually improving net income each year. After determine Mitchem Lethbridge Ltd. Financial statement, we comment on some issues them may address, and…
These are not presented in scholarly discussion, but are simply the solutions. Student papers are expected to be written in scholarly discussion following APA formatting guidelines incorporating solutions and supported with scholarly research.…
Kendall Square Research Corporation is a technology company that has recently been scrutinized for its liberal revenue recognition policies. Currently this company recognizes revenue on product sales upon written acceptance of the product. However, acceptance typically occurs prior to the configuration of a particular system being finalized or payment being received from the customer.…
1. What was Harry Wiley's message? Did he relate it properly? How would you have received it?…
The critical issue in this case study is the responsibility of auditor. Should Ernst & Ernst be civilly liable for defrauded investors of First Securities Company of Chicago under Securities Exchange Act of 1934 under Rule 10b-5.…
Polluter Corp. (the “Company”), an SEC registrant, operates three manufacturing facilities in the United States. The Company manufactures various household cleaning products at each facility, which are sold to retail customers. The U.S. government granted the Company emission allowances (“EAs”) of varying vintage years (i.e., the years in which the allowance may be used) to be used between 2010 and 2030. Upon receipt of the EAs, the Company recorded the EAs as intangible assets with a cost basis of zero, in accordance with The Federal Energy Regulatory Commission (“FERC”) accounting guidance for EAs. The Company has a fiscal year end of December 31.…
1. David Robinson’s suggested compromise is to require Belot to increase the June 30th balances of the allowance for bad debts and inventory obsolescence to more normal levels, while allowing the company to use the “precise point estimates” for the other three discretionary accruals. It is appropriate because it will reduce the year over year increase in Belot’s operating income for the just-completed quarter from 140 percent to 103 percent just enough to keep Allen happy.…
Braaap started with a vision of making motorcycling more fun and more accessible, so more people could experience what we love in motorcycling.…
Following, students engaged in an internship breakout session with Dr. Beaupre and PPP Alumni Adam Clark. It is highly encouraged that in the summer between the end of their sophomore year and the fall semester of their junior year, students take on internships, whether that be locally in Cincinnati, back in their hometowns, or in the nation’s capital Washington D.C. The sophomores found this session particularly beneficial because it got students thinking about their summer plans, while allowing them to brainstorm the types of internships that best fit their skills, values, and varying interests.…
It is difficult to land internships, but they offer a good way to break into a field. (Strategy 1)…
On May 9, 1989, Bear Stearns & Co. issued a report on Blockbuster Entertainment Corp., which is reproduced in part below.…
Due to a variety of uncertainties ranging from the instability of Mexico’s economy, to a limited knowledge of the possible company to do business with, Charles River Laboratories have to assure to their stakeholders that a joint venture with ALPES is beneficial to the growth of the company.…
You should have no problem answering this question. The textbook makes clear time and again in Ch. 1 that economics is all about making choices based on limited resources.…
What is the impact of the December 1993 shipments of conventional lenses to Bausch and Lomb 1993 financial statements? Is the impact significant?…
DeVry University was opened in Chicago by Dr. Herman DeVry in 1931. It was called DeForest Training School to prepare students for technical work in electronics, motion pictures, radio and later, television. It was in Chicago. In the 1940’s during WWII, DeVry University was selected by United States to educate Army Air Corps instructors on electronic devices. It was one of the first schools to be approved under the original G.I. Bill. In 1953 DeForest Training School became DeVry Technical Institute. 1973 Keller graduate School of Management was founded in Chicago. Today, DeVry Incorporated includes:…