390 |4.161 |4.0357 | c). Through comparing the current year’s account balance and ratios with those of the preceding year‚ we summerize Pinnacle business in serveral areas. The gross profit margin which measures the profitability of Pinnacle business indicates that Pinnacle is performing very stable and fairly well. In identifying areas of business risk‚ we focus on accounts receivable turnover‚ inventory turnover‚ and debts to equity. Account receivable
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there is a high turnover most notably at the higher level position in the internal audit departments. This turnover may be intentional therefore an increase the risk of fraudulent financial reporting is a must. o Situation 7: the vice president of Pinnacle owns a company that was hired to work at the plant doing repairs. This could result in a conflict of interest against the shareholders. o Situation 10: a conflict with the IRS may point towards a problem with management
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THE 411 ON 911 1. “Denial kills people. Yes‚ you could be having a heart attack or a stroke‚ even if you’re only 39 or in good shape or a vegetarian.” —Dennis Rowe‚ paramedic‚ Knoxville‚ Tennessee 2. “Don’t call us for a broken finger. If there’s no real emergency‚ you’ve just clogged up the system.” —Arthur Hsieh‚ paramedic‚ San Francisco 3. “Your emergency isn’t necessarily our emergency. In my region‚ we send an ambulance for all calls‚ but we don’t use the sirens unless it’s Code 1‚ which
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Original Work please INTEGRATED CASE APPLICATION –PINNACLE MANUFACTURING: PART II 9-37 (Objectives 9-7‚ 9-8) In Part I of the case‚ you performed preliminary analytical procedures for Pinnacle (pp. 245–247). The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence. During the planning phase of the audit‚ you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe
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are useful for access going concern using Pinnacle’s financial statements‚ which are included in Figure 8-9. Document the ratios in a format similar to the following: Ratio 2009 2008 2007 1.Cash Ratio 0.03 0.36 0.43 2.Current Ration 0.63 0.79 0.85 3.Quick Ratio 1.72 2.06 2.20 4.Accounts receivable turnover 16.79 15.47 14.15 5.Days to collect receivables 21.74 days 23.59 days 25.80 days 6. Inventory turnover 4.35 4
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statements: Pinnacle Manufacturing Company is a privately owned‚ however it relays on loans and has a substantial amount of debt. For that reason‚ the financial statements are extremely useful to investors. Pinnacle management is planning to sell their Machine – Tech division if profits don’t increase in the coming years. If Pinnacle sells‚ the financial statements will be extremely important for buyers. The financial statements will be of great importance to investors‚ in case Pinnacle decides
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1. With such a difficult decision‚ the anonymous caller could either report the fraudulent financial statements or go along with top management and risk being caught or being blamed for the misstatements. It is possible that the caller would face legal trouble at some point in the future if she decided to sign off on the statements. If the bank were to discover the overstated financials‚ the extended credit would be immediately revoked. It is necessary for the caller to evaluate all of the
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high. The Quality control of DJC is process centric where each process is QC monitored unlike in Sunnyvale its end product inspection. The quality losses of DJC and ACC over total production are 0.7% and 1.6%. So‚ Quality is one grey zone which needs to be addressed by ACC. Ø Work in process inventory cost is very high in case of ACC in comparison to DJC. This in turn is reduces connector output per square foot as extra space is required for WIP and finished goods(15.1 of Kawasaki VS. 10.9 of Sunnyvale)
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FASB Accounting Standards Codification Case 1 ACC 310 – Section 2 1. The topic number that addresses the accounting for agricultural production activities in the FASB Accounting Standards Codification is‚ FASB ASC 905. The title of this topic is Agriculture. 2. Entities that must apply the guidance contained in topic FASB ASC 905‚ are noted in FASB ASC 905-10-15-3‚ “The Agriculture Topic provides guidance for all entities in the agricultural industry‚ including agricultural producers and agricultural
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Jasmine Travis BUS3061 Professor Jerry Thomas July 17‚ 2014 1. Question 1: Proficient-level: There are several important functions performed in an organization‚ among which accounting is one of them. Define the accounting function and discuss how it differs from double-entry bookkeeping. Accountants analyze and interpret financial information‚ prepare financial statements‚ conduct audits‚ design accounting systems‚ prepare special business and financial studies‚ prepare forecasts and budgets
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