CHAPTER 13 Financial Statement Analysis OVERVIEW OF EXERCISES‚ PROBLEMS‚ AND CASES Estimated Time in Learning Outcomes Exercises Minutes Level 1. Explain the various limitations and considerations in financial statement analysis. 2. Use comparative financial statements to analyze a company 12* 45 Mod over time (horizontal analysis). 13* 30 Mod 3. Use common-size financial statements to compare various 12* 45 Mod financial statement items (vertical analysis)
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employing working capital in an optimal way in order to pursue profitability. But some authors still have different findings on how working capital management in terms of cash conversion cycle and its components such as number of day‟s inventories‚ number of day‟s accounts receivable and number of days accounts payable are related to the profitability of a firm. Deloof (2003)‚ who conducted his study on Belgian firms‚ suggests that working capital management has a vital effect on the profitability
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Audit plan – Accounts Receivable and Notes Receivable Audit Procedures Audit Objectives W/P Ref. Initials Comments Accounts Receivable 1. Obtain an aged trial balance of individual customer accounts. Recalculate the total and trace to the general ledger control account. 2. Review the aging for large and unusual items. 3. Send confirmations to all accounts over $X. Select a random sample of all remaining accounts for confirmation. a.i.1.a.i.1.a. Investigate exceptions reported by
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Week 7 You Decide Course Project Keller Graduate School of Management Question 1 The Securities and Exchange Commission (SEC) would only have influence over Smackey Dog Foods‚ Inc. if they are a publicly listed company or if they register to become a publicly traded company. The SEC assists investors by providing reliable information to investors so they can make informed investment decisions. If Smackey Dog Foods‚ Inc. becomes a public company‚ they would need to provide financial statements
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Auditing and Assurance Services Thirteenth Edition Global Edition Alvin A. Arens Randal J. Elder Mark S. Beasley [pic] Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul
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certain processes or actions leading to the expansion of their market shares. Budgeting is not a simple process on the contrary it is a very difficult and complex process because different purposes of different departments have to be taken into account. That is why budgeting does not only focus on financial functions in an organizati on but also on other functions such as giving instructions‚ delegations‚ motivation‚ ways of the decisionmaking process in a company‚ creating plans and controlling
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Ledger Accounts Payable Accounts Receivable Order Entry Procurement Sales and Purchasing History Invoicing and Shipping Payroll Financial Reporting EDI* Bar Code Reading* EDSS (Executive Decision Support System)* *San Jose Only Accounting software includes: 1. Point of sale cash register scanning 2. Inventory goods‚ raw materials‚ finished products 3. Time billable hours 4. General ledger accounts 5. Accounts payable amount company owes 6. Accounts receivable
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the firm’s operating cycle‚ whichever is longer. * Be satisfied with current assets or by the creation of other current liabilities. * Most common: accounts payable‚ notes payable‚ commercial paper‚ income tax liability‚ dividends payable‚ and accrued liabilities. * Accounts Payable and Trade Notes Payable 1. Accounts payable are obligations to suppliers of merchandise or of services purchased on open account. * Most trade credit is offered on open account. * Only formal credit
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handles processing the accounting transactions and recording business activities for the revenue‚ expenditure and financing cycles. You should provide at least one detailed example of how one would record a specific accounting transaction/ business activity for each of the three transaction cycles below. Address the following questions in this section of the report. 1. Revenue Cycle (2 pages) Answer the following questions. * How can you create and maintain customers? * How can you create
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Joyce Chemical Company. My task in this case is to look into Eliot Manufacturing and to see if we should continue or terminate our relationship with them. If we were to continue‚ the choices would be to either have them in a program to reduce their accounts payable or to tolerate gradual increases in credit. After doing an analysis on Mr. Pound and the Eliot Manufacturing Company‚ I would recommend that Joyce Chemical Company should terminate their relationship with Eliot Manufacturing‚ which would
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