ratios of Clarkson‚ we also see declining trend in quick ratio‚ which shows that Clarkson is having harder and harder times to meet its current liabilities by using current assets. Overall‚ liquidity position of company seems to be weak. As for asset management ratios‚ first ratio to be discussed is inventory turnover ratio. Inventory turnover ratio measures how many times average inventory is "turned" or sold during a period. We noticed that after year 1993‚ inventory turnover ratio is below industry
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Revenue Cycle and Control Activities The revenue cycle for many companies is considered the primary source to earn revenue from the sale of goods or service. Good controls must be established to maintain the effectiveness of receivables and credit sales‚ not doing so can harm the company and might be costly to the business. Six classes of internal controls guides us in evaluating and designing transaction processing. They are authorization‚ supervision‚ segregation of duties‚ access control‚ independent
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deteriorated Some big changes we can see in cash and accounts receivable comparing to inventory which were increased only by two millions. Also there are some big changes in notes payable on current liabilities side. These changes make good influence on statement because according to numbers this company has improved it`s situation during one year. 3. As part of your examination of the balance sheet‚ what four things would you like to ask the Management about‚ if you could? And why? I would have
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amortization (16‚000 ) Excess rent collected over rent earned 24‚000 Taxable income $124‚000 Current income taxes - 30% $37‚200 (b) Deductible Balance (Taxable) Future Tax Current Sheet Temporary Tax Asset Long- Account Differences X Rate (Liability) Term PP & E ($16‚000)* 30% ($4‚800) LT Unearned Rent revenue 24‚000 30% 7‚200 C Future income tax asset‚ Dec. 31‚ 2009 2‚400 Future income tax asset before adjustment 0 Incr. in
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process. Examine the following list of accounts: Note Payable | Accumulated Depreciation: Building | Alex Kenzy‚ Drawing | Accounts Payable | Product Revenue | Cash | Accounts Receivable | Supplies Expense | Utility Expense | Which of the preceding accounts a. Appear on a post-closing trial balance? Note Payable‚ Accounts Payable‚ Cash‚ Accounts Receivable and Accumulated Depreciation: Building b. are commonly known as temporary‚ or nominal‚ accounts? Supplies Expense‚ UtilityExpense
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closely with the CFO with weekly cash flow analysis and to apply cash‚ book journal entries and created A/R aging reports in Net Suite and GP. Also‚ I completed monthly GL account reconciliations and revenue waterfalls and prepared SOX filing‚ such as sales order and journal entry samples. Furthermore‚ I worked closely with account executives in managing over 350 customers‚ generating invoices and processing payments in Quickbooks and Xero. When my company transferred system‚ I migrated over 5 GB of
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TEST OF CONTROLS – REVENUE TRANSACTIONS |Audit Objective |Audit procedure |Findings | |General | | | |Validity |Observe
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needs C) To analyze the balance between debt and common stock financing D) To analyze the balance of accounts receivable on the last day of the accounting period 5. A business organized as a separate legal entity is a A) corporation. B) proprietor. C) government unit. D) partnership. 6. The right to receive money in the future is called a(n) A) account payable. B) account receivable. C) liability. D) revenue. 7. Gibson Company recorded the following cash transactions for the
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Part A 1) a)Although a client/company is engaged to perform audits for the 2nd year‚ it does not allow sufficient time for auditor to detect material misstatement. This is due to lack of experience in understanding of the company? Repeat engagement over the years to come would reduce inherent risk Thus‚ the 2nd year of audit would increase inherent risk. b)The bank requires that a/ the company’s interest coverage ratio should be above 9‚ in order to provide loans to the client. From the extract
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Jones Electrical Distribution Case Analysis Financial Management-Huaihai Cohort- Team 9 This analysis is based on the 5 questions to the case. We believe that answering them builds a rather exhaustive and clear picture of the state of Jones’ business and its strengths and issues and offers a good analysis of its current state. Question A) How well is “Jones Electrical Distribution” performing? What must Jones do well to succeed? Jones Electrical Distribution is electrical supplying company. Since
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