number in isolation. 14-5 Since the entire proceeds from a sale of an asset (including any gain) appear as a cash inflow from investing activities‚ the gain must be deducted from net income to avoid double counting. 14-6 Transactions involving accounts payable are not considered to be financing activities because such transactions relate to a company’s day-to-day operating activities rather than to its financing activities. 14-7 The repayment of $300‚000 and the borrowing of $500‚000 must both
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1. By way of confirmation of year-end accounts receivables‚ auditors hope to verify management assertions regarding the “Existence” of said accounts receivables and its true “Valuation”‚ AU330.12. Year-end sales cut-off test is another important audit procedure‚ which gives the auditor information on the “completeness” of a sale. The aim is to make sure that whatever sales are being recorded is recorded in the correct period. 2. Cooper & Lybrand did indeed made mistakes & errors. First
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MODULE 45 PERFORMANCE MEASURES 37. What is the free cash flow for 2009? a. $36‚000‚000 b. $30‚000‚000 c. $29‚000‚000 d. $26‚000‚000 38. Which of the following is not a measure of asset utilization? a. Inventory turnover. b. Average accounts receivable collection period. c. Fixed asset turnover. d. Debt to total assets. 39. What financial analysis technique would imply benchmarking with other firms? a. Horizontal analysis. b. Vertical analysis. c. Cross-sectional analysis. d. Ratio analysis. Items
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Sunbeam Case 1. Analyze the changes that Al Dunlap had initiated at Sunbeam after being hired from a strategic perspective. Did the changes started by Dunlap allow him opportunities to manage earnings? 2. Focus on the allegations made by Barron’s about Sunbeam’s accounting. Do you find any red flags that may support these allegations by looking at the "as reported" financials of Sunbeam? 3. Compare the "as reported" and "restated" financials of Sunbeam. Do you see any evidence supporting the
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because this is the first year audit. c. 1. Inherent Risk: No effect on inherent risk 2. Inherent Risk: The primary concern is the possibility of obsolete inventory‚ which affects the valuation of inventory at the lower of cost or market. Account Affected: Inventory‚ cost of goods sold Audit Objectives: Transaction-related 3. Inherent Risk: There is potential related party transaction‚ which could affect the valuation of the transaction‚ which could affect the valuation of the
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Florida Short-Term Investments $ Over Budget % of Budget 76‚237.45 19‚600.00 60‚000.00 30‚000.00 16‚237.45 -10‚400.00 127.1% 65.3% Total Checking/Savings 95‚837.45 90‚000.00 5‚837.45 106.5% Accounts Receivable Accounts Receivable 492‚017.50 500‚000.00 -7‚982.50 98.4% Total Accounts Receivable 492‚017.50 500‚000.00 -7‚982.50 98.4% Other Current Assets Inventory Boats Inventory Parts Prepaid Advertising Prepaid Insurance Undeposited Funds 273‚000.00 2‚052.00 18‚000.00 14‚667.00 0.00
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GmbH Cologne. Being a retail company‚ they are not asset intensive and this is apparent in their decrease in fixed asset turnover from 6.98 in 1993 to 5.39 in 1995. They have cash flow issues rising from their high inventory and accounts receivable needs and their account payable extensions. They have generated negative operating cash flows‚ which is caused by net
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Statement of Cash Flows STATEMENT OF CASH FLOWS 1 The Statement of Cash Flows is a very viable and helpful resource. Decision makers use the Statement of Cash Flows in many instances to assess the viability of a firm. Within the statement are many types of elements that are incorporated to create the complete Statement of Cash Flows. Also within the statement is what is known as the inflows and outflows. In some cases‚ activity notes may be incorporated to help complete
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The Coca- Cola Company Planning Memorandum Industry and Regulatory Risk Factors: Obesity/Health Concerns: There is a growing concern among consumers and public health officials about the public health consequences of obesity. This includes a large movement towards health conscious eating and drinking‚ specifically avoiding sugar-sweetened beverages. This could affect demand for some beverages and in turn affect profitability. Water scarcity: Water is the main ingredient of all products. It is
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these firms‚ in terms of accounts receivables‚ allowance for bad debt and uncollectible debt expense. This is especially so when customers are unable to repay their debts. In this paper‚ we will examine the 2008 financial statement of four companies in the retail industry‚ namely Courts Singapore Private Limited‚ Dairy Farm International Holdings Private Limited‚ Isetan Singapore Private Limited and OSIM International Limited. We will look at the amount of receivables of each company. In particular
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