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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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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the last two years and the purpose of this report is to highlight if DL is a company worthy of being bought out‚ and what are some of the areas of concern. Below‚ we have discussed my in depth findings about the company. Exchange Rate & Accounts Receivable ASPE accounting standards suggest recording the transactions as they happen. DL recorded a transaction during the year which was done in US dollars. At the time of the transaction‚ exchange rate was different than at the end of the year. The
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estimates that it is 30% complete with the construction‚ based on costs incurred. What is the total amount of Revenue from Long-Term Contracts recognized for 2014 and what is the balance in the Accounts Receivable account assuming Cannon Cafe has not yet made its last quarterly payment? Revenue Accounts Receivable A. $4‚960‚000 $4‚960‚000 B. $4‚260‚000 $1‚240‚000 C. $4‚464‚000 $1‚240‚000 D. $4‚260‚000 $4‚960‚000 Total revenue: 14‚880‚000 x 30%=4464000; AR: the amount
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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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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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Questions for Consideration When Preparing Cases Riley Supply 1. Use a spreadsheet program such as excel. Keep all numbers for a particular year in the same column. 2. Prepare two indirect statements of cash flows. One for 2004-2005 and one for 2005-2006. 3. Calculate common sized income statements for each year. 4. Calculate all financial ratios. Use “A Basic Set of Financial Ratios” from Desire2Learn as a guide. 5. Identify the major factors influencing Riley’s cash flow. Use the cash flow statements
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AIM 6330 Topics to know for Exam I Chapter 1 – Environment and Theoretical Structure of Financial Accounting • Know the basic objectives financial reporting and the basic elements of financial statement • Know the fundamental and enhancing qualitative characteristics of accounting information. • Know the assumptions‚ principles and constraints of accounting information and be able to identify when each is being illustrated in specific accounting contexts. Chapter
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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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