illegal activity occurs. The first factor an auditor should consider is how the occurrence effects the financial statement and the penalty‚ if any‚ for the issue. The second factor to be considered is the integrity of the management staff and their reaction to the illegal occurrence. The last factor for an auditor to consider when an illegal occurrence happens is the internal controls over the financial reporting. “Smuggling” money into the US can result in fines. “Smuggling” from the Caribbean
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CFIN4 ANALYSIS OF FINANCIAL STATEMENTS 1/21/15 CHAPTER 2 1 1. 2. Describe the basic financial information that is produced by corporations and explain how the firm’s stakeholders use such information. Describe the financial statements that corporations publish and the information that each statement provides. 2 © 2014 Cengage Learning. All Rights Reserved. May not be copied‚ scanned‚ or duplicated‚ in whole or in part‚ except for use as permitted in a license distributed with a certain product
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4. Now complete the tables to develop pro forma financial statements for 1996 and 1998. In making these calculations‚ assume that the bank is willing to maintain the present credit lines and to grant the requested additional $12750000 of short-term credit effective January 1‚ 1996. In the analysis‚ take account of the amounts of inventory and accounts receivable that would be carried if inventory utilization and day’s sales outstanding were set at industry-average levels. also‚ assume in your forecast
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Financial Statement Analysis Chandra Sekhar Mishra VGSOM‚ IIT Kharagpur Outline Financial Statements and their Content ●Why Financial Statement Analysis (FSA)? ●Tools for FSA ● Financial Statements ● Balance Sheet ● ● Statement of financial position Statement of Assets and Liabilities ● ● ● ● Income Statement ● Statement of financial performance ● ● Assets: What a business owns Liabilities: What a business owes to non-owners Equities: What a business owes to owners Revenues and Expenses
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DECISION MAKING In most companies‚ strategic planning isn’t about making decisions. It’s about documenting choices that have already been made‚ often haphazardly. Leading firms are rethinking their approach to strategy development so they can make more‚ better‚ and faster decisions. STOP MAKING PLANS START MAKING DECISIONS by Michael C. Mankins and Richard Steele I S STRATEGIC PLANNING COMPLETELY USELESS? That was the question the CEO of a global manufacturer recently asked himself
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organisations has really established the fact that financial statements shall contain the following information according to section 334(2) of the companies and allied matters act (CAMA) 1990 as well as statement of accounting standards (SAS) 2:profit and lossaccount;balance sheet; a statement of cash flow; value added statement; five-year financial summary; statement of significant accounting policies; notes to the accounts; group financial statement (in case of a group); chairman’s report; directors’s
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Business analysis and decision making To what extend do you agree with the statement that “a growing product market is a necessary precondition for achieving superior productivity”? Discuss using an extended example. According to Haslam‚ Neale and Johal (2000)‚ `the total factor productivity us in general defined in two main types; the Level of labour and capital and their efficiency of production; and the productivity of the firm. The productivity of capital and labour is calculated as:
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Analyzing Financial Statements December 16‚ 2012 Regina Campbell Calculate the following: Current ratio‚ long-term solvency ratio‚ contribution ratio‚ programs and expense ratio‚ general and management and expense ratio‚ fund-raising and expense ratio‚ and revenue and expense ratio for the years 2003 and 2004. 2003 2004 Current Ratio: .87 .90 Long Term Solvency Ratio:
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Financial Statement Analysis Project You (or your group) are required to conduct a comprehensive financial statement analysis of two companies. You may choose either to compare WalMart and Target or Coors and Boston Beer Co. You may work individually‚ or in groups of two members. The purpose of this project is to provide you an opportunity to apply the analytical techniques studied in Chapters 3‚ 9 and 11. In conducting this analysis‚ take the perspective of a common stock investor. You
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companies expense content creation costs as incurred. Demand’s unorthodox approach to accounting for writer expenses as acquiring and amortizing intangible assets spreads Demand Media’s expenses over time and reduces its current losses on its income statement. Thus‚ Demand Media’s accounting could be considered misleading to investors of the IPO. 2. Is the company’s capitalization accounting policy justified? If yes‚ why yes? If not‚ why not? We do not believe Demand Media’s capitalization accounting
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