Question

In: Accounting

Assume you were given the following information:          The parent company has advised local management that...

Assume you were given the following information:

         The parent company has advised local management that should Computek not show a turnaround to profits for the year ended 31 December 1999 it will proceed to wind up local operations early in 2000.

         What effect would this information have on the audit?

Solutions

Expert Solution


Related Solutions

Calculate the effective annual cash flows to a parent company, given the following information. A U.S....
Calculate the effective annual cash flows to a parent company, given the following information. A U.S. based MNC has a subsidiary in the United Kingdom to which it provides periodic management consulting services by sending a consultant to the U.K. four times a year. The consultant holds seminars and provides other services to the subsidiary in its main offices. Each time the consultant works 25 hours in seminars and one-on-one consulting. The Parent company’s cost of hiring the consultant services...
.    Assume you are given the following information for the economy of Macroland:             GDP...
.    Assume you are given the following information for the economy of Macroland:             GDP          C             S             I             G         (X – M)           AE                                 0            200        _____    _____     _____           0          _____             500            600        _____    100          100            0          _____             1000          1000        _____    _____    _____           0          _____             1500          ____        _____      100          100           0            _____             2000          1800        _____       100          100           0            _____             2500          2200        _____       100          100          ...
Assume the local Pearle Vision has the following information on the number of sales orders received...
Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 1 ........................................ 3,000 $82,700 2 ........................................ 1,500 50,375 3 ........................................ 4,400 120,700 4 ........................................ 2,800 81,900 5 ........................................ 2,300 69,775 6 ........................................ 1,200 43,100 7 ........................................ 2,000 62,500 Required a. Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. b. Plot the data on a scatter diagram. Using...
1. Given the following information: a. Parent sells Sub inventory with a cost of $45,000 for...
1. Given the following information: a. Parent sells Sub inventory with a cost of $45,000 for $55,000. Sub then sells this inventory to outsiders for $70,000. b. Parent sells Sub inventory with a cost of $15,000 for $20,000, which remains on hand in Sub’s ending inventory. a.Calculate unrealized profits . b.Pass eliminating entry in both the cases: 1.Parent sells to Sub and Sub to Outsider 2. Parent sells to Sub, but Sub not yet to Outsider c.How would it effect...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the equity method to account for its investment in subsidiary. On January 1, 2012, the parent company issued to an unaffiliated company $1,000,000 (face value) 10 year, 10 percent bond payable for a $61,000 premium. The bonds pay interest in December 31 of each year. On January 1, 2015, the subsidiary acquired 40 percent of the bonds for $386,000. Both companies use straight-line amortization. In...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the equity method to account for its investment in subsidiary. On January 1, 2012, the parent company issued to an unaffiliated company $1,000,000 (face value) 10 year, 10 percent bond payable for a $61,000 premium. The bonds pay interest in December 31 of each year. On January 1, 2015, the subsidiary acquired 40 percent of the bonds for $386,000. Both companies use straight-line amortization. In...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the equity method to account for its investment in subsidiary. On January 1, 2012, the parent company issued to an unaffiliated company $1,000,000 (face value) 10 year, 10 percent bond payable for a $61,000 premium. The bonds pay interest in December 31 of each year. On January 1, 2015, the subsidiary acquired 40 percent of the bonds for $386,000. Both companies use straight-line amortization. In...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the...
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the equity method to account for its investment in subsidiary. On January 1, 2012, the parent company issued to an unaffiliated company $1,000,000 (face value) 10 year, 10 percent bond payable for a $61,000 premium. The bonds pay interest in December 31 of each year. On January 1, 2015, the subsidiary acquired 40 percent of the bonds for $386,000. Both companies use straight-line amortization. In...
You are given the following past information and assume the tax rate to be 45% 2018...
You are given the following past information and assume the tax rate to be 45% 2018 2017 ( $ ) Net sales 10,500 9,800 Depreciation 200 160 Dividend paid 100 70 End of 2018 End of 2017 Cash & m/s 650 580 Accounts receivable 1,000 930 Accounts payable 600 540 Inventory 1,100 1,070 Notes payable 180 130 Long term debt 4,000 3,800 Common shares 2,500 2,400 Net fixed assets 8,000 7,700 The cash flow from investments is: The cash flow...
5. Assume you are given the following information for the economy of Macroland:             GDP          C   ...
5. Assume you are given the following information for the economy of Macroland:             GDP          C             S             I             G         (X – M)         AE                                 0            200        _____    _____     _____          0          _____             500            600        _____      200          100           0          _____             1000          1000        _____    _____    _____           0          _____             1500          ____        _____    _____     _____           0            _____             2000          1800        _____       200          100           0            _____             2500          2200        _____       200          100           0           ...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT