How might the Apple company use the Sensitivity analysis "what if" technique that estimates profit or loss results if sales price, cost, volume or underlying assumptions change? Provide a scenario based using Apple's Iphone? Explain the benefits and disadvantages of the method?

What are the costs and benefits associated with compensating executives with stock or the option to purchase stock?

What do you believe are the most effective audit procedures to use to identify executive compensation abuse or fraud? Support your opinions and recommended audit procedures.

audit procedures to use to identify executive compensation abuse or fraud

Problem 24-3

Metlock Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Metlock and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,960 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $6,030 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Metlock’s cash flow problems are due primarily to the company’s desire to finance a $299,210 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a) Compute the following items for Metlock Corporation. (Round answer to 2 decimal places, e.g. 2.25 or 2.25%.)

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Workinprocess,August1,700pounds,20%completed *Direct materials (700 × $4.70) Conversion (700 × 20% × $1.35) Coffee beans added during August, 14,300 pounds Conversion costs during August Work in process, August 31, 400 pounds, 42% completed Goods finished during August, 14,600 pounds $3,290 189 $3,479 $ 3,479* 65,780 21,942 ? ?

All direct materials are placed in process at the beginning of production. A. Prepare a cost of production report, presenting the following computations: 1. Direct materials and conversion equivalent units of production for August 2. Direct materials and conversion costs per equivalent unit for August 3. Cost of goods finished during August 4. Cost of work in process at August 31 B. Compute and evaluate the change in cost per equivalent unit for direct materials and con- version from the previous month (July

Accounting Fraud Investigation and Prevention:

please Research the accounting/fraud/forensic field regarding accounting fraud investigation or prevention. What innovative technologies or procedures are helpful in detecting and preventing accounting and financial fraud? I would really like to understand the subject better.

Direct Materials Variances

The following data relate to the direct materials cost for the production of 2,500 automobile tires:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. The direct materials price variance should normally be reported to the  . If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the  . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the  .

Direct Materials and Direct Labor Variance Analysis

Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:

Required:

a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

The following data are for the pension plan for the employees of Lockett Company.

12/31/14 1/1/14 12/31/15

Accumulated benefit $2,500,000 $2,600,000 $3,400,000 Obligation Projected benefit 2,700,000 2,800,000 3,700,000 Plan assets (at fair value) 2,300,000 3,000,000 3,300,000 AOCL – net loss 0 480,000 500,000 Settlement rate (for year) 10% 9% Expected rate of return (for year) 8% 7%

Lockett’s contribution was $420,000 in 2015 and benefits paid were $375,000. Lockett estimate that the average remaining service life is 15 years.

(a) What was Lockett’s 2015 actual return on plan assets?

(b) What amount, if any, of the AOCL-Net Loss is amortized in 2015

(c) What amount, if any, was Lockett’s actuarial gain or loss in 2015?

(d) What was Lockett’s service cost for 2015?

Solve problem

Net present value analysis

Emery communications company is considering the production and marketing of a communications system that will increase the efficiency of messaging for small businesses or branch offices of large companies .Each unit hooked into the system is assigned a mailbox number, which can be matched to a telephone extension number providing access to messages 24 hours a day . Up to 20 people .Personal codes can be reviewed recorded ,cancelled replied or deleted all during the same message play back . Indicators wired to the telephone blink whenever new messages are are present .

to produce this product , a $1.75 million investment in new equipment is required .The equipment will last 10 years but will need major maintaince costing $150,000 at the end of its sixth year . The salvage value of the equipment at the end of 10 years is estimated to be $100,000 . if this new system is produced , working capital must be increased by 90,000 . This capital will be restored at the end of the products 10 year life cycle .Revenue from the sale of the product are estimated at 1,65 million per year . cash operating expenses estimated at 1.32million per year .

Required

1- prepare sechdule of cash flows for the proposed project (Assume that no income tax) ?

2- Assuming that Emery's cost of capital is 12%. compute the project NPV.Should the product be produced ?

Kiley Company had a $600 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. Aging of the accounts receivable revealed the following:

(a)   Prepare the adjusting entry on December 31, 2018, to recognize bad debts expense.

(b)   Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts.

(c)   Assume that the company has a policy of providing for bad debts at the rate of 1% of Sales, that Sales for 2014 were $400,000, and that Allowance for Doubtful Accounts had a $550 credit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts.

Corporation issues $400,000, 10%, five-year bonds at 95. The total interest expense over the life of the bonds is? with explanation

Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available Deacon Company Balance Sheet March 31 Assets Cash $ 59,200 Accounts receivable 31,600 Inventory 47,500 Buildings and equipment, net of depreciation 119,000 Total assets $ 257,300 Liabilities and Stockholders’ Equity Accounts payable $ 76,400 Common stock 70,000 Retained earnings 110,900 Total liabilities and stockholders’ equity $ 257,300 Budgeted Income Statements April May June Sales $ 125,000 $ 135,000 $ 155,000 Cost of goods sold 75,000 81,000 93,000 Gross margin 50,000 54,000 62,000 Selling and administrative expenses 17,500 19,000 22,000 Net operating income $ 32,500 $ 35,000 $ 40,000 Budgeting Assumptions: 60% of sales are cash sales and 40% of sales are credit sales. Twenty percent of all credit sales are collected in the month of sale and the remaining 80% are collected in the month subsequent to the sale. Budgeted sales for July are $165,000. 10% of merchandise inventory purchases are paid in cash at the time of the purchase. The remaining 90% of purchases are credit purchases. All purchases on credit are paid in the month subsequent to the purchase. The accounts payable at March 31 will be paid in April. Each month’s ending merchandise inventory should equal $10,000 plus 50% of the next month’s cost of goods sold. Depreciation expense is $1,150 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Required: 1. Calculate the expected cash collections for April, May, and June. 2. Calculate the budgeted merchandise purchases for April, May, and June. 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. 4. Prepare a budgeted balance sheet at June 30th. (Hint: You need to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30th balance sheet.)

Noland Boat Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $4,667 on September 30. Other information is as follows:

(1)    Cash receipts for September 30 recorded on the company's books were $4,200 but this amount does not appear on the bank statement.

(2)    The bank statement shows a debit memorandum for $40 for check printing charges.

(3)    Check No. 119 payable to Lynch Company was recorded in the cash payments journal and cleared the bank for $248. A review of the accounts payable subsidiary ledger shows a $36 credit balance in the account of Lynch Company and that the payment to them should have been for $284.

(4)    The total amount of checks still outstanding at September 30 amounted to $5,800.

(5)    Check No. 138 was correctly written and paid by the bank for $429.  The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $492.

(6)    The bank returned an NSF check from a customer for $550.

(7)    The bank included a credit memorandum for $1,260 which represents collection of a customer's note by the bank for the company; principal amount of the note was $1,200 and interest was $60. Interest has not been accrued.

Instructions

(a)     Prepare a bank reconciliation for Noland Boat Company at September 30.

(b)    Prepare any adjusting entries necessary as a result of the bank reconciliation.