This simulation question available sources is based upon a true set of facts. The information contained in the simulation question was What is the Relationship Between the Fraud Triangle and Financial Statement Fraud? -

Required First, search the Internet or refer to textbooks to learn as much as you can about the Fraud Triangle. Then, answer the following:

2. How can the Fraud Triangle detect/prevent financial statement fraud? Discuss how each of the three elements of the Fraud Triangle can detect/prevent financial statement fraud (a) Opportunity- explain how this element can detect/prevent financial statement fraud. b) Pressure- explain how this element can detect/prevent financial statement fraud

(c) Rationalization - explain how this element can detect/prevent financial statement fraud

1. Measures of liquidity, The ability of a company to make its periodic interest payments and repay the face amount of debt at maturity.Solvency, and The ability of a firm to generate earnings.Profitability

   The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 on December 31, 20Y2.

   Marshall Inc.
   Comparative Retained Earnings Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Retained earnings, January 1			$ 2,468,925		$ 2,076,275
   Net income			554,800		425,300
   Total			$3,023,725		$ 2,501,575
   Dividends:
   	On preferred stock		$ 7,000		$ 7,000
   	On common stock		25,650		25,650
   		Total dividends	$ 32,650		$ 32,650
   Retained earnings, December 31			$ 2,991,075		$ 2,468,925

   Marshall Inc.
   Comparative Income Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   	20Y2		20Y1
   Sales	$ 2,941,900		$ 2,710,540
   Cost of goods sold	1,083,320		996,650
   Gross profit	$ 1,858,580		$ 1,713,890
   Selling expenses	$ 577,590		$ 728,340
   Administrative expenses	492,020		427,750
   Total operating expenses	$1,069,610		$1,156,090
   Income from operations	$ 788,970		$ 557,800
   Other revenue	41,530		35,600
   	$ 830,500		$ 593,400
   Other expense (interest)	200,000		110,400
   Income before income tax	$ 630,500		$ 483,000
   Income tax expense	75,700		57,700
   Net income	$ 554,800		$ 425,300

   Marshall Inc.
   Comparative Balance Sheet
   December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Assets
   Current assets
   	Cash		$ 453,090		$ 593,470
   	Marketable securities		685,760		983,470
   	Accounts receivable (net)		584,000		547,500
   	Inventories		438,000		335,800
   	Prepaid expenses		85,730		118,690
   		Total current assets	$ 2,246,580		$ 2,578,930
   Long-term investments			1,813,355		786,135
   Property, plant, and equipment (net)			3,250,000		2,925,000
   Total assets			$ 7,309,935		$ 6,290,065
   Liabilities
   Current liabilities			$ 748,860		$ 1,371,140
   Long-term liabilities:
   	Mortgage note payable, 8%		$ 1,120,000		$ 0
   	Bonds payable, 8%		1,380,000		1,380,000
   		Total long-term liabilities	$ 2,500,000		$ 1,380,000
   Total liabilities			$ 3,248,860		$ 2,751,140
   Stockholders' Equity
   Preferred $0.70 stock, $50 par			$ 500,000		$ 500,000
   Common stock, $10 par			570,000		570,000
   Retained earnings			2,991,075		2,468,925
   Total stockholders' equity			$ 4,061,075		$ 3,538,925
   Total liabilities and stockholders' equity			$ 7,309,935		$ 6,290,065

   Required:

   Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

   1. The excess of the current assets of a business over its current liabilities.Working capital	$
   2. A financial ratio that is computed by dividing current assets by current liabilities.Current ratio
   3. A financial ratio that measures the ability to pay current liabilities with quick assets (cash, temporary investments, accounts receivable), computed as quick assets divided by current liabilities.Quick ratio
   4. The relationship between sales and accounts receivable, computed by dividing the sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.Accounts receivable turnover
   5. The relationship between sales and accounts receivable, computed by dividing the average accounts receivable by the average daily sales.Number of days' sales in receivables		days
   6. The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.Inventory turnover
   7. The relationship between the volume of sales and inventory, computed by dividing average inventory by the average daily cost of goods sold.Number of days' sales in inventory		days
   8. A solvency ratio that measures how much fixed assets a company has to support its long-term debt.Ratio of fixed assets to long-term liabilities
   9. A comprehensive leverage ratio that measures the relationship of the claims of creditors to stockholders' equity, calculated as total liabilities divided by total stockholders' equity.Ratio of liabilities to stockholders' equity
   10. A ratio that measures the risk that interest payments will not be made if earnings decrease, calculated as income before income tax and interest expense divided by interest expense.Times interest earned
   11. Ratio that measures how effectively a business uses its assets to generate revenues, computed as sales divided by average total assets.Asset turnover
   12. A measure of the profitability of assets, without regard to the equity of creditors and stockholders in the assets.Return on total assets		%
   13. A measure of profitability computed by dividing net income by average total stockholders’ equity.Return on stockholders’ equity		%
   14. A measure of profitability computed by dividing net income, reduced by preferred dividend requirements, by average common stockholders' equity.Return on common stockholders’ equity		%
   15. The profitability ratio of net income available to common shareholders to the number of common shares outstanding.Earnings per share on common stock	$
   16. The ratio of the market price per share of common stock, at a specific date, to the annual earnings per share.Price-earnings ratio
   17. Measures the extent to which earnings are being distributed to common shareholders.Dividends per share of common stock	$
   18. A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.Dividend yield

The

Sundance

Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards​ (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in

2017

and the expected costs in

2018​:

Current Costs

Expected Costs

in 2017

in 2018

Variable manufacturing costs

Direct material cost per CMCB

$190

$188

Direct manufacturing labor cost per CMCB

25

27

Variable manufacturing cost per batch for setups, materials

handling, and quality control

1,750

1,700

Fixed manufacturing cost

Fixed manufacturing overhead costs that can be avoided if CMCBs

are not made

665,000

170,000

Fixed manufacturing overhead costs of plant depreciation,

insurance, and administration that cannot be avoided even if

CMCBs are not made

855,000

850,000

manufactured

9,500

CMCBs in

2017

in

50

batches of

190

each. In

2018​,

Sundance

anticipates needing

17,000

CMCBs. The CMCBs would be produced in

100

batches of

170

each. The

Mobey

Corporation has approached

Sundance

about supplying CMCBs to

Sundance

in

2018

at

$350

per CMCB on whatever delivery schedule

Sundance

wants.

1.

Calculate the total expected manufacturing cost per unit of making CMCBs in

2018.

2.

Suppose the capacity currently used to make CMCBs will become idle if

Sundance

purchases CMCBs from

Mobey.

On the basis of financial considerations​ alone, should

Sundance

make CMCBs or buy them from

Mobey​?

Show your calculations.

3.

Now suppose that if

Sundance

purchases CMCBs from

Mobey​,

its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards​ (CB3s) to the

Elle

Corporation.

Sundance

estimates the following incremental revenues and costs from​ CB3s:

Total expected incremental future revenues

$1,800,000

Total expected incremental future costs

$1,920,000

On the basis of financial considerations​ alone, should

Sundance

make CMCBs or buy them from

Mobey​?

Show your calculations.

1. A company has basic EPS of $29 per share. If the tax rate is 30%, which of the following securities would be dilutive?

1. Cumulative 8%, $50 par preferred stock
2. Ten (10%) percent convertible bonds, with each $1,000 bond convertible into 20 shares of common stock.
3. Seven (7%) percent convertible bonds, with each $1,000 bond convertible into 40 shares of common stock.
4. Six (6%) percent,$100 par cumulative convertible preferred stock with each preferred share convertible into 4 shares of common stock.

1. Rutter Inc. granted (see below for #) stock options to executives and employees on January 1, 2017. The options have a strike price is $10 per share and expire in 2019. The par value of the common stock is $ Using an option pricing model, the company calculates a fair value of $20 per share. The expected service period, or benefit period, is (see below) years.

1. Prepare the journal entries for 2017 and 2018.  

2. In 2019, (see below) % of the options are exercised and the remaining options expire.      

Last Name           # of options granted_      service period       % exercised_______

A – D                    200,000                                     2 years                     20%

E – K                      300,000                                      3 years                     30%

L – S                       250,000                                      2 years                    40%

T – Z                       500,000                                      3 years                   50%

Your Task COMPLETE ON SPREAD SHEET

SHOW FORMULAS

Red Company purchased a machine on January 1, 2018.

Cost $210,000

Residual value 24,000

Useful life in years 5 *

Useful life in hours 25,000

*Write the formulas assuming useful life in years will always be five years Useful life in hours 25,000 but that the other three amounts given may vary.

Determine the annual depreciation expense under each of four depreciation methods

   Determine the machine's book value at the end of each year under each of the four depreciation methods

Octaone produces luxury water cooler. This is their first year in operation (i.e. starting the year with $0 balances). The company produced 9,000 units (started and completed) and sold 8,000 units for $560,000. Octaone paid $10 per unit in direct materials and $5 per unit in wages for production workers. Lease payments and utilities on the production facilities amounted to $22,500 and selling & administrative expenses were $17,000.

Answer the following questions about Octaone.

A. What is the cost per unit of a water cooler?

B. What is the gross margin per unit of a water cooler?

C. What is the balance in the inventory account before any water coolers were sold?

D. What is the cost of goods sold for the year?

E. What is the cost of inventory on the balance sheet at the end of the year?

F. What is the net income for the year?

Label and place your final answer for A-F at the top of the answer box. Then after the answer to F, label and show your work for each part of the question. Just show me numbers – that is usually enough for me to follow your logic.

14) Fixed costs remain constant at $400,000 per month. During high-output months variable costs are $320,000, and during low-output months variable costs are $80,000. What are the respective high and low indirect-cost rates if budgeted professional labor-hours are 16,000 for high-output months and 4,000 for low-output months?

A) $45.00 per hour; $120.00 per hour

B) $45.00 per hour; $45.00 per hour

C) $25.00 per hour; $20.00 per hour

D) $56.20 per hour; $120.00 per hour

15) Tiscara Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 2014:

            Direct materials                                                            $440,000

            Direct labor (3,500 hours @ $11/hour)                                38,500

            Indirect labor                                                                   15,000

            Plant facility rent                                                             50,000

            Depreciation on plant machinery and equipment             35,000

            Sales commissions                                                            10,000

            Administrative expenses                                                  25,000

The actual amount of manufacturing overhead costs incurred in June 2014 totals ________.

A) $278,500

B) $100,000

C) $80,000

D) $110,000

Answer the following questions using the information below:

Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2014:

                                                                         Budget              Actual

            Indirect costs                                        $270,000           $300,000

            Annual salary of each attorney             $100,000           $110,000

            Annual salary of each paraprofessional $ 29,000            $ 30,000

            Total professional labor-hours                   50,000 dlh        60,000 dlh

16) What are the actual direct-cost rate and the actual indirect-cost rate, respectively, per professional labor-hour?

A) $27.00; $4.17

B) $29.80; $5.40

C) $32.40; $5.00

D) $27.00; $5.00

17) How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

A) $5,000

B) $6,960

C) $7,480

D) $6,400

Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

11. How many pounds of raw material are needed to make one unit of each of the two products?

12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.)

Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040.

Direct materials are added at the beginning of the process.

Additionally:
On May 1:Beginning inventories = 250 units, 40% complete
Direct materials costs = $1,250
Conversion costs = $1,356
Transferred-in costs = $2,560

During May:Direct materials costs incurred = $6,000
Conversion costs incurred = $17,013

On May 31: Ending Inventories = 350 units, 20% complete

Using the weighted average method, what is the cost of the ending work in process inventory? Please show all work

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:

  
Required:
1-a. Determine Douglas-Roberts's pension expense for 2021.
1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

a)    Complete the table below by classifying the cost items. You need to repeat an amount if it belongs to more than one category. You must provide a total for each column.

b)    Coffee-Culture Ltd manufactures barista quality coffee machines. The unit selling price is $900 and the variable cost per unit is $630. The monthly fixed cost for August 2020 is $27,000. Answer the questions below in the spaces provided. (Show the formula and workings for each)

Required: Answer the following questions in the spaces provided:

a)    Complete the following table by classifying the cost items. You need to repeat an amount if it belongs to more than one category. You must provide a total for each column.

b)    Coffee-Culture Ltd manufactures barista quality coffee machines. The unit selling price is $900 and the variable cost per unit is $630. The monthly fixed cost for August 2020 is $27,000. (Show the formula and workings for each)

1. Calculate the contribution margin per unit.

2. Calculate the contribution margin as a ratio.

3. Calculate the break-even point in units. Calculate the break-even point in sales dollars.

4. Assume that the company sold 120 units of televisions in January 2019. Calculate the margin of safety in dollars.

5. If the target profit for February 2019 is$15,000, calculate the required sales in dollars for February 2019.

Fit & Slim (F&S) is a health club that offers members various gym services.

Required:
1. Assume F&S offers a deal whereby enrolling in a new membership for $1,300 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 20% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $1,470, and a one-year enrollment in yoga classes sells for an additional $750. F&S estimates that approximately 40% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy.
a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.
c. Prepare the journal entry to recognize revenue for the sale of a new membership.
2. Assume F&S offers a “Fit 60” coupon book with 60 prepaid visits over the next year. F&S has learned that Fit 60 purchasers make an average of 50 visits before the coupon book expires. A customer purchases a Fit 60 book by paying $750 in advance, and for any additional visits over 60 during the year after the book is purchased, the customer can pay a $15 visitation fee per visit. F&S typically charges $15 to nonmembers who use the facilities for a single day.
a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.
c. Prepare the journal entry to recognize revenue for the sale of a new Fit 60 book.

Req 1A and 1B

Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

Req 1C

• Record the revenue for the sale of a new membership.

Note: Enter debits before credits.

Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

Req 2A and 2B

• Record the revenue for the sale of a new Fit 60 book.

Note: Enter debits before credits.

• 
  Record the revenue for the sale of a new Fit 60 book.

Note: Enter debits before credits.

Req 2C

#1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $6500 in a bank account in the name of the company in exchange for 650 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $550 . 1-Dec Paid the premium on a one-year insurance policy, $600 . 1-Dec Purchased Equipment for $4200 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $5600 cash. 16-Dec Provided service to customers ABC Inc. on account, $2800 . 21-Dec Received $1600 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $4480 . 30-Dec Declared and paid dividend to stockholders $200 . #2. Post all of the December transactions from the “General Journal” tab to the T-accounts under the “T-Accounts” tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts. #3. Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31. #4. Prepare the unadjusted trial balance under the “Unadjusted Trial Balance” tab in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the total of the credit column from the Unadjusted Trial Balance #5. Record the following four transactions as adjusting entries under the “General Journal” tab. 31-Dec One month’s insurance has been used by the company $50. 31-Dec The remaining inventory of unused office supplies is $90. 31-Dec The estimated depreciation on equipment is $70. 31-Dec Wages incurred from December 29 to December 31 but not yet paid or recorded total $480. #6. Post all of the adjusting entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31. #7. Prepare the adjusted trial balance under the “Adjusted Trial Balance” tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the following accounts balances from the Adjusted Trial Balance: Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings #8. Prepare Income Statement, Statement of Stockholder’s Equity, and Classified Balance Sheet under the “Financial Statements” tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx". Provide the following amount from the Income Statement: Service Revenue Depreciation Expense Wages Expense Supplies Expense Rent Expense Insurance Expense Net Income Provide the following account balance from the Statement of Stockholders' Equity: Dividends Provide the following account balances from the Balance Sheet: Current Assets Long-Term Assets Total Liabilities Total Stockholder’s Equity Cash #9. Record the closing entries under the “General Journal” tab. #10. Post all of the closing entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted. Provide the ending balance of Cash at December 31 from the T-account Provide the balance of the Retained Earnings T-account after closing entries have been posted. Does the ending balance of the Retained Earnings T-account agree with the balance of Retained Earnings on the Balance Sheet? Check Point: Total Assets $ 9,470.00.

JBeats produce and sell a product that has variable costs of $33 and a selling price of $68 . Its current sales total $204,000 per month. Fixed manufacturing costs total $25,000 per month and fixed selling and administrative costs total $17,000 per month. The company is considering a proposal that will increase the selling price by 5%, increase the fixed manufacturing costs by 5%, and increase the fixed selling and administrative costs by $3,500. A. Compute JBeats’s current break-even point in units. B. Compute JBeats’s margin of safety in dollars. C. Compute JBeats’ss net income. D. Compute JBeats’s breakeven point in units assuming they accept the proposal. E. Compute JBeats’s net income assuming they accept the proposal and sales total 3,300. Label and place your final answer for A-E at the top of the answer box. Then after the answer to E, label and show your work for each part of the question. Just show me numbers – that is usually enough for me to follow your logic.