MULTIPLE CHOICE PLEASE ANSWER ASAP. THANK YOU.

8. A company with working capital of $375,551 and a current ratio of 3.2 pays a $82,906 short-term liability. The amount of working capital immediately after payment is

a.$551,149

b.$463,350

c.$375,551

d.$87,799

11. Assume the following sales data for a company:

What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)?

a.31.4%

b.14.4%

c.77.1%

d.45.8%

12. Cash dividends of $72,881 were declared during the year. Cash dividends payable were $10,358 at the beginning of the year and $15,733 at the end of the year. The amount of cash for the payment of dividends during the year is

a.$67,506

b.$72,881

c.$83,239

d.$98,972

15. Accounts receivable from sales transactions were $49,594 at the beginning of the year and $67,778 at the end of the year. Net income reported on the income statement for the year was $143,428. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be

a.$143,428

b.$18,184

c.$125,244

d.$161,612

ABC Company is preparing its 2018 financial statements.  Income from Continuing Operations (ICO) for 2018 was determined to be $1,800,000, but upon further review, ABC's accountant is not certain this number is accurate. ABC has a corporate tax rate of 30%. Additionally, the company reports one year of financial data on the face of the financial statements. Use the following information to determine the adjustments, if any, to correctly report Income From Continuing Operations.

1. During 2018, ABC experienced a labor strike which closed down the operations of one of its plants for an entire month. The pretax loss of $875,000 was excluded when determining Income from Continuing Operations because the bookkeeper was uncertain if this event qualified for discontinued operations, although the plant was re-opened after the strike was settled and did not represent a strategic shift in the on-going operations for ABC. Additionally, this plant did not qualify as a component of ABC.

A. Determine the adjustment (if any) to correct Income from Continuing Operations (ICO) for the labor strike. $_______

*If you need to increase ICO, enter your answer as a positive number; if you need to decrease ICO, enter your answer as a negative number using () parenthesis. If you determine that ABC treated the labor strike correctly and that ICO does not need to be adjusted, enter NE for No Effect. You do not need to record your answer using $ signs or commas.

Continuing with the information presented in #9 above, ABC has ICO of $1,800,000 and a corporate tax rate of 30%. Determine if ICO should be adjusted based on the following information:

On October 1, 2016, ABC received $360,000 cash in advance for the sale of merchandise to a customer. The contract specified that ABC would deliver their product in equal monthly quantities over the next five years. When ABC recorded the sale, the bookkeeper credited Sales Revenue. No adjusting or correcting entries were made although ABC has fulfilled their obligation to delivering the goods as stipulated in the contract.  ABC did not realize the error until after the 2018 Income from Continuing Operations was calculated at $1,800,000.

B. Determine the adjustment for Sales Revenue affecting ICO for 2018:   $______

C. Determine the effect of this error on Retained Earnings (if any): $_______

*If you need to increase ICO, enter your answer as a positive number; if you need to decrease ICO, enter your answer as a negative number using () parenthesis. If you determine that ABC treated the transaction correctly and that ICO does not need to be adjusted, enter NE for No Effect. You do not need to record your answer using $ signs or commas.

Continuing with the information presented in #9 above, ABC has ICO of $1,800,000 and a corporate tax rate of 30%. Determine if ICO should be adjusted based on the following information:

ABC purchased equipment for $120,000 on January 1, 2013 with an estimated 10 year useful life and $10,000 salvage value. ABC uses the straight-line method to depreciate this class of asset. At the end of 2018, ABC determined it was appropriate to change the depreciation method of this asset to the Double-Declining-Balance method. The bookkeeper was unaware of this change and already calculated 2018 ICO using the straight-line method.

D: Adjustment (if any) for Depreciation Expense (2018): $______

*If you need to increase ICO, enter your answer as a positive number; if you need to decrease ICO, enter your answer as a negative number using () parenthesis. If you determine that ABC treated the transaction correctly and that ICO does not need to be adjusted, enter NE for No Effect. You do not need to record your answer using $ signs or commas.

Continuing with the information presented in #9 above, ABC has ICO of $1,800,000 and a corporate tax rate of 30%. Determine if ICO should be adjusted based on the following information:

Over the past four years ABC has estimated bad debts based on 4% of accounts receivable. In 2018, after reviewing their major client's credit worthiness, they decided to change this estimate to 3%. As of December 31st, ABC reported their accounts receivable at $860,000, and the Balance Before Adjustment in the Allowance for Doubtful Accounts was $10,100 (cr).

The $1,800,000 of ICO had been calculated prior to recording Bad Debt Expense for 2018.

E: Adjustment for Bad Debt Expense for 2018: $______

*If you need to increase ICO, enter your answer as a positive number; if you need to decrease ICO, enter your answer as a negative number using () parenthesis. If you determine that ABC treated the transaction correctly and that ICO does not need to be adjusted, enter NE for No Effect. You do not need to record your answer using $ signs or commas.

In 2018, ABC had a foreign currency transaction gain on certain inventory purchases with overseas suppliers in the amount of $147,000 (pre-tax) and an unrealized loss (pre-tax) on pension adjustments of $212,000. Neither of these events were included in determining the $1,800,000 ICO.

F. Adjustment to 2018 ICO for the Foreign Currency Transaction: $______

G. Adjustment to 2018 ICO for the Pension Adjustment: $_______

  *If you need to increase ICO, enter your answer as a positive number; if you need to decrease ICO, enter your answer as a negative number using () parenthesis. If you determine that ABC treated the transaction correctly and that ICO does not need to be adjusted, enter NE for No Effect. You do not need to record your answer using $ signs or commas.

Using the adjustments you made to Income From Continuing Operations in questions 9-13 above, determine the CORRECTED ICO for 2018:

H: Corrected ICO for 2018 $_______

On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,327. The balance shown on the bank statement on the same date was $13,222.

Notes

The firm’s records indicate that a $1,500 deposit dated August 30 and a $706 deposit dated August 31 do not appear on the bank statement.

A service charge of $9 and a debit memorandum of $345 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)

The following checks were issued but have not yet been paid by the bank:

A credit memorandum shows that the bank collected a $2,109 note receivable and interest of $68 for the firm. These amounts have not yet been entered in the firm’s records.

Required:

Prepare a bank reconciliation statement for the firm as of August 31.

Record general journal entries for items on the bank reconciliation statement that must be journalized.

Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?

Complete this question by entering your answers in the tabs below.

Bank Rec

General Journal

Analyze

Prepare a bank reconciliation statement for the firm as of August 31.

Bank Rec

Journal entry worksheet

Record the deposit in transit.

Note: Enter debits before credits.

Record the bank service fee.

Note: Enter debits before credits.

Record the returned check.

Note: Enter debits before credits.

You are an audit manager of Pink Partners & Co (Pink) and are planning the audit of Golden Finance Co (Golden), a banking institution which provides a range of financial services including loans. Your firm has audited Golden for four years and the company’s year-end is 30 September 2015.

At the end of August, Golden’s financial controller left and the new replacement is not due to start until approximately two months after the year-end. The finance director, who is the sisterin-law of the audit engagement partner, has asked if a member of the audit team can be seconded to Golden for three months to act as the temporary financial controller.

You are aware that a number of the audit team members currently bank with Golden and two team members have significant loans owing to the company.

Pink’s taxation department also provides services to Golden. They have been approached by Golden to represent them in negotiations to resolve some outstanding issues with the taxation authorities, for which the fees quoted, are substantial.

The finance director has informed the audit engagement partner that when the audit is complete, she would like the whole team to attend an evening watching the national football team play a match followed by a luxury meal. \

Required:

Using the information above:

(i) Identify and explain FIVE ethical threats which may affect the independence of Pink Partners & Co’s audit of Golden Finance Co; and

(ii) For each threat, explain how it might be reduced to an acceptable level

MULTIPLE CHOICE. PLEASE ANSWER ASAP. THANK YOU!

17. Sales for the year were $588,096. Accounts receivable were $98,761 and $77,731 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is

a.$630,156

b.$609,126

c.$686,857

d.$588,096

23. A building with a book value of $46,754 is sold for $59,053 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of

a.$59,053 from investing activities

b.$59,053 from investing activities and a deduction from net income of $12,299

c.$46,754 from investing activities and an addition to net income of $12,299

d.$46,754 from investing activities

26. Balance sheet and income statement data indicate the following:

Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?

a.3.5

b.4.5

c.6.1

d.2.5

27. Land costing $136,603 was sold for $171,572 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a.$34,969

b.$308,175

c.$171,572

d.$136,603

29. Use this information for Kellman Company to answer the question that follow.

The balance sheets at the end of each of the first two years of operations indicate the following:

Using the balance sheets for Kellman Company, if net income is $104,500 and interest expense is $36,100 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?

a.6.56%

b.4.60%

c.7.58%

d.9.46%

You are the audit manager of Chestnut & Co and are reviewing the key issues identified in the files of two audit clients.

Palm Industries Co (Palm)

Palm’s year-end was 31 March 2015 and the draft financial statements show revenue of $28·2 million, receivables of $5·6 million and profit before tax of $4·8 million. The fieldwork stage for this audit has been completed.

A customer of Palm owed an amount of $350,000 at the year-end. Testing of receivables in April highlighted that no amounts had been paid to Palm from this customer as they were disputing the quality of certain goods received from Palm. The finance director is confident the issue will be resolved and no allowance for receivables was made with regards to this balance.

Ash Trading Co (Ash)

Ash is a new client of Chestnut & Co, its year-end was 31 January 2015 and the firm was only appointed auditors in February 2015, as the previous auditors were suddenly unable to undertake the audit. The fieldwork stage for this audit is currently ongoing.

The inventory count at Ash’s warehouse was undertaken on 31 January 2015 and was overseen by the company’s internal audit department. Neither Chestnut & Co nor the previous auditors attended the count. Detailed inventory records were maintained but it was not possible to undertake another full inventory count subsequent to the year-end.

The draft financial statements show a profit before tax of $2·4 million, revenue of $10·1 million and inventory of $510,000.

Required:

For each of the two issues:

(i) Discuss the issue, including an assessment of whether it is material;

(ii) Recommend ONE procedure the audit team should undertake to try to resolve the issue; and

(iii) Describe the impact on the audit report if the issue remains UNRESOLVED.

In your own words and in detail list and describe the benefits of budgeting in a business. Also list and describe in detail the components of a Master Budget.

PLEASE PLEASE ANSWER AS SOON AS POSSIBLE.

1. Use the information below for Harding Company to answer the question that follow.

Based on the data for Harding Company, what is the amount of working capital?

a.$969,994

b.$202,328

c.$619,832

d.$144,893

4. The net income reported on the income statement for the current year was $299,087. Depreciation recorded on fixed assets and amortization of patents for the year were $40,017 and $8,817, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

a.$284,286

b.$308,979

c.$296,764

d.$370,012

5. The current period statement of cash flows includes the following:

The cash balance at the end of the period is

a.$449,146

b.$266,613

c.$727,678

d.$501,342

6. Based on the following data, what is the accounts receivable turnover?

a.2.3

b.11

c.10.1

d. 4

8. A company with working capital of $375,551 and a current ratio of 3.2 pays a $82,906 short-term liability. The amount of working capital immediately after payment is

a.$551,149

b.$463,350

c.$375,551

d.$87,799

11. Assume the following sales data for a company:

What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)?

a.31.4%

b.14.4%

c.77.1%

d.45.8%

12. Cash dividends of $72,881 were declared during the year. Cash dividends payable were $10,358 at the beginning of the year and $15,733 at the end of the year. The amount of cash for the payment of dividends during the year is

a.$67,506

b.$72,881

c.$83,239

d.$98,972

15. Accounts receivable from sales transactions were $49,594 at the beginning of the year and $67,778 at the end of the year. Net income reported on the income statement for the year was $143,428. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be

a.$143,428

b.$18,184

c.$125,244

d.$161,612

On August 1, 2019, the accountant for Western Imports downloaded the company's July 31, 2019, bank statement from the bank's Website. The balance shown on the bank statement was $28,800. The July 31, 2019, balance in the Cash account in the general ledger was $13,798.

Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank's records and the company's Cashaccount in the general ledger:

An electronic funds transfer for $14,800 from Foncier Ricard, a customer located in France, was received by the bank on July 31.

Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,240.

The accounting records indicate that Check 1425 was issued for $66 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $96.

A deposit of $860 made after banking hours on July 31 did not appear on the July 31 bank statement.

The following checks were outstanding: Check 1429 for $1,253, and Check 1430 for $145.

An automatic debit of $266 on July 31 from CentralComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records.

Required:

Prepare a bank reconciliation for the firm as of July 31.

Record general journal entries for the items on the bank reconiliation that must be journalized.

Bank Rec

General Journal

Analyze

Prepare a bank reconciliation for the firm as of July 31.

Journal entry worksheet

Record the EFT received on account.

Note: Enter debits before credits.

ecord the entry to correct for check 1422.

Note: Enter debits before credits.

Record the entry to correct for check 1425.

Note: Enter debits before credits.

Record the online payment.

Note: Enter debits before credits.

Complete this question by entering your answers in the tabs below.

Bank Rec

General Journal

Analyze

What effect on total expenses occurred as a result of the general journal entries recorded?

In 2001, U.S. airlines spent about 10 percent of their budget on fuel. In 2011, they had to spend 35 percent of their budget on fuel. Airlines, of course, can’t do one bit of business without jet fuel. So when the most important line item in a company’s budget more than triples, the consequence is a tremendous amount of financial pressure. And with nearly all experts agreeing that the price of fuel will only increase, airlines have the unenviable task of buying the fuel they need while not breaking their budget.

Industry-wide, there seem to be two main approaches to mitigating the effects of rising fuel prices—reducing overall expenses and increasing revenue.

Companies focusing on reducing overall expenses related to fuel have been taking innovative approaches:

Some have tried to reduce their dependence on traditional jet fuels by looking for alternatives. Virgin Atlantic was the first airline in the world to operate a commercial jet with a biofuel, which was made from coconut oil and babassu nuts. Recently, United announced a major agreement to purchase algae-derived fuel from Solazyme.

Delta Airlines, meanwhile, hopes that vertical integration can provide some budget relief. When it learned that an oil refinery in Pennsylvania was going to be shut down, it purchased the facility so that it could make some of its own fuel. Delta executives estimate that it will provide a savings of $300 million over five years.

Some airlines are turning to high-tech solutions to reduce fuel use and reduce fuel-related expenses. A number of airlines are using GPS navigation, rather than radar, to reduce the flight times of an airplane. Some are adding small winglets, vertical facing tips to the ends of wings, which reduce fuel use by 5%. And many are looking to new or remodeled aircraft, such as the Boeing 787 or the Airbus A320neo, which use 15 to 20 percent less fuel than older models do.

Reducing expenses, however, will not balance out the sharp uptick in fuel costs. Companies, therefore, have also focused on generating revenue from all aspects of their organization. Nearly all airlines have taken steps to increase revenue through fees that cover almost everything. There are fees for checked bags, fees for booking a ticket over the phone, fees for picking a certain seat, fees for a wider seat, fees for pillows and blankets, fees for carry-on bags, fees for drinks and snacks, and more. Overall, the focus on fees has been successful:

In 2016, U.S. airlines collected over $3 billion in fees exclusively just by charging for checked baggage.

From January 2016 to January 2017, 28 new baggage-related fees were levied on air travelers. Overall, 50 new fees were introduced by U.S. airlines in 2016.

In the first six months of 2016, the airlines collected $1.3 billion in cancellation and reservation change fees.

Yet, while airlines may have many options for responding to rising fuel costs, not all have done so successfully. Take for example, Frontier Airlines, a low-cost carried based in Denver. Due to rising costs and $1 billion in debt, it was forced to declare bankruptcy in 2009. The first two years after emerging from bankruptcy, it lost another $148 million. Even adding extra fees, as nearly all other airlines, hasn’t helped., and Frontier had to eliminate service to cities like Colorado Springs, Dayton, and Philadelphia, while looking for less competitive places to operate.

You Decide

- In your opinion, should Frontier Airlines focus on managerial accounting or financial accounting as it works to get its finances back on firm footing?

- In this environment, would you recommend that Frontier Airlines use a bottom-up or top-down approach to budgeting? Why?

- Many U.S. airlines have solved their financial woes by merging with complementary competitors or by making cuts and becoming much smaller airlines. Do you believe that these are the only two options open to Frontier Airlines? What else could you propose?

Discuss (100 to 120 words) how an organisation might use policies and procedures as part of its financial operations.

I have a case study and I need some ideas please. below is a summary. I needs ideas regarding management of cost accounting

In a company X, the expenses in human ressources are taking 60% of the revenue, so the profit is being considerably reduced. as a cost accountant, what strategies or tactics can be implemented in order to manage better or minize this cost and increase profit. PLEASE i NEED ideas in order to keep moving with this case study. thanks

Cash flows is one of the hardest chapters (topics) in this class. We cover this towards the end of the class after you obtain some accounting knowledge. If you have read the chapter or attempted some of the homework, you will know its complexity. Your textbook goes into detail on how to prepare as a Statement of Cash Flows, so please consider it to answer the following questions:

• What is the main purpose for preparing a cash flow statement?
• What insights can you obtain from it?