1. Given the following scenario and facts, compute the subject’s funds from unknown sources using the net worth method of proof.
Scenario Richard Ross operates a flower shop downtown. It is alleged that this business is a front for his bookmaking and loan sharking activities.
Facts:
a. You find a financial statement signed by Ross and dated December 31, 1998. The statement indicates that Ross had $1,000 cash on hand.
b. Ross has a checking account that he opened on June 1, 1998. His balance as of December 31, 1998, was $4,000. During 1999, Ross made total cash deposits of $30,000 and withdrawals of $25,000. His balance as of December 31, 1999 was $9,000. During 2000, Ross made total cash deposits of $25,000 and withdrawals of $32,000. His balance as December 31, 2000 was $2,000.
c. A search of your county real estate records shows that Ross purchased his present home in 1998 for $130,000 and that he obtained a $100,000 mortgage. Real estate taxes on the property amounted to $1,500 for each of the years 1999 and 2000. Contact with the lending institution shows that Ross made monthly payments of $1,000 to the lending institution during the subject years. The mortgage balances are as follows: 12/31/98 $98,000 12/31/99 $96,500 12/31/00 $94,500 Interest payments are as follows: 1999 $10,500 2000 $10,000
d. Ross bought a new car in April 1998. He paid $25,000 cash.
e. City records indicate that Ross applied for a building permit in 1999 for the construction of a swimming pool in his backyard. Contact with the pool construction company reveals that Ross paid $20,000 for the pool. He made a $10,000 cash downpayment and received an interest-free loan from the pool company for the remaining $10,000. The pool was completed in June 1999. Ross made monthly payments of $500 to the pool company. The loan balance on December 31, 1999 was $7,000 and December 31, 2000 the loan balance was $1,000.
f. An informant stated that since 1998, Ross had maintained a $1,500 a month apartment for his girlfriend, Mary Perry. The informant’s information was verified as being accurate.
g. During your investigation, you find that on February 28, 1999 Ross purchased a Rolex watch for $25,100 cash and on December 23, 2000 he paid $15,000 cash for a ring.
h. During an interview with Ms. Perry, she told you that in addition to the apartment, Ross provided her with a new car that he leased on January 1, 1999. Contact with the auto leading company revealed that Ross made lease payments of $300 per month during 1999 and 2000.
i. Information obtained from a local boat company shows that Ross purchased a boat on June 4, 2000 for $24,000.
j. The county judgment index shows that Ross borrowed $5,000 from a local finance company in 1997. He has never made any repayments.
k. Records of the local travel agency disclosed that Ross took Mary Perry on a vacation to the Orient in 2000. It cost $12,000.
l. You interviewed Ross and he showed you the books and records for his flower shop that indicated that he had a net profit of $40,000 in 1999 and $45,000 in 2000.During the interview Ross stated cash on hand in 1999 and 2000 was zero.
2. Given the scenario and facts listed in problem 1, compute the subject’s funds from unknown sources using the expenditures method.
3. Given the scenario and facts listed in problem 1, compute the subject’s funds from unknown sources using the bank deposit method.
In: Accounting
Which of the following would be appropriately costs using a process costing system?
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Oil Refining by Parkland Fuel Corporation |
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Movies produced by Lions Gate Entertainment |
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Assembly of individual aircraft by Bombardier |
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Audit engagements performed by KPMG |
In: Accounting
A strategic goal of any healthcare organization is the quality performance of the employees. The Institute of Medicine (1998) created the most accepted definition of quality in the healthcare industry: patient services current with scientific knowledge that result in a desired health outcome. Research information on high-performance organizations and provide 5 strategic methods that could be used to improve employee productivity in the healthcare organization.
In: Operations Management
Corruption is widespread in many less developed countries. The U.S. anti-corruption laws sanction the U.S. multinational from bribing foreign entities. (The Foreign Corrupt Practice Act of 1977, amended 1988, and the International Anti-Bribery Act of 1998.) Do the anti-corruption laws handicap American firms in their ability to compete against multinationals from elsewhere?
In: Economics
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2018 |
2017 |
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Sales revenue |
9,245,000 |
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Interest revenue |
850,000 |
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Royalties revenue |
1,450,000 |
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Dividend revenue |
150,000 |
||||
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Depreciation-building |
147,500 |
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Depreciation-plant |
262,500 |
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Depreciation-equipment |
75,000 |
||||
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Research and development expenditure |
1,650,000 |
||||
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Cost of goods sold |
4,005,000 |
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Warranty expense |
195,000 |
||||
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Wages and salaries expense |
3,475,000 |
||||
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Long service leave expense |
235,000 |
||||
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Interest expense |
305,000 |
||||
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Rates and taxes on property |
145,500 |
||||
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Doubtful debts expense |
142,500 |
||||
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Accounts receivable |
675,000 |
375,000 |
|||
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Estimated uncollectible debts |
182,000 |
95,000 |
|||
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Interest receivable |
300,000 |
275,000 |
|||
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Royalties receivable |
920,000 |
745,000 |
|||
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Land (at cost) |
2,500,000 |
2,500,000 |
|||
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Buildings |
3,200,000 |
3,200,000 |
|||
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Accumulated depreciation-buildings |
442,500 |
295,000 |
|||
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Plant |
2,100,000 |
2,100,000 |
|||
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Accumulated depreciation-Plant |
787,500 |
525,000 |
|||
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Equipment |
750,000 |
750,000 |
|||
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Accumulated depreciation-equipment |
225,000 |
150,000 |
|||
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Wages and salaries payable |
345,000 |
265,000 |
|||
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Provision for long service leave |
355,000 |
245,000 |
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Provision for warranty claims |
130,000 |
115,000 |
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Interest payable |
100,000 |
100,000 |
Additional Information |
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In: Accounting
In: Economics
Vaughn Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.
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Aug. 1 |
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Established the petty cash fund by writing a check payable to the petty cash custodian for $210. |
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15 |
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Replenished the petty cash fund by writing a check for $206.60. On this date, the fund consisted of $3.40 in cash and these petty cash receipts: freight-out $92.00, entertainment expense $46.20, postage expense $41.20, and miscellaneous expense $25.90. |
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16 |
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Increased the amount of the petty cash fund to $310 by writing a check for $100.00. |
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31 |
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Replenished the petty cash fund by writing a check for $294.40. On this date, the fund consisted of $15.60 in cash and these petty cash receipts: postage expense $142.00, entertainment expense $96.10, and freight-out $54.60. |
In: Accounting
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17. Which of the following would appear on the statement of financial position as a current liability?
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18. Chastain Park Entertainment paid salaries expense of $350,000 during Year 1. However, additional salaries of $20,000 had been earned by employees, but not paid or recorded at December 31, Year 1. |
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Refer to Chastain Park Entertainment. Under the accrual basis of accounting, what is the total amount of salaries payable to be reported at December 31, Year 1?
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In: Accounting
Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows:
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Complete the table below to determine the net income Margaret should show on her Schedule C.
If an amount is zero, enter "0". If required, round the amounts to the nearest dollar.
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In: Accounting
Define total revenue, marginal revenue, and average revenue. Discuss why the demand curve is represented by the marginal revenue curve for a perfectly competitive firm
In: Economics