Questions
The function print_mean() that you wrote in the previous lesson calculates an average value and prints...

The function print_mean() that you wrote in the previous lesson calculates an average value and prints it on the screen. Change this function so that instead of printing the average it returns the average.In order to calculate the sum, you won't need to form a loop; call the function column_sum() instead.

# columns are [0]title [1]year [2]rating [3]length(min) [4]genre [5]budget($mil) [6]box_office_gross($mil)
oscar_data = [
["The Shape of Water", 2017, 6.914, 123, ['sci-fi', 'drama'], 19.4, 195.243464],
["Moonlight", 2016, 6.151, 110, ['drama'], 1.5, 65.046687],
["Spotlight", 2015, 7.489, 129, ['drama', 'crime', 'history'], 20.0, 88.346473],
["Birdman", 2014, 7.604, 119, ['drama', 'comedy'], 18.0, 103.215094],
["12 Years a Slave", 2013, 7.71, 133, ['drama', 'biography', 'history'], 20.0, 178.371993],
["Argo", 2012, 7.517, 120, ['thriller', 'drama', 'biography'], 44.5, 232.324128],
["The Artist", 2011, 7.942, 96, ['drama', 'melodrama', 'comedy'], 15.0, 133.432856],
["The King\'s Speech", 2010, 7.977, 118, ['drama', 'biography', 'history'], 15.0, 414.211549],
["The Hurt Locker", 2008, 7.298, 126, ['thriller', 'drama', 'war', 'history'], 15.0, 49.230772],
["Slumdog Millionaire", 2008, 7.724, 120, ['drama', 'melodrama'], 15.0, 377.910544],
["No Country for Old Men", 2007, 7.726, 122, ['thriller', 'drama', 'crime'], 25.0, 171.627166],
["The Departed", 2006, 8.456, 151, ['thriller', 'drama', 'crime'], 90.0, 289.847354],
["Crash", 2004, 7.896, 108, ['thriller', 'drama', 'crime'], 6.5, 98.410061],
["Million Dollar Baby", 2004, 8.075, 132, ['drama', 'sport'], 30.0, 216.763646],
["The Lord of the Rings: Return of the King", 2003, 8.617, 201, ['fantasy', 'drama', 'adventure'], 94.0, 1119.110941],
["Chicago", 2002, 7.669, 113, ['musical', 'comedy', 'crime'], 45.0, 306.776732],
['A Beautiful Mind', 2001, 8.557, 135, ['drama', 'biography', 'melodrama'], 58.0, 313.542341],
["Gladiator", 2000, 8.585, 155, ['action', 'drama', 'adventure'], 103.0, 457.640427],
["American Beauty", 1999, 7.965, 122, ['drama'], 15.0, 356.296601],
["Shakespeare in Love", 1998, 7.452, 123, ['drama', 'melodrama', 'comedy', 'history'], 25.0, 289.317794],
["Titanic", 1997, 8.369, 194, ['drama', 'melodrama'], 200.0, 2185.372302],
["The English Patient", 1996, 7.849, 155, ['drama', 'melodrama', 'war'], 27.0, 231.976425],
["Braveheart", 1995, 8.283, 178, ['drama', 'war', 'biography', 'history'], 72.0, 210.409945],
["Forrest Gump", 1994, 8.915, 142, ['drama', 'melodrama'], 55.0, 677.386686],
["Schindler\'s List", 1993, 8.819, 195, ['drama', 'biography', 'history'], 22.0, 321.265768],
["Unforgiven", 1992, 7.858, 131, ['drama', 'western'], 14.4, 159.157447],
["Silence of the Lambs", 1990, 8.335, 114, ['thriller', 'crime', 'mystery', 'drama', 'horror'], 19.0, 272.742922],
["Dances with Wolves", 1990, 8.112, 181, ['drama', 'adventure', 'western'], 22.0, 424.208848],
["Driving Miss Daisy", 1989, 7.645, 99, ['drama'], 7.5, 145.793296],
["Rain Man", 1988, 8.25, 133, ['drama'], 25.0, 354.825435],
]


def column_sum(data, column):
result = 0
for row in data:
result += row[column]
return result

def column_mean(data, column):
# < write code here >
  

mean_score = column_mean(oscar_data, 2)
print('Average rating: {:.2f}'.format(mean_score))

mean_length = column_mean(oscar_data, 3)
print('Average length: {:.2f} min.'.format(mean_length))

mean_budget = column_mean(oscar_data, 5)
print('Average budget: ${:.2f} mil.'.format(mean_budget))

mean_gross = column_mean(oscar_data, 6)
print('Average revenue: ${:.2f} mil.'.format(mean_gross))

In: Computer Science

# columns are [0]title [1]year [2]rating [3]length(min) [4]genre [5]budget($mil) [6]box_office_gross($mil) oscar_data = [ ["The Shape of...

# columns are [0]title [1]year [2]rating [3]length(min) [4]genre [5]budget($mil) [6]box_office_gross($mil)
oscar_data = [
["The Shape of Water", 2017, 6.914, 123, ['sci-fi', 'drama'], 19.4, 195.243464],
["Moonlight", 2016, 6.151, 110, ['drama'], 1.5, 65.046687],
["Spotlight", 2015, 7.489, 129, ['drama', 'crime', 'history'], 20.0, 88.346473],
["Birdman", 2014, 7.604, 119, ['drama', 'comedy'], 18.0, 103.215094],
["12 Years a Slave", 2013, 7.71, 133, ['drama', 'biography', 'history'], 20.0, 178.371993],
["Argo", 2012, 7.517, 120, ['thriller', 'drama', 'biography'], 44.5, 232.324128],
["The Artist", 2011, 7.942, 96, ['drama', 'melodrama', 'comedy'], 15.0, 133.432856],
["The King\'s Speech", 2010, 7.977, 118, ['drama', 'biography', 'history'], 15.0, 414.211549],
["The Hurt Locker", 2008, 7.298, 126, ['thriller', 'drama', 'war', 'history'], 15.0, 49.230772],
["Slumdog Millionaire", 2008, 7.724, 120, ['drama', 'melodrama'], 15.0, 377.910544],
["No Country for Old Men", 2007, 7.726, 122, ['thriller', 'drama', 'crime'], 25.0, 171.627166],
["The Departed", 2006, 8.456, 151, ['thriller', 'drama', 'crime'], 90.0, 289.847354],
["Crash", 2004, 7.896, 108, ['thriller', 'drama', 'crime'], 6.5, 98.410061],
["Million Dollar Baby", 2004, 8.075, 132, ['drama', 'sport'], 30.0, 216.763646],
["The Lord of the Rings: Return of the King", 2003, 8.617, 201, ['fantasy', 'drama', 'adventure'], 94.0, 1119.110941],
["Chicago", 2002, 7.669, 113, ['musical', 'comedy', 'crime'], 45.0, 306.776732],
['A Beautiful Mind', 2001, 8.557, 135, ['drama', 'biography', 'melodrama'], 58.0, 313.542341],
["Gladiator", 2000, 8.585, 155, ['action', 'drama', 'adventure'], 103.0, 457.640427],
["American Beauty", 1999, 7.965, 122, ['drama'], 15.0, 356.296601],
["Shakespeare in Love", 1998, 7.452, 123, ['drama', 'melodrama', 'comedy', 'history'], 25.0, 289.317794],
["Titanic", 1997, 8.369, 194, ['drama', 'melodrama'], 200.0, 2185.372302],
["The English Patient", 1996, 7.849, 155, ['drama', 'melodrama', 'war'], 27.0, 231.976425],
["Braveheart", 1995, 8.283, 178, ['drama', 'war', 'biography', 'history'], 72.0, 210.409945],
["Forrest Gump", 1994, 8.915, 142, ['drama', 'melodrama'], 55.0, 677.386686],
["Schindler\'s List", 1993, 8.819, 195, ['drama', 'biography', 'history'], 22.0, 321.265768],
["Unforgiven", 1992, 7.858, 131, ['drama', 'western'], 14.4, 159.157447],
["Silence of the Lambs", 1990, 8.335, 114, ['thriller', 'crime', 'mystery', 'drama', 'horror'], 19.0, 272.742922],
["Dances with Wolves", 1990, 8.112, 181, ['drama', 'adventure', 'western'], 22.0, 424.208848],
["Driving Miss Daisy", 1989, 7.645, 99, ['drama'], 7.5, 145.793296],
["Rain Man", 1988, 8.25, 133, ['drama'], 25.0, 354.825435],
]


def column_sum(data, column):
result = 0
for row in data:
result += row[column]
return result

def column_mean(data, column):
total = column_sum(oscar_data, 6)
mean = total / len(data)
return mean


# < write code here >
  

mean_score = column_mean(oscar_data, 2)
print('Average rating: {:.2f}'.format(mean_score))

mean_length = column_mean(oscar_data, 3)
print('Average length: {:.2f} min.'.format(mean_length))

mean_budget = column_mean(oscar_data, 5)
print('Average budget: ${:.2f} mil.'.format(mean_budget))

mean_gross = column_mean(oscar_data, 6)
print('Average revenue: ${:.2f} mil.'.format(mean_gross))

In: Computer Science

b) You work in a reputable audit firm and you are currently reviewing the working papers...

b) You work in a reputable audit firm and you are currently reviewing the working papers of several audit assignments recently curried out by your audit firm. Each of the audit engagement is nearing completion, but certain matters have recently come to light which
Dr Cletus Agyenim Boateng, Dr Emmanuel T. Asare and Mr Augustine Addo

may affect your audit opinion on each of the assignments. In each case, the year-end of the company is 30 August 2019.

i. Mimie Company (Profit before tax Ghc 750,000)
On 6 September 2019 a letter was received informing the company that a customer, who owed the company Ghc 150,000 as at the year-end had been declared bankrupt on 30 August. At the time of the audit it was expected that unsecured creditors, such as Mimie, would receive nothing in respect of this dept. The directors refuse to change the financial statements to provide for the loss, on the grounds that the notification was received by the statement of financial position date.
Total debts shown in the statement of financial position amounted to Ghc 2,375,000. 3 marks

ii. Kokuvi Company (Profit before tax Ghc 2,500,000)
On 20 July 2019 a customer sued the company for personal damages arising from a defect in one of its products. Shortly before the year-end, the company made an out-of-court settlement with the customer of Ghc 50,000, although this agreement is not reflected in the financial statements. Further, the matter subsequently became known to the press and was extensively reported. The company’s legal advisers have now been informed that further claims have been received following the publicity, although they are unable to replace a figure on the potential liability arising. The company has referred to the claims in a note to the financial statements stating that no provision has been made because the claims are not expected to be material.
3 marks

iii. Baaba Na Company (profit before tax Ghc 1,250,000)
The audit work revealed that a trade investment stated in the statement of financial position at Ghc 2,500,000 has suffered a permanent fall in value of Ghc 1,500,000. The company has refused to put an impairment charge through for it on the grounds that other investments (not held for resale) have risen in value and are stated at amount considerably below their realisable values.

iv. Achah Martin (profit before tax Ghc 500,000)
This client is a furniture company, currently manufacturing for the local market using local materials and some of its own workforce. The labour cost has been included in the cost of a non-current asset in the statement of financial position at a value of Ghc 50,000. During the audit it was discovered that the direct labour cost records for the early parts of the year have been accidently destroyed.
3 marks
You are required to:
Discuss each of the cases outlined above, referring to materiality considerations and, where appropriate, relevant accounting principles and appropriate accounting standards, explaining the audit reporting implications in each case.

In: Accounting

1. Obtain a benzoic acid pellet, determine the mass of the pellet on the analytical balance and record the mass in your hard covered note book.

 

1. Obtain a benzoic acid pellet, determine the mass of the pellet on the analytical balance and record the mass in your hard covered note book. The error for the analytical balance is  0.0005 g. Attach approximately 10.0 cm of fuse wire as shown by your Instructor (use the length of the card that holds the fuse wire, the card is already calibrated in heat units, cal or 4.18 J units) and adjust it to give firm contact with the benzoic acid pellet. Avoid kinks in the fuse wire.

2. Carefully assemble the bomb, keeping surfaces of closure scrupulously clean. Dismantled parts should be placed on a clean, dry paper towel. Place the bomb on the bench next to the O2 cylinder. Tighten cover by hand. The Instructor must assist you in connecting the bomb to the O2 cylinder, and slowly admit oxygen to a final pressure of 20 atm (280 psi.) Close valves on cylinder. Relieve pressure in line by means of the black knob on the regulator. Remove the gas coupling and check the circuit again.

3. Place the bomb in the calorimeter and make sure the ignition wires are connected properly. Carefully fill the inner reservoir in the calorimeter with 2000 mL distilled water, using the volumetric flask provided. The water should completely cover the bomb; no oxygen bubbles should escape from the bomb if the seal is good. If there is a substantial leak, the bomb should be dried and refilled with oxygen. Small leaks are insignificant.

4. Connect the motor and pulley experiment with the o-ring provided and starts the stirrer. Connect the leads on the outside of the bomb jacket to the 10 cm fuse in the igniter

. 5. Turn on the stirrer. For this, data points should be collected every ten seconds up to a total of 150 data points.

6. After at least 12 data points have been collected, and the temperature is reasonably constant or shows only a small up- or downward trend, press and hold the ignition button on the ignitor for approximately 1second. You will see the red light on the ignition box flash on and off again, showing that the fuse wire has burned. You should NOT be standing over the bomb while igniting the bomb!! Stand back from the bomb for at least 15 seconds. If combustion has occurred, the temperature will start to rise within the next two or three data points.

7. Keep recording data until the 150 points finishes.

8. Remove the bomb from the calorimeter and relieve the pressure by opening the valve. BE SURE to open the release valve before trying to unscrew the top of the bomb! 9. Measure the remaining length of unoxidized fuse wire. (This information is needed to correct for its heat of combustion). Carefully clean and dry the calorimeter and sample pan.

10. Repeat this procedure with the second benzoic acid pellet.

11. Once you have good data for benzoic acid, allowing you to calculate the calorimeter constant C, repeat the full procedure for each of the two sucrose samples.

In: Chemistry

This course contains a Course Project, where you will be required to submit one draft of...

This course contains a Course Project, where you will be required to submit one draft of the project at the end of Week 5, and the final completed project at the end of Week 7. Using the financial statements for Celgene Corporation and Gilead Sciences, Inc., respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2015, and prepare your comments about the two companies' performances based on your ratio calculations. The entire project will be graded by the instructor at the end of the final submission in Week 7, and one grade will be assigned for the entire project. Financial Statements Below is the link for the financial statements for Celgene Corporation for the fiscal year ending 2016. http://ir.celgene.com/sec.cfm?view=all (Links to an external site.)Links to an external site. When you arrive at this website, please do the following. First, under View, select Annual Filings using the drop-down arrow labeled All Filings and then select 2017, using the drop-down arrow labeled Year, You should select the 10k dated 2/10/2017 and choose to download in PDF, HTML, or Excel format. The PDF format is the best format for searching. Below is the link for the financial statements for Gilead Sciences, Inc. for the fiscal year ending 2015. http://investors.gilead.com/phoenix.zhtml?c=69964&p=irol-sec (Links to an external site.)Links to an external site. First, select 2017 under the Year filter using the drop-down arrow labeled All Years and then select Annual filings under the Groupings filter using the drop-down arrow labeled All Forms. Press the large Search button to access the requested annual filing for 2016. You should select the 10k dated 2/27/2017, and choose to download it in PDF, Word, or Excel format. The PDF format is the best format for searching. ANSWER the following 16 ratios and include formulas Earnings per Share of Common Stock Current Ratio Gross (Profit) Margin Percentage Rate of Return (Net Profit Margin) on Sales Inventory Turnover Days' Inventory Outstanding (DIO) Accounts Receivable Turnover Days' Sales Outstanding (DSO) Asset Turnover Rate of Return on Total Assets (ROA) Debt Ratio Times-Interest-Earned Ratio Dividend Yield [For the purposes of this ratio, use Yahoo Finance to look up current dividend per share and stock price; just note the date that you looked up this information.] Rate of Return on Common Stockholders' Equity (ROE) Free cash flow Price-Earnings Ratio (Multiple) [For the purpose of this ratio, look up the market price per share as of December 30, 2016 for Celgene Corporation and for Gilead Sciences, Inc..] Thank You!!

In: Finance

Case 1–2: True Religion Jeans: Flash in the Pants or Enduring Brand? Founded in 2002 by...

Case 1–2: True Religion Jeans: Flash in the Pants or Enduring Brand?

Founded in 2002 by Jeff Lubell, True Religion had become one of the largest premium denim brands in the United States by 2012. Although True Religion made its debut in upscale department stores and trendy boutiques a decade earlier, the company owned 86 full price retail stores and 36 outlet stores in the United States as well as 30 stores in international markets by the end of 2012. The company’s domestic retail store business accounted for about 60% of revenues and 64% of operating profit before unallocated corporate expenses in 2012. Just five years earlier, the U.S. retail store segment generated only 17% of sales and 25% of operating profit before unallocated corporate expenses.

Jeff Lubell’s vision of the company had come true—at least partly. The company had transformed itself from a jeans designer into an apparel retailer with it own brand à la Buckle and Diesel. At the same time, True Religion had managed to shift its product mix so that sportswear accounted for almost 35% of sales in its company-owned stores. Lubell felt these two ingredients were critical to establishing True Religion as a “lifestyle brand.” The ultimate in product differentiation, many companies attempt to create so-called “lifestyle” brands that transcend product category and inspire deep consumer loyalty. Lubell felt becoming a lifestyle brand was the key to insulating True Religion from the inevitable fluctuations in fashion trends.

Moreover, True Religion’s sales had grown at an average annual rate of almost 22% from 2007-2012. The company’s return on invested capital was an impressive 27% and its return on average assets was 12% in 2012. Despite these factors, press articles and analyst reports on True Religion described the company as, “the struggling maker of premium denim.”1 A New York Post article entitled “Escape From Hell for True Religion” described private equity firm, TowerBrook, as the company’s “savior,”2 when the company announced it had been acquired by TowerBrook in 2013. Other denim brands, such as Jeff Rudes’ J Brand, appeared to be usurping True Religion’s position as the “must have” denim brand for young consumers.

What had gone wrong at True Religion? Was the change in ownership the answer to the company’s problems? Was premium denim destined to go the way of Flash Dance legwarmers and Crocs as fast fashion from the likes of H&M became more mainstream? Private equity investors had snapped up stakes in both established and up-and-coming premium denim brands in the past five years—leaving just one publicly traded premium jeans maker, Joe’s Jeans. Should investors stay away from the industry?

In: Finance

Comment! Venezuela Goes Bust Another lesson in the price of lending to a socialist regime. By...

Comment!

Venezuela Goes Bust

Another lesson in the price of lending to a socialist regime.

By The WSJ Editorial Board
Updated Nov. 15, 2017 7:27 p.m. ET
Milton Friedman once joked that if you put the government in charge of the Sahara Desert in five years there would be a shortage of sand. He could have been talking about Venezuela and its oil wealth. But it is no joke.

On Monday Caracas missed interest payments due on two government bonds and one bond issued by the state-owned oil monopoly known by its Spanish initials PdVSA. Venezuela owed creditors $280 million, which it couldn’t manage even after a 30-day grace period.

Venezuela is broke, which takes some doing. For much of the second half of the 20th century, a gusher of oil exports made dollars abundant in Venezuela and the country imported the finest of everything. There were rough patches in the 1980s and 1990s, but by 2001 Venezuela was the richest country in South America.

Then in 2005 the socialist Hugo Chávez declared that the central bank had “excessive reserves.” He mandated that the executive take the excess from the bank without compensation. Today the central bank has at best $1 billion in reserves.

Falling oil prices are partly to blame, but the main problem is that chavismo has strangled entrepreneurship. Faced with expropriation, hyperinflation, price controls and rampant corruption, human and monetary capital has fled Venezuela.

As of Tuesday evening, the International Swaps and Derivatives Association still had not declared Venezuela in default. That matters because this will trigger the insurance obligations inherent in the credit default swaps. But S&P Global Ratings declared the country in default Monday. On Tuesday morning the Luxembourg Stock Exchange issued a suspension notice for the bonds with missed payments.

President Nicolás Maduro has formed a commission to restructure up to $150 billion of the debt and put Vice President Tareck El Aissami —who is under U.S. sanctions for drug trafficking—in charge. Mr. El Aissami called a meeting of creditors on Monday in Caracas, which most bondholders did not attend. Press reports said Mr. El Aissami delivered a monologue on Venezuela’s intention to pay and took no questions. He argued that Trump Administration sanctions make it difficult for the dictatorship to arrange refinancing.

The real problem is that restructuring assumes the country can grow again. That’s nearly impossible without a change in policy that will free the economy.

If Caracas doesn’t find a way to settle with bondholders, they will soon ask authorities to seize Venezuelan assets such as oil shipments at sea and Citgo facilities in the U.S. Such are the wages of socialism.

Correction: An earlier version misidentified the name of the International Swaps and Derivatives Association.

Appeared in the November 15, 2017, print edition.

In: Economics

b) You work in a reputable audit firm and you are currently reviewing the working papers...

b) You work in a reputable audit firm and you are currently reviewing the working papers of several audit assignments recently curried out by your audit firm. Each of the audit engagement is nearing completion, but certain matters have recently come to light which
Dr Cletus Agyenim Boateng, Dr Emmanuel T. Asare and Mr Augustine Addo

may affect your audit opinion on each of the assignments. In each case, the year-end of the company is 30 August 2019.

i. Mimie Company (Profit before tax Ghc 750,000)
On 6 September 2019 a letter was received informing the company that a customer, who owed the company Ghc 150,000 as at the year-end had been declared bankrupt on 30 August. At the time of the audit it was expected that unsecured creditors, such as Mimie, would receive nothing in respect of this dept. The directors refuse to change the financial statements to provide for the loss, on the grounds that the notification was received by the statement of financial position date.
Total debts shown in the statement of financial position amounted to Ghc 2,375,000. 3 marks

ii. Kokuvi Company (Profit before tax Ghc 2,500,000)
On 20 July 2019 a customer sued the company for personal damages arising from a defect in one of its products. Shortly before the year-end, the company made an out-of-court settlement with the customer of Ghc 50,000, although this agreement is not reflected in the financial statements. Further, the matter subsequently became known to the press and was extensively reported. The company’s legal advisers have now been informed that further claims have been received following the publicity, although they are unable to replace a figure on the potential liability arising. The company has referred to the claims in a note to the financial statements stating that no provision has been made because the claims are not expected to be material.
3 marks

iii. Baaba Na Company (profit before tax Ghc 1,250,000)
The audit work revealed that a trade investment stated in the statement of financial position at Ghc 2,500,000 has suffered a permanent fall in value of Ghc 1,500,000. The company has refused to put an impairment charge through for it on the grounds that other investments (not held for resale) have risen in value and are stated at amount considerably below their realisable values.

iv. Achah Martin (profit before tax Ghc 500,000)
This client is a furniture company, currently manufacturing for the local market using local materials and some of its own workforce. The labour cost has been included in the cost of a non-current asset in the statement of financial position at a value of Ghc 50,000. During the audit it was discovered that the direct labour cost records for the early parts of the year have been accidently destroyed.
3 marks
You are required to:
Discuss each of the cases outlined above, referring to materiality considerations and, where appropriate, relevant accounting principles and appropriate accounting standards, explaining the audit reporting implications in each case.

In: Accounting

b) You work in a reputable audit firm and you are currently reviewing the working papers...

b) You work in a reputable audit firm and you are currently reviewing the working papers of several audit assignments recently curried out by your audit firm. Each of the audit engagement is nearing completion, but certain matters have recently come to light which
Dr Cletus Agyenim Boateng, Dr Emmanuel T. Asare and Mr Augustine Addo

may affect your audit opinion on each of the assignments. In each case, the year-end of the company is 30 August 2019.

i. Mimie Company (Profit before tax Ghc 750,000)
On 6 September 2019 a letter was received informing the company that a customer, who owed the company Ghc 150,000 as at the year-end had been declared bankrupt on 30 August. At the time of the audit it was expected that unsecured creditors, such as Mimie, would receive nothing in respect of this dept. The directors refuse to change the financial statements to provide for the loss, on the grounds that the notification was received by the statement of financial position date.
Total debts shown in the statement of financial position amounted to Ghc 2,375,000. 3 marks

ii. Kokuvi Company (Profit before tax Ghc 2,500,000)
On 20 July 2019 a customer sued the company for personal damages arising from a defect in one of its products. Shortly before the year-end, the company made an out-of-court settlement with the customer of Ghc 50,000, although this agreement is not reflected in the financial statements. Further, the matter subsequently became known to the press and was extensively reported. The company’s legal advisers have now been informed that further claims have been received following the publicity, although they are unable to replace a figure on the potential liability arising. The company has referred to the claims in a note to the financial statements stating that no provision has been made because the claims are not expected to be material.
3 marks

iii. Baaba Na Company (profit before tax Ghc 1,250,000)
The audit work revealed that a trade investment stated in the statement of financial position at Ghc 2,500,000 has suffered a permanent fall in value of Ghc 1,500,000. The company has refused to put an impairment charge through for it on the grounds that other investments (not held for resale) have risen in value and are stated at amount considerably below their realisable values.

iv. Achah Martin (profit before tax Ghc 500,000)
This client is a furniture company, currently manufacturing for the local market using local materials and some of its own workforce. The labour cost has been included in the cost of a non-current asset in the statement of financial position at a value of Ghc 50,000. During the audit it was discovered that the direct labour cost records for the early parts of the year have been accidently destroyed.
3 marks
You are required to:
Discuss each of the cases outlined above, referring to materiality considerations and, where appropriate, relevant accounting principles and appropriate accounting standards, explaining the audit reporting implications in each case.

In: Accounting

Refine Assumptions for PPE Forecast Provided below is FY2016 information for Medtronic PLC. Medtronic plc Consolidated...

Refine Assumptions for PPE Forecast
Provided below is FY2016 information for Medtronic PLC.

Medtronic plc
Consolidated Statement of Income
($ millions) Apr. 29, 2016
Net sales $29,499
Costs and expenses
Cost of products sold 9,142
Research and development expenses 2,224
Selling, general, and administrative expense 9,469
Special charges (gains), net 70
Restructuring charge, net 290
Certain litigation charges, net 26
Acquisition-related items 283
Amortization of intangiable assets 1,931
Other expense, net 107
Operating profit 5,957
Interest expense, net 955
Income from operations before income taxes 5,002
Provision for income taxes 950
Net income $4,052


Medtronic plc
Consolidated Balance Sheets
($ millions) Apr. 29, 2016 Apr. 24, 2015
Current assets
Cash and cash equivalents $3,042 $5,009
Investments 9,758 14,637
Accounts receivable 5,562 5,112
Inventories 3,473 3,463
Tax assets 697 1,335
Prepaid expenses and other current assets 1,234 1,454
Total current assets 23,766 31,010
Property, plant, and equipment, net 5,007 4,865
Goodwill 41,500 40,530
Other intangible assets, net 26,899 28,101
Long-term tax assets 1,383 774
Other assets 1,559 1,737
Total assets $100,114 $107,017
Current liabilities
Short-term borrowings $1,159 $2,600
Accounts payable 1,709 1,610
Accrued compensation 1,712 1,611
Accrued income taxes 566 935
Deferred tax liabilities - 119
Other accrued expenses 2,185 2,464
Total current liabilities 7,331 9,339
Long-term debt 30,247 33,752
Long-term accrued compensation 1,759 1,535
Long-term accrued income taxes 2,903 2,476
Long-term deferred tax liabilities 3,729 4,700
Other long-term liabilities 1,916 1,819
Total liabilities 47,885 53,621
Shareholders' equity
Ordinary shares - -
Retained earnings 54,097 54,580
Accumulated other comprehensive (loss) (1,868) (1,184)
Total shareholders' equity 52,229 53,396
Total liabilities and shareholders' equity $100,114 $107,017



a. Use the financial statements along with the additional information below to forecast property, plant and equipment, net for FY2017.

CAPEX in FY2016 $1,101 million
Depreciation expense in FY2016 945 million
Forecasted FY2017 net sales 35,842 million



Round to the nearest million.

Forecasted PPE, net for FY2017 $Answer

million

b. Suppose the company discloses in a press release that accompanies its year-end SEC filing that anticipated CAPEX for FY2017 is $1.5 billion. Use the guidance to refine your forecast of property, plant and equipment, net for FY2017.

$Answer

million

In: Accounting