A manager is explaining to a staff auditor how various situations might affect the audit opinion. For each of the following scenarios, identify the appropriate reporting option by matching the scenario with the opinion type from the list provided. Assume that any financial statement effect is material, unless otherwise noted and that US auditing standards are followed.

Sue is a customer account representative for ABC Company. She recently acquired several new accounts when a previous representative, Dan, took an early retirement. Sue reviewed each of Dan’s accounts to help familiarize herself with his clients and under- stand how she can better serve each one’s individual needs. As she was reviewing the client list, she found a major customer she had never heard of before. Surprised that she had not yet done business with the company, she called it to introduce herself as the new representative. When Sue placed the call, she found that the reported number had been disconnected. Thinking that the customer may have done business with ABC in the past and have moved on, she reviewed the account transactions and found that the most recent transaction had taken place the week prior. During her review, she also noticed the latest transaction was for an unusually large amount for ABC. As Sue pursued her curiosity, she went to other employees to find out more about the company. In her questioning, she found that none of the employees had ever heard of the customer. Once she had run out of other avenues, Sue decided to contact the controller to find out if he could provide any additional information. When Sue opened the company directory, she was amazed  when she recognized his home address: it was the same address as the mystery customer!

1. What are some of the possible scenarios for why the addresses match?
2. What other symptoms would be present in each of the scenarios you identified in part (1)?
3. What are the implications of the address match if the company is private? If the company was pub- licly traded?
4. Assuming the company was preparing for an IPO, who should Sue contact, and what should she say? 5. If Sue believes these revenues are fictitious, what
should her next course of action be?

You have 3 billion dollars in the fund, which you can invest in any combination of Australian stocks, US stocks, and Australian Treasury. The idea is to use your knowledge of portfolio theory to make an argument for having an internationally diversified portfolio, rather than just holding domestic assets. The data are monthly returns and the relevant sample statistics are summarized in the following table:

1. Using the results of portfolio theory and the estimates above, compute the tangency mutual fund (portfolio) between Australian and US stocks (i.e., the optimal split between Australian and US stocks). Find the tangency portfolio using the Solver in Excel. Paste the table used with Solver to your Word document and discuss your findings.

2. Suppose you would like to achieve an average return of 0.5% per month in excess of the T-bill rate with the smallest possible risk. What is the optimal split between Australian stocks, US stocks, and T-bills? That is, how much of the $3 billion should you invest in each country and how much should you borrow or lend? What is the standard deviation of this portfolio?

3. After a bad year on the US stock market, some people try to influence you to divest (i.e., sell all of) the holdings of US stocks. How much should you invest in Australian stocks and T-bills alone to obtain the same level of risk as you obtained in part 2.? (Hint: you want the standard deviation of the divested portfolio to be the same as the nondivested portfolio.)

4. What would be the cost in terms of expected monthly return from divesting in the US stocks? What would be the cost in terms of annual return (note: the returns are continuously compounded)? What would be the cost in dollar terms on the $3 billion portfolio each year?

True or False:

1. A life insurance company must be concerned about the possibility that the people who buy life insurance may tend to be less healthy than those who do not. This is an example of adverse selection.

2. . An insurance company must be concerned about the possibility that someone will buy fire insurance on a building and then set fire to it. This is an example of adverse selection.

-What is GAAP and who develops GAAP?

-What is financial consistency and how does it apply to Inventory?

-Define Materiality and is explain whether the materiality for a $20 million revenue company would be the same for a $2 million revenue company?

-What is the Sarbanes-Oxley Act of 2002 and how has it affected accounting

-What is an Annual Report and who is required to file with the SEC?

Sarah Singleton (born July 1, 1970, and Social Security Number 473-12-1234), who lives at 123 Main Street in Mankato, MN 56001 (Blue Earth County), is single, has 20-20 vision, and has no dependents. She works 40 hours per week at a retail store in Mankato, MN, and generates $40,000 of income. Additionally, $10,000 federal income tax and $7,000 of state of MN income tax were withheld from her wages from this job, as reported on her W-2.

During 2019 Sarah’s mother passed away, and Sarah inherited $50,000 in cash. Additionally, her father gave her $20,000 as a birthday present. Sarah placed the money in Wells Fargo Bank and earned $500 of taxable interest income.

Sarah has the following itemized deductions:

State Property taxes on her home $6,000

State of MN income tax withheld of $7,000 (as indicated above)

Home Morgage interest of $5,000

Interest on her car loan of $1,000

Donation to local church $500

Gambling losses of $5,000, Sarah has no gambling winnings

Answer the following items in your post:

1. What is Sarah's Adjusted Gross Income

2. Identify which items qualify as an itemized deduction on Schedule A for the tax year 2019?

3. What are Sarah's total itemized deductions for the tax year 2019?

Label each section

Below is selected balance sheet and income statement information from aldo Company.

a. Compute the following liquidity, solvency and coverage ratios for both years.

• Current ratio (2014, 2012)
• Liabilities-to-equity (2014, 2012)  
• Times interest earned (2014, 2012)
• Cash from operations to total debt (2014, 2012)
• Free operating cash flow to total debt (2014, 2012)

b.  What is your overall assessment of the company’s credit risk? Explain. What differences do you observe between the two years? Please be brief.

can you please summarize it, relate any theory from the text ( INTERNATIONAL BUSINESS ENVIRONMENTS OPERATIONS 16^th EDITION ) that applies, and include a few sentences of your reaction or questions that the article has created for you. in 3-4 paragraphs

ARTICLE :- Chinese Drone Maker Plows Into Agriculture; DJI to launch crop-spraying drone in effort to expand into farming sector

China's SZ DJI Technology Co., the world's top consumer-drone maker, is setting its sights on the agriculture industry with the launch of a crop sprayer that will test whether farming is fertile ground for drone technology. Drones would improve pesticide application on hilly or wet land that is difficult to access and would limit farmworkers' exposure to chemicals, said Even Pay, a Beijing-based agriculture consultant who has studied Chinese farming methods.

China's SZ DJI Technology Co., the world's top consumer-drone maker, is setting its sights on the agriculture industry with the launch of a crop sprayer that will test whether farming is fertile ground for drone technology.

DJI, which helped kick-start the global craze for drones with its $1,000 easy-to-fly devices, has unveiled an eight-rotor drone priced at roughly $15,000 that is designed to spray pesticides on crops, a spokesman said. DJI said the drone, which has a 2.6-gallon spray tank and a typical takeoff weight of about 49 pounds, can fly for about 12 minutes.

It can spray pesticides on seven to 10 acres of farmland an hour, depending on how much it needs to climb, descend or turn to follow the terrain.

The battery-powered DJI Agras MG-1 will be available first in China and South Korea, though the company didn't specify exactly when it would go on sale. In China, DJI was taking preorders Friday. The drone is expected to be available in other markets later, the company said.

Shenzhen-based DJI has found success selling drones to consumers and filmmakers since 2013, with revenue expected to exceed $1 billion this year.

The company, which is valued at roughly $8 billion based on its latest funding round, is now betting it can parlay that success into farming. Its push into the sector could open the way for other drone makers--or prove that agriculture isn't the cornucopia for unmanned aircraft that some had hoped.

The Association of Unmanned Vehicle Systems International, the largest drone trade group, has touted farming as the biggest potential market for drones, by far. In a 2013 report, the Arlington, Va.-based group forecast that agriculture would account for 92% of an estimated $82 billion economic impact from commercial drones in the U.S. between 2015 and 2025.

But even as the commercial use of drones has taken off world-wide, agriculture is far from capturing such a large share of the market. Fewer companies are applying for U.S. Federal Aviation Administration approvals to use drones on farms than for activities such as filmmaking, mapping and industrial inspection, according to recent studies.

The FAA began regularly approving drones for commercial use in September 2014. Just 90 of the FAA's first 1,355 approvals were for agriculture, according to Piper Jaffray Investment Research--well behind the 670 approvals for aerial filming. The FAA has approved most applications it receives.

Much of the promise for agricultural drones has been in their ability to collect large-scale aerial data on crops. The information helps farmers more precisely tend to their fields, adding or reducing irrigation or pesticides where necessary. So far, agricultural drones have failed to live up to their promise because giving farmers actionable data on their crops is far more complex than making a map or filming a movie, analysts said.

Commercial-drone maker Kespry Inc., based in Menlo Park, Calif., said it originally considered targeting agriculture as its top initial market, but ultimately decided on construction.

"To serve that market we need real expertise--agronomists who can combine the data with information on weather and local pests, and provide real recommendations," said Kespry founder and Chief Executive Paul Doersch. "For us to scale it didn't make sense."

Despite the complexities, DJI isn't the only drone maker betting on farming to diversify its revenue stream. Henri Seydoux, CEO of Paris-based Parrot SA, which has quickly captured the lower end of the consumer-drone market , said his company will collect data on 200,000 acres for farmers in France this year. Still, commercial drones earned Parrot just [euro]5.6 million ($6 million) in the third quarter, compared with [euro]44.4 million on consumer drones.

Agricultural drones "are at an early phase," Mr. Seydoux said. "It's true for all the commercial spaces. There is a lot of expectation but still not a big result."

DJI is making a different bet on agriculture: spraying crops instead of inspecting them. In China, chemicals are often administered on foot by backpack-wielding workers. Drones would improve pesticide application on hilly or wet land that is difficult to access and would limit farmworkers' exposure to chemicals, said Even Pay, a Beijing-based agriculture consultant who has studied Chinese farming methods.

Japanese farmers have used large gasoline-powered unmanned helicopters made by Yamaha Motor Co. since the early 1990s to spray their fields. Yamaha began selling the drones to South Korean farmers in 2005.

The FAA in May approved the drone for limited use in the U.S., and the company is considering whether to introduce it in the country.

Analysts said DJI's crop-spraying drone will likely struggle to win over Western farmers who generally tend to larger areas. Large U.S. farms have for decades used small planes that can carry hundreds of gallons of pesticide to spray their fields. The planes are efficient at covering large areas and relatively inexpensive to hire.

Robert Blair, an Idaho farmer and vice president of agriculture for commercial-drone company Measure LLC, said he is bullish on drones that collect data on crops but skeptical about crop-spraying drones like DJI's that can carry only a few gallons of pesticide. "It's a niche market," he said.

The coronavirus pandemic has exposed a significant weakness in our supply chain. The United States had not produced penicillin since 2006. Up to 93 percent of our antibiotics come from China. 50% of all the face masks produced in the world come from China. Apple could not produce IPhones because the only factory making the screens was located at the epi center of the virus in China and was shut down. Most electronic first tier vendors are located in China. The list goes on. Side note – in 1941, the largest trade partner to the US was Japan.

1. How should the US view strategically important products in a global marketplace? Should we allow our primary adversary to be the sole source? Why or why not? Options?
2. Should the US focus on being self-sufficient with regard to medical products?
3. How did the supply chain become so vulnerable? What steps would you recommend to prevent this from reoccurring?
4. The use of JIT in the supply chain has had many advantages. Unfortunately, any interruption is catastrophic. What options should be put in place to mitigate this risk?

Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Carson Carpets. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets.

a) Amortization on equipment, $2,500

b) Services performed but unbilled, $3,500

c) Salaries owed to employees at year end, $2,500

d) Unearned service revenue earned, $5,500

e) Supplies used during the year, $3,200