trial balance is presented below for November 30, 2018.

It is the end of November and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her first month of business. Natalie, too, would like to know if the company has been profitable or not during November. Natalie realizes that in order to determine Cookie Creations’ income, she must first make adjustments.

Natalie puts together the following additional information.

Part 1: Prepare Adjusting Journal Entries

Part Two: Post the Adjusting Journal Entries

Part Three: Prepare the Adjusted Trial Balance

Part 4: Using the adjusted trial balance, calculate Cookie Creations’ net income or net loss for the month of November 2018.

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 $_______

Garlington Technologies Inc.'s 2018 financial statements are shown below: Balance Sheet as of December 31, 2018 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2018 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2019 sales increase by 20% over 2018 sales and that 2019 dividends will increase to $174,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2018. Use an interest rate of 8%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Enter your answers as positive values. Do not round intermediate calculations. Round your answers to the nearest dollar.

Garlington Technologies Inc.'s 2018 financial statements are shown below:

Balance Sheet as of December 31, 2018

Income Statement for December 31, 2018

Suppose that in 2019 sales increase by 20% over 2018 sales and that 2019 dividends will increase to $174,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2018. Use an interest rate of 8%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Enter your answers as positive values. Do not round intermediate calculations. Round your answers to the nearest dollar.

The following information is computed from Katy Inc.'s annual report for 2018.

Note: One-third of the operating lease rental charge was $100,000 in 2018 and $50,000 in 2017. Capitalized interest totaled $30,000 in 2018 and $20,000 in 2017.

Required:

Garlington Technologies Inc.’s 2018 financial statements are shown here: Balance Sheet as of December 31, 2018 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2018 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income $ 181,200 Dividends $ 108,000

Suppose that in 2019 sales increase by 10% over 2018 sales and that 2019 dividends will increase to $112,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2018. Use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all-new debt will be in the form of a line of credit.

Required:
1. Complete the below table to calculate each year's current ratio.

Given answer from Cheggs expert for quick ratio: Quick Ratio (QR) = (Cash&Cash Equivalents + Current Receivables+Prepaid Expenses or (CA-Inventory)/CL where CA: Current Assets and CL: liabilities

Given answer from Cheggs expert for Days’ Sales in Inventory = (Ending Inventory * 365) / Cost of Goods Sold

Given answer from Cheggs expert for Operating cycle:

Operating Cycle = Days of Sales Inventory + Days of Sales Outstanding - Days payable outsatanding

My Questions:

1) For quick ratio calculation why weren't 'prepaid expenses' substructed, too?

2) I have the impression that the 'Operating cycle' was asked to be calculated not the 'net operating cycle'. Can you please help since all the formula used in the answer confused me? I did not find any reference for the formula day payable outstanding and the average inventory can be found only for year 2018....

3) Can 'Days' sales in inventory' be calculated by using 'sales' instead of CoGs? (that was our tutor's suggestion)

Horton v. JPMorgan Chase Bank, N.A. Court of Appeals of Texas, Dallas, 2018 WL 494776 (2018).

Background and Facts: Robbie Horton, a paralegal for the law firm of Stovall & Associates, P.C., opened an individual checking account with JPMorgan Chase Bank (Chase) with a signature card. The terms of the account required Horton to notify Chase, in writing, of any unauthorized item within thirty days of when a statement showing the item was made available. A failure to provide the notice would preclude a claim based on the item. Two months later, Chase received a second signature card purportedly signed by Horton and Kimberly Stovall, an attorney at the firm, to convert the account to a joint account. Less than a year later, Stovall terminated Horton’s employment, and on the same day, Stovall withdrew all of the funds from the joint account. Almost two years after the withdrawal, Horton filed a suit in a Texas state court against Chase, alleging breach of contract. Horton asserted that she had not agreed to the withdrawal by Stovall. Chase filed a motion for summary judgement, which the court granted. Horton appealed.

Decision and Remedy: A state intermediate appellate court affirmed the lower court’s summary judgement in favor of the bank. Chase required thirty days’ written notice of any errors in its monthly account statements. Because Horton did not notify the bank in writing until long after the thirty-day deadline had passed, the summary judgement dismissing her claim was appropriate.

Questions:

a. Legal Environment: Horton claimed that she had not agreed to the conversion of the account or to the withdrawal of the funds. These contentions did not affect the court’s decision. Why not?

b. Economic: Why does the UCC “absolutely” limit the time that a customer has to report an altered check or unauthorized signature?

Compare GDP growth of GCC over the past 3 years. I want for (2017-2018-2019 )

B. Compare FDI exposure of GCC countries for past 3 years. I want for (2017-2018-2019 )

please help me with it , I need much information and numbers