Mr.John confides in the nurse that his 86 year old mother was diagnosed with the same illness three weeks ago but did not exhibit all the symptoms he was experiencing and had to be kept in hospital for an extended period of time. Explain why his elderly mother did not possess his symptoms but was much more ill?

In the audit of Atwater Corporation (Atwater) for the financial year ended 30 June 2019, the auditor has chosen a list of transactions and would like to check these recorded transactions against supporting documents (i.e. invoices/shipping documents).

The result is presented in columns (4) and (5) in the Table below (all amounts are in $).

Additional information:

- The auditor satisfy with all the invoices checked, except for the invoice issued to Holmesglen – see (*) below

- (*): When checking the invoice of this transaction, both the dates of the invoice as well as of shipping document were 31 July 2019.

Q :- Is there any misstatement detected by the auditor? If so, please indicate whether it is an over-misstatement or under-misstatement for sales account?

Q :- You are asked to review the audit findings and suggest the appropriate type of auditor’s opinion in this circumstance. State action (if any) and the auditor’s opinion if your auditor-in-charge has set a materiality level of $7,000 for the sales accounts, given that there is no other misstatement discovered? (Limit your answer to 40 words)

Q. :- You are asked to review the audit findings and suggest the types of auditor’s opinion in this circumstance. State action (if any) and the auditor’s opinion if your auditor-in-charge has set a materiality level of $6,000 for the sales accounts, given that there is no other misstatement discovered? (Limit your answer to 50 words).  (

In the audit of Atwater Corporation (Atwater) for the financial year ended 30 June 2019, the auditor has chosen a list of transactions and would like to check these recorded transactions against supporting documents (i.e. invoices/shipping documents).

The result is presented in columns (4) and (5) in the Table below (all amounts are in $).

Additional information:

- The auditor satisfy with all the invoices checked, except for the invoice issued to Holmesglen – see (*) below

- (*): When checking the invoice of this transaction, both the dates of the invoice as well as of shipping document were 31 July 2019.

Required:

(a)         State the audit objective (or assertion) that the auditor would like to confirm for the sales account based on his audit procedure.                                              

(b)         Some people think that the audit procedure performed by the auditor is a test of control. Present your idea and argument to support your answer. (Limit your answer to 25 words.           

Problem Facts Information related to the Sosa Company for the year 2020: Common Stock As of the end of 2020, Sosa had 240,000 shares of common stock outstanding. The shares are due to the following common stock transactions:  January 1, 2020 – 100,000 shares of common stock outstanding  April 1, 2020 – issued an additional 50,000 shares for cash  July 1, 2020 - issued a 2 for 1 stock split  September 1, 2020 – purchased 60,000 shares for treasury stock Preferred Stock As of the end of 2020, Sosa had 30,000 shares of 6%, $10 par value, cumulative, convertible preferred stock outstanding. The stock had been outstanding all year and the conversion ratio was each share of preferred stock is convertible into 3 shares of common stock. Bonds Payable As of the end of 2020, Sosa had $800,000, 7% bonds payable outstanding. The bonds had been outstanding for the entire year and each $1,000 bond was convertible into 10 shares of common stock. Options Sosa also had 10,000 common stock options outstanding all year. Each option allowed the holder to purchase 1 share of Sosa’s common stock for $45. During 2020, the average market price of Sosa’s common stock was $48 per share. Additional Information Sosa’s 2020 net income was $580,000, and the company’s income tax rate was 34%. REQUIRED 1. Compute the weighted average number of common shares Sosa will use to compute basic earnings per share. (5 points) 2. Compute 2020 basic earnings per share (3 points) 3. Identify which of the potentially dilutive securities (preferred stock, bonds, options) are dilutive (support must be shown to receive credit for this question) (8 points) 4. Compute diluted earnings per share (4 points) Check Figures:

Basic EPS = $2.20

Diluted EPS = $1.68

Problem Facts Information related to the Sosa Company for the year 2020:

Common Stock- As of the end of 2020, Sosa had 240,000 shares of common stock outstanding. The shares are due to the following common stock transactions:

january 1, 2020 – 100,000 shares of common stock outstanding

April 1, 2020 – issued an additional 50,000 shares for cash

July 1, 2020 - issued a 2 for 1 stock split

September 1, 2020 – purchased 60,000 shares for treasury stock

Preferred Stock- As of the end of 2020, Sosa had 30,000 shares of 6%, $10 par value, cumulative, convertible preferred stock outstanding. The stock had been outstanding all year and the conversion ratio was each share of preferred stock is convertible into 3 shares of common stock.

Bonds Payable-As of the end of 2020, Sosa had $800,000, 7% bonds payable outstanding. The bonds had been outstanding for the entire year and each $1,000 bond was convertible into 10 shares of common stock.

Options-Sosa also had 10,000 common stock options outstanding all year. Each option allowed the holder to purchase 1 share of Sosa’s common stock for $45. During 2020, the average market price of Sosa’s common stock was $48 per share.

Additional Information Sosa’s 2020 net income was $580,000, and the company’s income tax rate was 34%.

REQUIRED

1. Compute the weighted average number of common shares Sosa will use to compute basic earnings per share.

2. Compute 2020 basic earnings per share

3. Identify which of the potentially dilutive securities (preferred stock, bonds, options) are dilutive (support must be shown to receive credit for this question)

4. Compute diluted earnings per share

please show work, thank you!!!

we are evaluating a project that costs $690,000, has a five year life, and no salvage value. Assume that straightline to zero over the life of the project. sales are projected at 71,000 units per year. price per unit is $75, variable cost per unit is $38 and fixed costs are $790,000 per year. The tax rate is 35%, and we require a return of 15% on this project Calculate the best case and wore case npv figures

6. What is the duration of a two-year bond that pays an annual coupon of 5%, returns the face value, and has a current yield to maturity of 4.5%. Use $1000 as the face value. (show the calculation, so i can study)

7. What is the duration of a two-year zero-coupon (principal-only) bond that is yielding 6% and $10,000 face value? Note: This bond does not have coupon payments but does return the face value. (show the calculation, so i can study)

An asset was purchased for $109,000 on January 1, Year 1 and originally estimated to have a useful life of 11 years with a residual value of $9,500. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,800. Calculate the third-year depreciation expense using the revised amounts and straight-line method.

Problem Facts Information related to the Sosa Company for the year 2020:

Common Stock- As of the end of 2020, Sosa had 240,000 shares of common stock outstanding. The shares are due to the following common stock transactions:

january 1, 2020 – 100,000 shares of common stock outstanding

April 1, 2020 – issued an additional 50,000 shares for cash

July 1, 2020 - issued a 2 for 1 stock split

September 1, 2020 – purchased 60,000 shares for treasury stock

Preferred Stock- As of the end of 2020, Sosa had 30,000 shares of 6%, $10 par value, cumulative, convertible preferred stock outstanding. The stock had been outstanding all year and the conversion ratio was each share of preferred stock is convertible into 3 shares of common stock.

Bonds Payable-As of the end of 2020, Sosa had $800,000, 7% bonds payable outstanding. The bonds had been outstanding for the entire year and each $1,000 bond was convertible into 10 shares of common stock.

Options-Sosa also had 10,000 common stock options outstanding all year. Each option allowed the holder to purchase 1 share of Sosa’s common stock for $45. During 2020, the average market price of Sosa’s common stock was $48 per share.

Additional Information Sosa’s 2020 net income was $580,000, and the company’s income tax rate was 34%.

REQUIRED

1. Compute the weighted average number of common shares Sosa will use to compute basic earnings per share.

2. Compute 2020 basic earnings per share

3. Identify which of the potentially dilutive securities (preferred stock, bonds, options) are dilutive (support must be shown to receive credit for this question)

4. Compute diluted earnings per share

please show work, thank you!!!