after a car wreck, most drivers would probably believe that an auto body shop would be run by a man. Cindy Kleis wants to defy this stereotype by running her own dent and body repair operation. Her company is set to open in 3 months. It will offer serv'ices ranging from touch-up painting to minor and major repairs from crashes.

Cindy learned the trade from her father, who worked as an employee for a repair company for more than 30 years. He recently retired, and his former employer closed his shop. This left an opening for a new firm. After purchasing a highly "Sible location on a major street in the city, Cindy contacted a local advertising and marketing agency. She set aside $15,000 for the marketing of her launch.

The agency specializes in small business advertising and promotion. The question becomes how to reach the highest number of potential customers and the message that should be sent when making contact with them. Cindy believed that her primary advantage would be a set of skilled and experienced repair experts. with a combined 40 years of previous work. All three individuals were friends of her father and had been taught by him.

One question which would need to be resolved centered on whether the advertising should emphasize or de-emphasize the fact that the shop was owned and run by a woman. Cindy believed it was a true advantage. She noted that many women take charge when a family car is damaged, and that they might enjoy dealing With a female manager.

Media selection constitutes another major decision. Cindy knows she needs to entice people to make the first visit. which could be months or even years down the road She needs to place her company's name in their minds so that when the time comes they will visit her location.

The city in which the company is located has about 150,000 residents. When combined with the county, about 300,000 potential customers are present. The new company will have 3 major competitors in the city.

question: Create an effective media mix and describe the campaign you would create for the grand opening and subsequent months for Cindys Auto Body Repair Shop.

Aetna Healthcare, Inc. financial statements namely the income statement and balance sheet.

See below

All publicly traded corporations are required to disclose this information in their 10K. Using the 5 ratios, compute them for the latest fiscal year:

Total margin

Operating margin

Return on assets

Return on equity

Current ratio

These ratios will touch on areas such as profitability, financial leverage, liquidity, and asset utilization ratios Summarize your findings in a write-up. Be sure to state whether each ratio is good or bad. Be sure to show your calculations in the write-up.

2016 Consolidated Balance Sheets

Consolidated Balance Sheets At December 31, (Millions) 2016 Assets: Current assets: Cash and cash equivalents $ 17,996 Investments 3,046 Premiums receivable, net 2,356 Other receivables, net 2,224 Reinsurance recoverables 292 Accrued investment income 232 Income taxes receivable 365 44 Other current assets 2,259 Total current assets 28,449 Long-term investments 21,833 Reinsurance recoverables 727 Goodwill 10,637 Other acquired intangible assets, net 1,442 Property and equipment, net 587 Deferred income taxes 195 — Other long-term assets 1,480 Separate Accounts assets 3,991 Total assets $69,146 Liabilities and shareholders’ equity: Current liabilities: Health care costs payable $ 6,558 Future policy benefits 645 Unpaid claims 801 Unearned premiums 556 Policyholders’ funds 2,772 Current portion of long-term debt 1,634 Accrued expenses and other current liabilities 5,728 Total current liabilities 18,694 Future policy benefits 5,929 Unpaid claims 1,703 Policyholders’ funds 812 Long-term debt, less current portion 19,027 Deferred income taxes — 4 Other long-term liabilities 1,043 Separate Accounts liabilities 3,991 Total liabilities 51,203 Commitments and contingencies (Note 17) Shareholders’ equity: Common stock ($.01 par value; 2.5 billion shares authorized and 326.8 million shares issued outstanding in 2016) and additional paid-in capital 4,716 Retained earnings 14,717 Accumulated other comprehensive loss (1,552) Total Aetna shareholders’ equity 17,881 Non-controlling interests 257 62 Total equity 17,943 Total liabilities and equity $69,146

Income Statement All numbers in thousands Revenue 12/31/2016 Total Revenue 63,155,000 Cost of Revenue 46,356,000 Gross Profit 16,799,000 Operating Expenses Research Development - - - Selling General and Administrative 12,085,000 Non Recurring - - - Others 247,000 Total Operating Expenses - - - Operating Income or Loss 4,467,000 Income from Continuing Operations Total Other Income/Expenses Net 128,000 Earnings Before Interest and Taxes 4,595,000 Interest Expense 604,000 Income Before Tax 3,991,000 Income Tax Expense 1,735,000 Minority Interest 62,000 Net Income From Continuing Ops 2,256,000 Non-recurring Events Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - Net Income Net Income 2,271,000 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 2,271,000 Period Ending 12/31/2016 Current Assets Cash And Cash Equivalents 17,996,000 Short Term Investments - - - Net Receivables 5,643,000 Inventory - - - Other Current Assets - - - Total Current Assets - - - Long Term Investments 25,111,000 Property Plant and Equipment 587,000 Goodwill 10,637,000 Intangible Assets 1,442,000 Accumulated Amortization - - - Other Assets 7,730,000 Deferred Long Term Asset Charges 195,000 - - Total Assets 69,146,000 Current Liabilities Accounts Payable 5,728,000 Short/Current Long Term Debt - - - Other Current Liabilities - - - Total Current Liabilities - - - Long Term Debt 20,661,000 Other Liabilities 24,810,000 Deferred Long Term Liability Charges -177,000 Minority Interest 62,000 Negative Goodwill - - - Total Liabilities 51,265,000 Stockholders' Equity Misc. Stocks Options Warrants - - - Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 4,716,000 Retained Earnings 14,717,000 Treasury Stock - - - Capital Surplus - - - Other Stockholder Equity -1,552,000 Total Stockholder Equity 17,881,000 Net Tangible Assets 5,802,000

Snowman Co. had the following December 31, 2017, account balances (listed in alphabetical order):

Additional information not included in the above.

The tax rate is 30%

On April 1, 2017, the company sold Division M (a component of the company), which had been unprofitable for several years. For the first 3 months of 2017, Division M had operating revenues of $25,000 and operating expenses of $33,800. The division assets had a historical cost of $80,000, had been depreciated for seven years using the straight line method, allowing for a $5,000 residual value, and a ten year life. The assets were sold for $45,000.

In the middle of December, 2017, the company incurred a material $5,500 pretax loss as a result of a flood on a river that floods once every 25 years.

During a review of the 2017 entries to ascertain what adjusting entries needed to be made, it was discovered that Legal Fees of $14,000, incurred in 2015 and associated with researching a potential patent were capitalized to the account patents in 2015. The patent was never applied for and the product idea was scrapped. In 2016 patent amortization was recorded, based on a twenty-year patent life. No amortization entry was recorded in 2017.

The company paid cash dividends of $.90 per share on its common stock. All the stock was outstanding for the entire year.

While making its December 31, 2017 adjusting entries, the company conducted an analysis of its recent favorable experience with uncollectible accounts receivable, and decided to reduce the percentage used in computing bad debt expense. The use of the new percentage resulted in the $1,900 bad debt expense being $500 less than the amount that would have been calculated using the old percentage.

During 2017, the company elected to switch from the completed contract method to the percentage of completion method for the work performed by its Consulting Division. This division has been in existence since 2015. The effect of this change was an increase in revenue in 2015 of $15,000, an increase in 2016 of $20,000 and an increase in 2017 of $25,000. The percentage of completion method was applied to all consulting revenue recorded in 2017. Consulting revenue is combined with other sales revenue for reporting purposes on the financial statements.

REQUIRED:

Prepare a single step Income Statement for Snowman Co. being sure to differentiate between Selling Expenses and Administrative Expenses.

Prepare a Statement of Retained Earnings for Snowman Co.

Where needed, provide schedules to show the details of your calculations and numbers.

Which of the “additional information” items would require footnote disclosure? Briefly explain what the footnote would need to state or explain.

Small Finance Ltd (SF) provides small and medium-sized personal, car and business loans to clients. It has been operating for more than 10 years and run throughout its life by Ben Stanley. Ben has been the public face of the finance company, appearing in most of its television and radio advertisements, and developing a reputation as a friend of the ‘little person’ who has been mistreated by the large finance companies and banks.

SF’s major revenue stream is generated by obtaining large amounts on the wholesale money market and lending in small amounts to retail customers. Margins are tight, and the business is run as a ‘no frills’ service. As a result of COVID-19, the demand for finance for cars has dropped off dramatically. Ben is also very concerned about the impact of COVID-19 on the recoverability of loans. Offices are modestly furnished and the mobile lenders drive small, basic cars when visiting clients. SF prides itself on full disclosure to its clients and all fees and services are explained in writing to clients before loans are finalised. However, although full-disclosure is made, clients who do not read the documents closely can be surprised by the high exit charges when they wish to make early repayments or transfer their business elsewhere.

SF’s mobile lenders are paid on a commission basis; they earn more when they write more loans. For example, they are encouraged to sell credit cards to any person seeking a personal loan. SF receives a commission payment from the credit card companies when it sells a new card and SF also receives a small percentage of the interest charges paid by clients on the credit card.

Identify the factors that would affect the preliminary assessment of inherent risk and control risk for SF’s revenue?

Explain which management assertions (refer ASA315, paragraphs A128 and A129) are at most risk

Ben Cartwright Pest Control uses   following ledgers in its chart of accounts

107. Accounts Receivable                  105.Accumulated Depreciation – Equipment   104. Spraying Equipment

201. Interest Payable                          209. Notes Payable                                                103. Prepaid Insurance      

205. Salaries Payable                          104 .Supplies                                                           208.Unearned Service Revenue

509. Depreciation Expense                405. Service Revenue                                            534. Interest Expense

510. Salary Expense                            518. Insurance   Expense                                       520. Supplies Expense      

All of the accounts have normal balances. The information below has been gathered at December 31, 2019.

1. The Cost of Equipment is $84,000 and life is estimated to be 5 years
2. Ben Cartwright Pest Control borrowed $ 24,000 by signing a 10%, one-year note on July 1, 2019, Interest is paid on the maturity of loan.
3. Ben Cartwright Pest Control paid $ 3,600 for 8 months of insurance coverage on October 1, 2019.
4. Salaries of Employees due on Dec-31, 2019 amounting $ 5,000 which is not paid yet.
5. Ben Cartwright Pest Control performed disinfecting services worth $3,000. For a client in December 2019. The client is billed for these services but no cash is received yet.
6. On December 31, 2019, Ben Cartwright Pest Control provides services worth $7,000 to customers whom cash has been received in Advance.               
7. Supplies $ 2,000 was purchased at the beginning of December, however a count of supplies on December 31, 2019, indicates that supplies of $ 950 are on hand.

Required:

1. Prepare in Journal form with narration, the adjusting entries for the seven items listed for Ben Cartwright Pest Control, keeping in mind the company has a policy of adjusting accounts on Monthly basis.

2. What would be the entry in case of a, b and c if Ben has a policy of adjusting accounts on yearly basis and the accounting year of Ben ends on December-31.

Problem 10-01A

On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $5,200 for federal income tax, and $1,560 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.

Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to nearest whole dollar amount, e.g. 5,275.)
Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the current liabilities section of the balance sheet at January 31, 2022. Assume no change in Accounts Payable.

Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations:

Events Affecting Year 1:

1. Provided $170,000 of cleaning services on account.
2. Collected $127,500 cash from accounts receivable.
3. Paid salaries of $44,000 for the year.
4. Adjusted the accounts to reflect management’s expectations that uncollectible accounts expense would be $1,900. The expense was determined using the percent of revenue method.

c. Prepare an income statement, balance sheet, and statement of cash flows for Year 1. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)