Homework Answers
Answer: $ 22,750
Explanation
Performance materiality for current assets = (Cash and cash equivalents + Accounts receivable + Prepaids + Inventory) x 1/4 x 7%
= ($ 900,000 + 150,000 + 150,000 + 100,000) x 1/4 x 7%
= $ 1,300,000 x 1/4 x 7%
= $ 22,750
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114" Based on past experience with a client, an auditor determined performance materiality for current assets...
Based on past experience with a client, an auditor determined performance materiality for current assets should...
Based on past experience with a client, an auditor determined performance materiality for current assets should be calculated at 1/4 of total materiality (6% of total current assets) and noncurrent assets should be calculated at 1/3 of total materiality (3% of total noncurrent assets). Calculate performance materiality for current assets based on the following: Cash and cash equivalents $800,000 Land 300,000 Accounts receivable 125,000 Prepaids 175,000 Building 200,000 Fixtures and equipment 600,000 Inventory 100,000 Leasehold improvements 150,000 $18,000 $9,000 $9,375...
Based on past experience with a client, an auditor determined performance materiality for fixed assets should...
Based on past experience with a client, an auditor determined performance materiality for fixed assets should be calculated at 1/4 of total materiality (5% of total gross fixed assets). Calculate performance materiality based on the following: Fixed assets (gross) at 1/1/2017 $1,000,000 Capital expenditures 250,000 Dispositions 200,000 Accumulated depreciation at 1/1/2017 400,000 Accumulated depreciation at 12/31/2017 370,000 $8,500 $7,500 $15,625 $13,125
Here it is You are evaluating audit results for assets in the audit of Brooms Manufacturing....
Here it is
You are evaluating audit results for assets in the audit of Brooms Manufacturing. You set the preliminary judgment about materiality at $60,000. The account balances, performance materiality, and estimated overstatements in the accounts E (Click the icon to view the account balances, performance materiality, and estimated overstatements.) Requirements a. Assume you tested inventory amounts totaling $900,000 and found $13,500 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in inventory? b. Based on...
Need help getting debt-to-assets & time interest earned The balance sheet for Shaver Corporation reported the...
Need help getting debt-to-assets & time interest
earned
The balance sheet for Shaver Corporation reported the following cash, $16,000; short- term investments, $21,000; net accounts receivable. $57000; inventory, $62,000; prepaids, $21,000: equipment, $104,000 current liabilities, $62,000 notes payable (long-term), $92000, total stockholders equity $310,000, net income, $5,520; interest expense, $8.800; income before income taxes. $11.880. 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Ratio Debt-to-Assets Times Interest Earned Based on these...
Updated Question Question: 14-7 Performance measure: Information from the 2010 form 990 and the 2010 annual...
Updated Question
Question: 14-7 Performance measure: Information from the 2010
form 990 and the 2010 annual report for feeding america, follows.
Use the following information to complete the exercise. A. Compute
the following performance measures using the Form 990 data
presented and comment on what information they convey to a
potential donor whit out comparing them to prior years or other
comparable agencies. 1 .Current ratio- liquidity 2.
Revenues/expenses going concern 3. Program expenses/total expenses-
program effectiveness 4. Fund-raising expenses/public...
Green Moose Company Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets:...
Green Moose Company Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents Accounts receivable $150,000 400,000 350,000 $900,000 Inventories Total Current Assets Net Fixed Assets: Net plant and equipment (cost minus depreciation) Accounts payable Accrued liabilities Notes payable Total Current Liabilities Long-Term Bonds Total Debt $250,000 150,000 100,000 $500,000 1,000,000 $1,500,000 $2,100,000 800,000 Common Equity Common stock Retained earnings Total Common Equity Total Liabilities and Equity 700,000 $1,500,000 $3,000,000 Total Assets...
14-56 1 During the course of the audit of Nature Sporting Goods, the auditor discovered the...
14-56 1 During the course of the audit of Nature Sporting Goods, the auditor discovered the following: . The accounts receivable confirmation work revealed one pricing misstatement. The book value of $12,955.68 should be $11,984.00. The total misstatement based on this differ- ence is $14,465, which includes a $972 known misstatement and an unknown projected misstatement of $13,493. Nature Sporting Goods had understated the accrued vacation pay by $13,000. A review of the prior-year documentation indicates the following uncorrected misstatements:...
Note the industry average ratios below: A/R days (based on average balances) = 57 days A/P days (based on average balances) = 23 days Current ratio (based on ending balance) = 1.8x Based on Acme’s A...
Note the industry average ratios below:
A/R days (based on average balances) = 57 days
A/P days (based on average balances) = 23 days
Current ratio (based on ending balance) = 1.8x
Based on Acme’s A/R days, A/P days and Current ratios for the
nine months ending September 30, 2017, which of the following
conclusions is most accurate? Assume 273 days in the nine months
ending September 30, 2017 and 365 days in the year.
Compared to the industry average:...
Question 3 2015 2014 2015 Assets Current Assets Not yet answered $45,000 Points out of 10.00...
Question 3 2015 2014 2015 Assets Current Assets Not yet answered $45,000 Points out of 10.00 Flag question Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Revenues Sales Cash Sales A/R Sales Credit Card Sales Toual Sales Cost of Sales Gross Profit $21,000 $76,000 $142,000 $38.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses...
Need help on all of them please thank you!! 21. Based on the financial statements provided...
Need help on all of them please
thank you!!
21. Based on the financial statements provided below please fill the missing numbers and calculate the requested financial ratios. Show all your work to get full credit. 2012 2011 $ $ $ 2012 285,000 215,000 70,000 $ $ $ 2011 190,000 143,000 47,000 $ $ $ 16,000 42,500 62,500 26,000 100,000 Sales Cost of Goods Sold Gross Profit Operating Expenses Variable Expenses Fixed Expenses Depreciation Total Earnings Before Interest and Taxes...
Based on past experience with a client, an auditor determined performance materiality for current assets should be calculated at 1/4 of total materiality (6% of total current assets) and noncurrent assets should be calculated at 1/3 of total materiality (3% of total noncurrent assets). Calculate performance materiality for current assets based on the following: Cash and cash equivalents $800,000 Land 300,000 Accounts receivable 125,000 Prepaids 175,000 Building 200,000 Fixtures and equipment 600,000 Inventory 100,000 Leasehold improvements 150,000 $18,000 $9,000 $9,375...
Here it is
You are evaluating audit results for assets in the audit of Brooms Manufacturing. You set the preliminary judgment about materiality at $60,000. The account balances, performance materiality, and estimated overstatements in the accounts E (Click the icon to view the account balances, performance materiality, and estimated overstatements.) Requirements a. Assume you tested inventory amounts totaling $900,000 and found $13,500 in overstatements. Ignoring sampling risk, what is your estimate of the total misstatement in inventory? b. Based on...
Need help getting debt-to-assets & time interest
earned
The balance sheet for Shaver Corporation reported the following cash, $16,000; short- term investments, $21,000; net accounts receivable. $57000; inventory, $62,000; prepaids, $21,000: equipment, $104,000 current liabilities, $62,000 notes payable (long-term), $92000, total stockholders equity $310,000, net income, $5,520; interest expense, $8.800; income before income taxes. $11.880. 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Ratio Debt-to-Assets Times Interest Earned Based on these...
Updated Question
Question: 14-7 Performance measure: Information from the 2010
form 990 and the 2010 annual report for feeding america, follows.
Use the following information to complete the exercise. A. Compute
the following performance measures using the Form 990 data
presented and comment on what information they convey to a
potential donor whit out comparing them to prior years or other
comparable agencies. 1 .Current ratio- liquidity 2.
Revenues/expenses going concern 3. Program expenses/total expenses-
program effectiveness 4. Fund-raising expenses/public...
Green Moose Company Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents Accounts receivable $150,000 400,000 350,000 $900,000 Inventories Total Current Assets Net Fixed Assets: Net plant and equipment (cost minus depreciation) Accounts payable Accrued liabilities Notes payable Total Current Liabilities Long-Term Bonds Total Debt $250,000 150,000 100,000 $500,000 1,000,000 $1,500,000 $2,100,000 800,000 Common Equity Common stock Retained earnings Total Common Equity Total Liabilities and Equity 700,000 $1,500,000 $3,000,000 Total Assets...
14-56 1 During the course of the audit of Nature Sporting Goods, the auditor discovered the following: . The accounts receivable confirmation work revealed one pricing misstatement. The book value of $12,955.68 should be $11,984.00. The total misstatement based on this differ- ence is $14,465, which includes a $972 known misstatement and an unknown projected misstatement of $13,493. Nature Sporting Goods had understated the accrued vacation pay by $13,000. A review of the prior-year documentation indicates the following uncorrected misstatements:...
Note the industry average ratios below:
A/R days (based on average balances) = 57 days
A/P days (based on average balances) = 23 days
Current ratio (based on ending balance) = 1.8x
Based on Acme’s A/R days, A/P days and Current ratios for the
nine months ending September 30, 2017, which of the following
conclusions is most accurate? Assume 273 days in the nine months
ending September 30, 2017 and 365 days in the year.
Compared to the industry average:...
Question 3 2015 2014 2015 Assets Current Assets Not yet answered $45,000 Points out of 10.00 Flag question Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Revenues Sales Cash Sales A/R Sales Credit Card Sales Toual Sales Cost of Sales Gross Profit $21,000 $76,000 $142,000 $38.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses...
Need help on all of them please
thank you!!
21. Based on the financial statements provided below please fill the missing numbers and calculate the requested financial ratios. Show all your work to get full credit. 2012 2011 $ $ $ 2012 285,000 215,000 70,000 $ $ $ 2011 190,000 143,000 47,000 $ $ $ 16,000 42,500 62,500 26,000 100,000 Sales Cost of Goods Sold Gross Profit Operating Expenses Variable Expenses Fixed Expenses Depreciation Total Earnings Before Interest and Taxes...
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