Case 3-1 Maynard Company B*

A bank loan for $65,000 was taken out. The amount was kept in cash over the end of the month.

When an error of overstatement like this one happens, the financial statements have to be restated in order(ed) to bring net income to the correct amount. The Cost of goods sold should’ve been increased by $8 million and the same

The case involving Birch & Davis International, Inc., and Warren M. Christopher, the United States Secretary of State was decided on September 13th, 1993. The case involved procurement procedures conducted by the Agency of International Development (Open Jurist). The issue centered on exclusion of bids made by Birch & Davis International, Inc. Birch challenged the exclusion to the General Services Administration Board of Contract Appeals and they decided that the actions taken by the agency were fair. The case got to the Federal level when Birch appealed the decision by the board.

1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability?

4. For the most recent year, what is the amount of cost of goods sold in the

7.    Prepare the 3 financial statements for the year ended June 30, 2013 (multi step income statement, classified balance sheet, and statement of retained earnings). Even though you are preparing a multi-step income statement, you still need to list the various expenses individually on the income statement for consideration of full credit. These 3 statements must be typed. Also you must include appropriate dollar signs and appropriate underlines and correct formatting for the statements to receive full credit.

While it may have been a good idea to acquire the new equipment because of its greater capabilities, the calculations of the cost savings were in error. The original calculations

b.) There are a few concerns regarding the cash flow statement. Firstly, the significantly increased overdraft will make the bank manager concerned as it will question whether the company will be able to pay the £240,000 loan back in 5 years time. Overall, this would be looked at as a negative cash flow statement as the business has spent more than it has received during 2012. The operation profit before loan is significantly lower than last year and the bank manager might question John why he has taken out drawings of £93,200 when the previous year he withdrew £67,400, bearing in mind that this years profit is far less than previous year.

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

Mohana, R (2011). Financial Statement Analysis and Reporting. New Delhi: Asoke K. Ghosh, PHI Learni

This income statement tells how much money a company has brought in (its revenues) how much it has spent (its expenses) and the difference between the two (its profit). The income statement show’s a company’s revenues and expenses over a specific time frame. This statement

The action connected to the first draw of Buck and following payments must be made on a gross foundation inside the investing action part as $70 million influx for the draw, July 30, 210. The action related the second draw made by Buck and resulting payment might be made on basis net inside the financing operation part. The $15 draw on Sept 30, 2010 and the decompensating first of December 2010 net to zero for yearly commentary reasons. The draws in the third scenario just again show some of the traits inside the flow of cash statement procedure. This transaction may be regarded vast in

After closely reviewing the financial and production data, our accounting team has found that your traditional cost allocation is faulty and misleading. The costs of products A and C were over allocated and products B and D were under allocated causing deceptive information on the true profits of the company. Also, product B appears to be

1. Sales forecast – (at $ 30 retail price with the assumption of $15 whole sale price)

The legal fees amount of RM 500 is cost associated with issuing bond and should be recorded as “deferred charges” which is an asset analogous to prepaid