Marcia's Income Statement: Case Study

B. Will the supplier be able to meet our cost, quality, and product performance requirements?

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

NOTE: In addition to the in-chapter and end-of-chapter exercises which serve as short cases you will find the following short cases arranged by course title that can also be utilized as short cases that require the student to access the authoritative literature to address the issue presented in the case. Solutions to the cases below are available to instructors on the Weirich Accounting & Auditing Research 8e instructor website at www.wiley.com/college/weirich. Other excellent sources of longer and more detailed cases include the Deloitte Trueblood cases and cases provided by various other firms.

1. As of December 31, 2011, what amount, if any, of sales due should be recognized in eVade’s financial statements?

Saira works for a sports franchise which pays wages and salaries earned on a monthly basis. A new accountant was hired by the sports franchise in late May. Due to inexperience, the new accountant failed to accrue Saira’s salary for May. What is the impact on the May 31 financial statements of the sports franchise?

b. Should Deloitte have evaluated the sales occurring after the balance sheet date of May 31,1984?

Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,

calculation that would always return the same figure. As I didn’t realise the extent to which

Twice annually, your pharmacy department analyzes and reports the net profit of the business. When calculating net profit, which of the following statement are true?

In many states across the United States, laws have been passed regarding carrying guns on campus. In states where they do allow students to conceal a firearm they must meet certain criteria. For example only students over the age of 21 are able to legally carry a firearm on campus with a handgun license. As mentioned in the beginning many any states have passed this law, but across the United States there are still a lot of states who debate on whether they should allow their own students to conceal a firearm on campus. Back in the 1900’s many students had access to rifles because it was part of a sport. Across the United States hunting was a hobby for many college students. The idea of student’s being allowed to carry firearms on campus often carries different emotions for people across the United States but it’s important to understand the different arguments related to the topic because we are part of the problem. Citizens take the time to preach what is wrong with this country but in reality what are you really doing in regards to keeping our citizens safe, is anyone safe in this country, are our own college students safe when stepping foot on campus?

David Cole wrote, "our criminal justice system affirmatively depends on inequality" (5). Cole has substantial grounds for making this statement. Race and class have long been issues in the criminal justice system, but does the system "affirmatively depend on inequality?" Does the criminal justice system depend on the disparities of the people that it serves?

The investors asked Carmen to provide a financial report covering March 1st – June 30th. Upon review of this information, Carmen gathered the following. Customers paid $7,400 in cash for ribbons and accessories, but she was still owed $320 for a transaction on June 30. A part time employee was still owed $90 after being paid $1,510. Rent was paid in cash at the end of each month. Inventory replenishments costing $2,900 had been delivered and paid for by June 30. Carmen estimated the June 30th merchandise inventory on hand had cost $4,100. Opening office supplies were almost all gone with an estimated $20 in supplies was left.

Leigh Michaels once said, “What keeps readers turning pages is suspense, which you can create using a variety of techniques.” This is a very true statement because suspense is what hooks readers to keep flipping those pages. Suspense is a key element to detective stories, without it the story would be very bland and boring. Why is that we need suspense to make a page turning story?

Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.

The balance sheet and Income statement are the most important financial statements of the company that help conduct current analysis of company and evaluate its trends overtime. The balance sheet represents the company snapshots of its financial position on the last days of accounting period. Apple balance sheets, which represent a snapshot of its ending balances in asset, liability and equity account as of the date stated on the report, are changes each year from 2003 to 2014. On the other hand, the income statement shows its financial performance over 2003 to 2014. Apple basically ends its accounting period in September. Most of the long-term debts are in the form of the bonds. According to appleinsider.com, Apple recently issues a new euro bond worth about $2.26 billion with a maturity date on January 17, 2024 and coupon rate of 1.375% payable annually. The first payment will occur on January 17, 2016. Moody’s recently assigned a rating of Aa to Apple Inc. 's senior unsecured note issuance. Thus, Apple recent capital expenditure amount to 11,488 million according to morningstar.com. The analysis of financial statements is conduct to compare Apple with one of its closest rival Hewlett-Packard and twelve ratio were calculated. From table1 and chart1, the current ratio that determine the company ability to meet its short term obligation shows Apple’s current ratio is higher than that of Hewlett-Package from 2003 to 2014. That is, Apple is solvent than Hewlett Packard. Table