Masian Boat Accounting Statement

Nonetheless, as we all know the recession and economic changes affecting the women’s apparel industry during late 1980s and early 1990s. As a consequence, it is an indicator that Leslie Fay suspected to overstate its inventory in order to overstate its current asset. According to Account Receivable and Inventories two accounts, there is 10.8% increase in Leslie Fay’s current asset from 1987 (60.9%) to 1990 (71.7%). As far as I can see, Account Receivable and Inventories are the two main accounts which caused an unusual and inconsistent gain in total current asset in four years. Thirdly, there is unusual gain in PP&E account from 1990 (6.8%) to 1991 (9.9%). However, other accounts under Current Asset such as Inventories and Accounts Receivable started to decrease in 1990 and PP&E is the only account that increased 3.1% in one year. Also, I cannot find any equipment and estate purchased by Leslie Fay from 1990 to 1991. As a result, I suspect it might have fraud happened in Leslie Fay. Additionally, there is an unusual decrease in Long-term Debt account from 1990 to 1991. More specifically, the Long-term Debt decreased less than 10% from 1987 (38.2%) to 1990 (29.6%). While, it decreased 8.3% from 1990 (29.6%) to 1991 (21.3%) in one year. As far as I can see, this is an unusual and inconsistent decrease of Long-term Debt and it indicated Leslie Fay suspect to understate its

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Fraser, L. M., & Ormiston, A. (201). Understanding financial statements (9th ed.). Upper Saddle River, NJ: Prentice Hall.

Review of ABC Company and the directions it is targeting. The strategy of the company is to lift the expected sales in an aggressive fashion, with the expected end target being to triple the current levels. The plan is to push sales into the targeted range of $3 million within 3 years versus the current amount which sits at $1.2 million. We will identify the perceived risk factors that may impact this aggressive strategy and its successful execution. The following will be those risk factors:

2. For each of the following scenarios, on the basis of the specific facts and circumstances,

Smooth Sailing has the indications b), d), f) and g) in their operations related to the cruise ship. Regarding to indication b), the presence of pirates greatly affects the cruise ship’s market because customers are afraid of using the cruise ship. The cruise ship’s book value is $4.6million, while the estimated fair value is $3.0milion which is much less than $4.6 so this meets the description of indication d). The presence of pirates greatly affected cruise ship’s operations and economic performance so indications f) and g) also exist. Based on these indications, Cruise ship should be impaired.

As we have mentioned in introduction, Harvey Norman (ASX. HVN) is a giant company, business cover Australia nationally, Asia in Singapore, Malaysia and Europe- Ireland. Core business specialized in retailing & franchising, in areas of electrical, computer, furniture, entertainment, bedding goods. In this part of assignment, we aimed to find out some non-quantitative factors that might leads to potential misstatement, which eventually overstated or understated specific accounts that shown in profit and loss or balance sheet.

John Atherley is the owner of Atherley Furniture Company located near Orillia, Ontario. In recent years the progression of his chair division has had mediocre results and profits have been declining steadily each year. From the years 1995 to 1998 Atherley Furniture’s total profits have suffered a 24% loss within that time span. In the company’s chair division there are three models of chairs that have quite the reputation the “Caledonia”, “Atherley”, and lastly the “Parkdale”. Growing concern for the company’s performance led the executive team to analyze income statements for each model to determine the attributed expenses and revenues. With a decline in profits for the Atherley Company, it is crucial that they

This course focuses on ways in which financial statements reflect business operations and emphasizes use of financial statements in the decision-making process. The course encompasses all business forms and various sectors such as merchandising, manufacturing and service. Students make extensive use of spreadsheet applications to analyze accounting records and financial statements. Prerequisites: COMP100 and MATH114 / 4-4

2. Considering your answer to item 1, the first three exhibits, and related introductory discussion, is it likely that the accounting system may distort product profit significantly? Why? (Ignore general, selling, and admin expense.)

1. The financial statement items that I believe should have been particular interest to BDO Seidman are the inventory primarily and then the sales. BDO Seidman should have noticed that according the ratios, the sales were at a steady rate until the year 1991. The inventory of the company was also having issues with sales due to Leslie Fay not keeping up with the latest fashions and because of a slight recession. According to the ratios and common size statement, the current ratio’s trend was similar to the quick ratio which was constantly declining until 1991.

The next concern is the Year 8 Ending Accounts Receivable in the amount of $609,960 which is the total amount received from Year 8 Sales projections. Once again the Sales projected and the Accounts Receivable shows a wide margin of difference. The Total Budgeted Revenues was $5,247,450 and the Accounts Receivable was $629,694. This equates to only 12% of the Actual Sales being collected. The Accounts Receivables will need a serious evaluation as to why the collections are this low. It is important for this business to increase the Aging Accounts owed to the organization in order to increase the accounts receivable. Penalties may need to be sent to the vendors for late payments and the finance staff will need to be held accountable for poor internal control practices. Accurate Net Sales Projections will need to be adjusted for this change in the overall market decline.

This exaggerated write-down affected net income by decreasing the value of the inventory when the sales occurred in the following period. This would have reduced the cost of goods sold expense while sales and revenues remained unchanged by the write-down. This again shows that the Lethbridge division appears to have tried to decreases expenses in 2011 by increasing them in 2010, thereby bolstering their net income for the contest in 2011. The representational faithfulness and validity of Mitchem Lethbridge’s financial records are again brought into question because of this misleading information.

She wanted to receive the same amount of net salary made at her previous high-end florist shop in Bay St. Her income statement shows that there was a net profit but it was not the same net profit that she was targeted to receive. Her company came into process June ,1, 2015. Two principles that are affected in this case is first Revenue Recognition principal. This accounting principle meets the needs have revenue being shown when earned on the income statement, which leads to accrual basis accounting. Each time revenue was earned it was recognized on the income statement for a certain amount, fitting the criteria of the Revenue Recognition principal. Secondly is Full Disclosure principle, this accounting principle meets the needs of important information for investing or lending decisions, which can affect the financial reports. Within the case Marcia had made an error because she had a different balance between her cash journal and the money she had on hand. She remembered that on June 12 she paid the amount for a delivery that she was unable to make. This is a prime example of the Full Disclosure principle where you look at the important information for investing and lending and everything must match in order to have correct financial

Exhibit 2 and 3 showed the balance sheet and income statement of the Archdiocese of New Orleans. There are error in the balance sheet and income statement. In this balance sheet, shareholder equity was not mentioned, so it is very difficult to calculate the return on equity and debt to equity ratio. This information is very important, the organization need it to pay its debt in future. There are little ambiguities in the current assets and liabilities figure (doubtful receivables).