The Leslie Fay Companies, which is a manufacturer of women’s apparel, was founded by Fred
Pomerantz. The company is based out of New York, and Fred Pomerantz made the company public in 1952. However, Fred Pomerantz ended up taking the company back to a private entity for a few years in the 1980’s due to a buy out from his son John Pomerantz. The Leslie Fay
Companies became public again in 1986. After John Pomerantz had taken over the company, profits started skyrocketing even though the market for women’s apparel was going downhill due to the recession from the 1980’s through the 1990’s.
By looking at these financial statements, one can see there is a huge, constant increase of net income from
1987–1991. According to
…show more content…
Another issue I would like to address as far as the Income Statement, the statement would also, address the section of Discontinued Operations. By this classification, the
Discontinued Operations would show the losses of any department stores that went out of business, and show the gains of any companies Leslie Fay would have obtained during this time.
As we know from the previous history, Leslie Fay obtained many department stores and loss many department stores, and the Discontinued Operations section would show any uncollectible receivables that Leslie Fay should be accounting for. In fact, according to Knapp, late 1989,
Leslie Fay loss a huge amount from a receivable of Allied/Federated Department Stores after the store had filed bankruptcy (65), and the Discontinued Operations would show this amount (loss).
According to Auditing and Assurance Services, audits are split up into cycles to make the audit much more manageable. So I would start with the sales and collection cycle and obtain the
General Ledger and Journal entries starting with the general ledger cash account. According to
Auditing and Assurance Services, the most important general ledger account is general cash because it connects most of the cycles (p 148-149).
I would also obtain the master list of the accounts receivables to verify the total amount is the same as on the Balance Sheet. As it is
Corporations booming affected the Americans in different ways. The industrialized cities begin to attract more people. Urban transportations were improving and this led to the making of department stores. Document I talks about a novel where a woman talks about the department stores in a city. How department stores were the most effective retail organisation. how
I believe that this action was motivated by business considerations, since the accounting practices were not the best. In 1984, Harnischfeger´s reported profits during each of the four quarters, ending the year with a pre-tax operating profit of $5.7 million and a net income after tax and extraordinary credits of $15 million. As such, this made profits look positive.
1. Identify all the accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these on the company's 1984 reported profits.
An accounting cycle is a process, or a series of activities, that consists of collecting an organization’s transactions at the end of a reporting period to prepare essential financial statements of a business (Fleury, 2015). The accounting cycle is a strict, methodical set of rules used to ensure the accuracy and conformity of financial statements (Investopedia, 2017). The steps involved with an accounting cycle, the roles each of the step facilitate, the impact of omission, and what financial statements are assembled from the accounting cycle data.
* Documents used: customer order, sales order, shipping document, sales invoice, sales journal, remittance advice, bank deposit list, cash receipts jornal, credit memo, sales return and allowance journal, uncollectable account authorization form, a/r master file, a/r trail balance, monthly statement
According to Financial and Managerial Accounting, the accounting cycle is the approach companies use to create their financial statements
share increased an average of 27% per year. This remarkable increase in earnings did not go
In 1984, Harnischfeger’s reported profits during each of the four quarters, ending the year with a pre-tax operating profit of $5.7 million and a net income after tax and extraordinary credits of $15 million. So I think that this action was motivated by business considerations, since the accounting practices were not the best. These actions made profits look positive.
Elder, A. A., Beasley, M., & Elder, R. J. (2014). Auditing and assurance services (15th ed.). Upper Saddle River, NJ: Pearson.
Name: ________________________________ Date: _________________ [1]BASIC BANK01 - BAT 003 Which of the following statements is true? A. An asset account is increased by a credit B. An expense account is increase by a credit C. A revenue account is decreased by a credit D. An equity account is decreased by a debit [2]BASIC BANK02 - BAT 010 The Income Summary account contains: A. Total revenues and total expenses for the year B. Total assets and total liabilities at year end C. Total revenues, expenses, assets, and liabilities
From 1976 to 1982 the compound annual growth in net sales was 18.5% and the compound annual growth of after tax profit was 25.9%. Therefore, a 10% net sales growth shown in the proforma financial data seems reasonable.
The total Accounts Receivable balance in the records of $4,752,257.70 was verified by setting a filter of
years, sales had increased at a 7% compound rate, while earnings, benefiting from substantial cost
When engaged in auditing a public firm, such as Apollo Shoe Inc., an auditor must determine when to trust in the company’s internal controls and when to ascertain auxiliary testing methods are obligatory to analyze control risks. The sales and collection cycle is rather a substantial fraction of the audit because this unique segment employs a multitude of documentation and records ranging anywhere from customer and sales orders, shipping documents, credit memos, and general journal entries; therefore, a working