Janet Molly is one  most trusted employees. She never complains about her work and rarely misses work due to illness or vacation. The company has been successful over the years, but is now having cash flow problems. Because of the recent downturn in the company, you take a closer look at all the company’s financial records. When you ask Janet about the recent cash flow problems, she responds, ‘I don’t know what is going on. I only do the reporting. Ask those who manage the company.” This behaviour differs from Janet’s normal pleasant deportment. As you continue your investigation, you discover that the reported financial results do not match what the company is doing, but you cant determine why. You decided to investigate Janet further. 1. What are some behaviour and lifestyle changes that you should look for? 2. What resources can you use to conduct your research?

Athif trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Athif trading company for the year ending 31-12-2020 Equity and Liabilities OMR Assets OMR Equity Share Capital Capital Reserve 8% Loan on Mortgage Creditors Bank overdraft 40,000 Plant and Machinery 8.000| Land and Buildings 32,000 Furniture & Fixtures 16,000 Stock 12.000 Debtors Investments (Short-term) Cash in hand 24,000 40,000 16,000 12,000 12,000 4,000 12,000 Profit and Loss A/c 12,000 1,20,000 1,20,000 Choose the Current ratio and Quick ratio from the following? O Current ratio is 1.43 and…

21)Granny Apples has worked for Bubba Inc. for 20 years without taking a vacation. An internal control feature that would address this situation would be   a)human resource controls.       b)physical controls.  c)documentation procedures.   d)establishment of responsibility.   25)Receivables are a)always the result of revenue recognition. b)shown on the income statement. c)one of the most liquid assets and thus are always considered  current assets. d)claims that are expected to be collected in cash.   28)Which of the following expressions is incorrect? a)Net income + Operating expenses = Gross profit b)Gross profit - Operating expenses = Net income c)Operating expenses - Cost of goods sold = Gross profit d)Sales revenue - Cost of goods sold - Operating expenses = Net income

The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements.   (a)In addition, identify other information(other than balance sheet, incomes statement and cash flow statement) that will be helpful in deciding whether to accede to NEST Ltd’s request?    (b)You have also noticed that compared to last year, the allowance for bad debt for Nest Ltd has increased from 2% to 4 % of the accounts receivable. Discuss how this information will impact your review.

The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated?  A manager at a "Check Into Cash" business (see Focus on Ethics box on page 192) defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business? Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond…

Otis is the CEO of Bay Corp. The company has been struggling for the last few years and is in danger of defaulting on several of its bank loan covenants. Otis is facing significant pressure from the board of directors to turn the company around. Unless he meets all of the financial goals for the year, he will be out the door without a golden parachute. To improve the financial appearance of the company, Otis undertakes a scheme to boost the balance sheet by faking inventory. The analysis of what financial ratio would most likely bring this scheme to light? Inventory turnover Quick ratio Collection ratio Profit margin

Which of the following is NOT considered an Agency Problem? Multiple Choice The Chairman of the Board decides to throw his wife a lavish birthday party in Tahiti using company funds. A salesperson stops working after the commission payout has hit her annual limit. A manager makes a bad decision, but he has nothing to gain personally from it. The CEO of a company uses the company's jet for personal (non-business-related) travel. A purchasing manager passes up on a positive NPV project because he feels that his job will be in jeopardy if the project fails.

A well-known poem about accounting was written by H.S. Bailey, Jr. and published in 1975 in Publishers Weekly: “Though my bottom line is black, I am flat upon my back. My cash flows out and customers pay slow. The growth of my receivables is almost unbelievable. The result is certain—unremitting woe! And I hear the banker utter an ominous low mutter—“Watch cash flow.” Discuss the message that Mr. Bailey was trying to convey through this poem

John Nowo has been a client of your firm for many years. Whilst preparing his account you become aware and concerned about sources of money into his bank account. You invited John to a meeting and the explanations that he provided were not satisfactory. Required: Can you explain the importance of the Code of Conduct in this specific situation.

Athif trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Athif trading company for the year ending 31-12-2020 Equity and Liabilities OMR OMR Equity Share Capita Capital Reserve s Loan on Mortgage 40000Plant and Machinery 80o0Land and Buildings 32.000Furniture & Fixtures 16000 Stock 24,000 40,000 Creditor 12,000 Bank overdraft 12,000 Debtors investments (Short-term) 4.000 Teanh in hand 12.000 12,000 Profit and Los A/c 12,00 1,20,000 1.20,000 Choose the Current ratio and Quick ratio from the following? O a Current ratio is 1.43 and Quick ratio is 240 Ob.…