FINANCIAL ACCOUNTING: TOOLS WP ACCESS
FINANCIAL ACCOUNTING: TOOLS WP ACCESS
8th Edition
ISBN: 9781119230069
Author: Kimmel
Publisher: WILEY
Question
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Chapter 13, Problem 13.9EYCT

a)

To determine

Financial ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To Find: The Stakeholders in the Company

Given info: Press release about the ratios of company

b)

To determine

The unethical actions of president R

Given info: Press release about the ratios of company

c)

To determine

The responsibility of E.

Given info: Press release about the ratios of company

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Applying ethical standards, management accountability Natalia Wallace is the new controller for Smart Software, Inc. which develops and sells education software. Shortly before the December 31 fiscal year-end, James Cauvet, the company president, asks Wallace how things look for the year-end numbers. He is not happy to learn that earnings growth may be below 13% for the first time in the company’s five-year history. Cauvet explains that financial analysts have again predicted a 13% earnings growth for the company and that he does not intend to disappoint them. He suggests that Wallace talk to the assistant controller, who can explain how the previous controller dealt with such situations. The assistant controller suggests the following strategies: Persuade suppliers to postpone billing $13,000 in invoices until January 1. Record as sales $115,000 in certain software awaiting sale that is held in a public warehouse. Delay the year-end closing a few days into January of the next year so…
Applying ethical standards, management accountability Natalia Wallace is the new controller for Smart Software, Inc. which develops and sells education software. Shortly before the December 31 fiscal year-end, James Cauvet, the company president, asks Wallace how things look for the year-end numbers. He is not happy to learn that earnings growth may be below 13% for the first time in the company’s five-year history. Cauvet explains that financial analysts have again predicted a 13% earnings growth for the company and that he does not intend to disappoint them. He suggests that Wallace talk to the assistant controller, who can explain how the previous controller dealt with such situations. The assistant controller suggests the following strategies: a. Persuade suppliers to postpone billing $13,000 in invoices until January 1. b. Record as sales $115,000 in certain software awaiting sale that is held in a public warehouse. c. Delay the year-end closing a few days into January of the next…
Applying ethical standards, management accountability Ava Borzi is the new controller for Halo Software, Inc. which develops and sells education software. Shortly before the December 31 fiscal year-end, Jeremy Busch, the company president, asks Borzi how things look for the year-end numbers. He is not happy to learn that earnings growth may be below 9% for the first time in the company’s five-year history. Busch explains that financial analysts have again predicted a 9% earnings growth for the company and that he does not intend to disappoint them. He suggests that Borzi talks to the assistant controller, who can explain how the previous controller dealt with such situations. The assistant controller suggests the following strategies: Persuade suppliers to postpone billing $18,000 in invoices until January 1. Record as sales $120,000 in certain software awaiting sale that is held in a public warehouse. Delay the year-end closing a few days into January of the next year so that some of…
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