Star River

The cloudy afternoon mirrored the mood of the conference of division managers. Claude Meyer, assistant to thecontroller for Hunt Manufacturing, wore one of the gloomy faces that were just emerging from the conferenceroom. “Wow, I knew it was bad, but not that bad,” Claude thought to himself. “I don’t look forward to sharingthose numbers with shareholders.”The numbers he discussed with himself were fourth-quarter losses which more than offset the profits of the firstthree quarters. Everyone had known for some time that poor sales forecasts and production delays had wreakedhavoc on the bottom line, but most were caught off guard by the severity of damage.Later that night he sat alone in his office, scanning and rescanning the preliminary financial statements on hiscomputer monitor. Suddenly his mood brightened. “This may work,” he said aloud, though no one could hear.Fifteen minutes later he congratulated himself, “Yes!”The next day he eagerly explained his plan to Susan Barr, controller…

f In addition to the risk factor identified in the preceding question, another risk factor relating to misstatements arising from fraudulent financial reporting is: Multiple Choice Earnings this year are lower than management had hoped. Accounts payable are limited to commercial suppliers. Sales are made to residential, commercial, and governmental purchasers. The industry faces great technological changes in almost all of its products. Untitled docume...pdf Untitled docume....pdf docx Presentation se...pdf Untitled docume...pdf MacBook Air

The cloudy afternoon mirrored the mood of the conference of division managers. Claude Meyer, assistant to the controller for Hunt Manufacturing, wore one of the gloomy faces that were just emerging from the conference room. “Wow, I knew it was bad, but not that bad,” Claude thought to himself. “I don’t look forward to sharing those numbers with shareholders.” The numbers he discussed with himself were 4Q losses which more than offset the profits of the first three quarters. Everyone had known for some time that poor sales forecast and production delays had wreaked havoc on the bottom line, but most were caught off guard by the severity of the damage. Later that night he sat alone in his office, scanning the preliminary financial statements on this computer. Claude developed a plan and the next day he eagerly explained it to Susan Barr, the controller of Hunt. The plan involved $300 million in convertible bonds issued three years earlier. Meyer: By swapping stock for the bonds, we can…

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James Madison was brought in as assistant to Computron’s chairman, who had the task of getting the company back into a sound financial position.  Madison must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions to take. Your assignment is to help her answer the following questions, using the recent and projected financial information shown next. Provide clear explanations, not yes or no answers. Calculate the inventory turnover, days sales outstanding (DSO), fixed assets turnover, operating capital requirement, and total assets turnover.  How does Computron's utilization of assets stack up against other firms in its industry?

#6 Issue:  Reed Kohler is in his final year of employment as controller for Quality Sales Corporation; he hopes to retire next year. As a member of top management, Kohler participates in an attractive company bonus plan. The overall size of the bonus is a function of the firm’s net income before bonus and income taxes—the larger the net income, the larger the bonus.   Due to a slowdown in the economy, Quality Sales Corporation has encountered difficulties in managing its cash flow. To improve its cash flow by reducing cash payments for income taxes, the firm’s auditors have recommended that the company change its inventory costing method from FIFO to LIFO. This change would cause a significant increase in the cost of goods sold for the year. Kohler believes the firm should not switch to LIFO this year because its inventory quantities are too large. He believes that the firm should work to reduce its inventory quantities and then switch to LIFO (the switch could be made in a year or…

3. CONTEXT In 2019 Wal-Mart employed over 1.7 million employees in the U.S. and, in its annual report, recorded an employee turnover rate of about sixty percent. Although Wal-Mart has since made some efforts to improve employee retention, the situation remains substantially unchanged and, more importantly, the underlying principle is still very pertinent. In fact, Amazon actually pays employees who have, (often legitimate) grievances to quit. 4. THE CASE Given the vast number of employees, enormous expense in terms of rehiring and training is to be expected. For purposes of this exercise we presume that employee training pay is above the federal minimum and, more or less the average of state minimums, or about $6.50. We estimate that training time is three and half work weeks of thirty-six and half hours. Since Wal-Mart has about 1.7 million employees, a 60% turnover means hiring and training about a million new people every year. In addition to the cost of the trainee we must add the…

4. Assume that you will be up for a promotion next month and you'd like to impress your boss with your data analytic skills. The company you work for normally books the current month's bad debit for the same amount as the prior month's actual accounts receivable write-offs. Using general accounting knowledge, explain why this process is not the best method. 5. Briefly describe Benford's Law. Draw a graph that exemplifies data which conforms to Benford's Law (i.e., what it should look like). And, briefly describe how auditors could utilize Benford's Law while conducting testwork.

ABC Corporation is a mid-sized manufacturing company that has been in operation for over 20 years. The company's financial performance has seen significant fluctuations due to market conditions, technological advancements, and changes in management strategy. Recently, ABC Corporation released its annual report, which includes a section on Management Discussion and Analysis (MD&A). Required: Based on the case study of ABC Corporation, critically analyze the role and usefulness of the Management Discussion and Analysis (MD&A) section in understanding the company's financial performance and strategic direction. Provide specific examples from the MD&A section to support your analysis.

QUESTION 26 Which situation here might indicate a company has a low quality of earnings? The same accounting principles are used each year. Revenue is recorded when recognized Repair costs are capitalized and then depreciated. The financial statements are prepared in accordance with generally accepted accounting principles.

11.3 Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan. a) What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit? b) What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000?   Please provide steps so that I can better understand how the answer is found.

Howard Rockness was worried. His company, Rockness Bottling, showed declining profits over the past several years despite an increase in revenues. With profits declining and revenues increasing, Rockness knew there must be a problem with costs. Rockness sent an e-mail to his executive team under the subject heading, “How do we get Rockness Bottling back on track?” Meeting in Rockness’s spacious office, the team began brainstorming solutions to the declining profits problem. Some members of the team wanted to add products. (These were marketing people.) Some wanted to fire the least efficient workers. (These were finance people.) Some wanted to empower the workers. (These people worked in the human resources department.) And some people wanted to install a new computer system. (It should be obvious who these people were.)   Rockness listened patiently. When all participants had made their cases, Rockness said, “We made money when we were a smaller, simpler company. We have grown, added…

Howard Rockness was worried. His company, Rockness Bottling, showed declining profits over the past several years despite an increase in revenues. With profits declining and revenues increasing, Rockness knew there must be a problem with costs.   Rockness sent an e-mail to his executive team under the subject heading, “How do we get Rockness Bottling back on track?” Meeting in Rockness’s spacious office, the team began brainstorming solutions to the declining profits problem. Some members of the team wanted to add products. (These were marketing people.) Some wanted to fire the least efficient workers. (These were finance people.) Some wanted to empower the workers. (These people worked in the human resources department.) And some people wanted to install a new computer system. (It should be obvious who these people were.)   Rockness listened patiently. When all participants had made their cases, Rockness said, “We made money when we were a smaller, simpler company. We have grown,…

JKW Corporation (a fictional company) has been selling plumbing supplies since 1981. In 2003, the company adopted the LIFO method of valuing its inventory. The company has grown steadily over the years and a layer has been added to its LIFO inventory in each of the years the method has been used. The company's inventory turnover ratio has averaged 4.5 in recent years. Management attempts to maintain a stable level of inventory at each store; the growth in inventory has been due to new stores being opened each year. In 20X1, the board of directors approved an incentive program that pays managers a sizable bonus in each year that certain performance targets are met. For 20X2, targeted earnings per share are $3.35. In an effort to track progress toward meeting this target, management produced the following income statement for the first nine months of 20X2. JKW Corporation Income Statement January 1-September 30, 20X2 Sales $13,284,000 Cost of goods sold Gross margin Operating expenses…

James Madison was brought in as assistant to Computron’s chairman, who had the task of getting the company back into a sound financial position.  Madison must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions to take. Your assignment is to help her answer the following questions, using the recent and projected financial information shown next. Provide clear explanations, not yes or no answers. Calculate the price/earnings ratio and market/book ratio.  Do these ratios indicate that investors are expected to have a high or low opinion of the company?

Case Study: ABC Corporation is a medium-sized manufacturing company that produces consumer electronics. The company has a complex financial structure with multiple departments, a diverse range of products, and transactions occurring in various currencies due to its global operations. ABC Corporation recently experienced discrepancies in its financial statements, leading the management to investigate the root causes and improve its accounting processes. The finance team identified that one of the major issues contributing to the discrepancies is a lack of proper reconciliation of bank statements. The company operates numerous bank accounts for various purposes, including payroll, supplier payments, and revenue collections. The manual reconciliation process has proven to be time-consuming and error-prone, resulting in inaccuracies in the financial records. To address these challenges, ABC Corporation is considering implementing an automated bank reconciliation system that integrates with…